During the quarter ended June 30, 2021, the Company recorded impairment of $37,879 on producing properties and $7,976 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 Company recognized an impairment related to the Eagle Ford at September 30, 2019, discussed below. The further impairment of the Eagle Ford assets at March 31, 2020, was due to the decline in commodity prices over fiscal year 2020.

For fiscal year 2019, impairment of $76.6 million was recorded on our Eagle Ford assets. The remaining $0.3 million of impairment was taken on other assets. The impairment on the Eagle Ford assets was caused by the Company making the strategic decision to cease participating with a working interest on its mineral and leasehold acreage going forward and therefore removing all working interest PUDs from the Company’s reserve reports. The removal of the PUDs caused the Eagle Ford assets to fail the step one test for impairment, as its undiscounted cash flows were not high enough to cover the book basis of the assets. These assets were written down to their fair market value as required by GAAP. The Company determined the fair value based on discounted cash flows of the properties as well as active market bids received from interested potential buyers. The discounted cash flows of the properties were prepared using NYMEX strip pricing as of year-end, using a discount rate of 10% for proved developed and assigning no value to undeveloped locations. Market bids received from interested potential buyers corroborated the fair value of the discounted cash flows as of year-end. The fair value was determined to be $9.1 million based on the discounted cash flows and market quotes. The Company decided not to sell the assets after the marketing process was complete, as we believed that the market conditions were not ideal for selling at that time and that the highest and best use of the assets was to continue to own and produce out the Eagle Ford properties.

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.

Quarter Ended	Net mineral acres		Sale Price	Gain/(Loss)	Location
September 30, 2021
	No significant divestitures
June 30, 2021
		2,857	$0.3 million	$0.2 million	Central Basin Platform, TX
March 31, 2021
	No significant divestitures
December 31, 2020
	No significant divestitures
September 30, 2020
		5,925	$0.8 million	$0.7 million	Northwest OK
June 30, 2020
	No significant divestitures
March 31, 2020
	No significant divestitures
December 31, 2019
	530		$3.4 million	$3.3 million	Eddy County, NM

Quarter Ended	Net royalty acres ⁽¹⁾⁽²⁾		Purchase Price ⁽¹⁾	Area of Interest
September 30, 2021
	817		$7.3 million	Haynesville / LA, TX
June 30, 2021
		262	$1.3 million	Haynesville / LA
		131	$1.0 million	Haynesville / TX
		2,514	$13.0 million	SCOOP / OK
March 31, 2021
	No significant acquisitions
December 31, 2020
		142	$1.0 million	Haynesville / TX
		184	$0.8 million	Haynesville / TX
		386	$3.5 million	Haynesville / TX
		297	$2.3 million	SCOOP / OK
September 30, 2020
	No significant acquisitions
June 30, 2020
	No significant acquisitions
March 31, 2020
	No significant acquisitions
December 31, 2019
	964		$9.3 million	SCOOP / OK

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

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

The following table shows the activity for the years ended September 30, 2021 and 2020, relating to the Company’s asset retirement obligations:

	2021			2020
Asset retirement obligations as of beginning of the year	$	2,897,522		$	2,835,781
Wells acquired or drilled		-			4
Wells sold or plugged		(189,459	)		(68,668	)
Accretion of discount		128,109			130,405
Asset retirement obligations as of end of the year	$	2,836,172		$	2,897,522

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.