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Asset Retirement Obligations
6 Months Ended
Jun. 30, 2022
Asset Retirement Obligation Disclosure [Abstract]  
Asset Retirement Obligations

Note 6 - Asset Retirement Obligations

The Company’s asset retirement obligations represent the estimated present value of the estimated cash flows the Company will incur to plug, abandon, and remediate its producing properties at the end of their productive lives, in accordance with applicable state laws. Market risk premiums associated with asset retirement obligations are estimated to represent a component of the Company’s credit-adjusted risk-free rate that is utilized in the calculations of asset retirement obligations.

 

The Company’s asset retirement obligation activity is as follows for the six months ended June 30, 2022:

 

      
Asset retirement obligations, beginning of period  $20,640,599 
Additions   233,659 
Liabilities settled   (160,958)
Accretion expense   666,488 
Asset retirement obligation, end of period  $21,379,788