D. OIL AND GAS RESERVES

9 Months Ended

Sep. 30, 2020

Extractive Industries [Abstract]

DISCONTINUED OPERATIONS

NOTE D: DISCONTINUED OPERATIONS

On August 31, 2020 the Company sold its entire oil and gas operation for $85,000 to an independent third party. In the prior years the Company has accrued a liability of $2,745,000 to plug and abandon the existing wells. This obligation has been assumed by the buyer. Upon the sale of the wells the Company recorded a gain of $2,138,000.

Also included in discontinued operations are net operating expenses the company incurred during the period presented. For the nine months ended September 31, 2020 and 2019 the Company recorded an operating loss of $182,000 and $2,423,000. In September 2019 the Company wrote down the accounting value of its oil and gas reserves of by $2,285,000.