Properties and equipment and related accumulated DD&A as of December 31, 2021 and September 30, 2021 are as follows:

	December 31, 2021			September 30, 2021
Properties and equipment at cost, based on successful efforts accounting:
Producing natural gas and oil properties	$	249,861,777		$	319,984,874
Non-producing natural gas and oil properties		54,960,073			40,466,098
Other property and equipment		883,310			794,179
		305,705,160			361,245,151
Less accumulated depreciation, depletion and amortization		(195,971,382	)		(257,643,661	)
Net properties and equipment	$	109,733,778		$	103,601,490

Quarter Ended	Net royalty acres ⁽¹⁾⁽²⁾		Purchase Price ⁽¹⁾	Area of Interest
December 31, 2021
		426	$5.8 million	Haynesville / LA
		847	$4.1 million	Haynesville / LA
		172	$1.4 million	SCOOP / OK
		103	$0.6 million	Haynesville / TX
		116	$1.7 million	Haynesville / LA
		220	$1.2 million	SCOOP / OK
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
(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.

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

The Company divested approximately 700 working interest wellbores during the three months ended December 31, 2021, which resulted in reductions to producing natural gas and oil properties of approximately $71.1 million, accumulated depreciation, depletion and amortization of approximately $63.6 million, asset retirement obligation of approximately $0.7 million, and a loss on sale of assets of approximately $2.2 million. The net proceeds from these divestitures was approximately $4.6 million.

Quarter Ended	Wellbores⁽¹⁾	Sale Price	Gain/(Loss)	Location
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
December 31, 2020
	No significant divestitures
(1) Number of Wellbores associated with working interests sold.

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.

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 three months ended December 31, 2021 and 2020, management’s assessment resulted in no impairment provisions on producing properties. The Company wrote off $5,585 on wells assigned with zero consideration received during the three months ended December 31, 2021.