Properties And Equipment

12 Months Ended

Dec. 31, 2024

Property, Plant and Equipment [Abstract]

11. PROPERTIES AND EQUIPMENT

Impairment

During the year ended December 31, 2024, the Company recorded impairment of $24,061 related to one field. These assets were written down to their fair market value. The remaining $28,612 of impairment expense was related to leasehold that expired.

During the year ended December 31, 2023, the Company recorded no impairment provisions on producing properties and $38,533 on wells that were assigned back to the operator and the Company wrote off.

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.

Acquisitions


Quarter Ended	Net royalty acres (1)(2)	Total Purchase Price (1)(3)	% Proved / % Unproved	Area of Interest
December 31, 2024
	363	$2.5 million	85% / 15%	Haynesville
September 30, 2024
	325	$3.0 million	78% / 22%	Haynesville / SCOOP
June 30, 2024
	96	$0.9 million	59% / 41%	Haynesville / SCOOP
March 31, 2024
	146	$1.4 million	5% / 95%	SCOOP
December 31, 2023
	325	$4.3 million	72% / 28%	Haynesville / SCOOP
September 30, 2023
	974	$13.4 million	81% / 19%	Haynesville / SCOOP
June 30, 2023
	151	$1.8 million	29% / 71%	Haynesville / SCOOP
March 31, 2023
	912	$10.8 million	44% / 56%	Haynesville / SCOOP

(1) Excludes subsequent closing adjustments and insignificant acquisitions.

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

(3) Table excludes transaction costs of $0.1 million and $0.3 million, respectively, that were capitalized during the years ended December 31, 2024 and 2023.

All purchases made in fiscal years 2023 and 2024 were of mineral and royalty acreage and were accounted for as asset acquisitions.

Divestitures


Quarter Ended	Net mineral acres(1)/ Wellbores(2)	Sale Price (3)	Gain/(Loss) (3)	Location

December 31, 2024
	No significant divestitures
September 30, 2024
	No significant divestitures
June 30, 2024
	1,005 acres	$0.5 million	$0.4 million	TX
March 31, 2024
	No significant divestitures
December 31, 2023
	No significant divestitures
September 30, 2023
	729 acres	$0.3 million	$0.2 million	OK
June 30, 2023
	No significant divestitures
March 31, 2023
	755 acres	$0.3 million	$0.3 million	OK / TX
	267 wellbores	$10.7 million	$4.1 million	OK / TX

(1) Number of net mineral acres sold.

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

(3) Excludes subsequent closing adjustments and immaterial divestitures.

Asset Retirement Obligations

The following table shows the activity for the years ended December 31, 2024 and 2023, relating to the Company’s asset retirement obligations:


	Year Ended December 31,
	2024			2023
Asset retirement obligations as of beginning of the period	$	1,062,139		$	1,916,932
Wells acquired or drilled		-			-
Wells sold or plugged		(8,214	)		(898,231	)
Accretion of discount		43,825			43,438
Asset retirement obligations as of end of the period	$	1,097,750		$	1,062,139

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.