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Supplemental Schedules of Oil and Gas Information
 12 Months Ended
Dec. 31, 2019
Notes to Financial Statements  
Oil and Gas Exploration and Production Industries Disclosures [Text Block]
SUPPLEMENTAL SCHEDULE
1
  
THE RESERVE PETROLEUM COMPANY
WORKING INTEREST RESERVE QUANTITY INFORMATION
(Unaudited)
  
   
Year Ended December 31,
  
   
2019
    
2018
  
Oil and Condensate (Bbls)
                
Proved Developed and Undeveloped Reserves:
                
Beginning of Year
    
363,198
      
376,396
  
Revisions of Previous Estimates
    
(4,587
 )    
26,063
  
Extensions and Discoveries
    
9,383
      
13,699
  
Purchase of Reserves
    
19,219
      
---
  
Production
    
(56,051
 )    
(52,960
 )
End of Year
    
331,162
      
363,198
  
                 
Proved Developed Reserves:
                
Beginning of Year
    
326,752
      
341,152
  
End of Year
    
314,932
      
326,752
  
                 
Gas (MCF)
                
Proved Developed and Undeveloped Reserves:
                
Beginning of Year
    
2,831,861
      
3,191,511
  
Revisions of Previous Estimates
    
(281,944
 )    
75,610
  
Extensions and Discoveries
    
377,521
      
8,094
  
Purchase of Reserves
    
7,860
      
---
  
Production
    
(474,865
 )    
(443,354
 )
End of Year
    
2,460,433
      
2,831,861
  
                 
Proved Developed Reserves:
                
Beginning of Year
    
2,576,738
      
2,944,804
  
End of Year
    
2,298,135
      
2,576,738
  
 
See notes on next page.
Notes:
 
 
1.
Estimates of royalty interests’ reserves, on properties in which the Company does
not
own a working interest, have
not
been included because the information required for the estimation of such reserves is
not
available. The Company’s share of production from its net royalty interests was
28,006
Bbls of oil and
340,386
MCF of gas for
2019
and
30,191
Bbls of oil and
393,584
MCF of gas for
2018.
 
 
2.
The preceding table sets forth estimates of the Company’s proved oil and gas reserves, together with the changes in those reserves, as prepared by the Company’s engineer for
2019
and
2018.
The Company engineer’s qualifications set forth in the Proxy Statement and as incorporated into Item
10
of this Form
10
-K, are incorporated herein by reference. All reserves are located within the United States.
 
 
3.
The Company emphasizes that the reserve volumes shown are estimates, which by their nature are subject to revision in the near term. The estimates have been made by utilizing geological and reservoir data, as well as actual production performance data available to the Company. These estimates are reviewed annually and are revised upward or downward as warranted by additional performance data. The Company’s engineer is
not
independent, but strives to use an objective approach in calculating the Company’s working interest reserve estimates.
 
 
4.
The Company’s internal controls relating to the calculation of its working interests’ reserve estimates include review and testing of the accounting data flowing into the calculation of the reserve estimates. In addition, the average oil and natural gas product prices calculated in the engineer’s
2019
summary reserve report was tested by comparison to
2019
average sales price information from the accounting records.
 
SUPPLEMENTAL SCHEDULE
2
  
THE RESERVE PETROLEUM COMPANY
STANDARDIZED MEASURE OF DISCOUNTED FUTURE NET CASH FLOWS
RELATING TO PROVED WORKING INTEREST
OIL AND GAS RESERVES
(Unaudited)
 
   
At December 31,
  
   
2019
    
2018
  
Future Cash Inflows
   $
21,416,636
     $
28,398,588
  
Future Production and Development Costs
    
(11,272,849
 )    
(14,212,906
 )
Future Asset Retirement Obligation
    
(1,788,739
 )    
(1,873,939
 )
Future Income Tax Expense
    
(294,018
 )    
(701,106
 )
Future Net Cash Flows
    
8,061,030
      
11,610,637
  
10% Annual Discount for Estimated Timing of Cash Flows
    
(2,581,559
 )    
(3,749,911
 )
Standardized Measure of Discounted Future Net Cash Flows
   $
5,479,471
     $
7,860,726
  
 
 
Estimates of future net cash flows from the Company’s proved working interests in oil and gas reserves are shown in the table above. These estimates, which by their nature are subject to revision in the near term, were based on an average monthly product price received by the Company for
2018
and
2019,
with
no
escalation. The development and production costs are based on year-end cost levels, assuming the continuation of existing economic conditions. Cash flows are further reduced by estimated future asset retirement obligations and estimated future income tax expense calculated by applying the current statutory income tax rates to the pretax net cash flows, less depreciation of the tax basis of the properties and depletion applicable to oil and gas production.
 
SUPPLEMENTAL SCHEDULE
3
 
THE RESERVE PETROLEUM COMPANY
CHANGES IN STANDARDIZED MEASURE OF
DISCOUNTED FUTURE NET CASH FLOWS FROM
PROVED WORKING INTEREST RESERVE QUANTITIES
(Unaudited)
 
   
Year Ended December 31,
  
   
2019
    
2018
  
Standardized Measure, Beginning of Year
   $
7,860,726
     $
7,061,938
  
Sales and Transfers, Net of Production Costs
    
(1,836,618
 )    
(2,430,324
 )
Net Change in Sales and Transfer Prices, Net of Production Costs
    
(1,962,275
 )    
2,156,124
  
Extensions, Discoveries and Improved Recoveries,
                
Net of Future Production and Development Costs
    
816,539
      
332,441
  
Revisions of Quantity Estimates
    
(259,068
 )    
442,030
  
Accretion of Discount
    
1,020,105
      
923,952
  
Purchases of Reserves in Place
    
318,332
      
---
  
Net Change in Income Taxes
    
276,171
      
(225,892
 )
Net Change in Asset Retirement Obligation
    
1,823
      
(47,659
 )
Changes in Production Rates (Timing) and Other
    
(756,264
 )    
(351,884
 )
Standardized Measure, End of Year
   $
5,479,471
     $
7,860,726