Note 10 - Long-lived Assets Impairment Loss

12 Months Ended

Dec. 31, 2019

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

$912,045

for

2019

and

$832,651

for

2018

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

2019

and

2018

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.