Properties And Equipment

12 Months Ended

Sep. 30, 2022

Property, Plant and Equipment [Abstract]

Properties And Equipment

11. PROPERTIES AND EQUIPMENT

Impairment

During the year ended September 30, 2022, the Company recorded no impairment provisions on producing properties and $14,565 on wells that the Company wrote off.

During the year ended September 30, 2021, the Company recorded impairment of $37,879 on producing properties and $12,596 on wells that the Company wrote off.

During the quarter ended March 31, 2020, impairment of $19.3 million and $7.3 million was recorded on our Fayetteville Shale and Eagle Ford fields, respectively. The remaining $2.7 million of impairment was taken on other producing assets. The discounted cash flows of the properties were prepared using NYMEX strip pricing as of March 31, 2020, using a discount rate of 10% for proved developed and assigning no value to undeveloped locations. The Fayetteville Shale assets are dry-gas assets of which the Company acquired a portion in 2011. Low natural gas prices at March 31, 2020, were the primary reason for impairment in this field. The impairment of the Eagle Ford assets at March 31, 2020, was due to the decline in commodity prices over fiscal year 2020.

A further reduction in natural gas, oil and NGL prices or a decline in reserve volumes may lead to additional impairment in future periods that may be material to the Company.

Divestitures

Quarter Ended	Net mineral acres(1)/ Wellbores(2)	Sale Price (4)	Gain/(Loss) (4)	Location
September 30, 2022
	5 wellbores	$0.1million	$-	OK
	210 wellbores	$5.0million	$3.5million	AR
	87 acres	$0.1million	$0.1million	TX
	9 wellbores	$0.2million	$0.1million	ND
June 30, 2022
	43 acres	$0.1million	$0.1million	TX
	9 wellbores	$0.3million	$0.1million	OK
	83 acres	$0.1million	$0.1million	OK
	16 wellbores	$0.1million	$-	OK
	2 wellbores	$0.1million	$0.1million	OK
	2,255 acres	$0.3million	$0.3million	AR / OK / TX
March 31, 2022
	7,071 acres	$1.6million	$1.6million	NM / TX
	130 acres	$0.5million	$0.5million	TX
December 31, 2021
	98 wellbores	$2.0million	($3.5)million	OK
	95 wellbores	$0.5million	$0.2million	OK / TX
	499 wellbores	$2.1million	$1.1million	AR
September 30, 2021
	No significant divestitures
June 30, 2021
	2,857 acres	$0.3million	$0.2million	Central Basin Platform, TX
March 31, 2021
	No significant divestitures
December 31, 2020
	No significant divestitures

(1) Number of net mineral acres sold.

(2) Number of gross wellbores associated with working interests sold.

(3) Excludes immaterial divestitures.

(4) Sales price and gain(loss) is net of purchase price adjustment.

Acquisitions

Quarter Ended (4)	Net royalty acres (1)(2)	Cash	Number of shares issued (3)		Total Purchase Price (1)	Area of Interest
September 30, 2022
	63	$0.7million		-	$0.7million	Haynesville / LA
	17	$0.2million		-	$0.2million	SCOOP / OK
	85	$1.5million		-	$1.5million	Haynesville / LA
	214	$3.0million		-	$3.0million	Haynesville / LA
	110	$1.0million		-	$1.0million	Haynesville / LA
	295	$5.5million		-	$5.5million	Haynesville / LA
	140	$1.7million		-	$1.7million	SCOOP / OK
June 30, 2022
	60	$0.6million		-	$0.6million	SCOOP / OK
	46	$0.8million		-	$0.8million	Haynesville / LA
	56	$0.4million		-	$0.4million	Haynesville / LA
	88	$0.9million		-	$0.9million	SCOOP / OK
	503	$5.0million		-	$5.0million	Haynesville / LA, TX
	92	$0.6million		-	$0.6million	Haynesville / LA
	25	$0.3million		-	$0.3million	Haynesville / LA
	68	$0.5million		-	$0.5million	SCOOP / OK
March 31, 2022
	58	$0.5million		-	$0.5million	SCOOP / OK
	500	$6.4million		-	$6.4million	Haynesville / LA
	68	$0.7million		-	$0.7million	Haynesville / TX
	166	$1.3million		-	$1.3million	SCOOP / OK
	33	$0.4million		-	$0.4million	Haynesville / TX
December 31, 2021
	426	$5.8million		-	$5.8million	Haynesville / LA
	847	$0.6million		1,519,481	$4.1million	Haynesville / LA
	172	$1.4million		-	$1.4million	SCOOP / OK
	103	$0.6million		-	$0.6million	Haynesville / TX
	116	$1.7million		-	$1.7million	Haynesville / LA
	220	$1.2million		-	$1.2million	SCOOP / OK
September 30, 2021
	817	$0.7million		2,349,207	$7.3million	Haynesville / LA, TX
June 30, 2021
	262	$1.3million		-	$1.3million	Haynesville / LA
	131	$1.0million		-	$1.0million	Haynesville / TX
	2,514	$9.5million		1,200,000	$13.0million	SCOOP / OK
March 31, 2021
	No significant acquisitions
December 31, 2020
	142	$1.0million		-	$1.0million	Haynesville / TX
	184	$0.8million		-	$0.8million	Haynesville / TX
	386	$3.5million		-	$3.5million	Haynesville / TX
	297	$2.0 million		153,375	$2.3 million	SCOOP / OK

(1) Excludes subsequent closing adjustments and insignificant acquisitions.

(2) An estimated net royalty equivalent was used for the minerals included in the net royalty acres.

(3) The Company’s policy is to classify all costs associated with equity issuances as financial costs in the Statements of Cash Flows.

(4) Presented in chronological order with most recent at top.

All purchases made in 2020, 2021, and 2022 were of mineral and royalty acreage and were accounted for as asset acquisitions.

Asset Retirement Obligations

The following table shows the activity for the years ended September 30, 2022 and 2021, relating to the Company’s asset retirement obligations:

	2022			2021
Asset retirement obligations as of beginning of the year	$	2,836,172		$	2,897,522
Wells acquired or drilled		-			-
Wells sold or plugged		(1,027,030	)		(189,459	)
Accretion of discount		92,762			128,109
Asset retirement obligations as of end of the year	$	1,901,904		$	2,836,172

As a non-operator, the Company does not control the plugging of wells in which it has a working interest and is not involved in the negotiation of the terms of the plugging contracts. This estimate relies on information gathered from outside sources as well as relevant information received directly from operators.