Note 12 - Certain Relationships and Related Transactions

12 Months Ended

Dec. 31, 2021

Notes to Financial Statements

Related Party Transactions Disclosure [Text Block]

Note 12 – CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

The Company is affiliated by common management and ownership with Mesquite Minerals, Inc. (“Mesquite”), Mid-American Oil Company (“Mid-American”) and Lochbuie Limited Liability Company (“Lochbuie”). The Company also owns interests in certain producing and non-producing oil and gas properties as tenants in common with Mesquite, Mid-American and Lochbuie.

Mesquite, Mid-American and Lochbuie share facilities and employees including executive officers with the Company. The Company has been reimbursed for services, facilities and miscellaneous business expenses incurred in 2021 in the amount of $209,187 for Mesquite, $159,001 for Mid-American, and $208,974 for Lochbuie. Reimbursements in 2020 were $201,905 each by Mesquite, Mid-American and Lochbuie. Included in these amounts are each affiliate’s share of salaries. In 2021, the share of salaries paid by Mesquite and Lochbuie were $108,506, and $81,278 for Mid-American. In 2020, the share of salaries paid by Mesquite, Mid-American and Lochbuie was $126,245 each.

The Company purchased working interest properties of Mid-American for $500,469, effective July 1, 2021. Sales price for these properties was determined using risk-adjusted estimated cash flows of the properties as of June 30, 2021. Management believes the amounts paid are reasonable estimates of fair values of the assets acquired.