U.S. Energy (USEG) 10-K 13 Apr 23 2022 FY Annual report Financial data

Cover

Cover - USD ($)	12 Months Ended
	Dec. 31, 2022	Apr. 12, 2023	Jun. 30, 2022
Cover [Abstract]
Document Type	10-K
Amendment Flag	false
Document Annual Report	true
Document Transition Report	false
Document Period End Date	Dec. 31, 2022
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2022
Current Fiscal Year End Date	--12-31
Entity File Number	000-06814
Entity Registrant Name	US ENERGY CORP
Entity Central Index Key	0000101594
Entity Tax Identification Number	83-0205516
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	1616 S. Voss Rd.
Entity Address, Address Line Two	Suite 725
Entity Address, City or Town	Houston
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	77057
City Area Code	(346)
Local Phone Number	509-8734
Title of 12(b) Security	Common Stock, $0.01 par value
Trading Symbol	USEG
Security Exchange Name	NASDAQ
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Public Float			$ 15,822,472
Entity Common Stock, Shares Outstanding		25,234,672
Documents Incorporated by Reference	Portions of the registrant’s definitive proxy statement relating to its 2023 annual meeting of stockholders (the “2023 Proxy Statement”) are incorporated by reference into Part III of this Annual Report on Form 10-K where indicated. The 2023 Proxy Statement will be filed with the U.S. Securities and Exchange Commission within 120 days after the end of the fiscal year to which this report relates
ICFR Auditor Attestation Flag	false
Auditor Firm ID	166
Auditor Name	Plante & Moran, PLLC
Auditor Location	Denver, Colorado

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Current assets:
Cash and equivalents	$ 4,411	$ 4,422
Oil and natural gas sales receivable	3,193	933
Marketable equity securities	107	191
Other current assets	558	179
Real estate assets held for sale, net of selling costs	175	250
Total current assets	8,444	5,975
Oil and natural gas properties under full cost method:
Unevaluated properties	1,584	1,588
Evaluated properties	203,144	95,088
Less accumulated depreciation, depletion, amortization and impairment	(96,725)	(88,195)
Net oil and natural gas properties	108,003	8,481
Other assets:
Pending acquisition		2,767
Property and equipment, net	651	188
Right of use asset	868	120
Other assets	354	132
Total other assets	1,873	3,207
Total assets	118,320	17,663
Current liabilities:
Accounts payable and accrued liabilities	7,832	1,447
Accrued compensation and benefits	1,111	1,162
Commodity derivative liability	1,694
Asset retirement obligations-current	668
Warrant liability		19
Current lease obligation	189	114
Total current liabilities	11,494	2,742
Noncurrent liabilities:
Credit facility	12,000
Asset retirement obligations	14,774	1,461
Long-term lease obligation, net of current portion	794	19
Deferred tax liability	898
Other noncurrent liabilities	6	6
Total noncurrent liabilities	28,472	1,486
Total liabilities	39,966	4,228
Commitments and contingencies (Note 9)
Shareholders’ equity:
Common stock, $0.01 par value; 245,000,000 and unlimited shares authorized; 25,023,812 and 4,676,301 shares issued and outstanding as of December 31, 2022 and 2021, respectively	250	47
Additional paid-in capital	216,690	149,276
Accumulated deficit	(138,586)	(135,888)
Total shareholders’ equity	78,354	13,435
Total liabilities and shareholders’ equity	$ 118,320	$ 17,663

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2022
Statement of Financial Position [Abstract]
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized		245,000,000
Common stock, unlimited shares authorized	Unlimited
Common stock, shares issued	4,676,301	25,023,812
Common stock, shares outstanding	4,676,301	25,023,812

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Revenue:
Total revenue	$ 44,552	$ 6,658
Operating expenses:
Lease operating expenses	17,240	2,421
Production taxes	3,010	471
Depreciation, depletion, accretion and amortization	9,607	566
General and administrative:	11,157	4,635
Total operating expenses	41,014	8,093
Operating income (loss)	3,538	(1,435)
Other income (expense):
Commodity derivative loss	(5,682)	(260)
Marketable equity securities (loss) gain	(83)	10
Real estate held for sale loss	(75)	(151)
Warrant revaluation gain		76
Other (expense) income	(10)	47
Interest expense, net	(544)	(57)
Total other expense	(6,394)	(335)
Loss before income taxes	(2,856)	(1,770)
Income tax benefit	1,893
Net loss	$ (963)	$ (1,770)
Basic and diluted weighted average shares outstanding	24,668,219	4,491,984
Basic and diluted loss per share	$ (0.04)	$ (0.39)
Oil [Member]
Revenue:
Total revenue	$ 36,293	$ 5,956
Natural Gas, Midstream [Member]
Revenue:
Total revenue	$ 8,259	$ 702

Consolidated Statements of Chan

Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Total
Balances at Dec. 31, 2020	$ 33	$ 142,652	$ (134,118)	$ 8,567
Balance, shares at Dec. 31, 2020	3,317,893
Issuance of shares in underwritten offering, net of costs of $488	$ 11	5,272		5,283
Issuance of shares in underwritten offering, net of offering costs of $488, shares	1,131,600
Issuance of shares for related party secured note payable conversion	$ 1	437		438
Issuance of shares for related party secured note payable conversion, shares	97,962
Issuance of shares for settlement of related party legal costs	$ 1	405		406
Issuance of shares for settlement of related party legal costs, shares	90,846
Issuance of shares upon vesting of restricted stock awards	$ 1	(1)
Shares issued upon vesting of restricted stock awards, shares	47,000
Shares withheld to settle tax withholding obligations for restricted stock awards		(38)		(38)
Shares withheld to settle tax withholding obligations for restricted stock awards, shares	(9,000)
Stock-based compensation		549		549
Net loss			(1,770)	(1,770)
Balances at Dec. 31, 2021	$ 47	149,276	(135,888)	13,435
Balance, shares at Dec. 31, 2021	4,676,301
Issuance of shares upon vesting of restricted stock awards	$ 5	(5)
Shares issued upon vesting of restricted stock awards, shares	473,500
Shares withheld to settle tax withholding obligations for restricted stock awards	$ (1)	(306)		(307)
Shares withheld to settle tax withholding obligations for restricted stock awards, shares	(81,725)
Stock-based compensation		3,017		3,017
Net loss			(963)	(963)
Shares issued for acquired properties	$ 199	64,495		64,694
Shares issued for acquired properties, shares	19,905,736
Exercise of warrants		213		213
Exercise of warrants, shares	50,000
Cash dividends $0.0675 per share			(1,735)	(1,735)
Balances at Dec. 31, 2022	$ 250	$ 216,690	$ (138,586)	$ 78,354
Balance, shares at Dec. 31, 2022	25,023,812

Consolidated Statements of Ch_2

Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) $ in Thousands	12 Months Ended
	Dec. 31, 2021 USD ($)
Underwritten Offering [Member]
Subsidiary, Sale of Stock [Line Items]
Offering cost	$ 488

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Cash flows from operating activities:
Net loss	$ (963)	$ (1,770)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation, depletion, accretion, and amortization	9,607	589
Deferred income taxes	(1,921)
Unrealized gain on commodity derivatives	(1,458)
Amortization of debt issuance costs	45
Marketable equity securities loss (gain)	83	(10)
Real estate assets held for sale loss	75	151
Change in fair value of warrants		(76)
Loss on related party debt conversion and settlement of legal costs		76
Stock-based compensation	3,017	549
Right of use asset amortization	205	90
Changes in operating assets and liabilities:
Oil and natural gas sales receivable	(2,261)	(419)
Other assets	150	141
Accounts payable accrued liabilities	4,881	(125)
Accrued compensation and benefits	(51)	850
Payments on operating lease liability	(104)	(92)
Payments of asset retirement obligations	(407)	(107)
Net cash provided by (used in) operating activities	10,898	(153)
Cash flows from investing activities:
Acquisition of proved properties	(12,641)
Expenditures for pending acquisition		(2,221)
Oil and natural gas capital expenditures	(6,208)	(1,408)
Property and equipment expenditures	(435)	(196)
Proceeds from sale of oil and natural gas properties	2,335	40
Proceeds from sale of real estate		440
Payment received on notes receivable		20
Net cash used in investing activities:	(16,949)	(3,325)
Cash flows from financing activities:
Issuance of common stock, net of fees		5,283
Borrowings on credit facility	15,200
Repayment of debt	(6,547)
Payment of fees for credit facility	(207)
Payments on insurance premium finance note	(559)	(199)
Proceeds from warrant exercise	195
Shares withheld to settle tax withholding obligations for restricted stock awards	(307)	(38)
Dividends paid	(1,735)
Net cash provided by financing activities	6,040	5,046
Net (decrease) increase in cash and equivalents	(11)	1,568
Cash and equivalents, beginning of year	4,422	2,854
Cash and equivalents, end of year	$ 4,411	$ 4,422

ORGANIZATION, OPERATIONS AND SI

ORGANIZATION, OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
ORGANIZATION, OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES	1. ORGANIZATION, OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES Organization and Operations U.S. Energy Corp. (collectively with its wholly-owned subsidiaries, Energy One LLC (“Energy One”) and New Horizon Resources LLC (“New Horizon Resources”), referred to as the “Company” in these Notes to Consolidated Financial Statements) was originally incorporated in the State of Wyoming on January 26, 1966. The Company’s principal business activities are focused on the acquisition, exploration and development of oil and natural gas properties in the United States. Effective August 3, 2022, the Company changed its state of incorporation from the State of Wyoming to the State of Delaware (the “Reincorporation”) by means of a Plan of Conversion, effective August 3, 2022 (the “Plan of Conversion”). The Reincorporation, including the Plan of Conversion, was submitted to a vote of, and approved by, the Company’s stockholders at the Company’s 2022 Annual Meeting of Stockholders held on June 21, 2022. The Reincorporation was accomplished by filing: (i) an Application for Certificate of Transfer with the Secretary of State of the State of Wyoming (the “Wyoming Certificate of Transfer”); (ii) a Certificate of Conversion with the Secretary of State of the State of Delaware (the “Delaware Certificate of Conversion”); and (iii) a Certificate of Incorporation with the Secretary of State of the State of Delaware (the “Delaware Certificate of Incorporation”). The Reincorporation did not result in any change in headquarters, business, jobs, management, location of any of the offices or facilities, number of employees, assets, liabilities or net worth (other than as a result of the costs incident to the Reincorporation) of the Company. The resulting Delaware corporation (“U.S. Energy-Delaware”) (i) is deemed to be the same entity as the Company as incorporated in Wyoming (“U.S. Energy-Wyoming”) for all purposes under Wyoming and Delaware law, (ii) continues to have all of the rights, privileges, and powers of U.S. Energy-Wyoming, (iii) continues to possess all of the properties of U.S. Energy-Wyoming, and (iv) continues to have all of the debts, liabilities, and duties of U.S. Energy-Wyoming. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include the fair value of oil and gas properties acquired, oil and natural gas reserves that are used in the calculation of depreciation, depletion, amortization and impairment of the carrying value of evaluated oil and natural gas properties; realizability of unevaluated properties; production and commodity price estimates used to record accrued oil and natural gas sales receivables; future prices of commodities used in the valuation of commodity derivative contracts; and the cost and timing of future asset retirement obligations. The Company evaluates its estimates on an on-going basis and bases its estimates on historical experience and on various other assumptions the Company believes to be reasonable. Due to inherent uncertainties, including the future prices of oil and natural gas, these estimates could change in the near term and such changes could be material. Principles of Consolidation The accompanying financial statements include the accounts of U.S. Energy Corp. and its wholly-owned subsidiaries Energy One and New Horizon Resources. All inter-company balances and transactions have been eliminated in consolidation. Industry Segment and Geographic Information The Company operates in the exploration and production segment of the oil and gas industry, onshore in the United States. The Company reports as a single industry segment. Cash and Equivalents The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. Cash and cash equivalents potentially subject it to a concentration of credit risk as substantially all of its deposits held in financial institutions were in excess of the federal deposit insurance limits as of December 31, 2022 and 2021. The Company maintains its cash and cash equivalents in the form of checking accounts with financial institutions that it believes are creditworthy and are also lenders under its credit facility. Receivables The Company’s oil and natural gas sales receivables consist of receivables from purchasers of the Company’s operated oil, natural gas, and natural gas liquids (“NGLs”) sales. Generally, the Company’s oil and natural gas and natural gas liquids sales receivables from operated properties are collected within one month. The Company also has joint operating agreements as a non-operator of oil and natural gas properties. Generally, receivables from the joint interest operator are collected within one to three months. The Company has had minimal bad debts related to oil and natural gas sales. Although diversified among several purchasers and joint interest operators, collectability is dependent upon the financial wherewithal of each purchaser or joint interest operator and is influenced by the general economic conditions of the industry. Receivables are not collateralized. As of December 31, 2022, and 2021, the Company had not provided an allowance for doubtful accounts on its oil and natural gas sales receivable or its joint interest accounts receivable. Concentration of Credit Risk The Company has exposure to credit risk in the event of nonpayment of oil and natural gas receivables by purchasers of the Company’s share of oil and natural gas production and its operated production. The following table presents the purchasers that accounted for 10% or more of the Company’s total oil and natural gas revenue for at least one of the periods presented: SCHEDULE OF CONCENTRATION OF CREDIT RISK Purchaser 2022 2021 Year Ended December 31, Purchaser 2022 2021 Purchaser A 21 % 30 % Purchaser B 19 % - % Purchaser C 7 % 34 % Purchaser D 2 % 10 % Concentration risk percentage 2 % 10 % Marketable Equity Securities Marketable equity securities are reported at fair value based on end of period quoted prices. Changes in fair value are recorded in the consolidated statements of operations at the end of each reporting period. Gains or losses from sales of marketable equity securities are recorded in the consolidated statements of operations when realized. Oil and Natural Gas Properties The Company follows the full cost method of accounting for its oil and natural gas properties. Under the full cost method, all costs associated with the acquisition, exploration and development of oil and natural gas properties are capitalized and accumulated in a country-wide cost center. This includes any internal costs that are directly related to development and exploration activities but does not include any costs related to production, general corporate overhead or similar activities. Proceeds received from property disposals are credited against accumulated cost except when the sale represents a significant disposal of reserves, in which case a gain or loss is recognized. The sum of net capitalized costs and estimated future development and dismantlement costs for each cost center are subject to depreciation, depletion and amortization (“DD&A”) using the equivalent unit-of-production method, based on total proved oil and natural gas reserves. For financial statement presentation, DD&A includes accretion expense related to asset retirement obligations. Excluded from amounts subject to DD&A are costs associated with unevaluated properties. Under the full cost method, net capitalized costs are limited to the lower of unamortized cost reduced by the related net deferred tax liability, or the cost center ceiling (the “Ceiling Test”). The cost center ceiling is defined as the sum of (i) estimated future net revenue, discounted at 10 Acquisitions The Company accounts for acquisitions as business combinations if the acquired assets meet the definition of a business. If substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar assets, the acquisition is not considered a business and is accounted for as an asset acquisition. This determination of whether the gross assets acquired are concentrated in a group of similar assets is based on whether the risks associated with managing and creating outputs from the assets are similar. Other Property and Equipment Land, buildings, and building improvements are classified as held for sale and are carried at the estimated realizable value, less costs to sell. Long-lived assets are classified as held for sale when the Company commits to a plan to sell the assets. Such assets are classified within current assets if there is reasonable certainty that the sale will take place within one year. Upon classification as held for sale, long-lived assets are no longer depreciated or depleted, and a measurement for impairment is performed to determine if there is any excess of carrying value over fair value less costs to sell. Subsequent changes to estimated fair value less the cost to sell will impact the measurement of assets held for sale if the fair value is determined to be less than the carrying value of the assets. Administrative assets are carried at cost. Depreciation of administrative assets is provided principally by the straight-line method over estimated useful lives as follows: SCHEDULE OF PROPERTY AND EQUIPMENT USEFUL LIFE Years Administrative assets: Computers and software 3 Office furniture and equipment 5 Autos and trucks 5 Other equipment 10 Impairment of Long-Lived Assets The Company evaluates long-lived assets for impairment when events or changes in circumstances indicate that the related carrying amount may not be recoverable. If estimated future cash flows, on an undiscounted basis, are less than the carrying amount of the related asset, an asset impairment charge is recognized, and measured as the amount by which the carrying value exceeds the estimated fair value. Changes in significant assumptions underlying future cash flow estimates may have a material effect on the Company’s financial position and results of operations. Leases The Company accounts for leases in accordance with Accounting Standards Codification (“ASC”) Topic 842, Leases, (“Topic 842”), which requires lessees to recognize operating and finance leases with terms greater than 12 months on the balance sheet. The Company evaluates a contractual arrangement at its inception to determine if it is a lease or contains an identifiable lease component. Certain leases may contain both lease and non-lease components. The Company’s policy for all asset classes is to combine lease and non-lease components together and account for the arrangement as a single lease. Certain assumptions and judgements made by the Company when evaluating a contract that meets the definition of a lease under Topic 842 include those to determine the discount rate and lease term. Unless implicitly defined, the Company determines the present value of the future lease payments using an estimated incremental borrowing rate at the lease inception. The Company evaluates each contract containing a lease arrangement at inception to determine the length of the lease term when recognizing a right-of-use (“ROU”) asset and corresponding lease liability. The Company excludes from the balance sheet leases with terms that are less than one year. A ROU asset represents a lessee’s right to use an underlying asset for the lease term, while the associated lease liability represents the lessee’s obligations to make lease payments. At the commencement date a lease ROU asset and corresponding lease liability is recognized based on the present value of the future lease payments. The initial measurement excludes certain variable lease payments, such as payments that vary depending on actual usage. Please see “ Note 4-Leases” Derivative Financial Instruments The Company periodically enters into commodity derivative instruments to mitigate a portion of its exposure to oil price volatility for its expected future oil production. The Company does not designate commodity derivative contracts as cash flow hedges, and therefore the contracts do not qualify for hedge accounting. Changes in fair value of derivative contracts are recorded in the consolidated statement of operations. The fair value of derivative contracts is recorded as either an asset or a liability on the consolidated balance sheet. Revenue Recognition The Company derives revenue from the sale of produced oil, gas and NGLs. Revenue is recognized at the point in time when custody and title of the product transfers to the purchaser, which may differ depending on the applicable contractual terms. Revenue accruals are recorded monthly based on the Company’s share of estimated production delivered to a purchaser and the expected price to be received. The Company uses its knowledge of its properties, contractual arrangements, historical performance, NYMEX differentials, and other factors as the basis of these estimates. Variances between estimates and the actual amounts received are recorded in the month payment is received. Asset Retirement Obligations The Company records the estimated fair value of restoration and reclamation liabilities related to its oil and natural gas properties as of the date that the liability is incurred. The Company reviews the liability each quarter and determines if a change in estimate is required, and accretion of the discounted liability is recorded based on the passage of time. The Company deducts any actual funds expended for restoration and reclamation during the quarter in which it occurs. Stock-Based Compensation The Company measures the cost of employee and director services received in exchange for all equity awards granted, including stock options, based on the fair value of the award as of the grant date. The Company computes the fair values of any options granted to employees using the Black-Scholes option pricing model. The Company recognizes the cost of the equity awards over the period during which an employee or director is required to provide services in exchange for the award, usually the vesting period. Forfeitures are recognized as they occur. Unvested shares of restricted stock grants are not included in common shares outstanding until vesting has occurred. Income Taxes The Company recognizes deferred income tax assets and liabilities for the expected future income tax consequences, based on enacted tax laws, of temporary differences between the financial reporting and tax bases of assets, liabilities and carry forwards. Additionally, the Company recognizes deferred tax assets for the expected future effects of all deductible temporary differences, loss carry forwards and tax credit carry forwards. Deferred tax assets are reduced, if deemed necessary, by a valuation allowance for any tax benefits that, based on current circumstances, are not expected to be realized. At December 31, 2022 and 2021, management believed it was more likely than not that such tax benefits would not be realized and a valuation allowance has been provided. In assessing the need for a valuation allowance for the Company’s deferred tax assets, a significant item of negative evidence considered was the cumulative book loss over the three-year period ended December 31, 2022. The Company assesses its uncertain tax positions annually. The Company recognizes the tax benefit from an uncertain tax position only if it is probable that the tax position will be sustained on examination by taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that is probable of being realized upon ultimate settlement. The amount of unrecognized tax benefits is adjusted as appropriate for changes in facts and circumstances, such as significant amendments to existing tax law, new regulations or interpretations by the taxing authorities, new information obtained during a tax examination, or resolution of an examination. Earnings Per Share Basic net income (loss) per share is computed based on the weighted average number of common shares outstanding. Diluted net income (loss) per share is calculated by dividing net income or loss by the diluted weighted average common shares outstanding, which includes the effect of potentially dilutive securities. Potentially dilutive securities for this calculation consist of in-the-money outstanding stock options, and unvested restricted stock. When there is a loss from continuing operations, all potentially dilutive shares are anti-dilutive and are excluded from the calculation of net income (loss) per share. The treasury stock method is used to measure the dilutive impact of unvested restricted stock and in-the-money stock options. Recent Accounting Pronouncements There were no significant new accounting standards adopted or new accounting pronouncements issued that would have a potential effect on the Company as of December 31, 2022.

ACQUISITIONS

ACQUISITIONS	12 Months Ended
	Dec. 31, 2022
Business Combination and Asset Acquisition [Abstract]
ACQUISITIONS	2. ACQUISITIONS January 2022 Acquisition On January 5, 2022 (the “Closing Date”), the Company closed the acquisitions (the “Acquisition”) contemplated by three separate Purchase and Sale Agreements (the “Purchase Agreements” and the “Closing”), entered into by the Company on October 4, 2021, with each of (a) Lubbock Energy Partners LLC (“Lubbock”); (b) Banner Oil & Gas, LLC, Woodford Petroleum, LLC and Llano Energy LLC (collectively, “Banner”), and (c) Synergy Offshore LLC (“Synergy”, and collectively with Lubbock and Banner, (the “Sellers”). Pursuant to the Purchase Agreements, the Company acquired certain oil and gas properties from the Sellers, representing a diversified portfolio of primarily operated, producing, oil-weighted assets located across the Rockies, West Texas, Eagle Ford, and Mid-Continent. The acquisition also included certain wells, contracts, technical data, records, personal property and hydrocarbons associated with the acquired assets (collectively with the oil and gas properties acquired, the “Acquired Assets”). The Company accounted for the acquisition of the Acquired Assets as an asset acquisition. The purchase price for the Acquired Assets was (a) $ 125,000 6,568,828 1,000,000 3.3 6,790,524 3.1 125,000 6,546,384 66.4 1.25 19,905,736 64.7 0.5 3.3 3.1 SUMMARY OF AMOUNTS INCURRED FOR ASSETS ACQUIRED Amount (in thousands) Amounts incurred: Cash $ 1,250 Value of 19,905,736 64,694 Purchase price adjustments 487 Transaction costs 1,267 Total consideration paid 67,698 Debt assumed 3,347 Commodity derivative liabilities assumed 3,152 Suspense accounts assumed 1,276 Employee obligations assumed 100 Asset retirement obligations assumed 9,614 Deferred tax liabilities 2,819 Total liabilities assumed 20,308 Total consideration paid and liabilities assumed $ 88,006 Allocation to acquired assets: Proved oil and gas properties (1) 87,672 Vehicles 165 Deposit account 169 Total allocation to acquired assets $ 88,006 (1) Amount includes $ 1,286 Liberty County, Texas Acquisition On May 3, 2022, the Company acquired certain operated oil and gas producing properties in Liberty County, Texas, adjacent to its existing assets in the area, for $ 1.0 1,022 0.2 0.5 East Texas Acquisition On July 27, 2022, the Company closed a purchase and sale agreement for the acquisition of properties from ETXENERGY, LLC (“ETXENERGY”). The properties are located in Henderson and Anderson Counties, Texas (the “East Texas Assets”). The properties consist of approximately 16,600 11.9 SUMMARY OF AMOUNTS INCURRED FOR ASSETS ACQUIRED Amount (in thousands) Amounts incurred: Cash $ 11,875 Purchase price adjustments (1,048 ) Transaction costs 63 Total consideration paid 10,890 Suspense accounts assumed 380 Asset retirement obligations assumed 1,689 Total liabilities assumed 2,069 Total consideration paid and liabilities assumed $ 12,959 Allocation to acquired assets: Proved oil and gas properties (1) $ 12,959 (1) Amount includes $ 557

REVENUE FROM CONTRACTS WITH CUS

REVENUE FROM CONTRACTS WITH CUSTOMERS	12 Months Ended
	Dec. 31, 2022
Revenue from Contract with Customer [Abstract]
REVENUE FROM CONTRACTS WITH CUSTOMERS	3. REVENUE FROM CONTRACTS WITH CUSTOMERS The Company’s operated oil production is sold at the delivery point specified in the contract. The Company collects an agreed-upon index price, net of pricing differentials. The purchaser takes custody, title and risk of loss of the oil at the delivery point; therefore, control passes at the delivery point. The Company does not separately account for oil in temporary storage at the site of production prior to its transfer to the purchaser. The Company recognizes revenue at the net price received when control transfers to the purchaser. Natural gas and natural gas liquid (“NGL”) are sold at the lease location, which is generally when control of the natural gas and NGL transfers to the purchaser, and revenue is recognized as the amount received from the purchaser. The Company does not disclose the values of unsatisfied performance obligations under its contracts with customers as it applies the practical exemption in accordance with Accounting Standards Codification (ASC) 606. The exemption applies to variable consideration that is recognized as control of the product is transferred to the customer. Since each unit of product represents a separate performance obligation, future volumes are wholly unsatisfied, and disclosure of the transaction price allocated to the remaining performance obligations is not required. The Company reports operated revenue as the gross amount received from the purchasers before taking into account transportation costs. Production taxes are reported separately, and transportation costs are included in lease operating expense in the accompanying consolidated statements of operations. The revenue and costs in the consolidated statements of operations were reported gross for the years ended December 31, 2022 and 2021, as the gross amounts were known. The Company reports non-operated revenue as the Company’s net share received from the well operators. Production taxes are reported separately, and transportation costs are included in lease operating expense in the accompanying consolidated statements of operations. The revenue and costs in the consolidated statements of operations were reported gross for the years ended December 31, 2022 and 2021, as the gross amounts were known. The Company’s non-operated revenues are derived from its interest in the sales of oil and natural gas production. The sales of oil and natural gas are made under contracts that operators of the wells have negotiated with third-party customers. The Company receives payment from the sale of oil and natural gas production between one to three months after delivery. At the end of each period when the performance obligation is satisfied, the variable consideration can be reasonably estimated and amounts due from customers are accrued in oil and natural gas sales receivable in the consolidated balance sheets. Variances between the Company’s estimated revenue and actual payments are recorded in the month the payment is received; however, differences have been and are expected to be insignificant. Accordingly, the variable consideration is not constrained. As a non-operator of its oil and natural gas properties, the Company records its share of the revenues and expenses based upon the information provided by the operators within the revenue statements. The Company’s oil and natural gas production is typically sold at delivery points to various purchasers under contract terms that are common in the oil and natural gas industry. Regardless of the contract type, the terms of these contracts compensate the well operators for the value of the oil and natural gas at specified prices, and then the well operators remit payment to the Company for its share in the value of the oil and natural gas sold. The Company disaggregates revenues from its share of revenue from the sale of oil and natural gas and liquids by region. The Company’s revenues in its Rockies, West Texas, South Texas, Gulf Coast and Mid- Continent regions for the years ended December 31, 2022 and 2021, are presented in the following table: SCHEDULE OF DISAGGREGATED REVENUE 2022 2021 Year Ended 2022 2021 (in thousands) Revenue: Rockies Oil $ 14,318 $ 2,844 Natural gas and liquids 1,138 391 Total 15,456 3,235 South Texas Oil 6,384 929 Natural gas and liquids 774 74 Total 7,158 1,003 West Texas Oil 5,408 985 Natural gas and liquids 331 239 Total 5,739 1,224 Gulf Coast Oil 3,769 1,162 Natural gas and liquids 449 - Total 4,218 1,162 Mid-Continent Oil 6,414 36 Natural gas and liquids 5,567 (2 ) Total 11,981 34 Combined Total $ 44,552 $ 6,658

LEASES

LEASES	12 Months Ended
	Dec. 31, 2022
Leases
LEASES	4. LEASES During the year ended December 31, 2022, the Company acquired right-of-use assets and operating lease liabilities of $ 953 SCHEDULE OF CONSOLIDATED BALANCE SHEET December 31, 2022 2021 (in thousands) Right of use asset Operating lease $ 868 $ 120 Lease liability Short-term operating lease 189 114 Long-term operating lease 794 19 Total operating leases $ 983 $ 133 The Company recognizes lease expense on a straight-line basis excluding short-term and variable lease payments, which are recognized as incurred. Short-term lease cost represents payments for office leases with original terms less than one year. Beginning in March 2020, the Company subleased its Denver, Colorado office and recognizes sublease income as a reduction of rent expense. The term of the sublease is through the term of the Company’s Denver office lease, which terminates in January 2023. Following are the amounts recognized as components of rental expense for the years ended December 31, 2022 and 2021: SCHEDULE OF LEASE COSTS December 31, 2022 2021 (in thousands) Operating lease cost $ 246 125 Short-term lease cost 560 9 Sublease income (71 ) (64 ) Total lease costs $ 735 $ 70 The Houston operating lease commenced in May 2022 and is for a term of 67 0.50 Short-term lease cost is associated with short-term lease agreements primarily related to compressors and field equipment rentals contracted for 12 The Company’s Denver and Houston office operating leases do not contain implicit interest rates that can be readily determined; therefore, the Company used the incremental borrowing rates in effect at the time the Company entered into the leases. SCHEDULE OF WEIGHTED AVERAGE LEASE As of December 31, 2022 2021 Weighted average lease term (years) 4.8 1.1 Weighted average discount rate 4.34 % 9.26 % Maturity of operating lease liabilities with terms of one year or more as of December 31, 2022 are presented in the following table: SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS December 31, 2022 (in thousands) 2023 225 2024 213 2025 218 2026 224 2027 209 Total lease payments $ 1,089 Less: imputed interest (106 ) Total lease liability $ 983 In August 2021, the Company sold a 14 -acre tract in Riverton, Wyoming with a two-story, 30,400 square foot office building for $ 440 151 8 thousand related to the Riverton, Wyoming office building for the year ended December 31, 2021.

OIL AND NATURAL GAS PRODUCING A

OIL AND NATURAL GAS PRODUCING ACTIVITIES	12 Months Ended
	Dec. 31, 2022
Extractive Industries [Abstract]
OIL AND NATURAL GAS PRODUCING ACTIVITIES	5. OIL AND NATURAL GAS PRODUCING ACTIVITIES Divestitures During year ended December 31, 2022, the Company divested of the Wildhorse Waterflood Unit in Osage County, Oklahoma, which was included in the assets acquired on January 5, 2022. Net proceeds from sale of the waterflood unit were $ 1.2 30 4,500 1.1 10 12 30 Ceiling Test and Impairment The reserves used in the ceiling test incorporate assumptions regarding pricing and discount rates over which management has no influence in the determination of present value. In the calculation of the ceiling test as of December 31, 2022, the Company used $ 93.67 6.36 10 For the years ended December 31, 2022, and 2021, the Company did not record ceiling test write downs of its oil and natural gas properties.

DEBT

DEBT	12 Months Ended
	Dec. 31, 2022
Debt Disclosure [Abstract]
DEBT	6. DEBT On January 5, 2022, the Company entered into a five-year credit agreement (“Credit Agreement”) with Firstbank Southwest (“Firstbank”) as administrative agent for one or more lenders (the “Lenders”), which provided for a revolving line of credit with an initial borrowing base of $ 15 100 15 20 10.7 (a) the greatest of (i) the prime rate in effect on such day, and (b) the Federal Funds rate in effect on such day (as determined in the Credit Agreement) plus 0.50%, and an applicable margin that ranges between 0.25% to 1.25% depending on utilization of the amount of the borrowing base (the “Applicable Margin”). The weighted average interest rate on the Credit Agreement for the year ended December 31, 2022, was 6.63% per annum. 528 The Credit Agreement contains various restrictive covenants and compliance requirements, which include, among other things: (i) maintenance of certain financial ratios, as defined in the Credit Agreement tested quarterly, that limit the Company’s ratio of total debt to EBITDAX (as defined in the Credit Agreement) to 3:1 and require its ratio of consolidated current assets to consolidated current liabilities (as each is described in the Credit Agreement) to remain at 1:1 or higher; (ii) a restriction on the payment of cash dividends (subject to certain limited rights to declare and pay dividends as long as no event of default has occurred and certain financial ratios are met); (iii) limits on the incurrence of additional indebtedness; (iv) a prohibition on the entry into commodity swap contracts exceeding a specified percentage of our expected production; and (v) restrictions on the disposition of assets. As of December 31, 2022, the Company was in compliance with all financial covenants related to the Credit Agreement. A total of $ 3.5 3.5 3.3 12.0 On March 4, 2021, the Company closed a Debt Conversion Agreement (the “Conversion Agreement”) with APEG Energy II, L.P. (“APEG II”), which entity Patrick E. Duke, a former director of the Company, has shared voting power and shared investment power over. The Conversion Agreement was related to a $ 375,000 10 September 24, 2021 10 37,500 97,962 438,000 25,500 412,500

COMMODITY DERIVATIVES

COMMODITY DERIVATIVES	12 Months Ended
	Dec. 31, 2022
Commodity Derivatives
COMMODITY DERIVATIVES	7. COMMODITY DERIVATIVES The Company’s results of operations and cash flows are affected by changes in market prices for crude oil and natural gas. To manage a portion of its exposure to price volatility from producing crude oil and natural gas the Company enters into commodity derivative contracts to protect against price declines in future periods. The Company does not enter into derivative contracts for speculative purposes. The Company has not elected to designate the derivative contracts as cash flow hedges; therefore, the instruments do not qualify for hedge accounting. Accordingly, changes in the fair value of the derivative contracts are recorded in the consolidated statements of operations and are included in cash flows from operating activities in the consolidated statement of cash flows. On January 5, 2022, the Company and NextEra Energy Marketing LLC (“NextEra”) entered into an International Swap Dealers Association, Inc. Master Agreement and Schedule (the “Master Agreement”), facilitating the Company to enter into derivative contracts to manage the risk associated with its business relating to commodity prices. The Company’s obligations to NextEra under the Master Agreement are secured by the collateral which secures the loans under the Credit Agreement on a pari passu and pro rata basis with the principal of such loans. The structure of the derivative contacts may include swaps, caps, floors, collars, locks, forwards and options. The Company’s entry into and the obligations of the Company under the Master Agreement were required conditions to the January 2022 Closing, pursuant to which the Company was required to assume and novate certain hedges which had a mark to market loss of approximately $ 3.1 SCHEDULE OF COMMODITY DERIVATIVE CONTRACTS Collars Fixed Price Swaps Quantity Quantity Commodity/ Crude Oil-(Bbls) (1) Weighted Average Prices Crude Oil- (Bbls) Weighted Maturity Period Gas-(Mmbtu) (2) Floors Ceilings Gas-(Mmbtu) Price NYMEX WTI Crude Oil 2023 Contracts: First quarter 2023 66,200 $ 57.73 $ 76.00 6,000 $ 59.20 Second quarter 2023 53,500 $ 60.00 $ 81.04 6,000 $ 59.20 Third quarter 2023 52,600 $ 60.00 $ 81.04 - $ - Fourth quarter 2023 51,200 $ 60.00 $ 81.04 - $ - Total 2023 223,500 $ 59.33 $ 79.55 12,000 $ 59.20 N YMEX Henry Hub Natural Gas 2023 Contracts: First quarter 2023 - $ - $ - 60,000 $ 2.96 (1) “Bbl” refers to one stock tank barrel, or 42 U.S. gallons liquid volume, used in this report in reference to crude oil or other liquid hydrocarbons. (2) “Mmbtu” means 1 million BTUs (British Thermal Units). The following table details the fair value of commodity derivative contracts recorded in the accompanying balance sheets by category: SCHEDULE OF FAIR VALUE OF COMMODITY DERIVATIVE CONTRACTS December 31, 2022 2021 (in thousands) Derivative liabilities: Current liabilities $ 1,694 $ - Total derivative liabilities $ 1,694 $ - As of December 31, 2022, all commodity derivative contracts held by the Company were subject to master netting arrangements with its counterparty. The terms of the Company’s derivative agreements provide for offsetting of amounts payable or receivable between it and the counterparty for contracts that settle on the same date. The Company’s agreements also provide that in the event of an early termination, the counterparty has the right to offset amounts owed or owing under that and any other agreement. The Company’s accounting policy is to offset positions that settle on the same date with the same counterparty. The following table summarizes the commodity components of the derivative settlement gain (loss) as well as the components of the net derivative loss line-item presentation in the accompanying consolidated statement of operations: SCHEDULE OF DERIVATIVE SETTLEMENT GAIN LOSS December 31, 2022 2021 (in thousands) Commodity derivative settlement losses: Oil contracts $ (6,277 ) $ (260 ) Gas contracts (863 ) - Total derivative settlement losses $ (7,140 ) $ (260 ) Total net commodity derivative losses: Oil contracts $ (4,941 ) $ (260 ) Gas contracts (741 ) - Total net commodity derivative losses $ (5,682 ) $ (260 )

ASSET RETIREMENT OBLIGATIONS

ASSET RETIREMENT OBLIGATIONS	12 Months Ended
	Dec. 31, 2022
Asset Retirement Obligation Disclosure [Abstract]
ASSET RETIREMENT OBLIGATIONS	8. ASSET RETIREMENT OBLIGATIONS The Company has asset retirement obligations (“ARO”) associated with the future plugging and abandonment of developed oil and gas properties. Initially, the fair value of a liability for an ARO is recorded in the period in which the ARO is incurred with a corresponding increase in the carrying amount of the related asset. The liability is accreted to its present value each period and the capitalized cost is depleted over the life of the related asset. If the liability is settled for an amount other than the recorded amount, an adjustment to the full-cost pool is recognized. The Company had no assets that are restricted for the purpose of settling AROs. The Company recorded $ 9.6 0.5 1.7 See “Note 2 Acquisitions” In the fair value calculation for the ARO there are numerous assumptions and judgments including the ultimate retirement cost, inflation factors, credit-adjusted risk-free discount rates, market risk premiums, timing of retirement and changes in legal, regulatory, environmental and political environments. To the extent future revisions to assumptions and judgments impact the present value of the existing ARO, a corresponding adjustment is made to the oil and natural gas property balance. The following is a reconciliation of the changes in the Company’s liabilities for asset retirement obligations for the years ended December 31, 2022 and 2021: SCHEDULE OF ASSET RETIREMENT OBLIGATION Year Ended December 31, 2022 2021 (in thousands) Balance, beginning of year $ 1,461 $ 1,408 Acquired 11,811 45 Cost and life revisions 1,825 - Plugged (407 ) - Sold (189 ) (70 ) Accretion 941 78 Balance, end of year $ 15,442 $ 1,461

COMMITMENTS, CONTINGENCIES, AND

COMMITMENTS, CONTINGENCIES, AND RELATED PARTY TRANSACTIONS	12 Months Ended
	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS, CONTINGENCIES, AND RELATED PARTY TRANSACTIONS	COMMITMENTS, CONTINGENCIES, AND RELATED PARTY TRANSACTIONS Litigation In July 2020, the Company received a request for arbitration from its former Chief Executive Officer, David Veltri claiming that it breached his employment agreement. The Company settled the litigation in December 2021. For the year ended December 31, 2021, the total amount incurred by the Company related to the litigation was $ 427

SHAREHOLDERS_ EQUITY

SHAREHOLDERS’ EQUITY	12 Months Ended
	Dec. 31, 2022
Shareholders’ equity:
SHAREHOLDERS’ EQUITY	10. SHAREHOLDERS’ EQUITY At December 31, 2022, the Company had 25,023,812 245,000,000 5,000,000 19,905,736 1,131,600 5.3 Stock Option Plans From time to time, the Company may grant stock options under its incentive plan covering shares of common stock to employees of the Company. Stock options, when exercised, are settled through the payment of the exercise price in exchange for new shares of stock underlying the option. These awards typically expire ten years from the grant date. For the years ended December 31, 2022 and 2021, there was no No 2,913 332 SCHEDULE OF STOCK OPTIONS ACTIVITY December 31, 2022 December 31, 2021 Shares Price (1) Shares Price (1) Stock options outstanding and exercisable 28,122 $ 54.03 31,035 $ 62.79 (1) Represents the weighted average price. The following table summarizes information for stock options outstanding and for stock options exercisable at December 31, 2022. All shares and prices per share have been adjusted for a one share-for-ten shares reverse stock split that took effect on January 6, 2020: SCHEDULE OF STOCK OPTIONS OUTSTANDING AND EXERCISABLE Options Outstanding Options Exercisable Exercise Price Remaining Weighted Average Number of Range Weighted Contractual Number of Exercise Shares Low High Average Term (years) Shares Price 16,500 $ 7.20 $ 11.60 $ 10.00 4.8 16,500 $ 10.00 10,622 90.00 124.80 106.20 1.3 10,622 106.20 1,000 226.20 226.20 226.20 1.7 1,000 226.20 28,122 $ 7.20 $ 226.20 $ 54..03 3.4 28,122 $ 54.03 Restricted Stock The Company grants restricted stock under its incentive plan covering shares of common stock to employees and directors of the Company. The restricted stock awards are time-based awards and are amortized ratably over the requisite service period. Restricted stock vests ratably on each anniversary following the grant date provided the grantee is employed on the vesting date. Forfeitures of restricted stock awards are recognized as they occur. Restricted stock granted to employees, when vested, may be net settled through the net issuance of shares, reduced by the number of shares required to pay withholding taxes. The following table presents the changes in non-vested, time-based restricted stock awards to all employees and directors for the year ended December 31, 2022: SCHEDULE OF NON-VESTED TIME- BASED RESTRICTED STOCK AWARDS Shares Weighted-Avg. Grant Date Fair Value per Share Non-vested restricted stock at December 31, 2021 174,000 $ 4.75 Granted 986,500 $ 3.70 Vested (473,500 ) $ 3.95 Non-vested restricted stock at December 31, 2022 687,000 $ 3.79 The following table presents the stock compensation expense related to restricted stock grants for the years ended December 31, 2022 and 2021: SCHEDULE OF STOCK COMPENSATION EXPENSE RELATED TO RESTRICTED STOCK GRANTS Year Ended December 31, 2022 2021 (in thousands) Stock compensation expense $ 3,017 $ 549 Total compensation cost related to non-vested time-based awards not yet recognized in the Company’s consolidated statements of operations as of December 31, 2022 is $ 929 1.8 3,000,000

INCOME TAXES

INCOME TAXES	12 Months Ended
	Dec. 31, 2022
Income Tax Disclosure [Abstract]
INCOME TAXES	11. INCOME TAXES The components of the income tax provision for the years ended December 31, 2022 and 2021 include the following: SCHEDULE OF INCOME TAX PROVISIONS 2022 2021 (in thousands) Current: Federal $ - $ - State 28 - Total current income tax $ 28 $ - Deferred: Federal $ (1,765 ) $ - State (156 ) - Total deferred income taxes $ (1,921 ) - Total income tax provision $ (1,893 ) $ - Income tax benefit using the Company’s effective income tax rate differs from the U.S. federal statutory income tax rate due to the following: SCHEDULE OF EFFECTIVE INCOME TAX 2022 2021 (in thousands) Income tax benefit at federal statutory rate (21%) $ (600 ) $ (372 ) State income tax benefit, net of federal benefit (95 ) (26 ) Change in value of warrant - (16 ) Percentage depletion carryover - (50 ) Prior year true up (509 ) (14 ) Compensation and other 187 2 Acquisition 1,056 - Change in valuation allowance (1,932 ) 476 Income tax benefit $ (1,893 ) $ - The components of deferred tax assets and liabilities as of December 31, 2022 and 2021 are as follows: SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES 2022 2021 (in thousands) Deferred tax assets: Net operating loss carryover $ 8,443 $ 6,295 Property and equipment - 3,115 Percentage depletion and contribution carryovers 2,004 1,947 Equity method investment and other 249 225 Deferred compensation liability 256 9 Asset retirement obligations 3,581 327 Stock-based compensation 439 190 Lease obligations 224 30 Derivatives 390 - Total deferred tax assets 15,586 12,138 Deferred tax liabilities: Property and equipment (6,107 ) - Lease assets (198 ) (27 ) Total deferred tax liabilities (6,305 ) (27 ) Net deferred tax assets 9,281 12,111 Less valuation allowance (10,179 ) (12,111 ) Net deferred tax liability $ (898 ) $ - As of December 31, 2022, the Company has approximately $ 22.2 Losses incurred prior to 2018 have a carryforward period of 20 years and begin to expire in 2037. 80 I.R.C. Section 382 limits the Company’s ability to utilize certain tax attributes to offset taxable income in future years. Due to the existence of a net unrealizable built in loss (“NUBIL”), assets at the time of the 2017 change in control, the Company also has realized built in losses (“RBIL”) that exceed the annual limitation. As of December 31, 2022, the Company has approximately $ 10.5 On January 5, 2022, the Company received assets in exchange for common stock of the Company. The transaction was an IRC Section 351 contribution for which the Company received carryover basis in the assets. At the date of the transaction, the Company recorded a deferred tax liability for the difference in the book and tax basis in the underlying assets and recorded the related adjustment of $ 2.8 The Company recognizes, measures, and discloses uncertain tax positions whereby tax positions must meet a “more-likely-than-not” threshold to be recognized. During the years ended December 31, 2022 and 2021, no The Company files income tax returns in U.S. federal and multiple state jurisdictions. The Company is subject to tax audits in these jurisdictions until the applicable statute of limitations expires. With certain exceptions, the Company is no longer subject to U.S. federal tax examinations for tax years prior to 2019. Similarly, the Company is open for various state tax examinations for tax years 2018 and later. The Company’s policy is to recognize potential interest and penalties accrued related to uncertain tax positions within income tax expense. For the years ended December 31, 2022 and 2021, the Company did not recognize any interest or penalties in its statement of operations, nor did it have any interest or penalties accrued in its balance sheet at December 31, 2022 and 2021 related to uncertain tax positions.

LOSS PER SHARE

LOSS PER SHARE	12 Months Ended
	Dec. 31, 2022
Earnings Per Share [Abstract]
LOSS PER SHARE	12. LOSS PER SHARE Basic net loss per common share is calculated by dividing net loss attributable to common shareholders by the weighted-average number of common shares outstanding for the respective period. Diluted net loss per common share is calculated by dividing adjusted net loss by the diluted weighted average number of common shares outstanding, which includes the effect of potentially dilutive securities. Potentially dilutive securities for this calculation consist of stock options and warrants, which are measured using the treasury stock method and unvested shares of restricted common stock. When the Company recognizes a net loss, as was the case for the years ended December 31, 2022 and 2021, all potentially dilutive shares are anti-dilutive and are consequently excluded from the calculation of dilutive net loss per common share. Unvested shares of restricted stock participate in dividend distributions; however, they do not participate in losses, therefore because the Company had net losses for both years ended December 31, 2022 and 2021, the dividends attributable to participating securities are not included as a reduction in the calculation of loss attributable to common shareholders. The following table sets forth the calculation of basic and diluted net income (loss) per share for the years ended December 31, 2022 and 2021: SCHEDULE OF BASIC AND DILUTED NET LOSS PER SHARE 2022 2021 (in thousands except per share data) Net loss attributable to common shareholders $ (963 ) $ (1,770 ) Basic weighted-average common shares outstanding 24,668 4,492 Dilutive effect of potentially dilutive securities - - Diluted weighted-average common shares outstanding 24,668 4,492 Basic net loss per share $ (0.04 ) $ (0.39 ) Diluted net loss per share $ (0.04 ) $ (0.39 ) For the years ended December 31, 2022 and 2021, potentially dilutive securities were excluded from the calculation of weighted average shares because they were anti-dilutive are as follows: SCHEDULE OF ANTI-DILUTIVE WEIGHTED AVERAGE SHARES 2022 2021 (in thousands) Stock options 28 31 Unvested shares of restricted stock 687 174 Warrants - 50 Total 715 255

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	12 Months Ended
	Dec. 31, 2022
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENTS	13. FAIR VALUE MEASUREMENTS The Company’s fair value measurements are estimated pursuant to a fair value hierarchy that requires us to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date, giving highest priority to quoted prices in active markets (Level 1) and the lowest priority to unobservable data (Level 3). In some cases, the inputs used to measure fair value might fall in different levels of the fair value hierarchy. The lowest level input that is significant to a fair value measurement in its entirety determines the applicable level in the fair value hierarchy. Assessing the significance of a particular input to the fair value measurement in its entirety requires judgment, considering factors specific to the asset or liability, and may affect the valuation of the assets and liabilities and their placement within the hierarchy level. The three levels of inputs that may be used to measure fair value are defined as: Level 1 - Quoted prices for identical assets and liabilities traded in active exchange markets. Level 2 - Observable inputs other than Level 1 that are directly or indirectly observable for the asset or liability, including quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities inactive markets, or other observable inputs that can be corroborated by observable market data. Level 3 - Unobservable inputs supported by little or no market activity for financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. The Company has processes and controls in place to attempt to ensure that fair value is reasonably estimated. The Company performs due diligence procedures over third-party pricing service providers in order to support their use in the valuation process. Where market information is not available to support internal valuations, independent reviews of the valuations are performed, and any material exposures are evaluated through a management review process. While the Company believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. The following is a description of the valuation methodologies used for complex financial instruments measured at fair value: Asset Retirement Obligations The Company measures the fair value of asset retirement obligations as of the date a well is acquired, the date a well begins drilling, or the date the Company revises its ARO assumptions. The Company’s estimated asset retirement obligation is based on historical experience in plugging and abandoning wells, estimated economic lives, estimated plugging and abandonment costs and federal and state regulatory requirements, all unobservable inputs, and therefore, are designated as Level 3 within the valuation hierarchy. The liability is discounted using the credit-adjusted risk-free rate estimated at the time the liability is incurred or revised. The credit adjusted risk-free rate used to discount the Company’s plugging and abandonment liabilities range from 7.30 9.75 Note 8 Asset Retirement Obligations Other Assets and Liabilities The Company evaluates the fair value on a non-recurring basis of properties acquired in asset acquisitions using inputs that are not observable in the market and are therefore designated as Level 3 inputs within the fair value hierarchy. The Company evaluated the fair value of its January 2022 asset acquisition based on discounted future cash flows using estimated production at estimated prices based on NYMEX strip pricing adjusted for differentials, operating costs, production taxes and development costs, all discounted at 10 87.7 7.3 The Company evaluates the fair value on a non-recurring basis of its Riverton, Wyoming real estate assets when circumstances indicate that the value has been impaired. At December 31, 2022 and 2021, the Company estimated the fair value of its real estate assets based on a market approach with comparison to recent comparable sales, all Level 3 inputs within the fair value hierarchy. Credit facility The Company’s credit facility approximates fair value because the interest rate is variable and reflective of market rates. The carrying value of financial instruments included in current assets and current liabilities approximate fair value due to the short-term nature of those instruments. Recurring Fair Value Measurements Commodity Derivative Instruments The Company measures the fair value of commodity derivative contracts using an income valuation technique based on the contract price of the underlying positions, crude oil and natural gas forward curves, discount rates, and Company or counterparty non-performance risk. The fixed-price swaps and collar derivative contracts are included in Level 2. The fair value of commodity derivative contracts and their presentation in our consolidated balance sheet as of December 31, 2022 are presented below: SCHEDULE OF RECURRING MEASUREMENTS OF FAIR VALUE OF ASSETS AND LIABILITIES Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Total Effect Net Fair Value Presented in the Consolidated Balance (in thousands) Assets Current: Commodity derivatives $ - $ 488 $ - $ 488 $ (488 ) $ - Commodity derivatives, assets $ - $ 488 $ - $ 488 $ (488 ) $ - Liabilities Current: Commodity derivatives $ - $ (2,182 ) $ - $ (2,182 ) $ 488 $ (1,694 ) Commodity derivatives, liabilities $ - $ (2,182 ) $ - $ (2,182 ) $ 488 $ (1,694 ) Net derivative instruments $ - $ (1,694 ) $ - $ (1,694 ) $ - $ (1,694 ) Marketable Equity Securities Valuation Methodologies The fair value of marketable equity securities is based on quoted market prices obtained from independent pricing services. The Company has an investment in the marketable equity securities of Anfield Energy (“Anfield”), which it acquired as consideration for sales of certain mining operations. Anfield is traded in an active market under the trading symbol AEC:TSXV and has been classified as Level 1. SCHEDULE OF INVESTMENT IN THE MARKETABLE EQUITY SECURITIES December 31, 2022 2021 Number of shares owned 2,421,180 2,421,180 Quoted market price $ 0.04429 $ 0.07874 Fair value $ 107,234 $ 190,641

OTHER CURRENT ASSETS AND ACCOUN

OTHER CURRENT ASSETS AND ACCOUNTS PAYABLE AND ACCRUED LIABILITIES	12 Months Ended
	Dec. 31, 2022
Payables and Accruals [Abstract]
OTHER CURRENT ASSETS AND ACCOUNTS PAYABLE AND ACCRUED LIABILITIES	14. OTHER CURRENT ASSETS AND ACCOUNTS PAYABLE AND ACCRUED LIABILITIES Other Current Assets The following table presents the components of other current asset s s SCHEDULE OF OTHER CURRENT ASSETS 2022 2021 December 31, 2022 2021 (in thousands) Prepaid expense $ 138 $ 64 Joint interest billings receivable 332 76 Income tax receivable 50 - Other 38 39 Total other current assets $ 558 $ 179 Accounts Payable and Accrued Liabilities The following table presents the components of accounts payable and accrued liabilities as of the dates indicated: SCHEDULE OF ACCOUNTS PAYABLE AND ACCRUED LIABILITIES 2022 2021 December 31, 2022 2021 (in thousands) Accounts payable-trade $ 2,566 $ 891 Operating expense accruals 1,378 456 Revenue payables 3,503 37 Production taxes payable 319 37 Insurance premium financing 54 26 Other 12 - Total accounts payable and accrued expenses $ 7,832 $ 1,447

SUPPLEMENTAL DISCLOSURES OF CAS

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION	12 Months Ended
	Dec. 31, 2022
Supplemental Cash Flow Elements [Abstract]
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION	15. SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION SCHEDULE OF SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION 2022 2021 Year Ended 2022 2021 (in thousands) Cash paid for interest $ 500 $ 5 Investing activities: Change in capital expenditure accruals 196 80 Change in accrual for acquisition costs (546 ) 546 Common stock issued for acquisition of properties 64,694 - Assumption of commodity derivative liability in acquisition of properties 3,152 - Assumption of debt in acquisition of properties 3,347 - Assumption of suspense accounts in acquisition of properties 1,826 - Deferred tax liability from acquisition 2,819 Addition of operating lease liability and right of use asset 953 82 Prepaid rent liability netted with proceeds on sale of real estate - 143 Asset retirement obligations acquired 11,811 25 Asset retirement obligations revisions, sold and plugged wells 1,229 Financing activities: Issuance of stock for conversion of related party secured note payable and accrued interest - 438 Issuance of stock for settlement of related party legal costs - 406 Financing of insurance premiums with note payable 588 223

SUPPLEMENTAL OIL AND NATURAL GA

SUPPLEMENTAL OIL AND NATURAL GAS INFORMATION (UNAUDITED)	12 Months Ended
	Dec. 31, 2022
Extractive Industries [Abstract]
SUPPLEMENTAL OIL AND NATURAL GAS INFORMATION (UNAUDITED)	16. SUPPLEMENTAL OIL AND NATURAL GAS INFORMATION (UNAUDITED) Capitalized Costs Incurred The capitalized costs incurred in crude oil and natural gas acquisitions, exploration and development activities for the years ended December 31, 2022 and 2021 are provided in the table below: SCHEDULE OF COSTS INCURRED IN CRUDE OIL AND NATURAL GAS ACQUISITIONS, EXPLORATION AND DEVELOMENT ACTIVITIES 2022 2021 (in thousands) Proved property acquisition $ 102,223 $ 46 Unproved property acquisition - 5 Development 7,808 1,519 Exploration - - Total $ 110,031 $ 1,570 Capitalized Costs The following table presents the Company’s capitalized costs associated with oil and natural gas producing activities as of December 31, 2022 and 2021: SCHEDULE OF CAPITALIZED COSTS ASSOCIATED WITH OIL AND NATURAL GAS PRODUCING ACTIVITIES 2022 2021 (in thousands) Oil and Natural Gas Properties: Unevaluated properties: Unproved leasehold costs $ 1,584 $ 1,588 Evaluated properties in full cost pool 203,144 95,088 Less accumulated depletion and ceiling test impairment (96,725 ) (88,195 ) Net capitalized costs $ 108,003 $ 8,481 The Company did no 8.5 13.74 0.5 3.98 Unevaluated oil and natural gas properties consist of leasehold costs that are excluded from the depletion, depreciation and amortization calculation and the ceiling test until a determination about the existence of proved reserves can be completed. Unevaluated oil and natural gas properties consisted of unproved lease acquisition costs and costs paid to evaluate potential acquisition prospects of $ 1.6 On a quarterly basis, management reviews market conditions and other changes in circumstances related to the Company’s unevaluated properties and transfers the costs to evaluated properties within the full cost pool as warranted. Results of Operations from oil and natural gas producing activities The following table includes revenues and expenses associated with the Company’s oil and gas producing activities. It does not include any allocation of the Company’s interest costs or general corporate overhead and therefore, it is not necessarily indicative of the contribution to net earnings of the Company’s oil and gas operations. Income tax expense has been calculated by applying statutory income tax rates to oil and gas sales after deducting costs, including DD&A, and giving effect to permanent differences. Presented below are the results of operations from oil and natural gas producing activities for the years ended December 31, 2022 and 2021: SCHEDULE OF OIL AND NATURAL GAS PRODUCING ACTIVITIES 2022 2021 (in thousands) Oil and natural gas sales $ 44,552 $ 6,658 Lease operating expense (17,240 ) (2,421 ) Production taxes (3,010 ) (471 ) Depletion (8,530 ) (487 ) Income tax benefit 1,893 - Results of operations from oil and natural gas producing activities $ 17,665 $ 3,279 Oil and Natural Gas Reserves (Unaudited) Proved reserves are estimated quantities of oil, NGLs and natural gas that geological and engineering data demonstrate with reasonable certainty to be recoverable in future years from known reservoirs under existing economic and operating conditions. Oil and natural gas prices used are the average price during the 12-month period prior to the effective date of the report, determined as an unweighted arithmetic average of the first-day-of-the-month price for each month within such period, unless prices are defined by contractual arrangements. Proved developed reserves are reserves that can reasonably be expected to be recovered through existing wells with existing equipment and operating methods. The Company emphasizes that reserve estimates are inherently imprecise. Accordingly, these estimates are expected to change as future information becomes available. Proved oil and natural gas reserve quantities at December 31, 2022 and 2021 and the related discounted future net cash flows before income taxes are based on the estimates prepared by Don Jacks, PE. The estimates have been prepared in accordance with guidelines established by the Securities and Exchange Commission. All of the Company’s estimated proved reserves are located in the United States. As of December 31, 2022, and 2021, the Company had no proved undeveloped reserves. All proved reserves were proved developed producing and proved developed non-producing. The Company’s estimated quantities of proved oil and natural gas reserves and changes in net proved reserves are summarized below for the years ended December 31, 2022 and 2021: SCHEDULE OF PROVED OIL AND RESERVES AND GAS RESERVES AND CHANGES IN NET PROVED RESERVES 2022 2021 Oil Gas Oil Gas (bbls) (mcfe) (1) (bbls) (mcfe) (1) Total proved reserves: Reserve quantities, beginning of year 1,021,620 1,938,048 975,745 1,676,948 Revisions of previous estimates (153,434 ) 4,066,007 128,232 437,757 Discoveries and extensions - - - - Purchases of minerals in place 4,777,193 11,753,283 11,365 - Sale of minerals in place (108,833 ) (64,338 ) - - Production (396,456 ) (1,344,736 ) (93,722 ) (176,657 ) Reserve quantities, end of year 5,140,090 16,348,264 1,021,620 1,938,048 (1) Mcf equivalents (Mcfe) consist of natural gas reserves in mcf plus NGLs converted to mcf using a factor of 6 mcf for each barrel of NGL. Notable changes in proved reserves for the year ended December 31, 2022 included the following: ● Downward oil revisions in 2022 primarily represent revisions related to assets acquired in our January 2022 acquisition. Certain wells acquired in West Texas were required to be shut-in temporarily. ● Upward gas revisions in 2022 primarily represent revisions related to assets acquired in our July 2022 acquisition. Revisions represent changes in estimated operating costs and pricing differentials. ● Purchases of minerals in place in 2022 represent reserves added as a result of the three separate acquisitions completed during the year. Please see Note 2-Acquisitions Standardized Measure (Unaudited) The Company computes a standardized measure of future net cash flows and changes therein relating to estimated proved reserves in accordance with authoritative accounting guidance. The assumptions used to compute the standardized measure are those prescribed by the FASB and the SEC. These assumptions do not necessarily reflect the Company’s expectations of actual revenues to be derived from those reserves, nor their present value amount. The limitations inherent in the reserve quantity estimation process, as discussed previously, are equally applicable to the standardized measure computations since these reserve quantity estimates are the basis for the valuation process. Future cash inflows and production and development costs are determined by applying prices and costs, including transportation, quality, and basis differentials, to the year-end estimated future reserve quantities. The following prices as adjusted for transportation, quality, and basis differentials were used in the calculation of the standardized measure: SCHEDULE OF PRICES AS ADJUSTED FOR TRANSPORTATION, QUALITY 2022 2021 Oil per Bbl $ 93.67 $ 66.56 Gas per Mcfe (1) $ 6.36 $ 3.60 (1) Consists of the weighted average price for natural gas in mcf plus NGLs converted to mcf using a factor of 6 mcf for each barrel of NGL. Future operating costs are determined based on estimates of expenditures to be incurred in developing and producing the proved reserves in place at the end of the period using year-end costs and assuming continuation of existing economic conditions. Estimated future income taxes are computed using the current statutory income tax rates, including consideration for estimated future statutory depletion. The resulting future net cash flows are reduced to present value amounts by applying a 10 The standardized measure of discounted future net cash flows relating to the Company’s proved oil and natural gas reserves is as follows as of December 31, 2022 and 2021: SCHEDULE OF STANDARDIZED MEASURE OF DISCOUNTED FUTURE NET CASH FLOWS 2022 2021 (in thousands) Future cash inflows $ 562,545 $ 76,041 Future cash outflows: Production costs (227,365 ) (40,350 ) Development costs (12,716 ) - Income taxes (48,833 ) (2,818 ) Future net cash flows 273,631 32,873 10 (129,843 ) (13,706 ) Standardized measure of discounted future net cash flows $ 143,788 $ 19,167 Changes in Standardized Measure (Unaudited) The changes in the standardized measure of future net cash flows relating to proved oil and natural gas reserves for the years ended December 31, 2022 and 2021 are as follows: SCHEDULE OF STANDARDIZED MEASURE OF FUTURE NET CASH FLOWS 2022 2021 (in thousands) Standardized measure, beginning of year $ 19,167 $ 8,586 Sales of oil and natural gas, net of production costs (24,302 ) (3,766 ) Net changes in prices and production costs 52,053 11,675 Changes in estimated future development costs (2,860 ) 302 Extensions and discoveries - - Purchases of minerals in place 116,673 216 Sale of minerals in place (1,606 ) - Revisions in previous quantity estimates 12,662 3,080 Previously estimated development costs incurred - (302 ) Net changes in income taxes (27,021 ) (1,389 ) Accretion of discount 10,170 674 Changes in timing and other (11,148 ) 91 Standardized measure, end of year $ 143,788 $ 19,167

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	12 Months Ended
	Dec. 31, 2022
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	17. SUBSEQUENT EVENTS On January 31, 2023, the Company issued a press release announcing that its Board of Directors has approved a quarterly dividend of $ 0.0225

ORGANIZATION, OPERATIONS AND _2

ORGANIZATION, OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Operations	Organization and Operations U.S. Energy Corp. (collectively with its wholly-owned subsidiaries, Energy One LLC (“Energy One”) and New Horizon Resources LLC (“New Horizon Resources”), referred to as the “Company” in these Notes to Consolidated Financial Statements) was originally incorporated in the State of Wyoming on January 26, 1966. The Company’s principal business activities are focused on the acquisition, exploration and development of oil and natural gas properties in the United States. Effective August 3, 2022, the Company changed its state of incorporation from the State of Wyoming to the State of Delaware (the “Reincorporation”) by means of a Plan of Conversion, effective August 3, 2022 (the “Plan of Conversion”). The Reincorporation, including the Plan of Conversion, was submitted to a vote of, and approved by, the Company’s stockholders at the Company’s 2022 Annual Meeting of Stockholders held on June 21, 2022. The Reincorporation was accomplished by filing: (i) an Application for Certificate of Transfer with the Secretary of State of the State of Wyoming (the “Wyoming Certificate of Transfer”); (ii) a Certificate of Conversion with the Secretary of State of the State of Delaware (the “Delaware Certificate of Conversion”); and (iii) a Certificate of Incorporation with the Secretary of State of the State of Delaware (the “Delaware Certificate of Incorporation”). The Reincorporation did not result in any change in headquarters, business, jobs, management, location of any of the offices or facilities, number of employees, assets, liabilities or net worth (other than as a result of the costs incident to the Reincorporation) of the Company. The resulting Delaware corporation (“U.S. Energy-Delaware”) (i) is deemed to be the same entity as the Company as incorporated in Wyoming (“U.S. Energy-Wyoming”) for all purposes under Wyoming and Delaware law, (ii) continues to have all of the rights, privileges, and powers of U.S. Energy-Wyoming, (iii) continues to possess all of the properties of U.S. Energy-Wyoming, and (iv) continues to have all of the debts, liabilities, and duties of U.S. Energy-Wyoming.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include the fair value of oil and gas properties acquired, oil and natural gas reserves that are used in the calculation of depreciation, depletion, amortization and impairment of the carrying value of evaluated oil and natural gas properties; realizability of unevaluated properties; production and commodity price estimates used to record accrued oil and natural gas sales receivables; future prices of commodities used in the valuation of commodity derivative contracts; and the cost and timing of future asset retirement obligations. The Company evaluates its estimates on an on-going basis and bases its estimates on historical experience and on various other assumptions the Company believes to be reasonable. Due to inherent uncertainties, including the future prices of oil and natural gas, these estimates could change in the near term and such changes could be material.
Principles of Consolidation	Principles of Consolidation The accompanying financial statements include the accounts of U.S. Energy Corp. and its wholly-owned subsidiaries Energy One and New Horizon Resources. All inter-company balances and transactions have been eliminated in consolidation.
Industry Segment and Geographic Information	Industry Segment and Geographic Information The Company operates in the exploration and production segment of the oil and gas industry, onshore in the United States. The Company reports as a single industry segment.
Cash and Equivalents	Cash and Equivalents The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. Cash and cash equivalents potentially subject it to a concentration of credit risk as substantially all of its deposits held in financial institutions were in excess of the federal deposit insurance limits as of December 31, 2022 and 2021. The Company maintains its cash and cash equivalents in the form of checking accounts with financial institutions that it believes are creditworthy and are also lenders under its credit facility.
Receivables	Receivables The Company’s oil and natural gas sales receivables consist of receivables from purchasers of the Company’s operated oil, natural gas, and natural gas liquids (“NGLs”) sales. Generally, the Company’s oil and natural gas and natural gas liquids sales receivables from operated properties are collected within one month. The Company also has joint operating agreements as a non-operator of oil and natural gas properties. Generally, receivables from the joint interest operator are collected within one to three months. The Company has had minimal bad debts related to oil and natural gas sales. Although diversified among several purchasers and joint interest operators, collectability is dependent upon the financial wherewithal of each purchaser or joint interest operator and is influenced by the general economic conditions of the industry. Receivables are not collateralized. As of December 31, 2022, and 2021, the Company had not provided an allowance for doubtful accounts on its oil and natural gas sales receivable or its joint interest accounts receivable.
Concentration of Credit Risk	Concentration of Credit Risk The Company has exposure to credit risk in the event of nonpayment of oil and natural gas receivables by purchasers of the Company’s share of oil and natural gas production and its operated production. The following table presents the purchasers that accounted for 10% or more of the Company’s total oil and natural gas revenue for at least one of the periods presented: SCHEDULE OF CONCENTRATION OF CREDIT RISK Purchaser 2022 2021 Year Ended December 31, Purchaser 2022 2021 Purchaser A 21 % 30 % Purchaser B 19 % - % Purchaser C 7 % 34 % Purchaser D 2 % 10 % Concentration risk percentage 2 % 10 %
Marketable Equity Securities	Marketable Equity Securities Marketable equity securities are reported at fair value based on end of period quoted prices. Changes in fair value are recorded in the consolidated statements of operations at the end of each reporting period. Gains or losses from sales of marketable equity securities are recorded in the consolidated statements of operations when realized.
Oil and Natural Gas Properties	Oil and Natural Gas Properties The Company follows the full cost method of accounting for its oil and natural gas properties. Under the full cost method, all costs associated with the acquisition, exploration and development of oil and natural gas properties are capitalized and accumulated in a country-wide cost center. This includes any internal costs that are directly related to development and exploration activities but does not include any costs related to production, general corporate overhead or similar activities. Proceeds received from property disposals are credited against accumulated cost except when the sale represents a significant disposal of reserves, in which case a gain or loss is recognized. The sum of net capitalized costs and estimated future development and dismantlement costs for each cost center are subject to depreciation, depletion and amortization (“DD&A”) using the equivalent unit-of-production method, based on total proved oil and natural gas reserves. For financial statement presentation, DD&A includes accretion expense related to asset retirement obligations. Excluded from amounts subject to DD&A are costs associated with unevaluated properties. Under the full cost method, net capitalized costs are limited to the lower of unamortized cost reduced by the related net deferred tax liability, or the cost center ceiling (the “Ceiling Test”). The cost center ceiling is defined as the sum of (i) estimated future net revenue, discounted at 10
Acquisitions	Acquisitions The Company accounts for acquisitions as business combinations if the acquired assets meet the definition of a business. If substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar assets, the acquisition is not considered a business and is accounted for as an asset acquisition. This determination of whether the gross assets acquired are concentrated in a group of similar assets is based on whether the risks associated with managing and creating outputs from the assets are similar.
Other Property and Equipment	Other Property and Equipment Land, buildings, and building improvements are classified as held for sale and are carried at the estimated realizable value, less costs to sell. Long-lived assets are classified as held for sale when the Company commits to a plan to sell the assets. Such assets are classified within current assets if there is reasonable certainty that the sale will take place within one year. Upon classification as held for sale, long-lived assets are no longer depreciated or depleted, and a measurement for impairment is performed to determine if there is any excess of carrying value over fair value less costs to sell. Subsequent changes to estimated fair value less the cost to sell will impact the measurement of assets held for sale if the fair value is determined to be less than the carrying value of the assets. Administrative assets are carried at cost. Depreciation of administrative assets is provided principally by the straight-line method over estimated useful lives as follows: SCHEDULE OF PROPERTY AND EQUIPMENT USEFUL LIFE Years Administrative assets: Computers and software 3 Office furniture and equipment 5 Autos and trucks 5 Other equipment 10
Impairment of Long-Lived Assets	Impairment of Long-Lived Assets The Company evaluates long-lived assets for impairment when events or changes in circumstances indicate that the related carrying amount may not be recoverable. If estimated future cash flows, on an undiscounted basis, are less than the carrying amount of the related asset, an asset impairment charge is recognized, and measured as the amount by which the carrying value exceeds the estimated fair value. Changes in significant assumptions underlying future cash flow estimates may have a material effect on the Company’s financial position and results of operations.
Leases	Leases The Company accounts for leases in accordance with Accounting Standards Codification (“ASC”) Topic 842, Leases, (“Topic 842”), which requires lessees to recognize operating and finance leases with terms greater than 12 months on the balance sheet. The Company evaluates a contractual arrangement at its inception to determine if it is a lease or contains an identifiable lease component. Certain leases may contain both lease and non-lease components. The Company’s policy for all asset classes is to combine lease and non-lease components together and account for the arrangement as a single lease. Certain assumptions and judgements made by the Company when evaluating a contract that meets the definition of a lease under Topic 842 include those to determine the discount rate and lease term. Unless implicitly defined, the Company determines the present value of the future lease payments using an estimated incremental borrowing rate at the lease inception. The Company evaluates each contract containing a lease arrangement at inception to determine the length of the lease term when recognizing a right-of-use (“ROU”) asset and corresponding lease liability. The Company excludes from the balance sheet leases with terms that are less than one year. A ROU asset represents a lessee’s right to use an underlying asset for the lease term, while the associated lease liability represents the lessee’s obligations to make lease payments. At the commencement date a lease ROU asset and corresponding lease liability is recognized based on the present value of the future lease payments. The initial measurement excludes certain variable lease payments, such as payments that vary depending on actual usage. Please see “ Note 4-Leases”
Derivative Financial Instruments	Derivative Financial Instruments The Company periodically enters into commodity derivative instruments to mitigate a portion of its exposure to oil price volatility for its expected future oil production. The Company does not designate commodity derivative contracts as cash flow hedges, and therefore the contracts do not qualify for hedge accounting. Changes in fair value of derivative contracts are recorded in the consolidated statement of operations. The fair value of derivative contracts is recorded as either an asset or a liability on the consolidated balance sheet.
Revenue Recognition	Revenue Recognition The Company derives revenue from the sale of produced oil, gas and NGLs. Revenue is recognized at the point in time when custody and title of the product transfers to the purchaser, which may differ depending on the applicable contractual terms. Revenue accruals are recorded monthly based on the Company’s share of estimated production delivered to a purchaser and the expected price to be received. The Company uses its knowledge of its properties, contractual arrangements, historical performance, NYMEX differentials, and other factors as the basis of these estimates. Variances between estimates and the actual amounts received are recorded in the month payment is received.
Asset Retirement Obligations	Asset Retirement Obligations The Company records the estimated fair value of restoration and reclamation liabilities related to its oil and natural gas properties as of the date that the liability is incurred. The Company reviews the liability each quarter and determines if a change in estimate is required, and accretion of the discounted liability is recorded based on the passage of time. The Company deducts any actual funds expended for restoration and reclamation during the quarter in which it occurs.
Stock-Based Compensation	Stock-Based Compensation The Company measures the cost of employee and director services received in exchange for all equity awards granted, including stock options, based on the fair value of the award as of the grant date. The Company computes the fair values of any options granted to employees using the Black-Scholes option pricing model. The Company recognizes the cost of the equity awards over the period during which an employee or director is required to provide services in exchange for the award, usually the vesting period. Forfeitures are recognized as they occur. Unvested shares of restricted stock grants are not included in common shares outstanding until vesting has occurred.
Income Taxes	Income Taxes The Company recognizes deferred income tax assets and liabilities for the expected future income tax consequences, based on enacted tax laws, of temporary differences between the financial reporting and tax bases of assets, liabilities and carry forwards. Additionally, the Company recognizes deferred tax assets for the expected future effects of all deductible temporary differences, loss carry forwards and tax credit carry forwards. Deferred tax assets are reduced, if deemed necessary, by a valuation allowance for any tax benefits that, based on current circumstances, are not expected to be realized. At December 31, 2022 and 2021, management believed it was more likely than not that such tax benefits would not be realized and a valuation allowance has been provided. In assessing the need for a valuation allowance for the Company’s deferred tax assets, a significant item of negative evidence considered was the cumulative book loss over the three-year period ended December 31, 2022. The Company assesses its uncertain tax positions annually. The Company recognizes the tax benefit from an uncertain tax position only if it is probable that the tax position will be sustained on examination by taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that is probable of being realized upon ultimate settlement. The amount of unrecognized tax benefits is adjusted as appropriate for changes in facts and circumstances, such as significant amendments to existing tax law, new regulations or interpretations by the taxing authorities, new information obtained during a tax examination, or resolution of an examination.
Earnings Per Share	Earnings Per Share Basic net income (loss) per share is computed based on the weighted average number of common shares outstanding. Diluted net income (loss) per share is calculated by dividing net income or loss by the diluted weighted average common shares outstanding, which includes the effect of potentially dilutive securities. Potentially dilutive securities for this calculation consist of in-the-money outstanding stock options, and unvested restricted stock. When there is a loss from continuing operations, all potentially dilutive shares are anti-dilutive and are excluded from the calculation of net income (loss) per share. The treasury stock method is used to measure the dilutive impact of unvested restricted stock and in-the-money stock options.
Recent Accounting Pronouncements	Recent Accounting Pronouncements There were no significant new accounting standards adopted or new accounting pronouncements issued that would have a potential effect on the Company as of December 31, 2022.

ORGANIZATION, OPERATIONS AND _3

ORGANIZATION, OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
SCHEDULE OF CONCENTRATION OF CREDIT RISK	SCHEDULE OF CONCENTRATION OF CREDIT RISK Purchaser 2022 2021 Year Ended December 31, Purchaser 2022 2021 Purchaser A 21 % 30 % Purchaser B 19 % - % Purchaser C 7 % 34 % Purchaser D 2 % 10 % Concentration risk percentage 2 % 10 %
SCHEDULE OF PROPERTY AND EQUIPMENT USEFUL LIFE	Administrative assets are carried at cost. Depreciation of administrative assets is provided principally by the straight-line method over estimated useful lives as follows: SCHEDULE OF PROPERTY AND EQUIPMENT USEFUL LIFE Years Administrative assets: Computers and software 3 Office furniture and equipment 5 Autos and trucks 5 Other equipment 10

ACQUISITIONS (Tables)

ACQUISITIONS (Tables)	12 Months Ended
	Dec. 31, 2022
Seller [Member]
Business Acquisition [Line Items]
SUMMARY OF AMOUNTS INCURRED FOR ASSETS ACQUIRED	SUMMARY OF AMOUNTS INCURRED FOR ASSETS ACQUIRED Amount (in thousands) Amounts incurred: Cash $ 1,250 Value of 19,905,736 64,694 Purchase price adjustments 487 Transaction costs 1,267 Total consideration paid 67,698 Debt assumed 3,347 Commodity derivative liabilities assumed 3,152 Suspense accounts assumed 1,276 Employee obligations assumed 100 Asset retirement obligations assumed 9,614 Deferred tax liabilities 2,819 Total liabilities assumed 20,308 Total consideration paid and liabilities assumed $ 88,006 Allocation to acquired assets: Proved oil and gas properties (1) 87,672 Vehicles 165 Deposit account 169 Total allocation to acquired assets $ 88,006 (1) Amount includes $ 1,286
ETXEnergy LLC [Member]
Business Acquisition [Line Items]
SUMMARY OF AMOUNTS INCURRED FOR ASSETS ACQUIRED	SUMMARY OF AMOUNTS INCURRED FOR ASSETS ACQUIRED Amount (in thousands) Amounts incurred: Cash $ 11,875 Purchase price adjustments (1,048 ) Transaction costs 63 Total consideration paid 10,890 Suspense accounts assumed 380 Asset retirement obligations assumed 1,689 Total liabilities assumed 2,069 Total consideration paid and liabilities assumed $ 12,959 Allocation to acquired assets: Proved oil and gas properties (1) $ 12,959 (1) Amount includes $ 557

REVENUE FROM CONTRACTS WITH C_2

REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables)	12 Months Ended
	Dec. 31, 2022
Revenue from Contract with Customer [Abstract]
SCHEDULE OF DISAGGREGATED REVENUE	SCHEDULE OF DISAGGREGATED REVENUE 2022 2021 Year Ended 2022 2021 (in thousands) Revenue: Rockies Oil $ 14,318 $ 2,844 Natural gas and liquids 1,138 391 Total 15,456 3,235 South Texas Oil 6,384 929 Natural gas and liquids 774 74 Total 7,158 1,003 West Texas Oil 5,408 985 Natural gas and liquids 331 239 Total 5,739 1,224 Gulf Coast Oil 3,769 1,162 Natural gas and liquids 449 - Total 4,218 1,162 Mid-Continent Oil 6,414 36 Natural gas and liquids 5,567 (2 ) Total 11,981 34 Combined Total $ 44,552 $ 6,658

LEASES (Tables)

LEASES (Tables)	12 Months Ended
	Dec. 31, 2022
Leases
SCHEDULE OF CONSOLIDATED BALANCE SHEET	SCHEDULE OF CONSOLIDATED BALANCE SHEET December 31, 2022 2021 (in thousands) Right of use asset Operating lease $ 868 $ 120 Lease liability Short-term operating lease 189 114 Long-term operating lease 794 19 Total operating leases $ 983 $ 133
SCHEDULE OF LEASE COSTS	SCHEDULE OF LEASE COSTS December 31, 2022 2021 (in thousands) Operating lease cost $ 246 125 Short-term lease cost 560 9 Sublease income (71 ) (64 ) Total lease costs $ 735 $ 70
SCHEDULE OF WEIGHTED AVERAGE LEASE	The Company’s Denver and Houston office operating leases do not contain implicit interest rates that can be readily determined; therefore, the Company used the incremental borrowing rates in effect at the time the Company entered into the leases. SCHEDULE OF WEIGHTED AVERAGE LEASE As of December 31, 2022 2021 Weighted average lease term (years) 4.8 1.1 Weighted average discount rate 4.34 % 9.26 %
SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS	SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS December 31, 2022 (in thousands) 2023 225 2024 213 2025 218 2026 224 2027 209 Total lease payments $ 1,089 Less: imputed interest (106 ) Total lease liability $ 983

COMMODITY DERIVATIVES (Tables)

COMMODITY DERIVATIVES (Tables)	12 Months Ended
	Dec. 31, 2022
Commodity Derivatives
SCHEDULE OF COMMODITY DERIVATIVE CONTRACTS	SCHEDULE OF COMMODITY DERIVATIVE CONTRACTS Collars Fixed Price Swaps Quantity Quantity Commodity/ Crude Oil-(Bbls) (1) Weighted Average Prices Crude Oil- (Bbls) Weighted Maturity Period Gas-(Mmbtu) (2) Floors Ceilings Gas-(Mmbtu) Price NYMEX WTI Crude Oil 2023 Contracts: First quarter 2023 66,200 $ 57.73 $ 76.00 6,000 $ 59.20 Second quarter 2023 53,500 $ 60.00 $ 81.04 6,000 $ 59.20 Third quarter 2023 52,600 $ 60.00 $ 81.04 - $ - Fourth quarter 2023 51,200 $ 60.00 $ 81.04 - $ - Total 2023 223,500 $ 59.33 $ 79.55 12,000 $ 59.20 N YMEX Henry Hub Natural Gas 2023 Contracts: First quarter 2023 - $ - $ - 60,000 $ 2.96 (1) “Bbl” refers to one stock tank barrel, or 42 U.S. gallons liquid volume, used in this report in reference to crude oil or other liquid hydrocarbons. (2) “Mmbtu” means 1 million BTUs (British Thermal Units).
SCHEDULE OF FAIR VALUE OF COMMODITY DERIVATIVE CONTRACTS	The following table details the fair value of commodity derivative contracts recorded in the accompanying balance sheets by category: SCHEDULE OF FAIR VALUE OF COMMODITY DERIVATIVE CONTRACTS December 31, 2022 2021 (in thousands) Derivative liabilities: Current liabilities $ 1,694 $ - Total derivative liabilities $ 1,694 $ -
SCHEDULE OF DERIVATIVE SETTLEMENT GAIN LOSS	The following table summarizes the commodity components of the derivative settlement gain (loss) as well as the components of the net derivative loss line-item presentation in the accompanying consolidated statement of operations: SCHEDULE OF DERIVATIVE SETTLEMENT GAIN LOSS December 31, 2022 2021 (in thousands) Commodity derivative settlement losses: Oil contracts $ (6,277 ) $ (260 ) Gas contracts (863 ) - Total derivative settlement losses $ (7,140 ) $ (260 ) Total net commodity derivative losses: Oil contracts $ (4,941 ) $ (260 ) Gas contracts (741 ) - Total net commodity derivative losses $ (5,682 ) $ (260 )

ASSET RETIREMENT OBLIGATIONS (T

ASSET RETIREMENT OBLIGATIONS (Tables)	12 Months Ended
	Dec. 31, 2022
Asset Retirement Obligation Disclosure [Abstract]
SCHEDULE OF ASSET RETIREMENT OBLIGATION	The following is a reconciliation of the changes in the Company’s liabilities for asset retirement obligations for the years ended December 31, 2022 and 2021: SCHEDULE OF ASSET RETIREMENT OBLIGATION Year Ended December 31, 2022 2021 (in thousands) Balance, beginning of year $ 1,461 $ 1,408 Acquired 11,811 45 Cost and life revisions 1,825 - Plugged (407 ) - Sold (189 ) (70 ) Accretion 941 78 Balance, end of year $ 15,442 $ 1,461

SHAREHOLDERS_ EQUITY (Tables)

SHAREHOLDERS’ EQUITY (Tables)	12 Months Ended
	Dec. 31, 2022
Shareholders’ equity:
SCHEDULE OF STOCK OPTIONS ACTIVITY	SCHEDULE OF STOCK OPTIONS ACTIVITY December 31, 2022 December 31, 2021 Shares Price (1) Shares Price (1) Stock options outstanding and exercisable 28,122 $ 54.03 31,035 $ 62.79 (1) Represents the weighted average price.
SCHEDULE OF STOCK OPTIONS OUTSTANDING AND EXERCISABLE	The following table summarizes information for stock options outstanding and for stock options exercisable at December 31, 2022. All shares and prices per share have been adjusted for a one share-for-ten shares reverse stock split that took effect on January 6, 2020: SCHEDULE OF STOCK OPTIONS OUTSTANDING AND EXERCISABLE Options Outstanding Options Exercisable Exercise Price Remaining Weighted Average Number of Range Weighted Contractual Number of Exercise Shares Low High Average Term (years) Shares Price 16,500 $ 7.20 $ 11.60 $ 10.00 4.8 16,500 $ 10.00 10,622 90.00 124.80 106.20 1.3 10,622 106.20 1,000 226.20 226.20 226.20 1.7 1,000 226.20 28,122 $ 7.20 $ 226.20 $ 54..03 3.4 28,122 $ 54.03
SCHEDULE OF NON-VESTED TIME- BASED RESTRICTED STOCK AWARDS	The following table presents the changes in non-vested, time-based restricted stock awards to all employees and directors for the year ended December 31, 2022: SCHEDULE OF NON-VESTED TIME- BASED RESTRICTED STOCK AWARDS Shares Weighted-Avg. Grant Date Fair Value per Share Non-vested restricted stock at December 31, 2021 174,000 $ 4.75 Granted 986,500 $ 3.70 Vested (473,500 ) $ 3.95 Non-vested restricted stock at December 31, 2022 687,000 $ 3.79
SCHEDULE OF STOCK COMPENSATION EXPENSE RELATED TO RESTRICTED STOCK GRANTS	The following table presents the stock compensation expense related to restricted stock grants for the years ended December 31, 2022 and 2021: SCHEDULE OF STOCK COMPENSATION EXPENSE RELATED TO RESTRICTED STOCK GRANTS Year Ended December 31, 2022 2021 (in thousands) Stock compensation expense $ 3,017 $ 549

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	Dec. 31, 2022
Income Tax Disclosure [Abstract]
SCHEDULE OF INCOME TAX PROVISIONS	The components of the income tax provision for the years ended December 31, 2022 and 2021 include the following: SCHEDULE OF INCOME TAX PROVISIONS 2022 2021 (in thousands) Current: Federal $ - $ - State 28 - Total current income tax $ 28 $ - Deferred: Federal $ (1,765 ) $ - State (156 ) - Total deferred income taxes $ (1,921 ) - Total income tax provision $ (1,893 ) $ -
SCHEDULE OF EFFECTIVE INCOME TAX	SCHEDULE OF EFFECTIVE INCOME TAX 2022 2021 (in thousands) Income tax benefit at federal statutory rate (21%) $ (600 ) $ (372 ) State income tax benefit, net of federal benefit (95 ) (26 ) Change in value of warrant - (16 ) Percentage depletion carryover - (50 ) Prior year true up (509 ) (14 ) Compensation and other 187 2 Acquisition 1,056 - Change in valuation allowance (1,932 ) 476 Income tax benefit $ (1,893 ) $ -
SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES	The components of deferred tax assets and liabilities as of December 31, 2022 and 2021 are as follows: SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES 2022 2021 (in thousands) Deferred tax assets: Net operating loss carryover $ 8,443 $ 6,295 Property and equipment - 3,115 Percentage depletion and contribution carryovers 2,004 1,947 Equity method investment and other 249 225 Deferred compensation liability 256 9 Asset retirement obligations 3,581 327 Stock-based compensation 439 190 Lease obligations 224 30 Derivatives 390 - Total deferred tax assets 15,586 12,138 Deferred tax liabilities: Property and equipment (6,107 ) - Lease assets (198 ) (27 ) Total deferred tax liabilities (6,305 ) (27 ) Net deferred tax assets 9,281 12,111 Less valuation allowance (10,179 ) (12,111 ) Net deferred tax liability $ (898 ) $ -

LOSS PER SHARE (Tables)

LOSS PER SHARE (Tables)	12 Months Ended
	Dec. 31, 2022
Earnings Per Share [Abstract]
SCHEDULE OF BASIC AND DILUTED NET LOSS PER SHARE	The following table sets forth the calculation of basic and diluted net income (loss) per share for the years ended December 31, 2022 and 2021: SCHEDULE OF BASIC AND DILUTED NET LOSS PER SHARE 2022 2021 (in thousands except per share data) Net loss attributable to common shareholders $ (963 ) $ (1,770 ) Basic weighted-average common shares outstanding 24,668 4,492 Dilutive effect of potentially dilutive securities - - Diluted weighted-average common shares outstanding 24,668 4,492 Basic net loss per share $ (0.04 ) $ (0.39 ) Diluted net loss per share $ (0.04 ) $ (0.39 )
SCHEDULE OF ANTI-DILUTIVE WEIGHTED AVERAGE SHARES	For the years ended December 31, 2022 and 2021, potentially dilutive securities were excluded from the calculation of weighted average shares because they were anti-dilutive are as follows: SCHEDULE OF ANTI-DILUTIVE WEIGHTED AVERAGE SHARES 2022 2021 (in thousands) Stock options 28 31 Unvested shares of restricted stock 687 174 Warrants - 50 Total 715 255

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	12 Months Ended
	Dec. 31, 2022
Fair Value Disclosures [Abstract]
SCHEDULE OF RECURRING MEASUREMENTS OF FAIR VALUE OF ASSETS AND LIABILITIES	The Company measures the fair value of commodity derivative contracts using an income valuation technique based on the contract price of the underlying positions, crude oil and natural gas forward curves, discount rates, and Company or counterparty non-performance risk. The fixed-price swaps and collar derivative contracts are included in Level 2. The fair value of commodity derivative contracts and their presentation in our consolidated balance sheet as of December 31, 2022 are presented below: SCHEDULE OF RECURRING MEASUREMENTS OF FAIR VALUE OF ASSETS AND LIABILITIES Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Total Effect Net Fair Value Presented in the Consolidated Balance (in thousands) Assets Current: Commodity derivatives $ - $ 488 $ - $ 488 $ (488 ) $ - Commodity derivatives, assets $ - $ 488 $ - $ 488 $ (488 ) $ - Liabilities Current: Commodity derivatives $ - $ (2,182 ) $ - $ (2,182 ) $ 488 $ (1,694 ) Commodity derivatives, liabilities $ - $ (2,182 ) $ - $ (2,182 ) $ 488 $ (1,694 ) Net derivative instruments $ - $ (1,694 ) $ - $ (1,694 ) $ - $ (1,694 )
SCHEDULE OF INVESTMENT IN THE MARKETABLE EQUITY SECURITIES	SCHEDULE OF INVESTMENT IN THE MARKETABLE EQUITY SECURITIES December 31, 2022 2021 Number of shares owned 2,421,180 2,421,180 Quoted market price $ 0.04429 $ 0.07874 Fair value $ 107,234 $ 190,641

OTHER CURRENT ASSETS AND ACCO_2

OTHER CURRENT ASSETS AND ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Tables)	12 Months Ended
	Dec. 31, 2022
Payables and Accruals [Abstract]
SCHEDULE OF OTHER CURRENT ASSETS	The following table presents the components of other current asset s s SCHEDULE OF OTHER CURRENT ASSETS 2022 2021 December 31, 2022 2021 (in thousands) Prepaid expense $ 138 $ 64 Joint interest billings receivable 332 76 Income tax receivable 50 - Other 38 39 Total other current assets $ 558 $ 179
SCHEDULE OF ACCOUNTS PAYABLE AND ACCRUED LIABILITIES	The following table presents the components of accounts payable and accrued liabilities as of the dates indicated: SCHEDULE OF ACCOUNTS PAYABLE AND ACCRUED LIABILITIES 2022 2021 December 31, 2022 2021 (in thousands) Accounts payable-trade $ 2,566 $ 891 Operating expense accruals 1,378 456 Revenue payables 3,503 37 Production taxes payable 319 37 Insurance premium financing 54 26 Other 12 - Total accounts payable and accrued expenses $ 7,832 $ 1,447

SUPPLEMENTAL DISCLOSURES OF C_2

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION (Tables)	12 Months Ended
	Dec. 31, 2022
Supplemental Cash Flow Elements [Abstract]
SCHEDULE OF SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION	SCHEDULE OF SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION 2022 2021 Year Ended 2022 2021 (in thousands) Cash paid for interest $ 500 $ 5 Investing activities: Change in capital expenditure accruals 196 80 Change in accrual for acquisition costs (546 ) 546 Common stock issued for acquisition of properties 64,694 - Assumption of commodity derivative liability in acquisition of properties 3,152 - Assumption of debt in acquisition of properties 3,347 - Assumption of suspense accounts in acquisition of properties 1,826 - Deferred tax liability from acquisition 2,819 Addition of operating lease liability and right of use asset 953 82 Prepaid rent liability netted with proceeds on sale of real estate - 143 Asset retirement obligations acquired 11,811 25 Asset retirement obligations revisions, sold and plugged wells 1,229 Financing activities: Issuance of stock for conversion of related party secured note payable and accrued interest - 438 Issuance of stock for settlement of related party legal costs - 406 Financing of insurance premiums with note payable 588 223

SUPPLEMENTAL OIL AND NATURAL _2

SUPPLEMENTAL OIL AND NATURAL GAS INFORMATION (UNAUDITED) (Tables)	12 Months Ended
	Dec. 31, 2022
Extractive Industries [Abstract]
SCHEDULE OF COSTS INCURRED IN CRUDE OIL AND NATURAL GAS ACQUISITIONS, EXPLORATION AND DEVELOMENT ACTIVITIES	The capitalized costs incurred in crude oil and natural gas acquisitions, exploration and development activities for the years ended December 31, 2022 and 2021 are provided in the table below: SCHEDULE OF COSTS INCURRED IN CRUDE OIL AND NATURAL GAS ACQUISITIONS, EXPLORATION AND DEVELOMENT ACTIVITIES 2022 2021 (in thousands) Proved property acquisition $ 102,223 $ 46 Unproved property acquisition - 5 Development 7,808 1,519 Exploration - - Total $ 110,031 $ 1,570
SCHEDULE OF CAPITALIZED COSTS ASSOCIATED WITH OIL AND NATURAL GAS PRODUCING ACTIVITIES	The following table presents the Company’s capitalized costs associated with oil and natural gas producing activities as of December 31, 2022 and 2021: SCHEDULE OF CAPITALIZED COSTS ASSOCIATED WITH OIL AND NATURAL GAS PRODUCING ACTIVITIES 2022 2021 (in thousands) Oil and Natural Gas Properties: Unevaluated properties: Unproved leasehold costs $ 1,584 $ 1,588 Evaluated properties in full cost pool 203,144 95,088 Less accumulated depletion and ceiling test impairment (96,725 ) (88,195 ) Net capitalized costs $ 108,003 $ 8,481
SCHEDULE OF OIL AND NATURAL GAS PRODUCING ACTIVITIES	SCHEDULE OF OIL AND NATURAL GAS PRODUCING ACTIVITIES 2022 2021 (in thousands) Oil and natural gas sales $ 44,552 $ 6,658 Lease operating expense (17,240 ) (2,421 ) Production taxes (3,010 ) (471 ) Depletion (8,530 ) (487 ) Income tax benefit 1,893 - Results of operations from oil and natural gas producing activities $ 17,665 $ 3,279
SCHEDULE OF PROVED OIL AND RESERVES AND GAS RESERVES AND CHANGES IN NET PROVED RESERVES	The Company’s estimated quantities of proved oil and natural gas reserves and changes in net proved reserves are summarized below for the years ended December 31, 2022 and 2021: SCHEDULE OF PROVED OIL AND RESERVES AND GAS RESERVES AND CHANGES IN NET PROVED RESERVES 2022 2021 Oil Gas Oil Gas (bbls) (mcfe) (1) (bbls) (mcfe) (1) Total proved reserves: Reserve quantities, beginning of year 1,021,620 1,938,048 975,745 1,676,948 Revisions of previous estimates (153,434 ) 4,066,007 128,232 437,757 Discoveries and extensions - - - - Purchases of minerals in place 4,777,193 11,753,283 11,365 - Sale of minerals in place (108,833 ) (64,338 ) - - Production (396,456 ) (1,344,736 ) (93,722 ) (176,657 ) Reserve quantities, end of year 5,140,090 16,348,264 1,021,620 1,938,048 (1) Mcf equivalents (Mcfe) consist of natural gas reserves in mcf plus NGLs converted to mcf using a factor of 6 mcf for each barrel of NGL.
SCHEDULE OF PRICES AS ADJUSTED FOR TRANSPORTATION, QUALITY	SCHEDULE OF PRICES AS ADJUSTED FOR TRANSPORTATION, QUALITY 2022 2021 Oil per Bbl $ 93.67 $ 66.56 Gas per Mcfe (1) $ 6.36 $ 3.60 (1) Consists of the weighted average price for natural gas in mcf plus NGLs converted to mcf using a factor of 6 mcf for each barrel of NGL.
SCHEDULE OF STANDARDIZED MEASURE OF DISCOUNTED FUTURE NET CASH FLOWS	The standardized measure of discounted future net cash flows relating to the Company’s proved oil and natural gas reserves is as follows as of December 31, 2022 and 2021: SCHEDULE OF STANDARDIZED MEASURE OF DISCOUNTED FUTURE NET CASH FLOWS 2022 2021 (in thousands) Future cash inflows $ 562,545 $ 76,041 Future cash outflows: Production costs (227,365 ) (40,350 ) Development costs (12,716 ) - Income taxes (48,833 ) (2,818 ) Future net cash flows 273,631 32,873 10 (129,843 ) (13,706 ) Standardized measure of discounted future net cash flows $ 143,788 $ 19,167
SCHEDULE OF STANDARDIZED MEASURE OF FUTURE NET CASH FLOWS	The changes in the standardized measure of future net cash flows relating to proved oil and natural gas reserves for the years ended December 31, 2022 and 2021 are as follows: SCHEDULE OF STANDARDIZED MEASURE OF FUTURE NET CASH FLOWS 2022 2021 (in thousands) Standardized measure, beginning of year $ 19,167 $ 8,586 Sales of oil and natural gas, net of production costs (24,302 ) (3,766 ) Net changes in prices and production costs 52,053 11,675 Changes in estimated future development costs (2,860 ) 302 Extensions and discoveries - - Purchases of minerals in place 116,673 216 Sale of minerals in place (1,606 ) - Revisions in previous quantity estimates 12,662 3,080 Previously estimated development costs incurred - (302 ) Net changes in income taxes (27,021 ) (1,389 ) Accretion of discount 10,170 674 Changes in timing and other (11,148 ) 91 Standardized measure, end of year $ 143,788 $ 19,167

SCHEDULE OF CONCENTRATION OF CR

SCHEDULE OF CONCENTRATION OF CREDIT RISK (Details) - Revenue Benchmark [Member] - Product Concentration Risk [Member]	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
PurchaserA [Member]
Product Information [Line Items]
Concentration risk percentage	21%	30%
PurchaserB [Member]
Product Information [Line Items]
Concentration risk percentage	19%
PurchaserC [Member]
Product Information [Line Items]
Concentration risk percentage	7%	34%
PurchaserD [Member]
Product Information [Line Items]
Concentration risk percentage	2%	10%

SCHEDULE OF PROPERTY AND EQUIPM

SCHEDULE OF PROPERTY AND EQUIPMENT USEFUL LIFE (Details)	12 Months Ended
	Dec. 31, 2022
Computers and Software [Member]
Property, Plant and Equipment [Line Items]
Property plant and equipment useful life	3 years
Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Property plant and equipment useful life	5 years
Auto and Trucks [Member]
Property, Plant and Equipment [Line Items]
Property plant and equipment useful life	5 years
Property, Plant and Equipment, Other Types [Member]
Property, Plant and Equipment [Line Items]
Property plant and equipment useful life	10 years

ORGANIZATION, OPERATIONS AND _4

ORGANIZATION, OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES (Details Narrative)	12 Months Ended
	Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Net revenue, discounted percentage	10%

SUMMARY OF AMOUNTS INCURRED FOR

SUMMARY OF AMOUNTS INCURRED FOR ASSETS ACQUIRED (Details) - USD ($) $ in Thousands				12 Months Ended
		Jul. 27, 2022	Jan. 05, 2022	Dec. 31, 2022
Business Acquisition [Line Items]
Value of 19,905,736 shares issued				$ 64,694
Sellers [Member]
Business Acquisition [Line Items]
Cash			$ 1,250
Value of 19,905,736 shares issued			64,694
Purchase price adjustments			487
Transaction costs			1,267
Total consideration paid			67,698
Debt assumed			3,347
Commodity derivative liabilities assumed			3,152
Suspense accounts assumed			1,276
Employee obligations assumed			100
Asset retirement obligations assumed			9,614
Deferred tax liabilities			2,819
Total liabilities assumed			20,308
Total consideration paid and liabilities assumed			88,006
Proved oil and gas properties	[1]		87,672
Vehicles			165
Deposit account			169
Total allocation to acquired assets			$ 88,006
ETXEnergy LLC [Member]
Business Acquisition [Line Items]
Cash		$ 11,875
Purchase price adjustments		(1,048)
Transaction costs		63
Total consideration paid		10,890
Suspense accounts assumed		380
Asset retirement obligations assumed		1,689
Total liabilities assumed		2,069
Total consideration paid and liabilities assumed		12,959
Proved oil and gas properties	[2]	$ 12,959
[1]Amount includes $ 1,286 557

SUMMARY OF AMOUNTS INCURRED F_2

SUMMARY OF AMOUNTS INCURRED FOR ASSETS ACQUIRED (Details) (Parenthetical) - USD ($) $ in Thousands	Jan. 05, 2022	Jul. 27, 2022
Sellers [Member]
Business Acquisition [Line Items]
Stock Issued During Period, Shares, Acquisitions	19,905,736
Aquisition of assets amounts	$ 1,286
ETXEnergy LLC [Member]
Business Acquisition [Line Items]
Aquisition of assets amounts		$ 557

ACQUISITIONS (Details Narrative

ACQUISITIONS (Details Narrative)				12 Months Ended
	Jul. 27, 2022 USD ($) a	May 03, 2022 USD ($) a	Jan. 05, 2022 USD ($) shares	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)	May 31, 2022 ft²	Dec. 31, 2020 USD ($)
Business Acquisition [Line Items]
Stock Issued During Period, Value, Acquisitions				$ 64,694,000
Repayment of debt				6,547,000
Asset retirement obligation	$ 1,700,000	$ 500,000	$ 9,600,000	$ 15,442,000	$ 1,461,000		$ 1,408,000
Area of land | ft²						0.50
Oil and Gas Properties [Member]
Business Acquisition [Line Items]
Asset retirement obligation		500,000
Payments to acquire oil and gas property		$ 1,000,000
Area of land | a		1,022
Suspense account		$ 200,000
Wells and Gathering Systems [Member]
Business Acquisition [Line Items]
Area of land | a	16,600
Purchase and Sale Agreement [Member]
Business Acquisition [Line Items]
Repayment of debt			3,300,000
Asset retirement obligation			3,100,000
Lubbock [Member] | Purchase and Sale Agreement [Member]
Business Acquisition [Line Items]
Stock Issued During Period, Value, Acquisitions			$ 125,000
Stock Issued During Period, Shares, Acquisitions | shares			6,568,828
Banner [Member] | Purchase and Sale Agreement [Member]
Business Acquisition [Line Items]
Stock Issued During Period, Value, Acquisitions			$ 1,000,000
Stock Issued During Period, Shares, Acquisitions | shares			6,790,524
Consideration liability for debt			$ 3,300,000
Amount of Ineffectiveness on Net Investment Hedges			3,100,000
Synergy [Member] | Purchase and Sale Agreement [Member]
Business Acquisition [Line Items]
Stock Issued During Period, Value, Acquisitions			$ 125,000
Stock Issued During Period, Shares, Acquisitions | shares			6,546,384
Sellers [Member]
Business Acquisition [Line Items]
Stock Issued During Period, Value, Acquisitions			$ 64,694,000
Stock Issued During Period, Shares, Acquisitions | shares			19,905,736
Assets purchase price			$ 1,250,000
Sellers [Member] | Purchase and Sale Agreement [Member]
Business Acquisition [Line Items]
Stock Issued During Period, Value, Acquisitions			$ 64,700,000
Stock Issued During Period, Shares, Acquisitions | shares			19,905,736
AggregatePurchasePriceOfBusinessAssets			$ 66,400,000
Assets purchase price			1,250,000
Adjustment to purchase price of assets			$ 500,000
ETXEnergy LLC [Member]
Business Acquisition [Line Items]
Assets purchase price	$ 11,875,000
ETXEnergy LLC [Member] | Wells and Gathering Systems [Member]
Business Acquisition [Line Items]
Assets purchase price	$ 11,900,000

SCHEDULE OF DISAGGREGATED REVEN

SCHEDULE OF DISAGGREGATED REVENUE (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Disaggregation of Revenue [Line Items]
Combined Total	$ 44,552	$ 6,658
Oil [Member]
Disaggregation of Revenue [Line Items]
Combined Total	36,293	5,956
Natural Gas, Midstream [Member]
Disaggregation of Revenue [Line Items]
Combined Total	8,259	702
Rockies [Member]
Disaggregation of Revenue [Line Items]
Combined Total	15,456	3,235
Rockies [Member] | Oil [Member]
Disaggregation of Revenue [Line Items]
Combined Total	14,318	2,844
Rockies [Member] | Natural Gas, Midstream [Member]
Disaggregation of Revenue [Line Items]
Combined Total	1,138	391
South Texas [Member]
Disaggregation of Revenue [Line Items]
Combined Total	7,158	1,003
South Texas [Member] | Oil [Member]
Disaggregation of Revenue [Line Items]
Combined Total	6,384	929
South Texas [Member] | Natural Gas, Midstream [Member]
Disaggregation of Revenue [Line Items]
Combined Total	774	74
West Texas [Member]
Disaggregation of Revenue [Line Items]
Combined Total	5,739	1,224
West Texas [Member] | Oil [Member]
Disaggregation of Revenue [Line Items]
Combined Total	5,408	985
West Texas [Member] | Natural Gas, Midstream [Member]
Disaggregation of Revenue [Line Items]
Combined Total	331	239
Gulf Coast [Member]
Disaggregation of Revenue [Line Items]
Combined Total	4,218	1,162
Gulf Coast [Member] | Oil [Member]
Disaggregation of Revenue [Line Items]
Combined Total	3,769	1,162
Gulf Coast [Member] | Natural Gas, Midstream [Member]
Disaggregation of Revenue [Line Items]
Combined Total	449
Mid Continent [Member]
Disaggregation of Revenue [Line Items]
Combined Total	11,981	34
Mid Continent [Member] | Oil [Member]
Disaggregation of Revenue [Line Items]
Combined Total	6,414	36
Mid Continent [Member] | Natural Gas, Midstream [Member]
Disaggregation of Revenue [Line Items]
Combined Total	$ 5,567	$ (2)

SCHEDULE OF CONSOLIDATED BALANC

SCHEDULE OF CONSOLIDATED BALANCE SHEET (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Leases
Operating lease	$ 868	$ 120
Short-term operating lease	189	114
Long-term operating lease	794	19
Total operating leases	$ 983	$ 133

SCHEDULE OF LEASE COSTS (Detail

SCHEDULE OF LEASE COSTS (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Leases
Operating lease cost	$ 246	$ 125
Short-term lease cost	560	9
Sublease income	(71)	(64)
Total lease costs	$ 735	$ 70

SCHEDULE OF WEIGHTED AVERAGE LE

SCHEDULE OF WEIGHTED AVERAGE LEASE (Details)	Dec. 31, 2022	Dec. 31, 2021
Leases
Weighted average lease term (years)	4 years 9 months 18 days	1 year 1 month 6 days
Weighted average discount rate	4.34%	9.26%

SCHEDULE OF FUTURE MINIMUM LEAS

SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Leases
2023	$ 225
2024	213
2025	218
2026	224
2027	209
Total lease payments	1,089
Less: imputed interest	(106)
Total lease liability	$ 983	$ 133

LEASES (Details Narrative)

LEASES (Details Narrative) $ in Thousands	1 Months Ended	12 Months Ended
	Aug. 31, 2021 USD ($)	Dec. 31, 2021 USD ($)	Dec. 31, 2022 USD ($)	May 31, 2022 ft²	Aug. 31, 2021 a	Aug. 31, 2021 ft²
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Operating lease liability		$ 133	$ 983
Lease term				67 months
Lease area | ft²				0.50
Property plant and equipment		188	651
Payments for Rent		$ 8
WY [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Lease area					14	30,400
Equipment [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Lease term				12 months
Building [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Property plant and equipment	$ 440
Loss on sale of property	$ 151
Long Term Lease Agreement [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Operating lease liability			$ 953

OIL AND NATURAL GAS PRODUCING_2

OIL AND NATURAL GAS PRODUCING ACTIVITIES (Details Narrative) $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($) a	Dec. 31, 2021 USD ($) a
Reserve Quantities [Line Items]
Proceeds from sale of oil property	$ 2,335	$ 40
Discount rate	10%
Oil [Member]
Reserve Quantities [Line Items]
Reserves units of measure	93.67
Natural Gas [Member]
Reserve Quantities [Line Items]
Reserves units of measure	6.36
OKLAHOMA | Wildhorse Waterflood Unit [Member]
Reserve Quantities [Line Items]
Proceeds from sale of assets	$ 1,200
TEXAS
Reserve Quantities [Line Items]
Sold interest	30%
TEXAS | Associated Acreage [Member]
Reserve Quantities [Line Items]
Proceeds from sale of assets	$ 1,100
Area of undeveloped acreage | a	4,500
TEXAS | Undeveloped Acreage [Member]
Reserve Quantities [Line Items]
Proceeds from sale of assets		$ 30
Area of undeveloped acreage | a		12
NORTH DAKOTA
Reserve Quantities [Line Items]
Proceeds from sale of oil property		$ 10

DEBT (Details Narrative)

DEBT (Details Narrative) - USD ($)				12 Months Ended
	Jan. 05, 2022	Sep. 24, 2021	Sep. 24, 2020	Dec. 31, 2022	Dec. 31, 2021	Jul. 27, 2022	Jul. 26, 2022
Debt Instrument [Line Items]
Proceeds from lines of credit				$ 15,200,000
Repayments of debt				6,547,000
APEG Energy II LP [Member] | Secured Promissory Note [Member]
Debt Instrument [Line Items]
Debt conversion, original debt, amount		$ 412,500
Credit Agreement [Member]
Debt Instrument [Line Items]
Line of credit current	$ 15,000,000			12,000,000
Line of credit facility, maximum borrowing capacity	$ 100,000,000					$ 10,700,000
Line of Credit Facility, Interest Rate Description	(a) the greatest of (i) the prime rate in effect on such day, and (b) the Federal Funds rate in effect on such day (as determined in the Credit Agreement) plus 0.50%, and an applicable margin that ranges between 0.25% to 1.25% depending on utilization of the amount of the borrowing base (the “Applicable Margin”). The weighted average interest rate on the Credit Agreement for the year ended December 31, 2022, was 6.63% per annum.
Interest expense				$ 528,000
Proceeds from lines of credit	$ 3,500,000
Repayments of debt	$ 3,300,000
Credit Agreement [Member] | Minimum [Member]
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity							$ 15,000,000
Credit Agreement [Member] | Maximum [Member]
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity							$ 20,000,000
Conversion Agreement [Member] | APEG Energy II LP [Member] | Secured Promissory Note [Member]
Debt Instrument [Line Items]
Debt instrument, face amount			$ 375,000
Debt instrument, interest rate, stated percentage			10%
Debt instrument, maturity date			Sep. 24, 2021
Prepayment penalty, percentage			10%
Debt conversion, original debt, amount		37,500
Value of shares issued, difference		$ 25,500
Conversion Agreement [Member] | APEG Energy II LP [Member] | Secured Promissory Note [Member] | Unregistered Common Stock [Member]
Debt Instrument [Line Items]
Stock issued during period, shares, new issues		97,962
Stock issued during period, value, new issues		$ 438,000

SCHEDULE OF COMMODITY DERIVATIV

SCHEDULE OF COMMODITY DERIVATIVE CONTRACTS (Details)	Dec. 31, 2022 MMBTU $ / bbl $ / MMBTU bbl
Crude Oil 2023 Contract [Member] | Collars [Member]
Net Investment Income [Line Items]
Proved Developed Reserves (Volume) | bbl	223,500	[1],[2]
Derivative, Floor Price	59.33
Derivative, Cap Price	79.55
Crude Oil 2023 Contract [Member] | Collars [Member] | First Quarter 2023 [Member]
Net Investment Income [Line Items]
Proved Developed Reserves (Volume) | bbl	66,200	[1],[2]
Derivative, Floor Price	57.73
Derivative, Cap Price	76
Crude Oil 2023 Contract [Member] | Collars [Member] | Second Quarter 2023 [Member]
Net Investment Income [Line Items]
Proved Developed Reserves (Volume) | bbl	53,500	[1],[2]
Derivative, Floor Price	60
Derivative, Cap Price	81.04
Crude Oil 2023 Contract [Member] | Collars [Member] | Third Quarter 2023 [Member]
Net Investment Income [Line Items]
Proved Developed Reserves (Volume) | bbl	52,600	[1],[2]
Derivative, Floor Price	60
Derivative, Cap Price	81.04
Crude Oil 2023 Contract [Member] | Collars [Member] | Fourth Quarter 2023 [Member]
Net Investment Income [Line Items]
Proved Developed Reserves (Volume) | bbl	51,200	[1],[2]
Derivative, Floor Price	60
Derivative, Cap Price	81.04
Crude Oil 2023 Contract [Member] | Fixed Price Swaps [Member]
Net Investment Income [Line Items]
Proved Developed Reserves (Volume) | bbl	12,000
Derivative, Swap Type, Average Fixed Price	59.20
Crude Oil 2023 Contract [Member] | Fixed Price Swaps [Member] | First Quarter 2023 [Member]
Net Investment Income [Line Items]
Proved Developed Reserves (Volume) | bbl	6,000
Derivative, Swap Type, Average Fixed Price	59.20
Crude Oil 2023 Contract [Member] | Fixed Price Swaps [Member] | Second Quarter 2023 [Member]
Net Investment Income [Line Items]
Proved Developed Reserves (Volume) | bbl	6,000
Derivative, Swap Type, Average Fixed Price	59.20
Crude Oil 2023 Contract [Member] | Fixed Price Swaps [Member] | Third Quarter 2023 [Member]
Net Investment Income [Line Items]
Proved Developed Reserves (Volume) | bbl
Derivative, Swap Type, Average Fixed Price
Crude Oil 2023 Contract [Member] | Fixed Price Swaps [Member] | Fourth Quarter 2023 [Member]
Net Investment Income [Line Items]
Proved Developed Reserves (Volume) | bbl
Derivative, Swap Type, Average Fixed Price
Natural Gas 2023 Contract [Member] | Collars [Member] | First Quarter 2023 [Member]
Net Investment Income [Line Items]
Derivative, Floor Price | $ / MMBTU
Derivative, Cap Price | $ / MMBTU
Proved Developed Reserves (Energy) | MMBTU		[1],[2]
Natural Gas 2023 Contract [Member] | Fixed Price Swaps [Member] | First Quarter 2023 [Member]
Net Investment Income [Line Items]
Derivative, Swap Type, Average Fixed Price | $ / MMBTU	2.96
Proved Developed Reserves (Energy) | MMBTU	60,000
[1]“Bbl” refers to one stock tank barrel, or 42 U.S. gallons liquid volume, used in this report in reference to crude oil or other liquid hydrocarbons.[2]“Mmbtu” means 1 million BTUs (British Thermal Units).

SCHEDULE OF FAIR VALUE OF COMMO

SCHEDULE OF FAIR VALUE OF COMMODITY DERIVATIVE CONTRACTS (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Commodity Derivatives
Current liabilities	$ 1,694
Total derivative liabilities	$ 1,694

SCHEDULE OF DERIVATIVE SETTLEME

SCHEDULE OF DERIVATIVE SETTLEMENT GAIN LOSS (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Offsetting Assets [Line Items]
Total derivative settlement losses	$ (7,140)	$ (260)
Total net commodity derivative losses	(5,682)	(260)
Oil Contracts [Member]
Offsetting Assets [Line Items]
Total derivative settlement losses	(6,277)	(260)
Total net commodity derivative losses	(4,941)	(260)
Gas Contracts [Member]
Offsetting Assets [Line Items]
Total derivative settlement losses	(863)
Total net commodity derivative losses	$ (741)

COMMODITY DERIVATIVES (Details

COMMODITY DERIVATIVES (Details Narrative) $ in Millions	Jan. 05, 2022 USD ($)
Commodity Derivatives
Derivative net hedge ineffectiveness gain loss	$ 3.1

SCHEDULE OF ASSET RETIREMENT OB

SCHEDULE OF ASSET RETIREMENT OBLIGATION (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Asset Retirement Obligation Disclosure [Abstract]
Balance, beginning of year	$ 1,461	$ 1,408
Acquired	11,811	45
Cost and life revisions	1,825
Plugged	(407)
Sold	(189)	(70)
Accretion	941	78
Balance, end of year	$ 15,442	$ 1,461

ASSET RETIREMENT OBLIGATIONS (D

ASSET RETIREMENT OBLIGATIONS (Details Narrative) - USD ($) $ in Thousands	Dec. 31, 2022	Jul. 27, 2022	May 03, 2022	Jan. 05, 2022	Dec. 31, 2021	Dec. 31, 2020
Asset Retirement Obligation Disclosure [Abstract]
Asset retirement obligation	$ 15,442	$ 1,700	$ 500	$ 9,600	$ 1,461	$ 1,408

COMMITMENTS, CONTINGENCIES, A_2

COMMITMENTS, CONTINGENCIES, AND RELATED PARTY TRANSACTIONS (Details Narrative) $ in Thousands	12 Months Ended
	Dec. 31, 2021 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Litigation expenses	$ 427

SCHEDULE OF STOCK OPTIONS ACTIV

SCHEDULE OF STOCK OPTIONS ACTIVITY (Details) - $ / shares		Dec. 31, 2022	Dec. 31, 2021
Shareholders’ equity:
Stock options outstanding and exercisable, shares		28,122	31,035
Stock options outstanding and exercisable, price	[1]	$ 54.03	$ 62.79
[1]Represents the weighted average price.

SCHEDULE OF STOCK OPTIONS OUTST

SCHEDULE OF STOCK OPTIONS OUTSTANDING AND EXERCISABLE (Details)	12 Months Ended
	Dec. 31, 2022 $ / shares shares
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items]
Options Outstanding, Number of shares | shares	28,122
Options Outstanding, Exercise price range, Lower range	$ 7.20
Options Outstanding, Exercise price range, Upper range	226.20
Options Outstanding, Weighted Average Exercise Price	$ 54.03
Options Outstanding, Remaining Contractual Term (Years)	3 years 4 months 24 days
Options Exercisable, Number of shares | shares	28,122
Options Exercisable, Weighted Average Average Exercise Price	$ 54.03
Exercise Price One [Member]
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items]
Options Outstanding, Number of shares | shares	16,500
Options Outstanding, Exercise price range, Lower range	$ 7.20
Options Outstanding, Exercise price range, Upper range	11.60
Options Outstanding, Weighted Average Exercise Price	$ 10
Options Outstanding, Remaining Contractual Term (Years)	4 years 9 months 18 days
Options Exercisable, Number of shares | shares	16,500
Options Exercisable, Weighted Average Average Exercise Price	$ 10
Exercise Price Two [Member]
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items]
Options Outstanding, Number of shares | shares	10,622
Options Outstanding, Exercise price range, Lower range	$ 90
Options Outstanding, Exercise price range, Upper range	124.80
Options Outstanding, Weighted Average Exercise Price	$ 106.20
Options Outstanding, Remaining Contractual Term (Years)	1 year 3 months 18 days
Options Exercisable, Number of shares | shares	10,622
Options Exercisable, Weighted Average Average Exercise Price	$ 106.20
Exercise Price Three [Member]
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items]
Options Outstanding, Number of shares | shares	1,000
Options Outstanding, Exercise price range, Lower range	$ 226.20
Options Outstanding, Exercise price range, Upper range	226.20
Options Outstanding, Weighted Average Exercise Price	$ 226.20
Options Outstanding, Remaining Contractual Term (Years)	1 year 8 months 12 days
Options Exercisable, Number of shares | shares	1,000
Options Exercisable, Weighted Average Average Exercise Price	$ 226.20

SCHEDULE OF NON-VESTED TIME- BA

SCHEDULE OF NON-VESTED TIME- BASED RESTRICTED STOCK AWARDS (Details)	12 Months Ended
	Dec. 31, 2022 $ / shares shares
Shareholders’ equity:
Shares, Non-vested restricted stock, Begining balance | shares	174,000
Weighted-Avg. Grant Date Fair Value per Share, Non-vested restricted stock, Begining balance | $ / shares	$ 4.75
Shares, Granted | shares	986,500
Weighted-Avg. Grant Date Fair Value per Share, Granted | $ / shares	$ 3.70
Shares, Vested | shares	(473,500)
Weighted-Avg. Grant Date Fair Value per Share, Vested | $ / shares	$ 3.95
Shares, Non-vested restricted stock, ending balance | shares	687,000
Weighted-Avg. Grant Date Fair Value per Share, Non-vested restricted stock, ending balance | $ / shares	$ 3.79

SCHEDULE OF STOCK COMPENSATION

SCHEDULE OF STOCK COMPENSATION EXPENSE RELATED TO RESTRICTED STOCK GRANTS (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock compensation expense	$ 3,017	$ 549
Restricted Stock [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock compensation expense	$ 3,017	$ 549

SHAREHOLDERS_ EQUITY (Details N

SHAREHOLDERS’ EQUITY (Details Narrative) - USD ($)	1 Months Ended	12 Months Ended
	Feb. 28, 2021	Dec. 31, 2022	Dec. 31, 2021	Jan. 05, 2022
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Common stock, shares outstanding		25,023,812	4,676,301
Common stock, shares authorized		245,000,000
Shares available for issuance			5,000,000
Common stock, shares issued		25,023,812	4,676,301	19,905,736
Sale of stock, shares issued	1,131,600
Sale of stock, net proceeds	$ 5,300,000
Compensation expense		$ 3,017,000	$ 549,000
Share based compensation not yet recognized		$ 929,000
Share based compensation not yet recognized, recognition period		1 year 9 months 18 days
2021 Stock Incentive Plan [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Shares available for issuance		3,000,000
Share-Based Payment Arrangement, Option [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Compensation expense		$ 0	$ 0
Options exercised in period		0	0
Options expirations in period		2,913	332

SCHEDULE OF INCOME TAX PROVISIO

SCHEDULE OF INCOME TAX PROVISIONS (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Income Tax Disclosure [Abstract]
Federal
State	28
Total current income tax	28
Federal	(1,765)
State	(156)
Total deferred income taxes	(1,921)
Total income tax provision	$ (1,893)

SCHEDULE OF EFFECTIVE INCOME TA

SCHEDULE OF EFFECTIVE INCOME TAX (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Income Tax Disclosure [Abstract]
Income tax benefit at federal statutory rate (21%)	$ (600)	$ (372)
State income tax benefit, net of federal benefit	(95)	(26)
Change in value of warrant		(16)
Percentage depletion carryover		(50)
Prior year true up	(509)	(14)
Compensation and other	187	2
Acquisition	1,056
Change in valuation allowance	(1,932)	476
Income tax benefit	$ (1,893)

SCHEDULE OF DEFERRED TAX ASSETS

SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Income Tax Disclosure [Abstract]
Net operating loss carryover	$ 8,443	$ 6,295
Property and equipment		3,115
Percentage depletion and contribution carryovers	2,004	1,947
Equity method investment and other	249	225
Deferred compensation liability	256	9
Asset retirement obligations	3,581	327
Stock-based compensation	439	190
Lease obligations	224	30
Derivatives	390
Total deferred tax assets	15,586	12,138
Property and equipment	(6,107)
Lease assets	(198)	(27)
Total deferred tax liabilities	(6,305)	(27)
Net deferred tax assets	9,281	12,111
Less valuation allowance	(10,179)	(12,111)
Net deferred tax liability	$ (898)

INCOME TAXES (Details Narrative

INCOME TAXES (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Operating Loss Carryforwards [Line Items]
Income tax description	Losses incurred prior to 2018 have a carryforward period of 20 years and begin to expire in 2037.
Indefinite carryforward, percentage	80%
Underlying assets and recorded the related adjustment	$ 6,305,000	$ 27,000
Uncertain tax positions	0	$ 0
Oil and Gas Properties [Member]
Operating Loss Carryforwards [Line Items]
Underlying assets and recorded the related adjustment	2,800,000
Federal [Member]
Operating Loss Carryforwards [Line Items]
Net operating loss carryovers	22,200,000
Recognized Built-In Losses [Member]
Operating Loss Carryforwards [Line Items]
Net operating loss carryovers	$ 10,500,000

SCHEDULE OF BASIC AND DILUTED N

SCHEDULE OF BASIC AND DILUTED NET LOSS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Earnings Per Share [Abstract]
Net loss attributable to common shareholders	$ (963)	$ (1,770)
Basic weighted-average common shares outstanding	24,668	4,492
Dilutive effect of potentially dilutive securities
Diluted weighted-average common shares outstanding	24,668	4,492
Basic net loss per share	$ (0.04)	$ (0.39)
Diluted net loss per share	$ (0.04)	$ (0.39)

SCHEDULE OF ANTI-DILUTIVE WEIGH

SCHEDULE OF ANTI-DILUTIVE WEIGHTED AVERAGE SHARES (Details) - shares	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total	715,000	255,000
Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total	28,000	31,000
Unvested Shares Of Restricted Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total	687,000	174,000
Warrants [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total		50,000

SCHEDULE OF RECURRING MEASUREME

SCHEDULE OF RECURRING MEASUREMENTS OF FAIR VALUE OF ASSETS AND LIABILITIES (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Current:
Commodity derivatives, liabilities	$ 1,694
Total Fair Value [Member]
Current:
Commodity derivatives, assets	488
Current:
Commodity derivatives, liabilities	(2,182)
Net derivative instruments	(1,694)
Effect of Netting [Member]
Current:
Commodity derivatives, assets	(488)
Current:
Commodity derivatives, liabilities	488
Net derivative instruments
Net Fair Value Presented [Member]
Current:
Commodity derivatives, assets
Current:
Commodity derivatives, liabilities	(1,694)
Net derivative instruments	(1,694)
Fair Value, Inputs, Level 1 [Member]
Current:
Commodity derivatives, assets
Current:
Commodity derivatives, liabilities
Net derivative instruments
Fair Value, Inputs, Level 2 [Member]
Current:
Commodity derivatives, assets	488
Current:
Commodity derivatives, liabilities	(2,182)
Net derivative instruments	(1,694)
Fair Value, Inputs, Level 3 [Member]
Current:
Commodity derivatives, assets
Current:
Commodity derivatives, liabilities
Net derivative instruments

SCHEDULE OF INVESTMENT IN THE M

SCHEDULE OF INVESTMENT IN THE MARKETABLE EQUITY SECURITIES (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Fair value of marketable equity securities	$ 107	$ 191
Anfield Energy [Member]
Number of shares owned	2,421,180	2,421,180
Quoted market price	$ 0.04429	$ 0.07874
Fair value of marketable equity securities	$ 107,234	$ 190,641

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Details Narrative) - USD ($) $ in Millions		12 Months Ended
	Jul. 27, 2022	Dec. 31, 2022
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value of asset acquisitions percentage		10%
Estimate of fair value		$ 87.7
Fair value of asset acquisitions	$ 7.3
Minimum [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Credit adjusted risk-free rate		7.30%
Maximum [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Credit adjusted risk-free rate		9.75%

SCHEDULE OF OTHER CURRENT ASSET

SCHEDULE OF OTHER CURRENT ASSETS (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Payables and Accruals [Abstract]
Prepaid expense	$ 138	$ 64
Joint interest billings receivable	332	76
Income tax receivable	50
Other	38	39
Total other current assets	$ 558	$ 179

SCHEDULE OF ACCOUNTS PAYABLE AN

SCHEDULE OF ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Payables and Accruals [Abstract]
Accounts payable-trade	$ 2,566	$ 891
Operating expense accruals	1,378	456
Revenue payables	3,503	37
Production taxes payable	319	37
Insurance premium financing	54	26
Other	12
Total accounts payable and accrued expenses	$ 7,832	$ 1,447

SCHEDULE OF SUPPLEMENTAL DISCLO

SCHEDULE OF SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Supplemental Cash Flow Elements [Abstract]
Cash paid for interest	$ 500	$ 5
Investing activities:
Change in capital expenditure accruals	196	80
Change in accrual for acquisition costs	(546)	546
Common stock issued for acquisition of properties	64,694
Assumption of commodity derivative liability in acquisition of properties	3,152
Assumption of debt in acquisition of properties	3,347
Assumption of suspense accounts in acquisition of properties	1,826
Deferred tax liability from acquisition	2,819
Addition of operating lease liability and right of use asset	953	82
Prepaid rent liability netted with proceeds on sale of real estate		143
Asset retirement obligations acquired	11,811	25
Asset retirement obligations revisions, sold and plugged wells	1,229
Financing activities:
Issuance of stock for conversion of related party secured note payable and accrued interest		438
Issuance of stock for settlement of related party legal costs		406
Financing of insurance premiums with note payable	$ 588	$ 223

SCHEDULE OF COSTS INCURRED IN C

SCHEDULE OF COSTS INCURRED IN CRUDE OIL AND NATURAL GAS ACQUISITIONS, EXPLORATION AND DEVELOMENT ACTIVITIES (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Extractive Industries [Abstract]
Proved property acquisition	$ 102,223	$ 46
Unproved property acquisition		5
Development	7,808	1,519
Exploration
Total	$ 110,031	$ 1,570

SCHEDULE OF CAPITALIZED COSTS A

SCHEDULE OF CAPITALIZED COSTS ASSOCIATED WITH OIL AND NATURAL GAS PRODUCING ACTIVITIES (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Extractive Industries [Abstract]
Unproved leasehold costs	$ 1,584	$ 1,588
Evaluated properties in full cost pool	203,144	95,088
Less accumulated depletion and ceiling test impairment	(96,725)	(88,195)
Net capitalized costs	$ 108,003	$ 8,481

SCHEDULE OF OIL AND NATURAL GAS

SCHEDULE OF OIL AND NATURAL GAS PRODUCING ACTIVITIES (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Extractive Industries [Abstract]
Oil and natural gas sales	$ 44,552	$ 6,658
Lease operating expense	(17,240)	(2,421)
Production taxes	(3,010)	(471)
Depletion	(8,530)	(487)
Income tax benefit	1,893
Results of operations from oil and natural gas producing activities	$ 17,665	$ 3,279

SCHEDULE OF PROVED OIL AND RESE

SCHEDULE OF PROVED OIL AND RESERVES AND GAS RESERVES AND CHANGES IN NET PROVED RESERVES (Details) - bbl	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Oil [Member]
Reserve Quantities [Line Items]
Reserve quantities, beginning of year	1,021,620	975,745
Revisions of previous estimates	(153,434)	128,232
Discoveries and extensions
Purchases of minerals in place	4,777,193	11,365
Sale of minerals in place	(108,833)
Production	(396,456)	(93,722)
Reserve quantities, end of year	5,140,090	1,021,620
Natural Gas [Member]
Reserve Quantities [Line Items]
Reserve quantities, beginning of year	1,938,048	1,676,948
Revisions of previous estimates	4,066,007	437,757
Discoveries and extensions
Purchases of minerals in place	11,753,283
Sale of minerals in place	(64,338)
Production	(1,344,736)	(176,657)
Reserve quantities, end of year	16,348,264	1,938,048

SCHEDULE OF PRICES AS ADJUSTED

SCHEDULE OF PRICES AS ADJUSTED FOR TRANSPORTATION, QUALITY (Details) - $ / bbl		12 Months Ended
		Dec. 31, 2022	Dec. 31, 2021
Oil [Member]
Reserve Quantities [Line Items]
Sales Prices		93.67	66.56
Natural Gas (mcfe) [Member]
Reserve Quantities [Line Items]
Sales Prices	[1]	6.36	3.60
[1]Consists of the weighted average price for natural gas in mcf plus NGLs converted to mcf using a factor of 6 mcf for each barrel of NGL.

SCHEDULE OF STANDARDIZED MEASUR

SCHEDULE OF STANDARDIZED MEASURE OF DISCOUNTED FUTURE NET CASH FLOWS (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Extractive Industries [Abstract]
Future cash inflows	$ 562,545	$ 76,041
Production costs	(227,365)	(40,350)
Development costs	(12,716)
Income taxes	(48,833)	(2,818)
Future net cash flows	273,631	32,873
10% annual discount factor	(129,843)	(13,706)
Standardized measure of discounted future net cash flows	$ 143,788	$ 19,167	$ 8,586

SCHEDULE OF STANDARDIZED MEAS_2

SCHEDULE OF STANDARDIZED MEASURE OF DISCOUNTED FUTURE NET CASH FLOWS (Details) (Parenthetical)	Dec. 31, 2022	Dec. 31, 2021
Extractive Industries [Abstract]
Annual Discount factor	10%	10%

SCHEDULE OF STANDARDIZED MEAS_3

SCHEDULE OF STANDARDIZED MEASURE OF FUTURE NET CASH FLOWS (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Extractive Industries [Abstract]
Standardized measure, beginning of year	$ 19,167	$ 8,586
Sales of oil and natural gas, net of production costs	(24,302)	(3,766)
Net changes in prices and production costs	52,053	11,675
Changes in estimated future development costs	(2,860)	302
Extensions and discoveries
Purchases of minerals in place	116,673	216
Sale of minerals in place	(1,606)
Revisions in previous quantity estimates	12,662	3,080
Previously estimated development costs incurred		(302)
Net changes in income taxes	(27,021)	(1,389)
Accretion of discount	10,170	674
Changes in timing and other	(11,148)	91
Standardized measure, end of year	$ 143,788	$ 19,167

SUPPLEMENTAL OIL AND NATURAL _3

SUPPLEMENTAL OIL AND NATURAL GAS INFORMATION (UNAUDITED) (Details Narrative)	12 Months Ended
	Dec. 31, 2022 USD ($) $ / bbl	Dec. 31, 2021 USD ($) $ / bbl
Property, Plant and Equipment [Line Items]
Write-downs of its oil and natural gas properties	$ 0	$ 0
Depletion and amortization	9,607,000	589,000
Unproved leasehold costs	$ 1,584,000	$ 1,588,000
Annual discount factor	10%	10%
Oil and Gas Properties [Member]
Property, Plant and Equipment [Line Items]
Depletion and amortization	$ 8,500,000	$ 500,000
Depletion and amortization per BOE | $ / bbl	13.74	3.98

SUBSEQUENT EVENTS (Details Narr

SUBSEQUENT EVENTS (Details Narrative) - $ / shares	1 Months Ended	12 Months Ended
	Jan. 31, 2023	Dec. 31, 2022
Subsequent Event [Line Items]
Common stock, dividend per share		$ 0.0675
Subsequent Event [Member]
Subsequent Event [Line Items]
Common stock, dividend per share	$ 0.0225