The Company generates lease bonus revenue by leasing its mineral interests to exploration and production companies. A lease agreement represents the Company's contract with a third party and generally conveys the rights to any oil, NGL or natural gas discovered, grants the Company a right to a specified royalty interest and requires that drilling and completion operations commence within a specified time period. Control is transferred to the lessee and the Company has satisfied its performance obligation when the lease agreement is executed, such that revenue is recognized when the lease bonus payment is received. The Company accounts for its lease bonuses as conveyances in accordance with the guidance set forth in Accounting Standards Codification (“ASC”) 932, and it recognizes the lease bonus as a cost recovery with any excess above its cost basis in the mineral being treated as a gain. The excess of lease bonus above the mineral basis is shown in the lease bonuses and rental income line item on the Company’s Statements of Operations.

See Note 10 for discussion of the Company’s accounting for derivative contracts.

Sales of oil, NGL and natural gas are recognized when production is sold to a purchaser and control has transferred. Oil is priced on the delivery date based upon prevailing prices published by purchasers with certain adjustments related to oil quality and physical location. The price the Company receives for natural gas and NGL is tied to a market index, with certain adjustments based on, among other factors, whether a well delivers to a gathering or transmission line, quality and heat content of natural gas, and prevailing supply and demand conditions, so that the price of natural gas fluctuates to remain competitive with other available natural gas supplies. These market indices are determined on a monthly basis. Each unit of commodity is considered a separate performance obligation; however, as consideration is variable, the Company utilizes the variable consideration allocation exception permitted under the standard to allocate the variable consideration to the specific units of commodity to which they relate.

The following table presents the disaggregation of the Company's oil, NGL and natural gas revenues for the three and six months ended March 31, 2020 and 2019:

	Three Months Ended March 31, 2020						Six Months Ended March 31, 2020
	Royalty Interest		Working Interest		Total		Royalty Interest		Working Interest		Total
Oil revenue	$	3,126,132	$	1,641,643	$	4,767,775	$	4,539,343	$	3,693,944	$	8,233,287
NGL revenue		196,311		328,430		524,741		419,088		720,536		1,139,624
Natural gas revenue		1,245,413		1,444,976		2,690,389		2,518,527		3,685,305		6,203,832
Oil, NGL and natural gas sales	$	4,567,856	$	3,415,049	$	7,982,905	$	7,476,958	$	8,099,785	$	15,576,743


	Three Months Ended March 31, 2019						Six Months Ended March 31, 2019
	Royalty Interest		Working Interest		Total		Royalty Interest		Working Interest		Total
Oil revenue	$	1,552,380	$	2,377,225	$	3,929,605	$	3,856,185	$	4,552,400	$	8,408,585
NGL revenue		186,884		629,478		816,362		628,111		1,643,086		2,271,197
Natural gas revenue		1,411,154		3,064,198		4,475,352		3,442,266		7,309,990		10,752,256
Oil, NGL and natural gas sales	$	3,150,418	$	6,070,901	$	9,221,319	$	7,926,562	$	13,505,476	$	21,432,038

The Company records revenue in the month production is delivered to the purchaser. As a non-operator, the Company has limited visibility into the timing of when new wells start producing and production statements may not be received for 30 to 90 days or more after the date production is delivered. As a result, the Company is required to estimate the amount of production delivered to the purchaser and the price that will be received for the sale of the product. The expected sales volumes and prices for these properties are estimated and recorded within the Oil, NGL and natural gas sales receivables line item on the Company’s Balance Sheets. The difference between the Company's estimates and the actual amounts received for oil, NGL and natural gas sales is recorded in the quarter that payment is received from the third party. For the three and six months ended March 31, 2019, revenue recognized in these reporting periods related to performance obligations satisfied in prior reporting periods for existing wells was immaterial and considered a change in estimate.

As noted above, as a non-operator, there are instances when the Company is limited by the information operators provide to us. Through the use of new technological platforms as well as cash received on new wells, in the 2020 second quarter, the Company identified several producing properties on our minerals that had production dates prior to the 2020 second quarter. Estimates of the oil and natural gas sales related to those properties were made and are reflected in the second quarter Oil, NGL and natural gas sales on the Company’s Statements of Operations and on the Company’s Balance Sheets in Oil, NGL and natural gas sales receivables. In connection with obtaining more relevant information identifying additional new wells on Panhandle acreage, we have recorded a change in estimate for new wells to Oil, NGL and natural gas sales totaling $1,871,245 of which $1,322,115 related to the production periods before October 1, 2019, and $549,130 related to first quarter of 2020. This reduced loss before benefit for income taxes by $1,717,948 in the three and six months ended March 31, 2020. This resulted in decreases in both net loss of $1,283,339 and $0.08 loss per common share for the three months ended March 31, 2020, and decreases in both net loss of $1,263,155 and $0.08 loss per common share for the six months ended March 31, 2020.