Note 10 - Long-lived Assets Impairment Loss

12 Months Ended

Dec. 31, 2016

Notes to Financial Statements

Long Lived Assets Impairment Loss [Text Block]

Note

10

–

LONG-LIVED ASSETS IMPAIRMENT LOSS

Certain oil and gas producing properties have been deemed to be impaired because the assets, evaluated on a property-by-property basis, are not expected to recover their entire carrying value through future cash flows. Impairment losses totaling

$727,845

for

2016

and

$3,726,267

for

2015

are included in the Statements of Operations in the line item Depreciation, Depletion, Amortization and Valuation Provisions. The impairments for

2016

and

2015

were calculated by reducing the carrying value of the individual properties to an estimated fair value equal to the discounted present value of the future cash flow from these properties. Forward pricing was used for calculating future revenue and cash flow.