ASSET RETIREMENT OBLIGATION

9 Months Ended

Sep. 30, 2024

Asset Retirement Obligation Disclosure [Abstract]

NOTE 9 — ASSET RETIREMENT OBLIGATION

The Company records the obligation to plug and abandon oil and gas wells at the dates properties are either acquired or the wells are drilled. The asset retirement obligation is adjusted each quarter for any liabilities incurred or settled during the period, accretion expense and any revisions made to the costs or timing estimates. The asset retirement obligation is incurred using an annual credit-adjusted risk-free discount rate at the applicable dates. A reconciliation for the asset retirement obligation during the nine months ended September 30, 2024 is as follows:


Balance, December 31, 2023	$	28,248,084

Liabilities incurred	505,721
Liabilities sold	(3,219,651)
Liabilities settled	(492,167)
Revision of estimate (1)	133,794
Accretion expense	1,057,213
Balance, September 30, 2024	$	26,232,994

(1) The revisions recorded during the nine months ended September 30, 2024 were related to shorter estimated useful lives, with regards to planned dates to plug and abandon such assets.

The following table presents the Company's current and non-current asset retirement obligation balances as of the periods specified.


	September 30, 2024		December 31, 2023
Asset retirement obligations, current	$	836,421	$	165,642
Asset retirement obligations, non-current	25,396,573		28,082,442
Asset retirement obligations	$	26,232,994	$	28,248,084