Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Mar. 10, 2022 | Jun. 30, 2021 | |
Document Information [Line Items] | |||
Entity Central Index Key | 0000083350 | ||
Entity Registrant Name | RESERVE PETROLEUM CO | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2021 | ||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2021 | ||
Document Transition Report | false | ||
Entity File Number | 000-08157 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 73-0237060 | ||
Entity Address, Address Line One | 6801 Broadway Ext., Suite 300 | ||
Entity Address, City or Town | Oklahoma City | ||
Entity Address, State or Province | OK | ||
Entity Address, Postal Zip Code | 73116-9037 | ||
City Area Code | 405 | ||
Local Phone Number | 848-7551 | ||
Title of 12(g) Security | COMMON STOCK ($0.50 PAR VALUE) | ||
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 | ||
ICFR Auditor Attestation Flag | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 13,875,974 | ||
Entity Common Stock, Shares Outstanding | 156,173 | ||
Auditor Name | HoganTaylor LLP | ||
Auditor Location | Oklahoma City, Oklahoma | ||
Auditor Firm ID | 483 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Current Assets: | ||
Cash and Cash Equivalents | $ 10,129,157 | $ 16,187,085 |
Available-for-Sale Debt Securities | 1,515,234 | |
Equity Securities | 9,142,357 | 2,536,482 |
Refundable Income Taxes | 350,927 | 218,204 |
Accounts Receivable | 1,362,963 | 794,162 |
Notes Receivable | 472,445 | 278,569 |
Total Current Assets | 21,457,849 | 21,529,736 |
Investments: | ||
Equity Method Investments | 1,426,201 | 604,991 |
Other Investments | 2,791,656 | 2,415,399 |
Total Investments | 4,217,857 | 3,020,390 |
Property, Plant and Equipment: | ||
Unproved Properties | 1,663,567 | 1,883,055 |
Proved Properties | 58,046,754 | 55,095,961 |
Oil and Gas Properties, Gross | 59,710,321 | 56,979,016 |
Oil and Gas Properties, Net | 7,024,320 | 7,294,432 |
Other Property and Equipment, at Cost | 680,043 | 279,240 |
Less – Accumulated Depreciation | (146,425) | (96,532) |
Other Property and Equipment, Net | 533,618 | 182,708 |
Property, Plant and Equipment, Net | 7,557,938 | 7,477,140 |
Other Assets | 112,400 | 120,445 |
Total Assets | 33,346,044 | 32,147,711 |
Current Liabilities: | ||
Accounts Payable | 261,114 | 248,054 |
Other Current Liabilities | 262,554 | 15,443 |
Total Current Liabilities | 523,668 | 263,497 |
Long-Term Liabilities: | ||
Asset Retirement Obligation | 2,359,826 | 1,810,729 |
Dividends Payable | 112,400 | 119,546 |
Deferred Tax Liability, Net | 551,320 | 568,627 |
Total Long-Term Liabilities | 3,023,546 | 2,498,902 |
Total Liabilities | 3,547,214 | 2,762,399 |
Commitments and Contingencies | ||
Stockholders’ Equity: | ||
Common Stock | 92,368 | 92,368 |
Additional Paid-in Capital | 65,000 | 65,000 |
Retained Earnings | 31,389,240 | 30,920,837 |
Stockholders’ Equity Before Treasury Stock | 31,546,608 | 31,078,205 |
Less – Treasury Stock, at Cost | (1,747,778) | (1,692,893) |
Total Stockholders’ Equity | 29,798,830 | 29,385,312 |
Total Liabilities and Stockholders’ Equity | $ 33,346,044 | $ 32,147,711 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Operating Revenues: | ||
Operating revenues | $ 9,034,540 | $ 3,995,074 |
Lease Bonuses and Other | 9,804 | 87,024 |
Total Operating Revenues | 9,116,426 | 4,082,098 |
Operating Costs and Expenses: | ||
Production | 2,721,827 | 1,878,319 |
Exploration | 687,648 | 161,288 |
Depreciation, Depletion, Amortization and Valuation Provisions | 2,754,923 | 3,399,275 |
General, Administrative and Other | 2,311,144 | 1,798,991 |
Total Operating Costs and Expenses | 8,475,542 | 7,237,873 |
Income/(Loss) from Operations | 640,884 | (3,155,775) |
Equity Loss in Investees | (154,041) | (109,855) |
Other Income, Net | 709,563 | 775,082 |
Income/(Loss) Before Income Taxes | 1,196,406 | (2,490,548) |
Income Tax Benefit | 54,889 | 534,293 |
Net Income/(Loss) | $ 1,251,295 | $ (1,956,255) |
Per Share Data: | ||
Net Income/(Loss), Basic and Diluted (in dollars per share) | $ 8 | $ (12.49) |
Cash Dividends (in dollars per share) | $ 5 | $ 5 |
Weighted Average Shares Outstanding, Basic and Diluted (in shares) | 156,483 | 156,595 |
Oil and Gas [Member] | ||
Operating Revenues: | ||
Operating revenues | $ 9,034,540 | $ 3,995,074 |
Service [Member] | ||
Operating Revenues: | ||
Operating revenues | $ 72,082 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Total |
Balance at Dec. 31, 2019 | $ 92,368 | $ 65,000 | $ 33,660,169 | $ (1,690,293) | $ 32,127,244 |
Net Income/(Loss) | (1,956,255) | (1,956,255) | |||
Dividends Declared | (783,077) | (783,077) | |||
Purchase of Treasury Stock | (2,600) | (2,600) | |||
Balance at Dec. 31, 2020 | 92,368 | 65,000 | 30,920,837 | (1,692,893) | 29,385,312 |
Net Income/(Loss) | 1,251,295 | 1,251,295 | |||
Dividends Declared | (782,892) | (782,892) | |||
Purchase of Treasury Stock | (54,885) | (54,885) | |||
Balance at Dec. 31, 2021 | $ 92,368 | $ 65,000 | $ 31,389,240 | $ (1,747,778) | $ 29,798,830 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Cash Provided by/(Applied to) Operating Activities: | ||
Lease Bonuses and Other | $ 9,804 | $ 87,024 |
Interest Received | 3,274 | 214,156 |
Dividends Received on Equity Securities | 360,407 | 8,487 |
Cash Distributions from Equity Method Investees | 24,750 | 49,500 |
Income Tax Refunds, Net of Income Taxes Paid | 77,550 | |
Cash Received from Class Action Lawsuits | 16,713 | 4,699 |
Other | 11,537 | 5,600 |
Cash Paid – | ||
Production and Exploration Costs | (2,557,012) | (1,899,054) |
General Suppliers, Employees and Taxes, Other than Income Taxes | (2,333,939) | (1,752,384) |
Income Taxes Paid, Net of Income Tax Refunds | (94,375) | |
Interest Paid | (23,184) | (23,252) |
Cash Paid to Equity Method Investees | (9,000) | |
Other | (615) | |
Net Cash Provided by Operating Activities | 3,777,163 | 1,086,237 |
Cash Provided by/(Applied to) Investing Activities: | ||
Maturity of Available-for-Sale Debt Securities | 1,515,234 | 25,082,212 |
Purchase of Available-for-Sale Debt Securities | (8,079,535) | |
Proceeds from Disposal of Property, Plant and Equipment | 22,000 | 16,418 |
Purchase of Property, Plant and Equipment | (2,932,919) | (1,533,673) |
Purchase of Equity Method and Other Investments | (1,639,940) | (503,733) |
Cash Distributions from Other Investments | 226,775 | 3,000 |
Notes Receivable | (168,711) | (278,569) |
Sale of Equity Securities | 12,347,481 | 5,946,634 |
Purchase of Equity Securities | (18,367,234) | (7,504,566) |
Net Cash Provided by/(Applied to) Investing Activities | (8,997,314) | 13,148,188 |
Cash Applied to Financing Activities: | ||
Dividends Paid to Stockholders | (782,892) | (783,078) |
Purchase of Treasury Stock | (54,885) | (2,600) |
Total Cash Applied to Financing Activities | (837,777) | (785,678) |
Net Change in Cash and Cash Equivalents | (6,057,928) | 13,448,747 |
Cash and Cash Equivalents at Beginning of Period | 16,187,085 | 2,738,338 |
Cash and Cash Equivalents at End of Period | 10,129,157 | 16,187,085 |
Reconciliation of Net Income (Loss) to Net Cash Provided by/(Applied to) Operating Activities: | ||
Net Income/(Loss) | 1,251,295 | (1,956,255) |
Net Income/(Loss) Increased (Decreased) by Net Change in – | ||
Net Unrealized Holding Gains on Equity Securities | (396,773) | (296,920) |
Realized Gains on Equity Securities | (176,858) | (136,555) |
Accounts Receivable | (358,242) | 107,932 |
Interest and Dividends Receivable | (20,725) | 66,289 |
Refundable Income Taxes | (132,723) | (108,205) |
Accounts Payable | 14,055 | 50,692 |
Deferred Taxes | (17,307) | (348,738) |
Equity Method and Other Investments | (104,940) | 73,988 |
Cash Distributions from Equity Method Investees | 24,750 | 49,500 |
Exploration Costs | 590,669 | 109,749 |
Disposition of Property, Plant and Equipment | (20,130) | 54,051 |
Depreciation, Depletion, Amortization and Valuation Provisions | 2,754,923 | 3,315,822 |
Deferred Revenue | 261,274 | |
Other Liabilities | 107,895 | 104,887 |
Net Cash Provided by Operating Activities | 3,777,163 | 1,086,237 |
Oil and Gas [Member] | ||
Cash Provided by/(Applied to) Operating Activities: | ||
Revenue | 8,055,832 | $ 4,323,526 |
Service [Member] | ||
Cash Provided by/(Applied to) Operating Activities: | ||
Revenue | $ 303,356 |
Note 1 - Nature of Operations
Note 1 - Nature of Operations | 12 Months Ended |
Dec. 31, 2021 | |
Notes to Financial Statements | |
Basis of Accounting [Text Block] | Note 1 NATURE OF OPERATIONS The Reserve Petroleum Company, a Delaware corporation, is an independent oil and gas company engaged in oil and natural gas exploration and development and minerals management with areas of concentration in Texas, Oklahoma, Kansas, Arkansas and South Dakota, a single business segment. The Company is also engaged in investments and joint ventures that are not March 2021 |
Note 2 - Summary of Significant
Note 2 - Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | Note 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation of Consolidated Financial Statements The consolidated financial statements have been prepared in accordance with the accounting principles generally accepted in the United States of America (“GAAP”) and the rules and regulations of the Securities and Exchange Commission (“SEC”) and include the accounts of The Reserve Petroleum Company and its consolidated subsidiary. All significant intercompany balances and transactions have been eliminated in consolidation. Cash and Cash Equivalents The Company considers all highly liquid debt instruments purchased with a maturity of three Investments Marketable Securities: The Company classifies its debt and marketable equity securities in one two December 31, 2021 2020. Equity Method and Other Investments: The Company accounts for its non-marketable investments in limited liability companies on the equity method if ownership allows the Company to exercise significant influence. Other investments, without readily determinable fair values, that are not not See Note 7 Receivables and Revenue Recognition Oil and gas sales and resulting receivables are recognized when the product is delivered to the purchaser and title has transferred. Sales are to credit-worthy major energy purchasers with payments generally received within 60 not The Company’s revenues are primarily derived from its interests in the sale of oil and natural gas production. Each barrel of oil or thousand cubic feet of natural gas delivered is considered a separate performance obligation. The Company recognizes revenue from its interests in the sales of oil and natural gas in the period that its performance obligations to provide oil and natural gas to customers are satisfied. Performance obligations are satisfied when the Company has no third one three not not December 31, 2021 2020, The Company’s contracts with customers originate at or near the time of delivery and transfer of control of oil and natural gas to the purchasers. As such, the Company does not The Company’s oil is typically sold at delivery points under contract terms that are common in our industry. The Company's natural gas produced is delivered by the well operators to various purchasers at agreed upon delivery points under a limited number of contract types that are also common in our industry. However, under these contracts, the natural gas may may The Company’s disaggregated revenue has two Year Ended December 30, 2021 2020 Oil Sales $ 5,905,936 $ 2,585,896 Natural Gas Sales 2,628,472 1,283,011 Miscellaneous Oil and Gas Product Sales 500,132 126,167 $ 9,034,540 $ 3,995,074 The Company recognizes revenue from lease bonuses when it has received an executed lease agreement with a third may no Property, Plant and Equipment Oil and gas properties are accounted for on the successful efforts method. The acquisition, exploration and development costs of producing properties are capitalized. The Company has not one The Company assesses its proved oil and gas properties for impairment whenever events or circumstances indicate that the carrying value of the assets may not not Depreciation, depletion and amortization of producing properties is computed on the units-of-production method on a property-by-property basis. The units-of-production method is based primarily on estimates of proved reserve quantities. Due to uncertainties inherent in this estimation process, it is at least reasonably possible that reserve quantities will be revised in the near term. Changes in estimated reserve quantities are applied to depreciation, depletion and amortization computations prospectively. Other property and equipment are depreciated on the straight line, declining balance, or other accelerated method as appropriate. The following estimated useful lives are used for property and equipment: Office furniture and fixtures 5 to 10 years Automotive equipment 5 to 8 years Income Taxes The Company utilizes an asset/liability approach to calculating deferred income taxes. Deferred income taxes are provided to reflect temporary differences in the basis of net assets and liabilities for income tax and financial reporting purposes. Deferred tax assets are reduced by a valuation allowance if a determination is made that it is more likely than not not The Company recognizes a tax benefit from an uncertain tax position when it is more likely than not 50% The Company recognizes interest and penalties related to unrecognized tax benefits in income tax expense. There were no uncertain tax positions as of December 31, 2021 2020. 2018, 2019 2020 6 Earnings Per Share Accounting guidance for Earnings Per Share (EPS) establishes the methodology of calculating basic earnings per share and diluted earnings per share. The calculations of basic earnings per share and diluted earnings per share differ in that instruments convertible to common stock (such as stock options, warrants and convertible preferred stock) are added to weighted average shares outstanding when computing diluted earnings per share. For 2021 2020, Concentrations of Credit Risk and Major Customers The Company’s receivables relate primarily to sales of oil and natural gas to purchasers with operations in Texas, Oklahoma, Kansas and South Dakota. The Company had two purchasers in 2021 2020 The Company maintains its cash in bank deposit accounts, which at times may not not The Company’s investment in marketable equity securities consists of equity interests in both U.S. and international entities involved in a broad range of industries. These marketable equity securities are subject to overall market risks, which could result in a temporary or permanent decline in the fair value of these securities. Use of Estimates The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. These estimates include oil and natural gas reserve quantities that form the basis for the calculation of amortization and impairment of oil and natural gas properties. Management emphasizes that reserve estimates are inherently imprecise and that estimates of more recent reserve discoveries are more imprecise than those for properties with long production histories. Actual results could differ from the estimates and assumptions used in the preparation of the Company’s consolidated financial statements. Gas Balancing Gas imbalances are accounted for under the sales method whereby revenues are recognized based on production sold. A liability is recorded when the Company’s excess takes of natural gas volumes exceed our estimated remaining recoverable reserves (over-produced). No Guarantees At the inception of a guarantee or subsequent modification, the Company records a liability for the fair value of the obligation undertaken in issuing the guarantee. The Company records a liability for its obligations when it becomes probable that the Company will have to perform under the guarantee. The Company has issued guarantees associated with the Company’s equity method investments. See Note 7 Asset Retirement Obligation The Company records the fair value of its estimated liability to retire its oil and natural gas producing properties in the period in which it is incurred (typically the date of first first The following table summarizes the asset retirement obligation for 2021 2020: 2021 2020 Beginning balance at January 1 $ 1,810,729 $ 1,821,527 Liabilities incurred 400,801 --- Liabilities settled (wells sold or plugged) (17,004 ) (25,205 ) Accretion expense 43,814 45,649 Revision to estimate 121,486 (31,242 ) Ending balance at December 31 $ 2,359,826 $ 1,810,729 Reclassifications Certain amounts in the 2020 2021 not no |
Note 3 - Dividends Payable
Note 3 - Dividends Payable | 12 Months Ended |
Dec. 31, 2021 | |
Notes to Financial Statements | |
Dividends Payable [Text Block] | Note 3 DIVIDENDS PAYABLE Dividends payable includes amounts that are due to stockholders whom the Company has been unable to locate, stockholders’ heirs pending ownership transfer documents, or uncashed dividend checks of other stockholders. Funds required to satisfy dividends payable are held in custody of the Company’s transfer agent and are included in Other Assets on the Company’s consolidated balance sheets. |
Note 4 - Common Stock
Note 4 - Common Stock | 12 Months Ended |
Dec. 31, 2021 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | Note 4 COMMON STOCK The following table summarizes the changes in common stock issued and outstanding: Shares Issued Shares of Treasury Stock Shares Outstanding January 1, 2020, $ .50 200,000 184,735 28,120 156,615 Purchase of stock --- 20 (20 ) December 31, 2020, $ .50 200,000 184,735 28,140 156,595 Purchase of stock --- 422 (422 ) December 31, 2021, $.50 par value stock, 200,000 shares authorized 184,735 28,562 156,173 |
Note 5 - Marketable Securities
Note 5 - Marketable Securities | 12 Months Ended |
Dec. 31, 2021 | |
Notes to Financial Statements | |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | Note 5 MARKETABLE SECURITIES At December 31, 2020, one For equity securities, in 2021 2020 |
Note 6 - Income Taxes
Note 6 - Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | Note 6 INCOME TAXES Components of deferred taxes are as follows: December 31, 2021 2020 Assets: Payables $ 13,306 $ --- Net Leasehold Reserves 164,509 144,013 Long-Lived Asset Impairment 1,163,085 1,059,416 Deferred Geological and Geophysical Expense 77,149 13,073 Unrealized Equity Securities and Capital Gains 123,336 --- Asset Retirement Obligation 347,850 313,296 Other --- 3,210 Total Assets 1,889,235 1,533,008 Liabilities: Receivables 122,711 48,901 Intangible Drilling Costs 1,437,150 1,374,233 Unrealized Equity Securities and Capital Losses --- 43,295 Depletion and Depreciation 745,716 489,402 Investments 122,999 129,731 Other 11,979 16,073 Total Liabilities 2,440,555 2,101,635 Net Deferred Tax Asset/Liability $ (551,320 ) $ (568,627 ) The following table summarizes the current and deferred portions of income tax provision/(benefit): Year Ended December 31, 2021 2020 Current Tax Provision/(Benefit): Federal $ (38,552 ) $ (185,731 ) State 970 176 Total Current Benefit (37,582 ) (185,555 ) Deferred Tax Benefit (17,307 ) (348,738 ) Total Benefit $ (54,889 ) $ (534,293 ) The total income tax provision/(benefit) expressed as a percentage of income before income tax was - 5% 2021 2020. 21% 2021 2020 Year Ended December 31, 2021 2020 Computed Federal Tax Provision/(Benefit) $ 251,036 $ (523,015 ) Increase (Decrease) in Tax from: Allowable Depletion in Excess of Basis (148,538 ) --- Federal Tax Carrybacks (118,534 ) --- Dividend Received Deduction (38,269 ) (891 ) State Income Tax Provision 970 176 Other (1,554 ) (10,563 ) Income Tax Benefit $ (54,889 ) $ (534,293 ) Effective Tax Rate -5 % 21 % Excess federal percentage depletion, which is limited to certain production volumes and by certain income levels, reduces estimated taxable income projected for any year. When a provision for income taxes is recorded, federal excess percentage depletion benefits decrease the effective tax rate. When a benefit for income taxes is recorded, federal excess percentage depletion benefits increase the effective tax rate. The benefit of federal excess percentage depletion is not may |
Note 7 - Equity Method and Othe
Note 7 - Equity Method and Other Investments and Related Commitments and Contingent Liabilities Including Guarantees | 12 Months Ended |
Dec. 31, 2021 | |
Notes to Financial Statements | |
Equity Method Investments and Joint Ventures Disclosure [Text Block] | Note 7 EQUITY METHOD AND OTHER INVESTMENTS AND RELATED COMMITMENTS AND CONTINGENT LIABILITIES INCLUDING GUARANTEES The Company’s Equity Method Investments include: Broadway Sixty-Eight, LLC (“Broadway 68” 68 68 68 2021 2020. 68 December 31, 2021 2020, Broadway Seventy-Two, LLC (“Broadway 72” March 29, 2021. 72 72 December 31, 2021. Grand Woods Development, LLC (“Grand Woods”), an Oklahoma limited liability company, with a 47% ownership, was acquired in 2015. November 23, 2026. not December 31, 2021 2020, QSN Office Park, LLC (“QSN”), an Oklahoma limited liability company, with a 20% ownership, was acquired in 2016. 20% July 15, 2023 20% March 9, 2027. December 31, 2021 2020, The Company’s Other Investments primarily include: Bailey Hilltop Pipeline, LLC (“Bailey”), with a 10% ownership, was acquired in 2008. December 31, 2021 2020, Cloudburst International, Inc. (“Cloudburst”), with a 12.99% ownership, was acquired in 2019. December 31, 2021 2020, Genlith, Inc. (“Genlith”), with a 5.15% ownership, was acquired in July 2020. December 31, 2021 2020. Ocean’s NG (“Ocean”), with a 12.44% ownership, was acquired in 2015. May 2021, December 31, 2021 2020, OKC Industrial Properties, LC (“OKC”), with a 10% ownership, was acquired in 1992. December 31, 2021 2020, VCC Accern Investment, LLC (“VCC Accern”), with a 9.9% ownership, was acquired in September 2021. no December 31, 2021. VCC Beachy Investment, LLC (“VCC Beachy”), with a 4.29% ownership, was acquired in November 2021. December 31, 2021. Victorum BHR2 “BHR2” 16.3% August 2021. BHR2 BHR2 December 31, 2021. VCC Homebase Investment, LLC (“VCC Homebase”), with a 7.29% ownership, was acquired in June 2021. December 31, 2021. VCC Mamenta Investment, LLC (“VCC Mamenta”), with a 4.17% ownership, was acquired in July 2021. December 31, 2021. |
Note 8 - Costs Incurred in Oil
Note 8 - Costs Incurred in Oil and Gas Property Acquisition, Exploration and Development Activities | 12 Months Ended |
Dec. 31, 2021 | |
Notes to Financial Statements | |
Cost Incurred in Oil and Gas Property Acquisition, Exploration, and Development Activities Disclosure [Text Block] | Note 8 COSTS INCURRED IN OIL AND GAS PROPERTY ACQUISITION, EXPLORATION AND DEVELOPMENT ACTIVITIES All the Company’s oil and gas operations are within the continental United States. In connection with its oil and gas operations, the following costs were incurred: Year Ended December 31, 2021 2020 Acquisition of Properties: Unproved $ 523,011 $ 271,001 Proved 1,016,716 --- Exploration Costs 580,272 413,779 Development Costs 629,477 854,608 Asset Retirement Obligation 505,283 --- |
Note 9 - Fair Value Measurement
Note 9 - Fair Value Measurements | 12 Months Ended |
Dec. 31, 2021 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | Note 9 FAIR VALUE MEASUREMENTS The Company uses a three three Level 1 Level 2 not Level 3 During 2021 2020, no 2 3. Recurring Fair Value Measurements Certain of the Company’s assets are reported at fair value in the accompanying consolidated balance sheets on a recurring basis. The Company determined the fair value of equity securities and available-for-sale debt securities using quoted market prices, and where applicable, securities with similar maturity dates and interest rates. At December 31, 2021 2020, 2021 Level 1 Inputs Level 2 Inputs Level 3 Inputs Financial Assets: Equity Securities – Domestic Equities $ 6,822,808 $ --- $ --- International Equities 1,856,904 --- --- Others 462,645 --- --- $ 9,142,357 $ --- $ --- 2020 Level 1 Inputs Level 2 Inputs Level 3 Inputs Financial Assets: Available-for-Sale Debt Securities – U.S. Treasury Bills Maturing in 2021 $ --- $ 1,515,234 $ --- Equity Securities – Domestic Equities 1,506,514 --- --- International Equities 630,494 --- --- Others 399,474 --- --- $ 2,536,482 $ 1,515,234 $ --- Non-recurring Fair Value Measurements The Company’s asset retirement obligation incurred annually represents non-recurring fair value liabilities. The fair value of the non-financial liabilities incurred was $400,801 in 2021 2020 3 2 The fair value of oil and gas properties used in estimating impairment losses of $1,673,929 for 2021 2020 3 10 Fair Value of Financial Instruments The Company’s other financial instruments consist primarily of cash and cash equivalents, trade and notes receivables, trade payables and dividends payable. As of December 31, 2021 2020, |
Note 10 - Long-lived Assets Imp
Note 10 - Long-lived Assets Impairment Loss | 12 Months Ended |
Dec. 31, 2021 | |
Notes to Financial Statements | |
Long Lived Assets Impairment Loss [Text Block] | Note 10 LONG-LIVED ASSETS IMPAIRMENT LOSS Certain oil and gas producing properties have been deemed to be impaired because the assets, evaluated on a property-by-property basis, are not 2021 2020 2021 2020 |
Note 11 - Other Income, Net
Note 11 - Other Income, Net | 12 Months Ended |
Dec. 31, 2021 | |
Notes to Financial Statements | |
Other Income and Other Expense Disclosure [Text Block] | Note 11 OTHER INCOME, NET The following is an analysis of the components of Other Income, Net: 2021 2020 Net Realized and Unrealized Gain on Equity Securities $ 573,631 $ 433,475 Gain/(Loss) on Asset Sales (184,806 ) 23,590 Interest Income 23,999 147,867 Agricultural Rental Income 5,600 5,600 Dividend Income 364,469 8,487 Income from Other Investments 3,255 241,866 Interest and Other Expenses (76,585 ) (85,803 ) Other Income, Net $ 709,563 $ 775,082 |
Note 12 - Certain Relationships
Note 12 - Certain Relationships and Related Transactions | 12 Months Ended |
Dec. 31, 2021 | |
Notes to Financial Statements | |
Related Party Transactions Disclosure [Text Block] | Note 12 CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS The Company is affiliated by common management and ownership with Mesquite Minerals, Inc. (“Mesquite”), Mid-American Oil Company (“Mid-American”) and Lochbuie Limited Liability Company (“Lochbuie”). The Company also owns interests in certain producing and non-producing oil and gas properties as tenants in common with Mesquite, Mid-American and Lochbuie. Mesquite, Mid-American and Lochbuie share facilities and employees including executive officers with the Company. The Company has been reimbursed for services, facilities and miscellaneous business expenses incurred in 2021 2020 2021, 2020, The Company purchased working interest properties of Mid-American for $500,469, effective July 1, 2021. June 30, 2021. |
Supplemental Schedules of Oil a
Supplemental Schedules of Oil and Gas Information | 12 Months Ended |
Dec. 31, 2021 | |
Notes to Financial Statements | |
Oil and Gas Exploration and Production Industries Disclosures [Text Block] | THE RESERVE PETROLEUM COMPANY WORKING INTEREST RESERVE QUANTITY INFORMATION (Unaudited) Year Ended December 31, 2021 2020 Oil and Condensate (Bbls) Proved Developed and Undeveloped Reserves: Beginning of Year 221,795 331,162 Revisions of Previous Estimates 101,338 (65,821 ) Extensions and Discoveries 60,609 --- Purchase of Reserves 38,079 --- Production (64,547 ) (43,546 ) End of Year 357,274 221,795 Proved Developed Reserves: Beginning of Year 221,795 314,932 End of Year 357,274 221,795 Gas (MCF) Proved Developed and Undeveloped Reserves: Beginning of Year 1,534,311 2,460,433 Revisions of Previous Estimates 772,913 (524,260 ) Extensions and Discoveries 463,536 --- Purchase of Reserves 273,660 --- Production (376,338 ) (401,862 ) End of Year 2,668,082 1,534,311 Proved Developed Reserves: Beginning of Year 1,534,311 2,298,135 End of Year 2,668,082 1,534,311 See notes on next page. SUPPLEMENTAL SCHEDULE 1 THE RESERVE PETROLEUM COMPANY WORKING INTEREST RESERVE QUANTITY INFORMATION (Unaudited) Notes: 1. Estimates of royalty interests’ reserves, on properties in which the Company does not not not 2021 2020. 2. The preceding table sets forth estimates of the Company’s proved oil and gas reserves, together with the changes in those reserves, as prepared by the Company’s engineer for 2021 2020. 10 10 3. The Company emphasizes that the reserve volumes shown are estimates, which by their nature are subject to revision in the near term. The estimates have been made by utilizing geological and reservoir data, as well as actual production performance data available to the Company. These estimates are reviewed annually and are revised upward or downward as warranted by additional performance data. The Company’s engineer is not 4. The Company’s internal controls relating to the calculation of its working interests’ reserve estimates include review and testing of the accounting data flowing into the calculation of the reserve estimates. In addition, the average oil and natural gas product prices calculated in the engineer’s 2021 2021 SUPPLEMENTAL SCHEDULE 2 THE RESERVE PETROLEUM COMPANY STANDARDIZED MEASURE OF DISCOUNTED FUTURE NET CASH FLOWS RELATING TO PROVED WORKING INTEREST OIL AND GAS RESERVES (Unaudited) At December 31, 2021 2020 Future Cash Inflows $ 32,293,498 $ 9,701,762 Future Production and Development Costs (16,056,240 ) (5,910,324 ) Future Asset Retirement Obligation (2,456,290 ) (1,551,502 ) Future Income Tax Expense (1,048,986 ) 602,785 Future Net Cash Flows 12,731,982 2,842,721 10% Annual Discount for Estimated Timing of Cash Flows (3,892,523 ) (911,074 ) Standardized Measure of Discounted Future Net Cash Flows $ 8,839,459 $ 1,931,647 Estimates of future net cash flows from the Company’s proved working interests in oil and gas reserves are shown in the table above. These estimates, which by their nature are subject to revision in the near term, were based on an average monthly product price received by the Company for 2020 2021, no SUPPLEMENTAL SCHEDULE 3 THE RESERVE PETROLEUM COMPANY CHANGES IN STANDARDIZED MEASURE OF DISCOUNTED FUTURE NET CASH FLOWS FROM PROVED WORKING INTEREST RESERVE QUANTITIES (Unaudited) Year Ended December 31, 2021 2020 Standardized Measure, Beginning of Year $ 1,931,647 $ 5,479,471 Sales and Transfers, Net of Production Costs (3,476,703 ) (652,984 ) Net Change in Sales and Transfer Prices, Net of Production Costs 3,787,887 (3,294,788 ) Extensions, Discoveries and Improved Recoveries, Net of Future Production and Development Costs 4,294,966 --- Revisions of Quantity Estimates 2,934,172 (499,405 ) Accretion of Discount 326,800 1,020,164 Purchases of Reserves in Place 844,340 --- Net Change in Income Taxes (1,188,405 ) 655,408 Net Change in Asset Retirement Obligation 505,283 (56,447 ) Changes in Production Rates (Timing) and Other (1,120,528 ) (719,772 ) Standardized Measure, End of Year $ 8,839,459 $ 1,931,647 |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Consolidation, Policy [Policy Text Block] | Basis of Presentation of Consolidated Financial Statements The consolidated financial statements have been prepared in accordance with the accounting principles generally accepted in the United States of America (“GAAP”) and the rules and regulations of the Securities and Exchange Commission (“SEC”) and include the accounts of The Reserve Petroleum Company and its consolidated subsidiary. All significant intercompany balances and transactions have been eliminated in consolidation. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents The Company considers all highly liquid debt instruments purchased with a maturity of three |
Investment, Policy [Policy Text Block] | Investments Marketable Securities: The Company classifies its debt and marketable equity securities in one two December 31, 2021 2020. Equity Method and Other Investments: The Company accounts for its non-marketable investments in limited liability companies on the equity method if ownership allows the Company to exercise significant influence. Other investments, without readily determinable fair values, that are not not See Note 7 |
Revenue from Contract with Customer [Policy Text Block] | Receivables and Revenue Recognition Oil and gas sales and resulting receivables are recognized when the product is delivered to the purchaser and title has transferred. Sales are to credit-worthy major energy purchasers with payments generally received within 60 not The Company’s revenues are primarily derived from its interests in the sale of oil and natural gas production. Each barrel of oil or thousand cubic feet of natural gas delivered is considered a separate performance obligation. The Company recognizes revenue from its interests in the sales of oil and natural gas in the period that its performance obligations to provide oil and natural gas to customers are satisfied. Performance obligations are satisfied when the Company has no third one three not not December 31, 2021 2020, The Company’s contracts with customers originate at or near the time of delivery and transfer of control of oil and natural gas to the purchasers. As such, the Company does not The Company’s oil is typically sold at delivery points under contract terms that are common in our industry. The Company's natural gas produced is delivered by the well operators to various purchasers at agreed upon delivery points under a limited number of contract types that are also common in our industry. However, under these contracts, the natural gas may may The Company’s disaggregated revenue has two Year Ended December 30, 2021 2020 Oil Sales $ 5,905,936 $ 2,585,896 Natural Gas Sales 2,628,472 1,283,011 Miscellaneous Oil and Gas Product Sales 500,132 126,167 $ 9,034,540 $ 3,995,074 The Company recognizes revenue from lease bonuses when it has received an executed lease agreement with a third may no |
Property, Plant and Equipment, Policy [Policy Text Block] | Property, Plant and Equipment Oil and gas properties are accounted for on the successful efforts method. The acquisition, exploration and development costs of producing properties are capitalized. The Company has not one The Company assesses its proved oil and gas properties for impairment whenever events or circumstances indicate that the carrying value of the assets may not not Depreciation, depletion and amortization of producing properties is computed on the units-of-production method on a property-by-property basis. The units-of-production method is based primarily on estimates of proved reserve quantities. Due to uncertainties inherent in this estimation process, it is at least reasonably possible that reserve quantities will be revised in the near term. Changes in estimated reserve quantities are applied to depreciation, depletion and amortization computations prospectively. Other property and equipment are depreciated on the straight line, declining balance, or other accelerated method as appropriate. The following estimated useful lives are used for property and equipment: Office furniture and fixtures 5 to 10 years Automotive equipment 5 to 8 years |
Income Tax, Policy [Policy Text Block] | Income Taxes The Company utilizes an asset/liability approach to calculating deferred income taxes. Deferred income taxes are provided to reflect temporary differences in the basis of net assets and liabilities for income tax and financial reporting purposes. Deferred tax assets are reduced by a valuation allowance if a determination is made that it is more likely than not not The Company recognizes a tax benefit from an uncertain tax position when it is more likely than not 50% The Company recognizes interest and penalties related to unrecognized tax benefits in income tax expense. There were no uncertain tax positions as of December 31, 2021 2020. 2018, 2019 2020 6 |
Earnings Per Share, Policy [Policy Text Block] | Earnings Per Share Accounting guidance for Earnings Per Share (EPS) establishes the methodology of calculating basic earnings per share and diluted earnings per share. The calculations of basic earnings per share and diluted earnings per share differ in that instruments convertible to common stock (such as stock options, warrants and convertible preferred stock) are added to weighted average shares outstanding when computing diluted earnings per share. For 2021 2020, |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentrations of Credit Risk and Major Customers The Company’s receivables relate primarily to sales of oil and natural gas to purchasers with operations in Texas, Oklahoma, Kansas and South Dakota. The Company had two purchasers in 2021 2020 The Company maintains its cash in bank deposit accounts, which at times may not not The Company’s investment in marketable equity securities consists of equity interests in both U.S. and international entities involved in a broad range of industries. These marketable equity securities are subject to overall market risks, which could result in a temporary or permanent decline in the fair value of these securities. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. These estimates include oil and natural gas reserve quantities that form the basis for the calculation of amortization and impairment of oil and natural gas properties. Management emphasizes that reserve estimates are inherently imprecise and that estimates of more recent reserve discoveries are more imprecise than those for properties with long production histories. Actual results could differ from the estimates and assumptions used in the preparation of the Company’s consolidated financial statements. |
Gas Balancing Arrangements, Policy [Policy Text Block] | Gas Balancing Gas imbalances are accounted for under the sales method whereby revenues are recognized based on production sold. A liability is recorded when the Company’s excess takes of natural gas volumes exceed our estimated remaining recoverable reserves (over-produced). No |
Minimum Guarantees, Policy [Policy Text Block] | Guarantees At the inception of a guarantee or subsequent modification, the Company records a liability for the fair value of the obligation undertaken in issuing the guarantee. The Company records a liability for its obligations when it becomes probable that the Company will have to perform under the guarantee. The Company has issued guarantees associated with the Company’s equity method investments. See Note 7 |
Asset Retirement Obligation [Policy Text Block] | Asset Retirement Obligation The Company records the fair value of its estimated liability to retire its oil and natural gas producing properties in the period in which it is incurred (typically the date of first first The following table summarizes the asset retirement obligation for 2021 2020: 2021 2020 Beginning balance at January 1 $ 1,810,729 $ 1,821,527 Liabilities incurred 400,801 --- Liabilities settled (wells sold or plugged) (17,004 ) (25,205 ) Accretion expense 43,814 45,649 Revision to estimate 121,486 (31,242 ) Ending balance at December 31 $ 2,359,826 $ 1,810,729 |
Reclassification, Comparability Adjustment [Policy Text Block] | Reclassifications Certain amounts in the 2020 2021 not no |
Note 2 - Summary of Significa_2
Note 2 - Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Notes Tables | |
Disaggregation of Revenue [Table Text Block] | Year Ended December 30, 2021 2020 Oil Sales $ 5,905,936 $ 2,585,896 Natural Gas Sales 2,628,472 1,283,011 Miscellaneous Oil and Gas Product Sales 500,132 126,167 $ 9,034,540 $ 3,995,074 |
Schedule Of Useful Lives Of Property And Equipment [Table Text Block] | Office furniture and fixtures 5 to 10 years Automotive equipment 5 to 8 years |
Schedule of Asset Retirement Obligations [Table Text Block] | 2021 2020 Beginning balance at January 1 $ 1,810,729 $ 1,821,527 Liabilities incurred 400,801 --- Liabilities settled (wells sold or plugged) (17,004 ) (25,205 ) Accretion expense 43,814 45,649 Revision to estimate 121,486 (31,242 ) Ending balance at December 31 $ 2,359,826 $ 1,810,729 |
Note 4 - Common Stock (Tables)
Note 4 - Common Stock (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Notes Tables | |
Schedule of Common Stock Outstanding Roll Forward [Table Text Block] | Shares Issued Shares of Treasury Stock Shares Outstanding January 1, 2020, $ .50 200,000 184,735 28,120 156,615 Purchase of stock --- 20 (20 ) December 31, 2020, $ .50 200,000 184,735 28,140 156,595 Purchase of stock --- 422 (422 ) December 31, 2021, $.50 par value stock, 200,000 shares authorized 184,735 28,562 156,173 |
Note 6 - Income Taxes (Tables)
Note 6 - Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Notes Tables | |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | December 31, 2021 2020 Assets: Payables $ 13,306 $ --- Net Leasehold Reserves 164,509 144,013 Long-Lived Asset Impairment 1,163,085 1,059,416 Deferred Geological and Geophysical Expense 77,149 13,073 Unrealized Equity Securities and Capital Gains 123,336 --- Asset Retirement Obligation 347,850 313,296 Other --- 3,210 Total Assets 1,889,235 1,533,008 Liabilities: Receivables 122,711 48,901 Intangible Drilling Costs 1,437,150 1,374,233 Unrealized Equity Securities and Capital Losses --- 43,295 Depletion and Depreciation 745,716 489,402 Investments 122,999 129,731 Other 11,979 16,073 Total Liabilities 2,440,555 2,101,635 Net Deferred Tax Asset/Liability $ (551,320 ) $ (568,627 ) |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Year Ended December 31, 2021 2020 Current Tax Provision/(Benefit): Federal $ (38,552 ) $ (185,731 ) State 970 176 Total Current Benefit (37,582 ) (185,555 ) Deferred Tax Benefit (17,307 ) (348,738 ) Total Benefit $ (54,889 ) $ (534,293 ) |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Year Ended December 31, 2021 2020 Computed Federal Tax Provision/(Benefit) $ 251,036 $ (523,015 ) Increase (Decrease) in Tax from: Allowable Depletion in Excess of Basis (148,538 ) --- Federal Tax Carrybacks (118,534 ) --- Dividend Received Deduction (38,269 ) (891 ) State Income Tax Provision 970 176 Other (1,554 ) (10,563 ) Income Tax Benefit $ (54,889 ) $ (534,293 ) Effective Tax Rate -5 % 21 % |
Note 8 - Costs Incurred in Oi_2
Note 8 - Costs Incurred in Oil and Gas Property Acquisition, Exploration and Development Activities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Notes Tables | |
Oil and Gas, Present Activity [Table Text Block] | Year Ended December 31, 2021 2020 Acquisition of Properties: Unproved $ 523,011 $ 271,001 Proved 1,016,716 --- Exploration Costs 580,272 413,779 Development Costs 629,477 854,608 Asset Retirement Obligation 505,283 --- |
Note 9 - Fair Value Measureme_2
Note 9 - Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Notes Tables | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | 2021 Level 1 Inputs Level 2 Inputs Level 3 Inputs Financial Assets: Equity Securities – Domestic Equities $ 6,822,808 $ --- $ --- International Equities 1,856,904 --- --- Others 462,645 --- --- $ 9,142,357 $ --- $ --- 2020 Level 1 Inputs Level 2 Inputs Level 3 Inputs Financial Assets: Available-for-Sale Debt Securities – U.S. Treasury Bills Maturing in 2021 $ --- $ 1,515,234 $ --- Equity Securities – Domestic Equities 1,506,514 --- --- International Equities 630,494 --- --- Others 399,474 --- --- $ 2,536,482 $ 1,515,234 $ --- |
Note 11 - Other Income, Net (Ta
Note 11 - Other Income, Net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Notes Tables | |
Interest and Other Income [Table Text Block] | 2021 2020 Net Realized and Unrealized Gain on Equity Securities $ 573,631 $ 433,475 Gain/(Loss) on Asset Sales (184,806 ) 23,590 Interest Income 23,999 147,867 Agricultural Rental Income 5,600 5,600 Dividend Income 364,469 8,487 Income from Other Investments 3,255 241,866 Interest and Other Expenses (76,585 ) (85,803 ) Other Income, Net $ 709,563 $ 775,082 |
Supplemental Schedules of Oil_2
Supplemental Schedules of Oil and Gas Information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Notes Tables | |
Schedule of Proved Developed and Undeveloped Oil and Gas Reserve Quantities [Table Text Block] | Year Ended December 31, 2021 2020 Oil and Condensate (Bbls) Proved Developed and Undeveloped Reserves: Beginning of Year 221,795 331,162 Revisions of Previous Estimates 101,338 (65,821 ) Extensions and Discoveries 60,609 --- Purchase of Reserves 38,079 --- Production (64,547 ) (43,546 ) End of Year 357,274 221,795 Proved Developed Reserves: Beginning of Year 221,795 314,932 End of Year 357,274 221,795 Gas (MCF) Proved Developed and Undeveloped Reserves: Beginning of Year 1,534,311 2,460,433 Revisions of Previous Estimates 772,913 (524,260 ) Extensions and Discoveries 463,536 --- Purchase of Reserves 273,660 --- Production (376,338 ) (401,862 ) End of Year 2,668,082 1,534,311 Proved Developed Reserves: Beginning of Year 1,534,311 2,298,135 End of Year 2,668,082 1,534,311 |
Standardized Measure of Discounted Future Cash Flows Relating to Proved Reserves Disclosure [Table Text Block] | At December 31, 2021 2020 Future Cash Inflows $ 32,293,498 $ 9,701,762 Future Production and Development Costs (16,056,240 ) (5,910,324 ) Future Asset Retirement Obligation (2,456,290 ) (1,551,502 ) Future Income Tax Expense (1,048,986 ) 602,785 Future Net Cash Flows 12,731,982 2,842,721 10% Annual Discount for Estimated Timing of Cash Flows (3,892,523 ) (911,074 ) Standardized Measure of Discounted Future Net Cash Flows $ 8,839,459 $ 1,931,647 |
Schedule of Changes in Standardized Measure of Discounted Future Net Cash Flows [Table Text Block] | Year Ended December 31, 2021 2020 Standardized Measure, Beginning of Year $ 1,931,647 $ 5,479,471 Sales and Transfers, Net of Production Costs (3,476,703 ) (652,984 ) Net Change in Sales and Transfer Prices, Net of Production Costs 3,787,887 (3,294,788 ) Extensions, Discoveries and Improved Recoveries, Net of Future Production and Development Costs 4,294,966 --- Revisions of Quantity Estimates 2,934,172 (499,405 ) Accretion of Discount 326,800 1,020,164 Purchases of Reserves in Place 844,340 --- Net Change in Income Taxes (1,188,405 ) 655,408 Net Change in Asset Retirement Obligation 505,283 (56,447 ) Changes in Production Rates (Timing) and Other (1,120,528 ) (719,772 ) Standardized Measure, End of Year $ 8,839,459 $ 1,931,647 |
Note 2 - Summary of Significa_3
Note 2 - Summary of Significant Accounting Policies (Details Textual) shares in Thousands | 12 Months Ended | |
Dec. 31, 2021USD ($)shares | Dec. 31, 2020USD ($)shares | |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain (Loss), before Tax, Total | $ 0 | $ 0 |
Unrecognized Tax Benefits, Ending Balance | $ 0 | $ 0 |
Weighted Average Number of Shares Outstanding, Diluted, Total (in shares) | shares | 0 | 0 |
Current Year Inflation Rate | 4.08% | |
Change In Present Value, Percent | 3.25% | |
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | ||
Number of Major Customers | 2 | 1 |
Oil and Gas [Member] | ||
Contract with Customer, Asset, after Allowance for Credit Loss, Total | $ 584,336 | $ 232,860 |
Oil and Gas [Member] | Customer Concentration Risk [Member] | Revenue Benchmark [Member] | ||
Concentration Risk, Percentage | 35.00% | 17.00% |
Note 2 - Summary of Significa_4
Note 2 - Summary of Significant Accounting Policies - Disaggregated Revenue (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue | $ 9,034,540 | $ 3,995,074 |
Oil and Condensate [Member] | ||
Revenue | 5,905,936 | 2,585,896 |
Natural Gas, Production [Member] | ||
Revenue | 2,628,472 | 1,283,011 |
Miscellaneous Oil and Gas Sales [Member] | ||
Revenue | $ 500,132 | $ 126,167 |
Note 2 - Summary of Significa_5
Note 2 - Summary of Significant Accounting Policies - Property, Plant, and Equipment, Useful Lives (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Furniture and Fixtures [Member] | Minimum [Member] | |
Property useful lives (Year) | 5 years |
Furniture and Fixtures [Member] | Maximum [Member] | |
Property useful lives (Year) | 10 years |
Automobiles [Member] | Minimum [Member] | |
Property useful lives (Year) | 5 years |
Automobiles [Member] | Maximum [Member] | |
Property useful lives (Year) | 8 years |
Note 2 - Summary of Significa_6
Note 2 - Summary of Significant Accounting Policies - Asset Retirement Obligation (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Balance , asset retirement obligation | $ 1,810,729 | $ 1,821,527 |
Liabilities incurred | 400,801 | |
Liabilities settled (wells sold or plugged) | (17,004) | (25,205) |
Accretion expense | 43,814 | 45,649 |
Revision to estimate | 121,486 | (31,242) |
Balance , asset retirement obligation | $ 2,359,826 | $ 1,810,729 |
Note 4 - Common Stock - Changes
Note 4 - Common Stock - Changes in Common Stock Issued and Outstanding (Details) - shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Balance, shares issued (in shares) | 184,735 | 184,735 |
Purchase of stock (in shares) | 422 | 20 |
Purchase of stock (in shares) | (422) | (20) |
Balance, shares issued (in shares) | 184,735 | 184,735 |
Balance, treasury stock (in shares) | 28,562 | 28,140 |
Balance, shares outstanding (in shares) | 156,173 | 156,595 |
Note 4 - Common Stock - Chang_2
Note 4 - Common Stock - Changes in Common Stock Issued and Outstanding (Details) (Parentheticals) - $ / shares | Dec. 31, 2021 | Dec. 31, 2020 |
Common stock, par value (in dollars per share) | $ 0.50 | $ 0.50 |
Common stock, shares authorized (in shares) | 200,000 | 200,000 |
Note 5 - Marketable Securities
Note 5 - Marketable Securities (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Equity Securities, FV-NI, Realized Gain (Loss), Total | $ 176,858 | $ 136,555 |
Equity Securities, FV-NI, Unrealized Gain (Loss), Total | $ 396,773 | $ 296,920 |
Note 6 - Income Taxes (Details
Note 6 - Income Taxes (Details Textual) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Effective Income Tax Rate Reconciliation, Percent, Total | (5.00%) | 21.00% |
Note 6 - Income Taxes - Deferre
Note 6 - Income Taxes - Deferred Taxes Components (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Assets: | ||
Payables | $ 13,306 | |
Net Leasehold Reserves | 164,509 | $ 144,013 |
Long-Lived Asset Impairment | 1,163,085 | 1,059,416 |
Deferred Geological and Geophysical Expense | 77,149 | 13,073 |
Unrealized Equity Securities and Capital Gains | 123,336 | |
Asset Retirement Obligation | 347,850 | 313,296 |
Other | 3,210 | |
Total Assets | 1,889,235 | 1,533,008 |
Liabilities: | ||
Receivables | 122,711 | 48,901 |
Intangible Drilling Costs | 1,437,150 | 1,374,233 |
Unrealized Equity Securities and Capital Losses | 43,295 | |
Depletion and Depreciation | 745,716 | 489,402 |
Investments | 122,999 | 129,731 |
Other | 11,979 | 16,073 |
Total Liabilities | 2,440,555 | 2,101,635 |
Net Deferred Tax Asset/Liability | $ (551,320) | $ (568,627) |
Note 6 - Income Taxes - Income
Note 6 - Income Taxes - Income Tax Expense, Current and Deferred Portions (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Current Tax Provision/(Benefit): | ||
Federal | $ (38,552) | $ (185,731) |
State | 970 | 176 |
Total Current Benefit | (37,582) | (185,555) |
Deferred Tax Benefit | (17,307) | (348,738) |
Total Benefit | $ (54,889) | $ (534,293) |
Note 6 - Income Taxes - Reconci
Note 6 - Income Taxes - Reconciliation of Computed Income Tax (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Computed Federal Tax Provision/(Benefit) | $ 251,036 | $ (523,015) |
Increase (Decrease) in Tax from: | ||
Allowable Depletion in Excess of Basis | (148,538) | |
Federal Tax Carrybacks | (118,534) | |
Dividend Received Deduction | (38,269) | (891) |
State Income Tax Provision | 970 | 176 |
Other | (1,554) | (10,563) |
Total Benefit | $ (54,889) | $ (534,293) |
Effective Tax Rate | 5.00% | (21.00%) |
Effective Tax Rate | (5.00%) | 21.00% |
Note 7 - Equity Method and Ot_2
Note 7 - Equity Method and Other Investments and Related Commitments and Contingent Liabilities Including Guarantees (Details Textual) | 1 Months Ended | 12 Months Ended | ||||||
May 31, 2021USD ($) | Dec. 31, 2021USD ($)a | Dec. 31, 2020USD ($) | Nov. 30, 2021 | Sep. 30, 2021 | Jul. 31, 2021 | Jun. 30, 2021 | Dec. 31, 1992a | |
Equity Method Investments | $ 1,426,201 | $ 604,991 | ||||||
Other Long-term Investments | 2,791,656 | 2,415,399 | ||||||
Income (Loss) from Equity Method Investments, Total | (154,041) | (109,855) | ||||||
Corporate Office from Broadway [Member] | ||||||||
Operating Lease, Expense | $ 36,000 | 141,457 | ||||||
Broadway Sixty-Eight Partnership [Member] | ||||||||
Equity Method Investment, Ownership Percentage | 33.00% | |||||||
Equity Method Investments | 142,917 | |||||||
Broadway 72 Partnership [Member] | ||||||||
Equity Method Investment, Ownership Percentage | 40.00% | |||||||
Equity Method Investments | $ 948,693 | |||||||
Grand Woods Development, LLC [Member] | ||||||||
Equity Method Investment, Ownership Percentage | 47.00% | |||||||
Equity Method Investments | $ 56,288 | 179,615 | ||||||
Area of Real Estate Property (Acre) | a | 26.56 | |||||||
Loan Guaranteed | $ 1,200,000 | |||||||
Loans Payable, Total | 1,579,500 | |||||||
Financing Receivable, after Allowance for Credit Loss, Total | $ 472,445 | |||||||
QSN Office Park [Member] | ||||||||
Equity Method Investment, Ownership Percentage | 20.00% | |||||||
Equity Method Investments | $ 279,763 | 282,459 | ||||||
QSN Office Park [Member] | Development Loan [Member] | ||||||||
Loan Guaranteed | 1,100,000 | |||||||
QSN Office Park [Member] | Construction Loan [Member] | ||||||||
Loan Guaranteed | $ 550,000 | |||||||
OKC Industrial Properties [Member] | ||||||||
Other Investment, Ownership Percentage | 10.00% | |||||||
Other Long-term Investments | $ 82,482 | 69,482 | ||||||
Area of Land (Acre) | a | 23 | 260 | ||||||
Bailey [Member] | ||||||||
Other Long-term Investments | $ 77,377 | 80,377 | ||||||
Cloudburst Solutions [Member] | ||||||||
Other Investment, Ownership Percentage | 12.99% | |||||||
Other Long-term Investments | $ 1,596,007 | 1,496,007 | ||||||
Genlith [Member] | ||||||||
Other Investment, Ownership Percentage | 5.15% | |||||||
Other Long-term Investments | $ 500,000 | |||||||
Ocean [Member] | ||||||||
Other Investment, Ownership Percentage | 12.44% | |||||||
Other Long-term Investments | $ 0 | $ 229,218 | ||||||
Proceeds From Sale of Patents | $ 5,520 | |||||||
Income (Loss) from Equity Method Investments, Total | $ (223,698) | |||||||
VCC Smarter Firms [Member] | ||||||||
Other Investment, Ownership Percentage | 9.90% | |||||||
Other Long-term Investments | 50,458 | |||||||
VCC Beachy [Member] | ||||||||
Other Investment, Ownership Percentage | 4.29% | |||||||
Other Long-term Investments | 30,198 | |||||||
BHR2 [Member] | ||||||||
Other Long-term Investments | 300,754 | |||||||
VCC Homebase [Member] | ||||||||
Other Investment, Ownership Percentage | 7.29% | |||||||
Other Long-term Investments | 100,337 | |||||||
VCC Mamenta [Member] | ||||||||
Other Investment, Ownership Percentage | 4.17% | |||||||
Other Long-term Investments | $ 45,193 |
Note 8 - Costs Incurred in Oi_3
Note 8 - Costs Incurred in Oil and Gas Property Acquisition, Exploration and Development Activities - Costs Related to Oil and Gas Operations (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Acquisition of Properties: | ||
Unproved | $ 523,011 | $ 271,001 |
Proved | 1,016,716 | |
Exploration Costs | 580,272 | 413,779 |
Development Costs | 629,477 | $ 854,608 |
Asset Retirement Obligation | $ 505,283 |
Note 9 - Fair Value Measureme_3
Note 9 - Fair Value Measurements (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Asset Retirement Obligation, Liabilities Incurred | $ 400,801 | |
Impairment Of Oil And Gas Cost Properties | 1,673,929 | $ 2,517,873 |
Fair Value, Inputs, Level 3 [Member] | ||
Asset Retirement Obligation, Liabilities Incurred | 400,801 | 0 |
Impairment Of Oil And Gas Cost Properties | $ 1,673,929 | $ 2,517,873 |
Note 9 - Fair Value Measureme_4
Note 9 - Fair Value Measurements - Schedule of Fair Value Reported on a Recurring Basis (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Equity Securities | $ 9,142,357 | $ 2,536,482 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Equity Securities | 9,142,357 | 2,536,482 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Equity Securities | 1,515,234 | |
Domestic Equities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Equity Securities | 6,822,808 | 1,506,514 |
US Treasury Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
U.S. Treasury Bills Maturing in 2021 | 1,515,234 | |
International Equities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Equity Securities | 1,856,904 | 630,494 |
Other [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Equity Securities | $ 462,645 | $ 399,474 |
Note 10 - Long-lived Assets I_2
Note 10 - Long-lived Assets Impairment Loss (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Impairment Of Oil And Gas Cost Properties | $ 1,673,929 | $ 2,517,873 |
Note 11 - Other Income, Net - S
Note 11 - Other Income, Net - Schedule of Components of Other Income, Net (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Equity Securities | $ 573,631 | $ 433,475 |
Gain/(Loss) on Asset Sales | (184,806) | 23,590 |
Interest Income | 23,999 | 147,867 |
Agricultural Rental Income | 5,600 | 5,600 |
Dividend Income | 364,469 | 8,487 |
Income from Other Investments | 3,255 | 241,866 |
Interest and Other Expenses | (76,585) | (85,803) |
Other Income, Net | $ 709,563 | $ 775,082 |
Note 12 - Certain Relationshi_2
Note 12 - Certain Relationships and Related Transactions (Details Textual) - USD ($) | 1 Months Ended | 12 Months Ended | |
Jul. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Mesquite [Member] | |||
Related Party Transaction, Amounts of Transaction | $ 209,187 | $ 201,905 | |
Mesquite [Member] | Payments For Salaries [Member] | |||
Related Party Transaction, Amounts of Transaction | 108,506 | 126,245 | |
Mid American [Member] | |||
Related Party Transaction, Amounts of Transaction | 159,001 | ||
Mid American [Member] | Payments For Salaries [Member] | |||
Related Party Transaction, Amounts of Transaction | 81,278 | 126,245 | |
Mid American [Member] | Purchased Working Interest Properties1 [Member] | |||
Related Party Transaction, Amounts of Transaction | $ 500,469 | ||
Lochbuie Limited Liability Company, LLTD [Member] | |||
Related Party Transaction, Amounts of Transaction | 208,974 | ||
Lochbuie Limited Liability Company, LLTD [Member] | Payments For Salaries [Member] | |||
Related Party Transaction, Amounts of Transaction | $ 108,506 | $ 126,245 |
Supplemental Schedules of Oil_3
Supplemental Schedules of Oil and Gas Information (Details Textual) - bbl | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Oil and Condensate (Bbls) [Member] | ||
Proved Developed and Undeveloped Reserves Production Royalty (Barrel of Oil) | 25,618 | 28,425 |
Gas (MCF) [Member] | ||
Proved Developed and Undeveloped Reserves Production Royalty (Barrel of Oil) | 307,986 | 304,749 |
Supplemental Schedules of Oil_4
Supplemental Schedules of Oil and Gas Information - Working Interest Reserve Quantity Information (Details) - bbl | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Oil and Condensate (Bbls) [Member] | ||
Beginning of Year (Barrel of Oil) | 221,795 | 331,162 |
Revisions of Previous Estimates (Barrel of Oil) | 101,338 | (65,821) |
Extensions and Discoveries (Barrel of Oil) | 60,609 | |
Purchase of Reserves (Barrel of Oil) | 38,079 | |
Production (Barrel of Oil) | (64,547) | (43,546) |
End of Year (Barrel of Oil) | 357,274 | 221,795 |
Beginning of Year (Barrel of Oil) | 221,795 | 314,932 |
End of Year (Barrel of Oil) | 357,274 | 221,795 |
Gas (MCF) [Member] | ||
Beginning of Year (Barrel of Oil) | 1,534,311 | 2,460,433 |
Revisions of Previous Estimates (Barrel of Oil) | 772,913 | (524,260) |
Extensions and Discoveries (Barrel of Oil) | 463,536 | |
Purchase of Reserves (Barrel of Oil) | 273,660 | |
Production (Barrel of Oil) | (376,338) | (401,862) |
End of Year (Barrel of Oil) | 2,668,082 | 1,534,311 |
Beginning of Year (Barrel of Oil) | 1,534,311 | 2,298,135 |
End of Year (Barrel of Oil) | 2,668,082 | 1,534,311 |
Supplemental Schedules of Oil_5
Supplemental Schedules of Oil and Gas Information - Standardized Measure of Discounted Future Net Cash Flows (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Future Cash Inflows | $ 32,293,498 | $ 9,701,762 | |
Future Production and Development Costs | (16,056,240) | (5,910,324) | |
Future Asset Retirement Obligation | (2,456,290) | (1,551,502) | |
Future Income Tax Expense | (1,048,986) | 602,785 | |
Future Net Cash Flows | 12,731,982 | 2,842,721 | |
10% Annual Discount for Estimated Timing of Cash Flows | (3,892,523) | (911,074) | |
Standardized Measure of Discounted Future Net Cash Flows | $ 8,839,459 | $ 1,931,647 | $ 5,479,471 |
Supplemental Schedules of Oil_6
Supplemental Schedules of Oil and Gas Information - Changes in Standardized Measure of Discounted Future Net Cash Flows From Proved Working Interest Reserve Quantities (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Standardized Measure, Beginning of Year | $ 1,931,647 | $ 5,479,471 |
Sales and Transfers, Net of Production Costs | (3,476,703) | (652,984) |
Net Change in Sales and Transfer Prices, Net of Production Costs | 3,787,887 | (3,294,788) |
Net of Future Production and Development Costs | 4,294,966 | |
Revisions of Quantity Estimates | 2,934,172 | (499,405) |
Accretion of Discount | 326,800 | 1,020,164 |
Purchases of Reserves in Place | 844,340 | |
Net Change in Income Taxes | (1,188,405) | 655,408 |
Net Change in Asset Retirement Obligation | 505,283 | (56,447) |
Changes in Production Rates (Timing) and Other | (1,120,528) | (719,772) |
Standardized Measure, End of Year | $ 8,839,459 | $ 1,931,647 |