Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Mar. 26, 2024 | Sep. 30, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 2023 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2023 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity File Number | 333-232845 | ||
Entity Registrant Name | COJAX OIL and GAS CORPORATION | ||
Entity Central Index Key | 0001763925 | ||
Entity Tax Identification Number | 46-1892622 | ||
Entity Incorporation, State or Country Code | VA | ||
Entity Address, Address Line One | 3033 Wilson Boulevard | ||
Entity Address, Address Line Two | Suite E-605 | ||
Entity Address, City or Town | Arlington | ||
Entity Address, State or Province | VA | ||
Entity Address, Postal Zip Code | 22201 | ||
City Area Code | 703 | ||
Local Phone Number | 479-8538 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | No | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | true | ||
Elected Not To Use the Extended Transition Period | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 3,468,087 | ||
Entity Common Stock, Shares Outstanding | 10,465,902 | ||
Document Financial Statement Error Correction [Flag] | false | ||
Auditor Name | Sadler, Gibb & Associates, LLC | ||
Auditor Location | Draper, UT | ||
Auditor Firm ID | 3627 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash | $ 75,908 | $ 37,750 |
Accounts receivable | 205,306 | 52,050 |
Total current assets | 281,214 | 89,800 |
Property and Equipment: | ||
Oil and gas properties at cost | 4,509,679 | 5,385,080 |
Less: Accumulated depletion | (420,176) | (39,623) |
Total property and equipment - net | 4,089,503 | 5,345,457 |
Total assets | 4,370,717 | 5,435,257 |
Current liabilities: | ||
Accounts payable | 121,764 | 105,057 |
Workover expense payable | 106,861 | 234,396 |
Accrued salaries and payroll taxes | 834,809 | 1,642,612 |
Current portion of notes payable | 9,984 | 10,242 |
Notes payable – related party | 103,001 | 113,001 |
Total current liabilities | 1,176,419 | 2,105,308 |
Long-term liabilities: | ||
Asset retirement obligations | 105,118 | 92,241 |
Notes payable, net of current portion | 21,094 | 30,724 |
Total long-term liabilities | 126,212 | 122,965 |
Total liabilities | 1,302,631 | 2,228,273 |
Stockholders’ equity: | ||
Preferred stock, $0.10 par value, 50,000,000 current shares authorized, 105,000 and 55,000 Series A shares, $0.01 par value issued and outstanding at December 31, 2023 and 2022, respectively. | 1,050 | 550 |
Common stock, $0.01 par value, 300,000,000 current shares authorized, 9,315,902 and 9,114,446 shares issued and outstanding at December 31, 2023 and 2022, respectively. | 93,159 | 91,144 |
Subscription payable | 10,000 | |
Additional paid-in capital | 13,727,918 | 12,249,429 |
Accumulated deficit | (10,764,041) | (9,134,139) |
Total stockholders’ equity | 3,068,086 | 3,206,984 |
Total liabilities and stockholders’ equity | $ 4,370,717 | $ 5,435,257 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2023 | Dec. 31, 2022 |
Preferred stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Preferred stock, shares authorized | 50,000,000 | 50,000,000 |
Preferred stock, shares issued | 105,000 | 55,000 |
Preferred stock, shares outstanding | 105,000 | 55,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, shares issued | 9,315,902 | 9,114,446 |
Common stock, shares outstanding | 9,315,902 | 9,114,446 |
Series A Preferred Stock [Member] | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares issued | 105,000 | 55,000 |
Preferred stock, shares outstanding | 105,000 | 55,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Income Statement [Abstract] | ||
Revenues | $ 927,983 | $ 106,554 |
Operating costs and expenses: | ||
Lease operating expenses | 248,642 | 321,103 |
General and administrative expenses | 1,038,473 | 2,111,761 |
Depletion and accretion on discounted liabilities | 393,430 | 42,321 |
Impairment expense | 875,400 | 3,909,700 |
Total operating costs and expenses | 2,555,945 | 6,384,885 |
Loss from operations | (1,627,962) | (6,278,331) |
Other income (expense): | ||
Gain on forgiveness of debt | 41,665 | |
Other income and expense | 202 | 7 |
Interest expense | (2,142) | (956) |
Total other income (expense) | (1,940) | 40,716 |
Net loss | $ (1,629,902) | $ (6,237,615) |
Net loss per common share diluted | $ (0.18) | $ (0.93) |
Net loss per common share basic | $ (0.18) | $ (0.93) |
Weighted average number of common shares outstanding during the period diluted | 9,279,410 | 6,683,773 |
Weighted average number of common shares outstanding during the period basic | 9,279,410 | 6,683,773 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) | Preferred Stock [Member] | Common Stock [Member] | Subscriptions Payable [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Beginning balance, value at Dec. 31, 2021 | $ 300 | $ 57,806 | $ 4,803,049 | $ (2,896,524) | $ 1,964,631 | |
Beginning balance (in shares) at Dec. 31, 2021 | 30,000 | 5,780,577 | ||||
Common stock issued for services | $ 2,338 | 467,630 | 469,968 | |||
Common stock issued for services (in shares) | 233,869 | |||||
Preferred stock issued for accrued officer compensation | $ 250 | 499,750 | 500,000 | |||
Preferred shares issued for accrued officer compensation (in shares) | 25,000 | |||||
Shares issued for acquisitions | $ 31,000 | 6,479,000 | 6,510,000 | |||
Shares issued for acquisitions (in shares) | 3,100,000 | |||||
Net loss | (6,237,615) | (6,237,615) | ||||
Ending balance, value at Dec. 31, 2022 | $ 550 | $ 91,144 | 12,249,429 | (9,134,139) | 3,206,984 | |
Ending balance (in shares) at Dec. 31, 2022 | 55,000 | 9,114,446 | ||||
Common stock issued for services | $ 2,015 | 413,989 | 416,004 | |||
Common stock issued for services (in shares) | 201,456 | |||||
Preferred stock issued for accrued officer compensation | $ 500 | 1,064,500 | 1,065,000 | |||
Preferred shares issued for accrued officer compensation (in shares) | 50,000 | |||||
Net loss | (1,629,902) | (1,629,902) | ||||
Cash received for stock subscriptions payable | 10,000 | 10,000 | ||||
Ending balance, value at Dec. 31, 2023 | $ 1,050 | $ 93,159 | $ 10,000 | $ 13,727,918 | $ (10,764,041) | $ 3,068,086 |
Ending balance (in shares) at Dec. 31, 2023 | 105,000 | 9,315,902 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Operating Activities: | ||
Net loss | $ (1,629,902) | $ (6,237,615) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Impairment loss on oil and gas properties | 875,400 | 3,909,700 |
Depletion expense | 380,553 | 39,623 |
Gain on forgiveness of debt | (41,665) | |
Accretion of asset retirement obligations | 12,877 | 2,698 |
Common stock issued for services and salaries | 416,004 | 469,969 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (153,256) | (52,050) |
Prepaid expense | 91,667 | |
Accounts payable and accrued liabilities | 146,370 | 1,739,350 |
Net cash provided by (used in) operating activities | 48,046 | (78,323) |
Investing Activities: | ||
Net cash used in investment activities | ||
Financing Activities: | ||
Proceeds from loans payable – related party | 113,001 | |
Payments of loans payable - related party | (10,000) | |
Payments of loans payable – SBA PPP Loan | (9,888) | (9,026) |
Proceeds for stock subscriptions payable | 10,000 | |
Net cash provided by (used in) financing activities | (9,888) | 103,975 |
Net change in cash | 38,158 | 25,652 |
Cash - beginning of period | 37,750 | 12,098 |
Cash - end of period | 75,908 | 37,750 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Common stock issued for acquisitions | 6,510,000 | |
Preferred stock issued for accrued compensation | 1,065,000 | 500,000 |
Cash paid for interest | 645 | 1,227 |
Cash paid for taxes |
ORGANIZATION, NATURE OF OPERATI
ORGANIZATION, NATURE OF OPERATIONS AND BASIS OF PRESENTATION | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
ORGANIZATION, NATURE OF OPERATIONS AND BASIS OF PRESENTATION | NOTE 1 – ORGANIZATION, NATURE OF OPERATIONS AND BASIS OF PRESENTATION Organization CoJax Oil & Gas Corporation, a Virginia corporation (“Company”), was incorporated on November 13, 2017. The Company is based in Arlington, Virginia, with a wholly owned subsidiary, Barrister Energy LLC (‘Barrister Energy’), registered in Mississippi and based in Laurel, Mississippi . Nature of Operations The Company is a growing U.S. energy company engaged in the acquisition and development of lower-risk onshore oil and gas-producing properties within the Southeastern U.S. The Company’s focused growth strategy relies primarily on leveraging management’s expertise to acquire both operated and non-operated interests in producing properties with the goal of assembling a large oil and gas portfolio. Through this strategy of acquisition of operated and non-operated properties, the Company has the unique ability to benefit from the technical and scientific expertise of world-class exploration and production (“E&P”) companies operating in the area. Since the company’s inception, it has been engaged in organizational activities and had limited revenue-generating operations prior to the periods covered by this current report. The company has begun to acquire assignments of hydrocarbon revenues and underlying oil and gas exploration and production rights as covered by this current report. The company runs all operations of its current acquisitions through Barrister Energy LLC, the operational subsidiary. The Company focuses on the acquisition of and exploitation of upstream energy assets, specifically targeting select oil and gas mineral interests. These acquisitions are structured primarily as acquisitions of leases, working interests, real property interests and mineral rights and royalties and are generally not regarded as the acquisition of securities, but rather real property interests. As an owner, the Company has the right to receive a portion of the production from the leased acreage (or of the proceeds of the sale thereof). As an owner, the Company also has an obligation for its share of lease operating costs. On March 11, 2020, the World Health Organization declared COVID-19 a global pandemic. This contagious disease outbreak and any related adverse public health developments, have adversely affected workforces, economies, and financial markets globally, leading to an economic downturn. The impact on the Company has not been significant, but management continues to monitor the situation. Basis of Presentation The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“US GAAP”), which contemplate the continuation of the Company as a going concern. |
GOING CONCERN DISCLOSURE
GOING CONCERN DISCLOSURE | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
GOING CONCERN DISCLOSURE | NOTE 2 – GOING CONCERN DISCLOSURE The Company’s consolidated financial statements are prepared in accordance with U.S. GAAP applicable to a going concern that contemplates the realization of assets and liquidation of liabilities in the normal course of business. There can be no assurance that the Company will be able to achieve its business plan, raise any additional capital, or secure the additional financing necessary to implement its current operating plan. The accompanying consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. The Company has yet to achieve profitable operations, expects to incur further losses in the development of its business, has negative cash flows from operating activities, and is dependent upon future issuances of equity or other financings to fund ongoing operations, all of which raises substantial doubt about the Company’s ability to continue as a going concern for a period of twelve months from the issuance of these financial statements. The Company’s ability to continue as a going concern is dependent upon its ability to generate future profitable operations and/or to obtain the necessary financing from stockholders or other sources to meet its obligations and repay its liabilities arising from normal business operations when they come due. Management has no formal plan in place to address this concern but considers that the Company will be able to obtain additional funds by equity financing and/or related party advances, however, there is no assurance of additional funding being available or on acceptable terms, if at all. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of consolidation The accompanying consolidated financial statements include the accounts of the Company and of its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosures 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 areas of estimate include the impairment of assets and rates for amortization, accrued liabilities, future income tax obligations, and the inputs used in calculating stock-based compensation. Actual results could differ from those estimates and would affect future results of operations and cash flows. Reclassifications Certain prior period amounts have been reclassified to conform with the current year presentation. Reclassifications include combining or further disaggregation of certain line items in the consolidated balance sheets, consolidated statements of operations, and consolidated statements of cash flows. Such reclassifications had no significant impact on our reported net loss, current assets, total assets, current liabilities, total liabilities, shareholders’ equity or cash flows. Cash and Cash Equivalents The Company considers all highly liquid temporary cash investments with an original maturity of three months or less to be cash equivalents. At December 31, 2023, and December 31, 2022, the Company had no Oil and Gas Producing Activities The Company uses the successful efforts method of accounting for oil and gas activities. Under this method, the costs of productive exploratory wells, all development wells, related asset retirement obligation assets, and productive leases are capitalized and amortized, principally by field, on a units-of-production basis over the life of the remaining proved reserves. Exploration costs, including personnel costs, geological and geophysical expenses, and delay rentals for oil and gas leases are charged to expense as incurred. Exploratory drilling costs are initially capitalized but charged to expense if and when the well is determined not to have found reserves in commercial quantities. Estimates of oil and gas reserves, as determined by independent petroleum engineers, are continually subject to revision based on price, production history and other factors. Depletion expense, which is computed based on the units of production method, could be significantly impacted by changes in such estimates. Additionally, US GAAP requires that if the expected future undiscounted cash flows from an asset are less than its carrying cost, that asset must be written down to its fair market value. As the fair market value of an oil and gas property will usually be significantly less than the total undiscounted future net revenues expected from that asset, slight changes in the estimates used to determine future net revenues from an asset could lead to the necessity of recording a significant impairment of that asset. Unproved oil and gas properties will be assessed annually to determine whether they have been impaired by the drilling of dry holes on or near the related acreage or other circumstances, which may indicate a decline in value. When impairment occurs, a loss will be recognized. When leases for unproved properties expire, the costs thereof, net of any related allowance for impairment, will be removed from the accounts and charged to expense. The Company will review its proved oil and natural gas properties for impairment whenever events and circumstances indicate that a decline in the recoverability of its carrying value may have occurred. It estimates the undiscounted future net cash flows of its oil and natural gas properties and compares such undiscounted future cash flows to the carrying amount of the oil and natural gas properties to determine if the carrying amount is recoverable. If the carrying amount exceeds the estimated undiscounted future cash flows, the Company will adjust the carrying amount of the oil and natural gas properties to fair value. During the years ended December 31, 2023, and 2022, the Company recorded impairments of $ 875,400 $ 3,909,700 Long-Lived Assets The Company accounts for the impairment or disposal of long-lived assets according to the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) 360 “Property, Plant and Equipment”. ASC 360 clarifies the accounting for the impairment of long-lived assets and for long-lived assets to be disposed of, including the disposal of business segments and major lines of business. Long-lived assets are reviewed when facts and circumstances indicate that the carrying value of the asset may not be recoverable. When necessary, impaired assets are written down to estimated fair value based on the best information available. Estimated fair value is generally based on either appraised value or measured by discounting estimated future cash flows. Considerable management judgment is necessary to estimate discounted future cash flows. Accordingly, actual results could vary significantly from such estimates. The Company did not recognize any impairment losses on long-lived assets during the years ending December 31, 2023, and 2022. Fair Value of Financial Instruments The Company had no financial instruments for the year ending December 31, 2023, or for the year ending December 31, 2022. ASC 820 “Fair Value Measurements and Disclosures” defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy that distinguishes between (1) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (2) a reporting entity’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). The fair value hierarchy consists of three broad levels, which give the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below: Level 1 Level 2 Level 3 Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of December 31, 2023 and 2022. The respective carrying values of certain on-balance-sheet financial instruments approximated their fair values due to the short-term nature of these instruments. Revenue Recognition The Company accounts for revenue under ASC 606 “Revenue from Contracts with Customers.” Under ASC 606, oil and natural gas sales revenues are recognized when control of the product is transferred to the customer, the performance obligations under the terms of the contracts with customers are satisfied and collectability is reasonably assured. All the Company’s oil and natural gas sales are made under contracts with customers. The performance obligations for the Company’s contracts with customers are satisfied at a point in time through the delivery of oil and natural gas to its customers. Accordingly, the Company’s contracts do not give rise to contract assets or liabilities. The Company typically receives payment within 90 days of the month of delivery. The Company’s contracts for oil and natural gas sales are standard industry contracts that include variable consideration based on the monthly index price and adjustments that may include counterparty-specific provisions related to volumes, price differentials, discounts, and other adjustments and deductions. Revenues consist of the following: Year ended December 31, 2023 Year ended December 31, 2022 Crude oil revenues $ 918,210 $ 99,612 Gas revenues 9,773 6,942 Total revenues $ 927,983 $ 106,554 Accounts Receivable Accounts receivable consists of oil and natural gas receivables. Ongoing evaluations of collectability are performed and an allowance for potential credit losses is provided against the portion of accounts receivable that is estimated to be uncollectible. The Company did not recognize any write-offs during the years ended December 31, 2023 and 2022. The allowance for doubtful accounts is $ 0 Stock-Based Compensation The Company accounts for Stock-Based Compensation under ASC 718 “Compensation – Stock Compensation”, which addresses the accounting for transactions in which an entity exchanges its equity instruments for goods or services, with a primary focus on transactions in which an entity obtains employee services in share-based payment transactions. Generally accepted accounting principles require measurement of the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award. Incremental compensation costs arising from subsequent modifications of awards after the grant date must be recognized. The Company issues stock to consultants for various services. The costs for these transactions are measured at the fair value of the consideration received or the fair value of the equity instruments issued, whichever is more reliably measurable. The value of the common stock is measured at the earlier of (i) the date at which a firm commitment for performance by the counterparty to earn the equity instruments is reached or (ii) the date at which the counterparty's performance is complete. The Company recognized consulting expense and a corresponding increase to additional paid-in-capital related to stock issued for services. Income Taxes Income taxes are accounted for under ASC 740, using the liability method of accounting for income taxes. Under the liability method, future tax liabilities and assets are recognized for the estimated future tax consequences attributable to differences between the amounts reported in the financial statement carrying amounts of assets and liabilities and their respective tax bases. Future tax assets and liabilities are measured using enacted or substantially enacted income tax rates expected to apply when the asset is realized, or the liability settled. The effect of a change in income tax rates on future income tax liabilities and assets is recognized in income in the period that the change occurs. Future income tax assets are recognized to the extent that they are considered more likely than not to be realized. ASC 740 clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements. This standard requires a company to determine whether it is more likely than not that a tax position will be sustained upon examination based on the technical merits of the position. If the more-likely-than-not threshold is met, a company must measure the tax position to determine the amount to recognize in the financial statements. Because of the implementation of this standard, the Company performed a review of its material tax positions in accordance with recognition and measurement standards established by ASC 740 and concluded that it had no uncertain tax positions as of December 31, 2023, or as of December 31, 2022. Basic and Diluted Income per Share The Company computes income per share in accordance with ASC 260, "Earnings per Share", which requires the presentation of both basic and diluted earnings per share (“EPS”) on the face of the consolidated statement of operations. Basic EPS is computed by dividing income available to common stockholders by the weighted average number of shares outstanding during the period. Diluted EPS gives effect to all dilutive potential shares of common stock outstanding during the period using the treasury stock method and convertible preferred stock using the if-converted method. In computing diluted EPS, the average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options or warrants. Diluted EPS excludes all dilutive potential shares if their effect is anti-dilutive. As of December 31, 2023 and 2022, the Company had 1,050,000 550,000 Asset Retirement Obligations The Company records the estimated fair value of obligations associated with the retirement of tangible, long-lived assets in the period in which they are incurred. When a liability is initially recorded, the Company capitalizes the cost by increasing the carrying amount of the related long-lived asset. Over time, the liability is accreted to its present value, and the capitalized cost is depleted over the useful life of the related asset. Revisions to estimated asset retirement obligations will result in an adjustment to the related capitalized asset and corresponding liability. Upon settlement of the liability, the Company either settles the obligation for its recorded amount or incurs a gain or loss. The Company’s asset retirement obligation relates to the plugging, dismantling, removal, site reclamation, and similar activities of its oil and gas properties. Asset retirement obligations are estimated at the present value of expected future net cash flows and are discounted using the Company’s credit adjusted risk-free rate. The Company uses unobservable inputs in the estimation of asset retirement obligations that include, but are not limited to: costs of labor, costs of materials, profits on costs of labor and materials, the effect of inflation on estimated costs, and discount rate. Due to the subjectivity of assumptions and the relative long lives of the Company’s leases, the costs to ultimately retire the Company’s obligations may vary significantly from prior estimates. Assumptions used in determining estimates are reviewed annually. Concentration of Credit Risk Our revenue can be materially affected by current economic conditions and the price of oil and natural gas. However, based on the current demand for crude oil and natural gas and the fact that alternative purchasers are readily available, we believe that the loss of our marketing agents and/or any of the purchasers identified by our marketing agents would not have a long-term material adverse effect on our financial position or results of international operations. The continued economic disruption resulting from Russia’s invasion of Ukraine, a potential global recession, and other varying macroeconomic conditions could materially impact the Company's business in future periods. Any potential disruption will depend on the duration and intensity of these events, which are highly uncertain and cannot be predicted at this time. |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 12 Months Ended |
Dec. 31, 2023 | |
Recent Accounting Pronouncements | |
RECENT ACCOUNTING PRONOUNCEMENTS | NOTE 4 – RECENT ACCOUNTING PRONOUNCEMENTS Management does not believe any recently issued but not yet effective accounting pronouncements if adopted, would have a material effect on the Company’s present or future financial statements. |
ROYALTY INTERESTS IN OIL AND GA
ROYALTY INTERESTS IN OIL AND GAS PROPERTIES | 12 Months Ended |
Dec. 31, 2023 | |
Extractive Industries [Abstract] | |
ROYALTY INTERESTS IN OIL AND GAS PROPERTIES | NOTE 5 – ROYALTY INTERESTS IN OIL AND GAS PROPERTIES 2023 Transactions During the year ending December 31, 2023, the Company did not acquire additional properties. 2022 Transactions On November 8, 2022, the Company approved and authorized, by unanimous written consent, the issuance of 1,600,000 0.01 2.10 During the year ended December 31, 2022, this property was impaired by $ 2,085,100 On December 2, 2022, the Company approved and authorized, by unanimous written consent, the issuance of 1,500,000 0.01 2.10 The Shares were issued by the Company in consideration of the sale and assignment of the wells, facilities, and all of the Assignor’s title, rights, and interest in and to certain properties located in Mississippi, collectively known as “Buckley,” to Barrister Energy LLC, a wholly-owned subsidiary of the Company organized under the laws of Mississippi. The Assignment was completed on December 2, 2022, with an effective date of October 15, 2022, for accounting purposes. During the years ended December 31, 2023 and 2022, the Company recorded impairment of $ 875,400 1,824,600 At December 31, 2023, and December 31, 2022, the Company had leased oil and gas properties assets valued at $ 4,089,503 5,345,457 Scheduled leased oil and gas properties assets As of December 31, 2023 As of December 31, 2022 Beginning balance $ 5,345,457 $ 2,779,802 Additions to proved reserves — 6,556,187 Revisions of prior year ARO estimates — (41,209 ) Depletion expense (380,554 ) (39,623 ) Impairment expense (875,400 ) (3,909,700 ) Ending Balance $ 4,089,503 $ 5,345,457 We recorded depletion expense of $ 0.38 million 0.04 million In connection with fair value assessments for oil and gas proved properties, we recorded long-lived asset impairments of $ 0.9 million 3.9 million |
NOTES PAYABLE
NOTES PAYABLE | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
NOTES PAYABLE | NOTE 6 – NOTES PAYABLE Schedule of notes payable December 31, 2023 December 31, 2022 On May 7, 2020, the Company applied for a Small Business Association (SBA) loan under the Paycheck Protection Program (PPP). The Company met all the necessary qualifications to apply for a $ 49,992 five-year 1 January 1, 2022 $ 31,078 $ 40,966 Notes payable $ 31,078 $ 40,966 Less: current portion (9,984 ) (10,242 ) Notes payable net of current portion $ 21,094 $ 30,724 Related Party The Company was a party to several loans with related parties. The note holder is the CEO and Executive Chairman of the Company. At December 31, 2023, and 2022, notes payable consisted of the following: December 31, 2023 December 31, 2022 On January 24, 2022 20,000 2 January 24, 2023 $ 10,000 $ 20,000 On April 21, 2022 18,000 2 April 21, 2023 $ 18,000 $ 18,000 On August 23, 2022 20,000 2 August 23, 2023 $ 20,000 $ 20,000 On September 15, 2022 15,000 2 September 16, 2023 $ 15,000 $ 15,000 On October 25, 2022 20,000 2 October 25, 2023 $ 20,000 $ 20,000 On December 8, 2022 20,000 2 December 8, 2023 $ 20,001 $ 20,001 Notes payable – related party $ 103,001 $ 113,001 On October 10, 2023, all outstanding notes with the Company’s CEO and Executive Chairman were extended to have a maturity date of May 13, 2024. During the years ended December 31, 2023 and 2022 the Company recorded interest expense of $ 2,142 956 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 7 – RELATED PARTY TRANSACTIONS For the years ending December 31, 2023 and 2022, in addition to the related party loans payable (NOTE 6), the following related party transactions occurred between the Company’s directors or executive officers or any person nominated or chosen by the Company to become a director or executive officer: On January 25, 2023, the Company issued 25,000 25,000 Each share is convertible at the option of the holder to ten (10) shares of common stock. The total fair value of $ 1,065,000 21.30 On January 4, 2022, the Company issued 12,500 shares of Series A convertible preferred stock to Jeffrey J. Guzy, the Company’s CFO, and 12,500 shares of Series A convertible stock to Wm. Barrett Wellman, the Company’s former CFO. Each share is convertible at the option of the holder to ten (10) shares of common stock. Since these shares were not issued until 2022 the fair value of $ 500,000 20 |
STOCKHOLDER_S EQUITY
STOCKHOLDER’S EQUITY | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
STOCKHOLDER’S EQUITY | NOTE 8 – STOCKHOLDER’S EQUITY Authorized Capital The Company has 300,000,000 0.01 50,000,000 0.10 0.01 9,315,902 9,114,446 105,000 55,000 Preferred Stock The holders of Preferred Stock are entitled to receive dividends equal to the amount of the dividend or distribution per share of common stock payable multiplied by the number of shares of common stock the shares of Series A preferred shares held by such holder are convertible into. Each Series A preferred shares is convertible into ten common shares. The Company classified the Series A Preferred Stock as permanent equity in the consolidated financial statements as the terms do not provide for an obligation to buy back the shares in exchange for cash or other assets of the Company. The shares are not considered debt under ASC 480 “Distinguishing Liabilities from Equity” as the shares do not represent an obligation that must or may be settled with a variable number of shares. No other redemption features exist within the terms of the instrument. During the year ending December 31, 2023, the Company issued 50,000 During the year ending December 31, 2022, the Company issued 25,000 Common Stock During the year ended December 31, 2023, the Company issued 140,642 14,217 35,000 7,107 4,490 2.13 2.20 1.90 2.00 0.99 Additionally, during the year ended December 31, 2023, the Company received $ 10,000 5,000 On October 1, 2022, the Company issued 1,600,000 1,500,000 Additionally during the year ended December 31, 2022, the Company issued 180,000 31,554 22,315 2.00 2.12 2.10 The above shares of capital stock are restricted securities under Rule 144 and were issued in reliance on an exemption from the registration requirements of the Securities Act. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 9 - INCOME TAXES The Company provides for income taxes using the liability method in accordance with ASC 740 “Income Taxes”. Deferred income taxes arise from the differences in the recognition of income and expenses for tax purposes. There were no deferred tax assets or liabilities at December 31, 2023 and 2022. Management has reviewed the provisions regarding the assessment of their valuation allowance on deferred tax assets and based on those criteria determined that it would not have sufficient taxable income to realize those assets. Therefore, management has assessed the realization of the deferred tax assets and has determined that it is more likely than not that they will not be realized and has provided a full valuation allowance against the deferred tax asset. The Company recognizes the financial statement effect of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the more-likely-than-not threshold, the amount recognized in the consolidated financial statements is the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement with the relevant tax authority. The Company is subject to income taxes in the U.S. federal jurisdiction and the state of Virginia. The tax regulations within each jurisdiction are subject to the interpretation of related tax laws and regulations and require significant judgment to apply. The Company is not presently undergoing any tax audits. The Company will apply the federal and state net operating loss (“NOL”) carry-forward in FY 2023 and later years. On December 22, 2017, the United States Government passed new tax legislation that, among other provisions, will lower the corporate tax rate from 35 21 A reconciliation of the income tax provision computed at statutory rates to the reported tax provision is as follows: Year ended December 31, 2023 Year ended December 31, 2022 Federal income tax rate 21.0 % 21.0 % Loss before income taxes $ (1,629,902) $ (6,237,615 ) Non-deductible expenses — — Taxable loss $ (1,629,902) $ (6,237,615 ) Expected approximate tax recovery on net loss $ (342,280) $ (1,309,899 ) Changes in valuation allowance 342,280 1,309,899 Income tax $ — $ — The component of the Company’s deferred tax asset is as follows: As of December 31, 2023 As of December 31, 2022 Deferred income tax assets: Net operating losses carried forward $ 897,353 $ 966,815 Impairments 1,004,871 821,037 Other 5,946 19,370 Total gross deferred income tax assets $ 1,908,170 $ 1,807,222 Less: valuation allowance (1,908,170) (1,807,222 ) Net deferred tax asset $ — $ — The Company has a valuation allowance against the full amount of its net deferred tax assets due to the uncertainty of the realization of the deferred tax assets. At December 31, 2023, and December 31, 2022, the Company has incurred accumulated net operating losses in the United States of America totalling $ 4,273,108 4,603,877 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 10 - COMMITMENTS AND CONTINGENCIES Operating Lease Commitments The Company has no 50 no Purchase Commitments The Company has no purchase obligations at December 31, 2023 and 2022. Significant Risks and Uncertainties Concentration of Credit Risk – Cash 250,000 no Concentration of Credit Risk – Accounts Receivable and Revenues Legal Matters During the course of business, litigation commonly occurs. From time to time, the Company may be a party to litigation matters involving claims against the Company. The Company operates in a highly regulated industry and employs personnel, which may inherently lend itself to legal matters. Management is aware that litigation has associated costs and that results of adverse litigation verdicts could have a material effect on the Company's financial position or results of operations. There are no known legal proceedings against the Company or its officers and directors in their capacity as officers and directors of the Company. |
ASSET RETIREMENT OBLIGATION
ASSET RETIREMENT OBLIGATION | 12 Months Ended |
Dec. 31, 2023 | |
Asset Retirement Obligation Disclosure [Abstract] | |
ASSET RETIREMENT OBLIGATION | NOTE 11 – ASSET RETIREMENT OBLIGATION Changes in the asset retirement obligation were as follows: As of December 31, 2023 As of December 31, 2022 Beginning balance $ 92,241 $ 84,566 Liabilities acquired — — Liabilities incurred — 46,397 Liabilities settled — — Accretion expense 12,877 2,698 Revisions — (41,420 ) Ending Balance $ 105,118 $ 92,241 |
RESERVE AND RELATED FINANCIAL D
RESERVE AND RELATED FINANCIAL DATA - UNAUDITED | 12 Months Ended |
Dec. 31, 2023 | |
Reserve And Related Financial Data - Unaudited | |
RESERVE AND RELATED FINANCIAL DATA - UNAUDITED | NOTE 12 – RESERVE AND RELATED FINANCIAL DATA - UNAUDITED Disclosure of Reserves The table below summarizes our estimated net proved reserves, as of December 31, 2023 and 2022, based on reserve reports prepared by Netherland, Sewell & Associates, Inc. (NSAI), our third-party independent reserve engineers. In preparing its reports, NSAI evaluated properties representing all of our proved reserves at December 31, 2023 and 2022 in accordance with the rules and regulations of the SEC applicable to companies involved in oil and natural gas producing activities. Our estimated net proved reserves in the table below do not include probable or possible reserves and do not in any way include or reflect our commodity derivatives. Schedule of proved developed and undeveloped oil and gas reserve quantities Natural Gas (Mmcf) Oil (Mbbl) BOE Proved Developed and Undeveloped Reserves at December 31, 2021 — — Revisions of Previous Estimates — — — Purchases of Minerals in Place 40 193 200 Production (4 ) (4 ) (5 ) Proved Developed and Undeveloped Reserves at December 31, 2022 36 189 195 Revisions of Previous Estimates (31 ) (12 ) (17 ) Purchases of Minerals in Place — — — Production (5 ) (12 ) (13 ) Proved Developed and Undeveloped Reserves at December 31, 2023 — 165 165 The table above values oil and natural gas reserve quantities as of December 31, 2023 and 2022, assuming constant realized prices of $ 75.81 92.01 0 6.957 Standardized Measure The standardized measure of discounted future net cash flows and changes in such cash flows are prepared using assumptions required by the Financial Accounting Standards Board. Such assumptions include using 12-month average prices for oil and gas, based on the first-day-of-the-month price for each month in the period, and year-end costs for estimated future development and production expenditures to produce year-end estimated proved reserves. Discounted future net cash flows are calculated using a 10% rate. Estimated future income taxes are calculated by applying year-end statutory rates to future pre-tax net cash flows, less the tax basis of related assets and applicable tax credits. The estimated well abandonment costs are deducted from the standardized measure using year-end costs and discounted at 10%. Such abandonment costs are recorded as a liability on the consolidated balance sheet, using estimated values as the projected abandonment date and discounted using a risk-adjusted rate when the well is drilled or acquired. The standardized measure does not represent management’s estimate of the Company’s future cash flows or the value of proved oil and gas reserves. Probable and possible reserves, which may become proved in the future, are excluded from the calculations. Furthermore, prices used to determine the standardized measure are influenced by supply and demand as affected by recent economic conditions and other factors and may not be the most representative in estimating future revenues or reserve data. The table below reflects the standardized measure of discounted future net cash flows related to the Company’s interest in proved reserves. Year Ended December 31, 2023 2022 (in thousands) Future cash inflows $ 12,496 $ 17,680 Future production costs 2,716 3,192 Future development and abandonment costs 407 485 Future tax expense 1,968 2,941 Future net cash flows 7,405 11,062 10% annual discount for estimated timing of cash flows 2,353 4,305 Standardized measure of discounted future net cash flows $ 5,052 $ 6,757 The principal changes in the standardized measure of discounted future net cash flows attributable to the Company's proved reserves are as follows: Year Ended December 31, 2023 2022 (in thousands) Beginning of period $ 6,757 $ — Sales of oil and natural gas produced, net of production costs (679 ) — Net change due to extensions, discoveries, and improved recovery — 756 Net change of prices and production costs (1,850 ) — Change in future development costs 59 — Revisions of quantity and timing estimates (621 ) — Accretion of discount 937 — Change in income taxes 453 — Purchases of minerals in place — 6,002 Other (4 ) — End of period $ 5,052 $ 6,757 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 13 - SUBSEQUENT EVENTS The Company has evaluated all events that occurred after the balance sheet date through the date when the financial statements were issued to determine if they must be reported. Management determined that there were no reportable subsequent events to be disclosed beyond the following: Issuance of Common Stock On January 10, 2024, the Company issued 100,000 0.99 On January 26, 2024, the holders of the Company’s Series A convertible preferred shares converted all 105,000 shares issued and outstanding as of December 31, 2023 into common shares at a conversion rate of one to ten. In connection with the exercise of the conversion option, the Company issued 575,000 and 475,000 common shares to Jeffrey J. Guzy and Wm. Barrett Wellman, respectively. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Principles of consolidation | Principles of consolidation The accompanying consolidated financial statements include the accounts of the Company and of its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosures 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 areas of estimate include the impairment of assets and rates for amortization, accrued liabilities, future income tax obligations, and the inputs used in calculating stock-based compensation. Actual results could differ from those estimates and would affect future results of operations and cash flows. |
Reclassifications | Reclassifications Certain prior period amounts have been reclassified to conform with the current year presentation. Reclassifications include combining or further disaggregation of certain line items in the consolidated balance sheets, consolidated statements of operations, and consolidated statements of cash flows. Such reclassifications had no significant impact on our reported net loss, current assets, total assets, current liabilities, total liabilities, shareholders’ equity or cash flows. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid temporary cash investments with an original maturity of three months or less to be cash equivalents. At December 31, 2023, and December 31, 2022, the Company had no |
Oil and Gas Producing Activities | Oil and Gas Producing Activities The Company uses the successful efforts method of accounting for oil and gas activities. Under this method, the costs of productive exploratory wells, all development wells, related asset retirement obligation assets, and productive leases are capitalized and amortized, principally by field, on a units-of-production basis over the life of the remaining proved reserves. Exploration costs, including personnel costs, geological and geophysical expenses, and delay rentals for oil and gas leases are charged to expense as incurred. Exploratory drilling costs are initially capitalized but charged to expense if and when the well is determined not to have found reserves in commercial quantities. Estimates of oil and gas reserves, as determined by independent petroleum engineers, are continually subject to revision based on price, production history and other factors. Depletion expense, which is computed based on the units of production method, could be significantly impacted by changes in such estimates. Additionally, US GAAP requires that if the expected future undiscounted cash flows from an asset are less than its carrying cost, that asset must be written down to its fair market value. As the fair market value of an oil and gas property will usually be significantly less than the total undiscounted future net revenues expected from that asset, slight changes in the estimates used to determine future net revenues from an asset could lead to the necessity of recording a significant impairment of that asset. Unproved oil and gas properties will be assessed annually to determine whether they have been impaired by the drilling of dry holes on or near the related acreage or other circumstances, which may indicate a decline in value. When impairment occurs, a loss will be recognized. When leases for unproved properties expire, the costs thereof, net of any related allowance for impairment, will be removed from the accounts and charged to expense. The Company will review its proved oil and natural gas properties for impairment whenever events and circumstances indicate that a decline in the recoverability of its carrying value may have occurred. It estimates the undiscounted future net cash flows of its oil and natural gas properties and compares such undiscounted future cash flows to the carrying amount of the oil and natural gas properties to determine if the carrying amount is recoverable. If the carrying amount exceeds the estimated undiscounted future cash flows, the Company will adjust the carrying amount of the oil and natural gas properties to fair value. During the years ended December 31, 2023, and 2022, the Company recorded impairments of $ 875,400 $ 3,909,700 |
Long-Lived Assets | Long-Lived Assets The Company accounts for the impairment or disposal of long-lived assets according to the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) 360 “Property, Plant and Equipment”. ASC 360 clarifies the accounting for the impairment of long-lived assets and for long-lived assets to be disposed of, including the disposal of business segments and major lines of business. Long-lived assets are reviewed when facts and circumstances indicate that the carrying value of the asset may not be recoverable. When necessary, impaired assets are written down to estimated fair value based on the best information available. Estimated fair value is generally based on either appraised value or measured by discounting estimated future cash flows. Considerable management judgment is necessary to estimate discounted future cash flows. Accordingly, actual results could vary significantly from such estimates. The Company did not recognize any impairment losses on long-lived assets during the years ending December 31, 2023, and 2022. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company had no financial instruments for the year ending December 31, 2023, or for the year ending December 31, 2022. ASC 820 “Fair Value Measurements and Disclosures” defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy that distinguishes between (1) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (2) a reporting entity’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). The fair value hierarchy consists of three broad levels, which give the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below: Level 1 Level 2 Level 3 Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of December 31, 2023 and 2022. The respective carrying values of certain on-balance-sheet financial instruments approximated their fair values due to the short-term nature of these instruments. |
Revenue Recognition | Revenue Recognition The Company accounts for revenue under ASC 606 “Revenue from Contracts with Customers.” Under ASC 606, oil and natural gas sales revenues are recognized when control of the product is transferred to the customer, the performance obligations under the terms of the contracts with customers are satisfied and collectability is reasonably assured. All the Company’s oil and natural gas sales are made under contracts with customers. The performance obligations for the Company’s contracts with customers are satisfied at a point in time through the delivery of oil and natural gas to its customers. Accordingly, the Company’s contracts do not give rise to contract assets or liabilities. The Company typically receives payment within 90 days of the month of delivery. The Company’s contracts for oil and natural gas sales are standard industry contracts that include variable consideration based on the monthly index price and adjustments that may include counterparty-specific provisions related to volumes, price differentials, discounts, and other adjustments and deductions. Revenues consist of the following: Year ended December 31, 2023 Year ended December 31, 2022 Crude oil revenues $ 918,210 $ 99,612 Gas revenues 9,773 6,942 Total revenues $ 927,983 $ 106,554 |
Accounts Receivable | Accounts Receivable Accounts receivable consists of oil and natural gas receivables. Ongoing evaluations of collectability are performed and an allowance for potential credit losses is provided against the portion of accounts receivable that is estimated to be uncollectible. The Company did not recognize any write-offs during the years ended December 31, 2023 and 2022. The allowance for doubtful accounts is $ 0 |
Stock-Based Compensation | Stock-Based Compensation The Company accounts for Stock-Based Compensation under ASC 718 “Compensation – Stock Compensation”, which addresses the accounting for transactions in which an entity exchanges its equity instruments for goods or services, with a primary focus on transactions in which an entity obtains employee services in share-based payment transactions. Generally accepted accounting principles require measurement of the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award. Incremental compensation costs arising from subsequent modifications of awards after the grant date must be recognized. The Company issues stock to consultants for various services. The costs for these transactions are measured at the fair value of the consideration received or the fair value of the equity instruments issued, whichever is more reliably measurable. The value of the common stock is measured at the earlier of (i) the date at which a firm commitment for performance by the counterparty to earn the equity instruments is reached or (ii) the date at which the counterparty's performance is complete. The Company recognized consulting expense and a corresponding increase to additional paid-in-capital related to stock issued for services. |
Income Taxes | Income Taxes Income taxes are accounted for under ASC 740, using the liability method of accounting for income taxes. Under the liability method, future tax liabilities and assets are recognized for the estimated future tax consequences attributable to differences between the amounts reported in the financial statement carrying amounts of assets and liabilities and their respective tax bases. Future tax assets and liabilities are measured using enacted or substantially enacted income tax rates expected to apply when the asset is realized, or the liability settled. The effect of a change in income tax rates on future income tax liabilities and assets is recognized in income in the period that the change occurs. Future income tax assets are recognized to the extent that they are considered more likely than not to be realized. ASC 740 clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements. This standard requires a company to determine whether it is more likely than not that a tax position will be sustained upon examination based on the technical merits of the position. If the more-likely-than-not threshold is met, a company must measure the tax position to determine the amount to recognize in the financial statements. Because of the implementation of this standard, the Company performed a review of its material tax positions in accordance with recognition and measurement standards established by ASC 740 and concluded that it had no uncertain tax positions as of December 31, 2023, or as of December 31, 2022. |
Basic and Diluted Income per Share | Basic and Diluted Income per Share The Company computes income per share in accordance with ASC 260, "Earnings per Share", which requires the presentation of both basic and diluted earnings per share (“EPS”) on the face of the consolidated statement of operations. Basic EPS is computed by dividing income available to common stockholders by the weighted average number of shares outstanding during the period. Diluted EPS gives effect to all dilutive potential shares of common stock outstanding during the period using the treasury stock method and convertible preferred stock using the if-converted method. In computing diluted EPS, the average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options or warrants. Diluted EPS excludes all dilutive potential shares if their effect is anti-dilutive. As of December 31, 2023 and 2022, the Company had 1,050,000 550,000 |
Asset Retirement Obligations | Asset Retirement Obligations The Company records the estimated fair value of obligations associated with the retirement of tangible, long-lived assets in the period in which they are incurred. When a liability is initially recorded, the Company capitalizes the cost by increasing the carrying amount of the related long-lived asset. Over time, the liability is accreted to its present value, and the capitalized cost is depleted over the useful life of the related asset. Revisions to estimated asset retirement obligations will result in an adjustment to the related capitalized asset and corresponding liability. Upon settlement of the liability, the Company either settles the obligation for its recorded amount or incurs a gain or loss. The Company’s asset retirement obligation relates to the plugging, dismantling, removal, site reclamation, and similar activities of its oil and gas properties. Asset retirement obligations are estimated at the present value of expected future net cash flows and are discounted using the Company’s credit adjusted risk-free rate. The Company uses unobservable inputs in the estimation of asset retirement obligations that include, but are not limited to: costs of labor, costs of materials, profits on costs of labor and materials, the effect of inflation on estimated costs, and discount rate. Due to the subjectivity of assumptions and the relative long lives of the Company’s leases, the costs to ultimately retire the Company’s obligations may vary significantly from prior estimates. Assumptions used in determining estimates are reviewed annually. |
Concentration of Credit Risk | Concentration of Credit Risk Our revenue can be materially affected by current economic conditions and the price of oil and natural gas. However, based on the current demand for crude oil and natural gas and the fact that alternative purchasers are readily available, we believe that the loss of our marketing agents and/or any of the purchasers identified by our marketing agents would not have a long-term material adverse effect on our financial position or results of international operations. The continued economic disruption resulting from Russia’s invasion of Ukraine, a potential global recession, and other varying macroeconomic conditions could materially impact the Company's business in future periods. Any potential disruption will depend on the duration and intensity of these events, which are highly uncertain and cannot be predicted at this time. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Revenues consist of the following: | Revenues consist of the following: Year ended December 31, 2023 Year ended December 31, 2022 Crude oil revenues $ 918,210 $ 99,612 Gas revenues 9,773 6,942 Total revenues $ 927,983 $ 106,554 |
ROYALTY INTERESTS IN OIL AND _2
ROYALTY INTERESTS IN OIL AND GAS PROPERTIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Extractive Industries [Abstract] | |
Scheduled leased oil and gas properties assets | At December 31, 2023, and December 31, 2022, the Company had leased oil and gas properties assets valued at $ 4,089,503 5,345,457 Scheduled leased oil and gas properties assets As of December 31, 2023 As of December 31, 2022 Beginning balance $ 5,345,457 $ 2,779,802 Additions to proved reserves — 6,556,187 Revisions of prior year ARO estimates — (41,209 ) Depletion expense (380,554 ) (39,623 ) Impairment expense (875,400 ) (3,909,700 ) Ending Balance $ 4,089,503 $ 5,345,457 |
NOTES PAYABLE (Tables)
NOTES PAYABLE (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of notes payable | Schedule of notes payable December 31, 2023 December 31, 2022 On May 7, 2020, the Company applied for a Small Business Association (SBA) loan under the Paycheck Protection Program (PPP). The Company met all the necessary qualifications to apply for a $ 49,992 five-year 1 January 1, 2022 $ 31,078 $ 40,966 Notes payable $ 31,078 $ 40,966 Less: current portion (9,984 ) (10,242 ) Notes payable net of current portion $ 21,094 $ 30,724 |
At December 31, 2023, and 2022, notes payable consisted of the following: | The Company was a party to several loans with related parties. The note holder is the CEO and Executive Chairman of the Company. At December 31, 2023, and 2022, notes payable consisted of the following: December 31, 2023 December 31, 2022 On January 24, 2022 20,000 2 January 24, 2023 $ 10,000 $ 20,000 On April 21, 2022 18,000 2 April 21, 2023 $ 18,000 $ 18,000 On August 23, 2022 20,000 2 August 23, 2023 $ 20,000 $ 20,000 On September 15, 2022 15,000 2 September 16, 2023 $ 15,000 $ 15,000 On October 25, 2022 20,000 2 October 25, 2023 $ 20,000 $ 20,000 On December 8, 2022 20,000 2 December 8, 2023 $ 20,001 $ 20,001 Notes payable – related party $ 103,001 $ 113,001 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
A reconciliation of the income tax provision computed at statutory rates to the reported tax provision is as follows: | A reconciliation of the income tax provision computed at statutory rates to the reported tax provision is as follows: Year ended December 31, 2023 Year ended December 31, 2022 Federal income tax rate 21.0 % 21.0 % Loss before income taxes $ (1,629,902) $ (6,237,615 ) Non-deductible expenses — — Taxable loss $ (1,629,902) $ (6,237,615 ) Expected approximate tax recovery on net loss $ (342,280) $ (1,309,899 ) Changes in valuation allowance 342,280 1,309,899 Income tax $ — $ — |
The component of the Company’s deferred tax asset is as follows: | The component of the Company’s deferred tax asset is as follows: As of December 31, 2023 As of December 31, 2022 Deferred income tax assets: Net operating losses carried forward $ 897,353 $ 966,815 Impairments 1,004,871 821,037 Other 5,946 19,370 Total gross deferred income tax assets $ 1,908,170 $ 1,807,222 Less: valuation allowance (1,908,170) (1,807,222 ) Net deferred tax asset $ — $ — |
ASSET RETIREMENT OBLIGATION (Ta
ASSET RETIREMENT OBLIGATION (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Changes in the asset retirement obligation were as follows: | Changes in the asset retirement obligation were as follows: As of December 31, 2023 As of December 31, 2022 Beginning balance $ 92,241 $ 84,566 Liabilities acquired — — Liabilities incurred — 46,397 Liabilities settled — — Accretion expense 12,877 2,698 Revisions — (41,420 ) Ending Balance $ 105,118 $ 92,241 |
RESERVE AND RELATED FINANCIAL_2
RESERVE AND RELATED FINANCIAL DATA - UNAUDITED (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Reserve And Related Financial Data - Unaudited | |
Schedule of proved developed and undeveloped oil and gas reserve quantities | Schedule of proved developed and undeveloped oil and gas reserve quantities Natural Gas (Mmcf) Oil (Mbbl) BOE Proved Developed and Undeveloped Reserves at December 31, 2021 — — Revisions of Previous Estimates — — — Purchases of Minerals in Place 40 193 200 Production (4 ) (4 ) (5 ) Proved Developed and Undeveloped Reserves at December 31, 2022 36 189 195 Revisions of Previous Estimates (31 ) (12 ) (17 ) Purchases of Minerals in Place — — — Production (5 ) (12 ) (13 ) Proved Developed and Undeveloped Reserves at December 31, 2023 — 165 165 |
The table below reflects the standardized measure of discounted future net cash flows related to the Company’s interest in proved reserves. | The table below reflects the standardized measure of discounted future net cash flows related to the Company’s interest in proved reserves. Year Ended December 31, 2023 2022 (in thousands) Future cash inflows $ 12,496 $ 17,680 Future production costs 2,716 3,192 Future development and abandonment costs 407 485 Future tax expense 1,968 2,941 Future net cash flows 7,405 11,062 10% annual discount for estimated timing of cash flows 2,353 4,305 Standardized measure of discounted future net cash flows $ 5,052 $ 6,757 |
The principal changes in the standardized measure of discounted future net cash flows attributable to the Company's proved reserves are as follows: | The principal changes in the standardized measure of discounted future net cash flows attributable to the Company's proved reserves are as follows: Year Ended December 31, 2023 2022 (in thousands) Beginning of period $ 6,757 $ — Sales of oil and natural gas produced, net of production costs (679 ) — Net change due to extensions, discoveries, and improved recovery — 756 Net change of prices and production costs (1,850 ) — Change in future development costs 59 — Revisions of quantity and timing estimates (621 ) — Accretion of discount 937 — Change in income taxes 453 — Purchases of minerals in place — 6,002 Other (4 ) — End of period $ 5,052 $ 6,757 |
Revenues consist of the followi
Revenues consist of the following: (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Accounting Policies [Abstract] | ||
Crude oil revenues | $ 918,210 | $ 99,612 |
Gas revenues | 9,773 | 6,942 |
Total revenues | $ 927,983 | $ 106,554 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Accounting Policies [Abstract] | ||
Cash equivalents | $ 0 | $ 0 |
Impairments of on oil and gas properties | 875,400 | 3,909,700 |
Allowance for doubtful accounts | $ 0 | $ 0 |
Potentially dilutive common shares outstanding (in shares) | 1,050,000 | 550,000 |
Scheduled leased oil and gas pr
Scheduled leased oil and gas properties assets (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Extractive Industries [Abstract] | ||
Leased oil and gas properties assets | $ 4,089,503 | $ 5,345,457 |
Beginning balance | 5,345,457 | 2,779,802 |
Additions to proved reserves | 6,556,187 | |
Revisions of prior year ARO estimates | (41,209) | |
Depletion expense | (380,554) | (39,623) |
Impairment expense | (875,400) | (3,909,700) |
Ending Balance | $ 4,089,503 | $ 5,345,457 |
ROYALTY INTERESTS IN OIL AND _3
ROYALTY INTERESTS IN OIL AND GAS PROPERTIES (Details Narrative) - USD ($) | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 02, 2022 | Nov. 08, 2022 | |
Reserve Quantities [Line Items] | ||||
Impaired property | $ 2,085,100 | |||
Depletion expense | $ 380,000 | 40,000 | ||
Long-lived asset impairments | 900,000 | 3,900,000 | ||
Barrister Energy LLC [Member] | ||||
Reserve Quantities [Line Items] | ||||
Impaired property | $ 875,400 | $ 1,824,600 | ||
Common Stock [Member] | ||||
Reserve Quantities [Line Items] | ||||
Common stock shares issued | 1,500,000 | 1,600,000 | ||
Common stock issued per share | $ 0.01 | $ 0.01 | ||
Common Stock [Member] | Taxodium Energy LLC [Member] | ||||
Reserve Quantities [Line Items] | ||||
Common stock issued per share | $ 2.10 | $ 2.10 |
Schedule of notes payable (Deta
Schedule of notes payable (Details) - USD ($) | Nov. 29, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | May 07, 2020 |
Debt Instrument [Line Items] | ||||
Notes Payable | $ 31,078 | $ 40,966 | ||
Notes payable | 31,078 | 40,966 | ||
Less: current portion | (9,984) | (10,242) | ||
Notes payable net of current portion | $ 21,094 | $ 30,724 | ||
Paycheck Protection Program [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt amount | $ 49,992 | |||
Term loan | 5 years | |||
Interest rate | 1% | |||
Debt issuance date | Jan. 01, 2022 |
At December 31, 2023, and 2022,
At December 31, 2023, and 2022, notes payable consisted of the following: (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Extinguishment of Debt [Line Items] | ||
Loan amount | $ 31,078 | $ 40,966 |
Notes payable related party | $ 103,001 | 113,001 |
Loans Payable [Member] | ||
Extinguishment of Debt [Line Items] | ||
Debt issuance date | Jan. 24, 2022 | |
Loan amount | $ 20,000 | |
Principal and accrued interest | 2% | |
Maturity date | Jan. 24, 2023 | |
Notes payable related party | $ 10,000 | 20,000 |
Loans Payable One [Member] | ||
Extinguishment of Debt [Line Items] | ||
Debt issuance date | Apr. 21, 2022 | |
Loan amount | $ 18,000 | |
Principal and accrued interest | 2% | |
Maturity date | Apr. 21, 2023 | |
Notes payable related party | $ 18,000 | 18,000 |
Loans Payable Two [Member] | ||
Extinguishment of Debt [Line Items] | ||
Debt issuance date | Aug. 23, 2022 | |
Loan amount | $ 20,000 | |
Principal and accrued interest | 2% | |
Maturity date | Aug. 23, 2023 | |
Notes payable related party | $ 20,000 | 20,000 |
Loans Payable Three [Member] | ||
Extinguishment of Debt [Line Items] | ||
Debt issuance date | Sep. 15, 2022 | |
Loan amount | $ 15,000 | |
Principal and accrued interest | 2% | |
Maturity date | Sep. 16, 2023 | |
Notes payable related party | $ 15,000 | 15,000 |
Loans Payable Four [Member] | ||
Extinguishment of Debt [Line Items] | ||
Debt issuance date | Oct. 25, 2022 | |
Loan amount | $ 20,000 | |
Principal and accrued interest | 2% | |
Maturity date | Oct. 25, 2023 | |
Notes payable related party | $ 20,000 | 20,000 |
Loans Payable Five [Member] | ||
Extinguishment of Debt [Line Items] | ||
Debt issuance date | Dec. 08, 2022 | |
Loan amount | $ 20,000 | |
Principal and accrued interest | 2% | |
Maturity date | Dec. 08, 2023 | |
Notes payable related party | $ 20,001 | $ 20,001 |
NOTES PAYABLE (Details Narrativ
NOTES PAYABLE (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Debt Disclosure [Abstract] | ||
Interest expense | $ 2,142 | $ 956 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | Jan. 25, 2023 | Jan. 04, 2022 | Dec. 31, 2023 | Dec. 31, 2022 |
Related Party Transaction [Line Items] | ||||
Description of related party transaction | Each share is convertible at the option of the holder to ten (10) shares of common stock. The total fair value of $1,065,000 ($21.30 per share) was recorded as part of accrued salaries and payroll taxes for the year ended December 31, 2022 as service was provided in that year. The accrual was reversed upon issuance of the shares in January 2023. The fair value was based on the value assigned to common stock ($2.13 per share) multiplied by 10. | Each share is convertible at the option of the holder to ten (10) shares of common stock. Since these shares were not issued until 2022 the fair value of $500,000 ($20 per share) has been recorded as part of accrued salaries and payroll taxes. The fair value was based on the value assigned to common stock ($2 per share) multiplied by 10. | ||
Accrued salaries and payroll taxes | $ 500,000 | $ 834,809 | $ 1,642,612 | |
Conversionp price | $ 21.30 | $ 20 | ||
Series A Preferred Stock [Member] | Jeffrey J Guzy [Member] | Chief Financial Officer [Member] | ||||
Related Party Transaction [Line Items] | ||||
Series A convertible preferred shares issued | 25,000 | 12,500 | ||
Series A Preferred Stock [Member] | Wm Barrett Wellman [Member] | Chief Financial Officer [Member] | ||||
Related Party Transaction [Line Items] | ||||
Series A convertible preferred shares issued | 25,000 | 12,500 |
STOCKHOLDER_S EQUITY (Details N
STOCKHOLDER’S EQUITY (Details Narrative) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 | Oct. 15, 2022 | Oct. 01, 2022 |
Class of Stock [Line Items] | ||||
Common Stock, Shares Authorized | 300,000,000 | 300,000,000 | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | ||
Preferred Stock, Shares Authorized | 50,000,000 | 50,000,000 | ||
Preferred Stock, Par or Stated Value Per Share | $ 0.10 | $ 0.10 | ||
Common stock, shares issued | 9,315,902 | 9,114,446 | ||
Common stock, shares outstanding (in shares) | 9,315,902 | 9,114,446 | ||
Preferred stock, shares issued (in shares) | 105,000 | 55,000 | ||
Preferred stock, shares outstanding (in shares) | 105,000 | 55,000 | ||
Stock subscriptions payable received | $ 10,000 | |||
Subscriptions payable of shares of common stock | 5,000 | |||
NONOP Acquisition [Member] | ||||
Class of Stock [Line Items] | ||||
Common stock, shares issued | 1,600,000 | |||
Buckley Acquisition [Member] | ||||
Class of Stock [Line Items] | ||||
Common stock, shares issued | 1,500,000 | |||
Vendor Payment [Member] | ||||
Class of Stock [Line Items] | ||||
Common stock, par value (in dollars per share) | $ 2.13 | $ 2 | ||
Common stock, shares issued | 140,642 | 180,000 | ||
Vendor Payment One [Member] | ||||
Class of Stock [Line Items] | ||||
Common stock, par value (in dollars per share) | $ 2.20 | $ 2.12 | ||
Common stock, shares issued | 14,217 | 31,554 | ||
Vendor Payment Two [Member] | ||||
Class of Stock [Line Items] | ||||
Common stock, par value (in dollars per share) | $ 1.90 | $ 2.10 | ||
Common stock, shares issued | 35,000 | 22,315 | ||
Vendor Payment Three [Member] | ||||
Class of Stock [Line Items] | ||||
Common stock, par value (in dollars per share) | $ 2 | |||
Common stock, shares issued | 7,107 | |||
Vendor Payment Four [Member] | ||||
Class of Stock [Line Items] | ||||
Common stock, par value (in dollars per share) | $ 0.99 | |||
Common stock, shares issued | 4,490 | |||
Series A Preferred Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 | ||
Preferred stock, shares issued (in shares) | 105,000 | 55,000 | ||
Preferred stock, shares outstanding (in shares) | 105,000 | 55,000 | ||
Series A Preferred Stock [Member] | Officer [Member] | ||||
Class of Stock [Line Items] | ||||
Preferred stock, shares issued (in shares) | 50,000 | 25,000 |
A reconciliation of the income
A reconciliation of the income tax provision computed at statutory rates to the reported tax provision is as follows: (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||
Federal income tax rate | 21% | 21% |
Loss before income taxes | $ (1,629,902) | $ (6,237,615) |
Non-deductible expenses | ||
Taxable loss | (1,629,902) | (6,237,615) |
Expected approximate tax recovery on net loss | (342,280) | (1,309,899) |
Changes in valuation allowance | 342,280 | 1,309,899 |
Income tax |
The component of the Company_s
The component of the Company’s deferred tax asset is as follows: (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Income Tax Disclosure [Abstract] | ||
Net operating losses carried forward | $ 897,353 | $ 966,815 |
Impairments | 1,004,871 | 821,037 |
Other | 5,946 | 19,370 |
Total gross deferred income tax assets | 1,908,170 | 1,807,222 |
Less: valuation allowance | (1,908,170) | (1,807,222) |
Net deferred tax asset |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) - USD ($) | 12 Months Ended | ||
Dec. 22, 2017 | Dec. 31, 2023 | Dec. 31, 2022 | |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||
Accumulated net operating losses | $ (1,627,962) | $ (6,278,331) | |
Maximum [Member] | |||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||
Corporate tax rate | 35% | ||
Minimum [Member] | |||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||
Corporate tax rate | 21% |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($) | 12 Months Ended | ||
Apr. 01, 2018 | Dec. 31, 2023 | Dec. 31, 2022 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Rent | $ 50 | ||
Contingencies | $ 0 | $ 0 | |
Credit Concentration Risk [Member] | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Cash and cash equivalent | 250,000 | 250,000 | |
Exposure in excess of insurance | 0 | ||
Commitments [Member] | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Lease obligations | $ 0 | $ 0 |
Changes in the asset retirement
Changes in the asset retirement obligation were as follows: (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Asset Retirement Obligation Disclosure [Abstract] | ||
Beginning balance | $ 92,241 | $ 84,566 |
Liabilities acquired | ||
Liabilities incurred | 46,397 | |
Liabilities settled | ||
Accretion expense | 12,877 | 2,698 |
Revisions | (41,209) | |
Ending balance | $ 105,118 | $ 92,241 |
Schedule of proved developed an
Schedule of proved developed and undeveloped oil and gas reserve quantities (Details) | 24 Months Ended | |
Dec. 31, 2023 MBbls MMcf bbl | Dec. 31, 2022 MBbls MMcf bbl | |
Crude Oil and Natural Gas Liquids (NGL) [Member] | ||
Derivative [Line Items] | ||
Proved Developed and Undeveloped Reserves, Net | MBbls | ||
Proved Developed and Undeveloped Reserves, Revisions of Previous Estimates | MBbls | (12) | |
Purchases of Minerals in Place | MBbls | 193 | |
Production | MBbls | (12) | (4) |
Proved Developed and Undeveloped Reserves at ending | MBbls | 165 | 189 |
Crude Oil [Member] | ||
Derivative [Line Items] | ||
Proved Developed and Undeveloped Reserves, Net | bbl | ||
Proved Developed and Undeveloped Reserves, Revisions of Previous Estimates | bbl | (17) | |
Purchases of Minerals in Place | bbl | 200 | |
Production | bbl | (13) | (5) |
Proved Developed and Undeveloped Reserves at ending | bbl | 165 | 195 |
Natural Gas and Natural Gas Liquids [Member] | ||
Derivative [Line Items] | ||
Proved Developed and Undeveloped Reserves, Revisions of Previous Estimates | MMcf | (31) | |
Purchases of Minerals in Place | MMcf | 40 | |
Production | MMcf | (5) | (4) |
Proved Developed and Undeveloped Reserves at ending | MMcf | 36 |
The table below reflects the st
The table below reflects the standardized measure of discounted future net cash flows related to the Company’s interest in proved reserves. (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Reserve And Related Financial Data - Unaudited | |||
Future cash inflows | $ 12,496 | $ 17,680 | |
Future production costs | 2,716 | 3,192 | |
Future development and abandonment costs | 407 | 485 | |
Future tax expense | 1,968 | 2,941 | |
Future net cash flows | 7,405 | 11,062 | |
10% annual discount for estimated timing of cash flows | 2,353 | 4,305 | |
Standardized measure of discounted future net cash flows | $ 5,052 | $ 6,757 |
The principal changes in the st
The principal changes in the standardized measure of discounted future net cash flows attributable to the Company's proved reserves are as follows: (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Reserve And Related Financial Data - Unaudited | ||
Beginning of period | $ 6,757 | |
Sales of oil and natural gas produced, net of production costs | (679) | |
Net change due to extensions, discoveries, and improved recovery | 756 | |
Net change of prices and production costs | (1,850) | |
Change in future development costs | 59 | |
Revisions of quantity and timing estimates | (621) | |
Accretion of discount | 937 | |
Change in income taxes | 453 | |
Purchases of minerals in place | 6,002 | |
Other | (4) | |
End of period | $ 5,052 | $ 6,757 |
RESERVE AND RELATED FINANCIAL_3
RESERVE AND RELATED FINANCIAL DATA - UNAUDITED (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Crude Oil and Natural Gas Liquids (NGL) [Member] | ||
Derivative [Line Items] | ||
Realized prices | $ 75.81 | $ 92.01 |
Natural Gas and Natural Gas Liquids [Member] | ||
Derivative [Line Items] | ||
Realized prices | $ 0 | $ 6.957 |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) - Subsequent Event [Member] - $ / shares | Jan. 26, 2024 | Jan. 10, 2024 |
Subsequent Event [Line Items] | ||
Subsequent Event, Description | the holders of the Company’s Series A convertible preferred shares converted all 105,000 shares issued and outstanding as of December 31, 2023 into common shares at a conversion rate of one to ten. In connection with the exercise of the conversion option, the Company issued 575,000 and 475,000 common shares to Jeffrey J. Guzy and Wm. Barrett Wellman, respectively. | |
Chief Executive Officer [Member] | ||
Subsequent Event [Line Items] | ||
common share , issue | 100,000 | |
common share , issue at par value | $ 0.99 |