Note 10 - Long-lived Assets Impairment Loss

12 Months Ended

Dec. 31, 2021

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 $1,673,929 for 2021 and $2,517,873 for 2020 are included in the consolidated statements of operations in the line-item Depreciation, Depletion, Amortization and Valuation Provisions. The impairments for 2021 and 2020 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 flows from these properties. Forward pricing was used for calculating future revenue and cash flow.