The Company made the following property acquisitions during the three-month periods ended December 31, 2022 and 2021.


Quarter Ended (4)	Net royalty acres (1)(2)	Cash	Number of shares (3)	Total Purchase Price (1)	Area of Interest
December 31, 2022
	68	$0.9 million	-	$0.9 million	Haynesville / LA
	187	$2.6 million	-	$2.6 million	Haynesville / LA
	71	$0.9 million	-	$0.9 million	SCOOP / OK
	144	$1.7 million	-	$1.7 million	Haynesville / LA
	18	$0.2 million	-	$0.2 million	Haynesville / LA
	46	$0.5 million	-	$0.5 million	Haynesville / LA
	50	$0.6 million	-	$0.6 million	SCOOP / OK
	98	$1.1 million	-	$1.1 million	SCOOP / OK
	114	$1.2 million	-	$1.2 million	Haynesville / LA
	155	$1.6 million	-	$1.6 million	Haynesville / LA
	11	$0.2 million	-	$0.2 million	Haynesville / TX
	295	$3.1 million	-	$3.1 million	Haynesville / LA
December 31, 2021
	426	$5.8 million	-	$5.8 million	Haynesville / LA
	847	$0.6 million	1,519,481	$4.1 million	Haynesville / LA
	172	$1.4 million	-	$1.4 million	SCOOP / OK
	103	$0.6 million	-	$0.6 million	Haynesville / TX
	116	$1.7 million	-	$1.7 million	Haynesville / LA
	220	$1.2 million	-	$1.2 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 2022 and 2021 were for mineral and royalty acreage and were accounted for as asset acquisitions.

The Company made the following property divestitures during the three-month periods ended December 31, 2022 and 2021.


Quarter Ended(3)	Net mineral acres(1)/ Wellbores(2)	Sale Price	Gain/(Loss)	Location
December 31, 2022
	68 acres	$0.3 million	$0.3 million	TX
	4,653 acres	$0.7 million	$0.5 million	OK / TX
December 31, 2021
	98 wellbores	$2.0 million	($3.5) million	OK
	95 wellbores	$0.5 million	$0.2 million	OK / TX
	499 wellbores	$2.1 million	$1.1 million	AR

(1) Number of net mineral acres sold.

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

(3) Excludes immaterial divestitures.

Management considers the estimation of the Company’s natural gas, oil and NGL reserves to be the most significant of its judgments and estimates. Changes in natural gas, oil and NGL reserve estimates affect the Company’s calculation of DD&A, provision for retirement of assets and assessment of the need for asset impairments. On an annual basis, with a semi-annual update, the Company’s independent consulting petroleum engineer, with assistance from Company staff, prepares estimates of natural gas, oil and NGL reserves based on available geologic and seismic data, reservoir pressure data, core analysis reports, well logs, analogous reservoir performance history, production data and other available sources of engineering, geologic and geophysical information. Between periods in which reserves would normally be calculated, the Company updates the reserve calculations utilizing appropriate prices for the current period. The estimated natural gas, oil and NGL reserves were computed using the 12-month average price calculated as the unweighted arithmetic average of the first-day-of-the-month natural gas, oil and NGL price for each month within the 12-month period prior to the balance sheet date, held flat over the life of the properties. However, projected future natural gas, oil and NGL pricing assumptions are used by management to prepare estimates of natural gas, oil and NGL reserves and future net cash flows used in asset impairment assessments and in formulating management’s overall operating decisions. Natural gas, oil and NGL prices are volatile, affected by worldwide production and consumption, and are outside the control of management.

In the quarter ended December 31, 2022, the Company entered into two agreements to sell working interest in the Arkoma Basin and the Eagle Ford Play. The Company recorded an impairment of $6.1 million to reduce the net book value of the working interest in the Arkoma Basin to fair value less cost to sell. As of December 31, 2022, the Arkoma Basin and Eagle Ford Play working interests had a net carrying value of approximately $5.5 million and were considered held for sale, resulting in the reclassification of $6.4 million of properties, plants and equipment (PP&E) to “Held for sale assets” and $0.9 million of asset retirement obligations, to “Held for sale liabilities” on the balance sheet. The Company received $0.8 million in deposits related to the held for sale assets recorded in “Accrued liabilities and other” on the balance sheet, which is included in the Investing Activities section of the Condensed Statements of Cash Flows.

Company management monitors all long-lived assets, principally natural gas and oil properties, for potential impairment when circumstances indicate that the carrying value of the asset may be greater than its estimated future net cash flows. The evaluations involve significant judgment since the results are based on estimated future events, such as inflation rates; future drilling and completion costs; future sales prices for natural gas, oil and NGL; future production costs; estimates of future natural gas, oil and NGL reserves to be recovered and the timing thereof; the economic and regulatory climates; and other factors. The need to test a property for impairment may result from significant declines in sales prices or unfavorable adjustments to natural gas, oil and NGL reserves. Between periods in which reserves would normally be calculated, the Company updates the reserve calculations to reflect any material changes since the prior report was issued and then utilizes updated projected future price decks current with the period. For the quarters ended December 31, 2022 and 2021, management’s assessment resulted in no impairment provisions on producing properties, other than those held for sale discussed above. The Company wrote off $5,585 on wells assigned to the operator with zero consideration received during the quarter ended December 31, 2021.