Empire Petroleum (EP) 10-Q 14 Nov 22 2022 Q3 Quarterly report Financial data

Cover

Cover - shares	9 Months Ended
	Sep. 30, 2022	Nov. 04, 2022
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Sep. 30, 2022
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2022
Current Fiscal Year End Date	--12-31
Entity File Number	001-16653
Entity Registrant Name	EMPIRE PETROLEUM CORPORATION
Entity Central Index Key	0000887396
Entity Tax Identification Number	73-1238709
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	2200 S. Utica Place
Entity Address, Address Line Two	Suite 150
Entity Address, City or Town	Tulsa
Entity Address, State or Province	OK
Entity Address, Postal Zip Code	74114
City Area Code	539
Local Phone Number	444-8002
Title of 12(b) Security	Common Stock $.001 par value
Trading Symbol	EP
Security Exchange Name	NYSEAMER
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		22,096,055

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($)	Sep. 30, 2022	Dec. 31, 2021
Current Assets:
Cash	$ 15,733,842	$ 3,611,871
Accounts Receivable	5,981,533	7,733,905
Derivative Instruments	348,665	55,242
Inventory - Oil in Tanks	1,605,357	1,037,880
Prepaids	724,484	679,122
Total Current Assets	24,393,881	13,118,020
Property and Equipment:
Oil and Natural Gas Properties, Successful Efforts	53,064,338	46,914,326
Less: Accumulated Depreciation, Depletion and Impairment	(18,703,073)	(17,525,918)
Net	34,361,265	29,388,408
Other Property and Equipment, Net	1,535,765	1,288,611
Total Property and Equipment, Net	35,897,030	30,677,019
Derivative Instruments - Long Term	51,660	194,018
Sinking Fund	5,450,000	4,810,000
Utility and Other Deposits	449,811	1,290,594
Total Assets	66,242,382	50,089,651
Current Liabilities:
Accounts Payable	4,226,799	4,329,535
Accrued Expenses	7,325,010	5,844,184
Current Portion of Lease Liability	251,117	180,105
Current Portion of Long-Term Notes Payable	1,258,804	1,700,663
Total Current Liabilities	13,061,730	12,054,487
Long-Term Notes Payable	5,174,783	6,117,091
Long-Term Note Payable - PIE (Note 5)	1,399,030	797,010
Long-Term Lease Liability	613,899	646,311
Asset Retirement Obligations	21,722,407	20,640,599
Total Liabilities	41,971,849	40,255,498
Stockholders' Equity:
Series A Preferred Stock - $.001 Par Value, 10,000,000 Shares Authorized, 6 and 0 Shares Issued and Outstanding, Respectively
Common Stock - $.001 Par Value 190,000,000 Shares Authorized,  21,882,565 and 19,840,648 Shares Issued and Outstanding, Respectively	81,550	79,362
Additional Paid-in Capital	74,048,678	68,988,134
Accumulated Deficit	(49,859,695)	(59,233,343)
Total Stockholders' Equity	24,270,533	9,834,153
Total Liabilities and Stockholders' Equity	$ 66,242,382	$ 50,089,651

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares	Sep. 30, 2022	Dec. 31, 2021
Preferred Stock, Par or Stated Value Per Share	$ 0.001	$ 0.001
Preferred Stock, Shares Authorized	10,000,000	10,000,000
Common Stock, Par or Stated Value Per Share	$ 0.001	$ 0.001
Common Stock, Shares Authorized	190,000,000	190,000,000
Common Stock, Shares Issued	21,882,565	19,840,648
Common Stock, Shares Outstanding	21,882,565	19,840,648
Series A Preferred Stock [Member]
Preferred Stock, Par or Stated Value Per Share	$ 0.001	$ 0.001
Preferred Stock, Shares Authorized	10,000,000	10,000,000
Preferred Stock, Shares Issued	6	0
Preferred Stock, Shares Outstanding	6	0

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Revenue:
Oil Sales	$ 11,501,521	$ 7,761,584	$ 35,247,309	$ 13,882,077
Gas Sales	1,587,542	855,507	4,019,400	1,536,569
Natural Gas Liquids Sales	1,637,808	1,439,799	5,133,872	1,913,191
Other	22,921	71,043	71,877	154,018
Net Realized and Unrealized Gain (Loss) on Derivatives	42,474	(32,271)	(93,740)	(572,220)
Total Revenue	14,792,266	10,095,662	44,378,718	16,913,635
Costs and Expenses:
Operating	8,505,640	3,597,124	19,200,436	7,328,066
Taxes - Production	1,112,246	678,295	3,151,325	1,266,808
Depletion, Depreciation & Amortization	539,543	1,279,534	1,429,788	2,025,407
Accretion of Asset Retirement Obligation	342,619	327,018	1,009,107	881,638
General and Administrative	2,850,059	1,914,326	8,587,891	6,040,475
Total Costs and Expenses	13,350,107	7,796,297	33,378,547	17,542,394
Operating Income (Loss)	1,442,159	2,299,365	11,000,171	(628,759)
Other Income and (Expense):
Convertible Debt Modification Inducement Expense		(2,276,813)		(2,276,813)
Unrealized Gain on Embedded Conversion Option		689,215		92,931
Other Income (Expense)	(1,100,888)	29,687	(1,278,760)	190,387
Interest Expense	(125,330)	(4,467,679)	(347,763)	(7,373,113)
Net Income (Loss)	$ 215,941	$ (3,726,225)	$ 9,373,648	$ (9,995,367)
Net Income  (Loss) per Common Share:
Basic	$ 0.01	$ (0.23)	$ 0.45	$ (0.75)
Diluted	$ 0.01	$ (0.23)	$ 0.41	$ (0.75)
Weighted Average Number of Common Shares Outstanding,
Basic	21,651,383	16,560,705	20,654,294	13,278,341
Diluted	24,065,485	16,560,705	22,778,836	13,278,341

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) (Unaudited) - USD ($)	Common Stock [Member]	Preferred Stock [Member]	Common Stock Subscribed [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Total
Beginning balance, value at Dec. 31, 2020	$ 24,892			$ 22,152,451	$ (40,618,381)	$ (18,441,038)
Shares, Issued, Beginning Balance at Dec. 31, 2020	6,223,069
Net Loss					(997,180)	(997,180)
Issuance of Common Stock and Warrants	$ 8,995		(13,000)	3,139,655		3,135,650
Stock Options Exercised (in shares)	5,907,046
Warrants Exercised	$ 23,628			3,325,424		3,349,052
Issuance of common stock and warrants (in shares)	2,248,865
Ending balance, value at Mar. 31, 2021	$ 57,515		(13,000)	28,617,530	(41,615,561)	(12,953,516)
Shares, Issued, Ending Balance at Mar. 31, 2021	14,378,980
Beginning balance, value at Dec. 31, 2020	$ 24,892			22,152,451	(40,618,381)	(18,441,038)
Shares, Issued, Beginning Balance at Dec. 31, 2020	6,223,069
Net Loss						(9,995,367)
Ending balance, value at Sep. 30, 2021	$ 74,323		(97,388)	54,366,951	(50,613,748)	3,730,138
Shares, Issued, Ending Balance at Sep. 30, 2021	18,580,941
Beginning balance, value at Mar. 31, 2021	$ 57,515		(13,000)	28,617,530	(41,615,561)	(12,953,516)
Shares, Issued, Beginning Balance at Mar. 31, 2021	14,378,980
Net Loss					(5,271,962)	(5,271,962)
Stock Options Exercised (in shares)
Stock Compensation Expense				406,250		406,250
Warrants Exercised	$ 5,446		13,000	3,968,411		3,986,857
Warrants Exercised (in shares)	1,361,428
Warrants Issued with Unsecured Convertible Notes				544,824		544,824
Unsecured Convertible Note Conversion	$ 1,200			1,498,800		1,500,000
Unsecured Convertible Note Conversion (in shares)	300,000
Right to Buy Issued with Unsecured Convertible Notes				989,115		989,115
Shares and Warrants Issued for Secured Convertible Note	$ 1,500			4,593,000		4,594,500
Shares and Warrants Issued for Secured Convertible Note (in shares)	375,000
Ending balance, value at Jun. 30, 2021	$ 65,661			40,617,930	(46,887,523)	(6,203,932)
Shares, Issued, Ending Balance at Jun. 30, 2021	16,415,408
Net Loss					(3,726,225)	(3,726,225)
Stock Options Exercised (in shares)	209,679
Warrants Exercised	$ 1,371		(50,000)	584,343		535,714
Unsecured Convertible Note Conversion	1,134			1,416,866		1,418,000
Stock Options Exercised	$ 839		(47,388)	93,936		47,387
Warrants Exercised (in shares)	342,857
Shares and Warrants Issued with Amended Secured Convertible Notes	$ 5,200			11,412,940		11,418,140
Shares and Warrants Issued with Amended Secured Convertible Notes (in shares)	1,300,000
Unsecured Convertible Note Conversion (in shares)	283,600
Shares Issued for Convertible Note Interest	$ 118			240,936		241,054
Shares Issued for Convertible Note Interest (in shares)	29,397
Ending balance, value at Sep. 30, 2021	$ 74,323		(97,388)	54,366,951	(50,613,748)	3,730,138
Shares, Issued, Ending Balance at Sep. 30, 2021	18,580,941
Beginning balance, value at Dec. 31, 2021	$ 79,362			68,988,134	(59,233,343)	9,834,153
Shares, Issued, Beginning Balance at Dec. 31, 2021	19,840,648
Net Loss					3,623,427	3,623,427
Issuance of Preferred Stock				6		6
Issuance of Preferred Stock (in shares)		6
Issuance of Common Stock and Warrants	$ 195			97,305		97,500
Stock Options Exercised (in shares)	48,750
Stock Compensation Expense				376,278		376,278
Ending balance, value at Mar. 31, 2022	$ 79,557			69,461,723	(55,609,916)	13,931,364
Shares, Issued, Ending Balance at Mar. 31, 2022	19,889,398	6
Beginning balance, value at Dec. 31, 2021	$ 79,362			68,988,134	(59,233,343)	9,834,153
Shares, Issued, Beginning Balance at Dec. 31, 2021	19,840,648
Net Loss						9,373,648
Ending balance, value at Sep. 30, 2022	$ 81,550			74,048,678	(49,859,695)	24,270,533
Shares, Issued, Ending Balance at Sep. 30, 2022	21,882,565	6
Beginning balance, value at Mar. 31, 2022	$ 79,557			69,461,723	(55,609,916)	13,931,364
Shares, Issued, Beginning Balance at Mar. 31, 2022	19,889,398	6
Net Loss					5,534,280	5,534,280
Issuance of Common Stock and Warrants	$ 1,554			2,885,629		2,887,183
Stock Options Exercised (in shares)	1,553,895
Stock Compensation Expense				486,904		486,904
Ending balance, value at Jun. 30, 2022	$ 81,111			72,834,256	(50,075,636)	22,839,731
Shares, Issued, Ending Balance at Jun. 30, 2022	21,443,293	6
Net Loss					215,941	215,941
Issuance of Common Stock and Warrants	$ 439			404,781		405,220
Stock Options Exercised (in shares)	439,272
Stock Compensation Expense				809,641		809,641
Ending balance, value at Sep. 30, 2022	$ 81,550			$ 74,048,678	$ (49,859,695)	$ 24,270,533
Shares, Issued, Ending Balance at Sep. 30, 2022	21,882,565	6

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Cash Flows From Operating Activities:
Net Income (Loss)	$ 9,373,648	$ (9,995,367)
Adjustments to Reconcile Net Income (Loss) to Net Cash Provided By Operating Activities:
Stock Compensation and Issuances	1,672,823	406,250
Amortization of Right of Use Assets	135,234	54,363
Depreciation, Depletion and Amortization	1,429,788	2,025,407
Accretion of Asset Retirement Obligation	1,009,107	881,638
Settlement of Asset Retirement Obligation	(342,344)
Loss on Settlement of Asset Retirement Obligation	181,386
Loss on XTO Final Settlement (See Note 4)	1,448,363
PIE-Related Expense (See Note 5)	1,399,030
Amortization of Loan Issue Costs		14,587
Right to Buy Issuance Costs		989,115
Unrealized Gain on Embedded Conversion Option		(92,931)
Amortization of Discount on Convertible Notes		6,670,129
Convertible Debt Modification Inducement Expense		2,276,813
Stock Issued for Interest Expense Payment		241,054
Forgiveness of Payroll Protection Plan Loan		(160,700)
Change in Operating Assets and Liabilities:
Accounts Receivable	304,009	(5,566,084)
Unrealized Gain on Derivatives	(151,065)	(113,943)
Inventory, Oil in Tanks	(567,477)	(681,208)
Prepaids, Current	(45,362)	115,670
Other Assets	43,773	(6,807)
Accounts Payable	(2,464,573)	2,326,752
Accrued Expenses	1,480,826	1,245,653
Net Cash Provided By Operating Activities	14,907,166	630,391
Cash Flows from Investing Activities:
Acquisition of Oil and Natural Gas Properties	(2,205,000)	(17,869,779)
Additions to Oil and Natural Gas Properties	(1,502,900)
Purchase of Other Fixed Assets	(307,787)	(508,571)
Cash Paid for Right of Use Assets	(135,244)
Sinking Fund Deposit	(640,000)	(4,330,000)
Net Cash Used In Investing Activities	(4,790,931)	(22,708,350)
Cash Flows from Financing Activities:
Proceeds from Debt Issued		19,599,850
Principal Payments of Debt	(1,384,167)	(5,546,738)
Proceeds from Stock and Warrant Issuance		11,054,661
Proceeds from Option and Warrant Exercise	3,389,903
Net Cash Provided By Financing Activities	2,005,736	25,107,773
Net Change in Cash	12,121,971	3,029,814
Cash - Beginning of Period	3,611,871	157,695
Cash - End of Period	15,733,842	3,187,509
Supplemental Cash Flow Information:
Cash Paid for Interest	292,022	975,944
Non-Cash Investing and Financing Activities:
Non-Cash Additions to Asset Retirement Obligations	233,659	6,117,709
Note Payable Activity - PIE Agreement (see Note 5)	602,020	148,296
Right-of-use assets purchased with lease liability	173,144
Purchases of Oil and Natural Gas Properties and Deposits in Accounts Payable,   Notes Payable, Royalty Suspense, and Contingent Payable to Seller	2,361,837	290,325
Equipment Purchased Utilizing Note Payable		259,945
Unsecured Convertible Note Conversion		2,918,000
Shares and Warrants Issued for Secured Convertible Note		$ 16,131,650

Organization and Basis of Prese

Organization and Basis of Presentation	9 Months Ended
	Sep. 30, 2022
Organization And Basis Of Presentation
Organization and Basis of Presentation	Note 1 - Organization and Basis of Presentation Empire Petroleum Corporation (“Empire” or the “Company”, collectively with its subsidiaries) is an independent energy company operator engaged in optimizing developed production by employing field management methods to maximize reserve recovery while minimizing costs. Empire has eight wholly-owned subsidiaries in four areas of operations: · Empire Rockies Region o Empire North Dakota LLC (“Empire North Dakota”) o Empire North Dakota Acquisition LLC (“Empire NDA”) · Empire New Mexico LLC d/b/a Green Tree New Mexico (“Empire New Mexico”) · Empire Texas (“Empire Texas”), consisting of the following entities: o Empire Texas Operating LLC § Empire Texas LLC § Empire Texas GP LLC o Pardus Oil & Gas Operating, LP (owned 1% by Empire Texas GP LLC and 99% by Empire Texas LLC) · Empire Louisiana LLC (“Empire Louisiana”) Empire was incorporated in the State of Delaware in 1985. The consolidated financial statements of Empire include the accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions, including revenues and expenses, have been eliminated in consolidation. The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) for interim financial information and the instructions to Form 10-Q. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation of the Company's financial position, the results of operations, and the cash flows for the interim period are included. All adjustments are of a normal, recurring nature. Operating results for the interim period are not necessarily indicative of the results that may be expected for the year ending December 31, 2022. The information contained in this Form 10-Q should be read in conjunction with the audited financial statements and related notes for the year ended December 31, 2021 which are contained in the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on March 31, 2022.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2022
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Note 2 – Summary of Significant Accounting Policies Significant Accounting Policies There have been no material changes to significant accounting policies and estimates from the information provided in the Form 10-K for the year ended December 31, 2021. Fair Value Measurements The Financial Accounting Standards Board (“FASB”) ASC Topic 820, Fair Value Measurement , The three-level fair value hierarchy for disclosure of fair value measurements defined by ASC Topic 820 is as follows: Level 1 Level 2 Level 3 A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Where available, fair value is based on observable market prices or parameters or derived from such prices or parameters. Where observable prices or inputs are not available, valuation models are applied. These valuation techniques involve a degree of management estimation and judgment, the degree of which is dependent on the price transparency for the instruments or market and the instrument’s complexity. The Company reflects transfers between the three levels at the beginning of the reporting period in which the availability of observable inputs no longer justifies classification in the original level. There were no transfers between fair value hierarchy levels for the period ended September 30, 2022. Financial instruments and other- Derivatives The fair values of derivative instruments in asset positions include measures of counterparty nonperformance risk, and the fair values of derivative instruments in liability positions include measures of the Company’s nonperformance risk. These measurements were not material to the Consolidated Financial Statements. Fair Value on a Nonrecurring Basis The Company applies the provisions of fair value measurement on a non-recurring basis to its non-financial assets and liabilities, including oil and gas properties and asset retirement obligations. These assets and liabilities are not measured at fair value on an ongoing basis but are subject to fair value adjustments if events or changes in certain circumstances indicate that adjustments may be necessary. No triggering events that require assessment of such items were observed during the three- or nine-months ended September 30, 2022. Related Party Transactions Transactions between related parties are considered to be related party transactions even though they may not be given accounting recognition. FASB ASC 850, Related Party Disclosures Out of Period Adjustments In the third quarter of 2022, the Company identified and recorded an out-of-period adjustment related to the Joint Development Agreement discussed in Note 5. The impact of recording this adjustment reduced Utility and Other Deposits and increased Lease Operating Expense by approximately $ 1.3 million 797,000 Concentrations of Credit Risk The Company’s accounts receivable are primarily receivables from oil and natural gas purchasers and joint interest owners. The purchasers of the Company’s oil and natural gas production consist primarily of independent marketers, major oil and natural gas companies and gas pipeline companies. Historically, the Company has not experienced any significant losses from uncollectible accounts from its oil and natural gas purchasers. The Company operates a substantial portion of its oil and natural gas properties. As the operator of a property, the Company makes full payments for costs associated with the property and seeks reimbursement from the other working interest owners in the property for their share of those costs. Joint operating agreements govern the operations of an oil or natural gas well and, in most instances, provide for offsetting of amounts payable or receivable between the Company and its joint interest owners. The Company’s joint interest partners consist primarily of independent oil and natural gas producers. If the oil and natural gas exploration and production industry in general was adversely affected, the ability of the Company’s joint interest partners to reimburse the Company could be adversely affected. Recently Issued Accounting Pronouncements FASB periodically issues new accounting standards in a continuing effort to improve standards of financial accounting and reporting. The Company has reviewed the recently issued pronouncements and concluded that the following new accounting standards are applicable: In August 2020, the FASB issued Accounting Standards Update (“ASU”) Debt—Debt with Conversion and Other Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity. is analyzing the effect that adoption will have but does not expect a material impact as a result of adopting these standards.

Property

Property	9 Months Ended
	Sep. 30, 2022
Property, Plant and Equipment [Abstract]
Property	Note 3 – Property The Company follows the successful efforts method of accounting for its oil and natural gas properties. Under this method, costs to acquire oil and natural gas properties and costs incurred to drill and equip development and exploratory wells are capitalized. Exploration costs are charged to operations as incurred. Upon sale or retirement of oil and natural gas properties, the costs and related accumulated depreciation, depletion and amortization are eliminated from the accounts and the resulting gain or loss is recognized. Costs incurred to maintain wells and related equipment and lease and well operating costs are charged to expense as incurred. Depletion is calculated on a units-of-production basis at the field level based on total proved developed reserves. Proved Properties and Impairments Proved oil and natural gas properties are reviewed for impairment at least annually, or as indicators of impairment arise. There have been no indicators of impairment in any period disclosed in these financial statements. In May 2021, the Company purchased oil and natural gas properties in New Mexico (see Note 4). In April 2022, the Company purchased working interests of oil and natural gas properties primarily located in the Landa field in North Dakota through its wholly owned subsidiary Empire NDA and assumed the role of operator. The Company paid approximately $ 1.4 million eight producing properties, two properties with behind-pipe reserves 80 20 233,659 Aggregate capitalized costs of oil and natural gas properties are as follows: September 30, 2022 December 31, 2021 Proved producing wells $ 23,294,453 $ 20,689,548 Proved undeveloped 2,865,584 2,724,966 Lease and well equipment 6,707,792 5,311,779 Asset retirement obligation 18,268,308 18,188,033 Wells in progress 1,928,201 — Gross capitalized costs 53,064,338 46,914,326 Accumulated depreciation, depletion, amortization   and impairment (18,703,073 ) (17,525,918 ) Net capitalized costs $ 34,361,265 $ 29,388,408 Wells in progress consist of recompletions and sidetrack wells being drilled in the Starbuck field in North Dakota at September 30, 2022. Depletion and amortization expense for the nine months ended September 30, 2022 and 2021 was approximately $ 1.3 million 2.0 million Other property and equipment consists of operating lease assets, vehicles, office furniture, and equipment with lives ranging from three five September 30, 2022 December 31, 2021 Other property and equipment, at cost $ 2,030,593 $ 1,547,325 Less: accumulated depreciation (494,828 ) (258,714 ) Other property and equipment, net $ 1,535,765 $ 1,288,611 Depreciation expense for the nine months ended September 30, 2022 and 2021 was approximately $ 99,000 50,000

Acquisition of XTO Properties

Acquisition of XTO Properties	9 Months Ended
	Sep. 30, 2022
Acquisition Of Xto Properties
Acquisition of XTO Properties	Note 4 – Acquisition of XTO Properties On March 12, 2021, the Company, through its wholly owned subsidiary Empire New Mexico, entered into a purchase and sale agreement (“PSA”) with XTO Holdings, LLC (a subsidiary of ExxonMobil) (the “Seller”, “XTO”) to acquire, among other things, certain oil and natural gas properties in New Mexico. The purchase price was $ 17.8 The XTO acquisition has been assessed under the screen test for business combinations under FASB ASC 805, Business Combinations As a condition of the sale, the Company purchased a $ 5,000,000 3,750,000 3,750,000 4 100,000 1,250,000 160,000 5.45 million The following table sets forth the Company’s purchase price allocation: Fair Value of Assets Acquired Oil and natural gas properties $ 17,662,402 Inventory - Oil in tanks 318,546 Vehicles 179,156 Asset retirement obligations 6,117,709 Total assets acquired 24,277,813 Fair Value of Liabilities Assumed Royalty suspense 290,325 Asset retirement obligations 6,117,709 Total liabilities assumed 6,408,034 Purchase Price 17,869,779 The value of oil and gas properties was based on an allocation of the purchase price which included assignment of values to the other identifiable assets acquired and liabilities assumed. The value of inventory, vehicles, and royalty suspense was based on their relative fair values as described above. The fair value of asset retirement obligations are included in proved oil and natural gas properties with a corresponding liability in the table above. The fair value was determined based on a discounted cash flow model, which included assumptions of the estimated current abandonment costs, discount rate, inflation rate and timing associated with the incurrence of these costs. On October 7, 2022, the Company entered into a final settlement agreement with XTO. The provisions of this settlement allowed the Company to substitute the performance bond and letter of credit that were put into place with the transaction for a new performance bond that does not require the Company to have collateral invested in the performance bond. Due to the nature and timing of the settlement occurring prior to the issuance of this Form 10-Q, the result of the final settlement was a non-cash expense of approximately $1.4

Joint Development Agreement

Joint Development Agreement	9 Months Ended
	Sep. 30, 2022
Joint Development Agreement
Joint Development Agreement	Note 5 – Joint Development Agreement On August 6, 2020, the Company, through its wholly owned subsidiary, Empire Texas, entered into a joint development agreement (the “JDA”) with Petroleum & Independent Exploration, LLC and related entities (“PIE”), a related party (See Note 14), dated August 1, 2020. Under the terms of the JDA, PIE will perform recompletion or workover on specified mutually agreed upon wells (“Workover Wells”) owned by Empire Texas. To fund the work, PIE entered into a term loan agreement with Empire Texas dated August 1, 2020, whereby PIE will loan up to $ 2,000,000 August 7, 2024 As part of the JDA, Empire Texas will assign to PIE a combined 85% working and revenue interest in the Workover Wells. Of the assigned interest, 70% working and revenue interest will be used to repay the obligations under the term loan agreement. Once the term loan is repaid, PIE will reassign a 35% working and revenue interest to Empire Texas in each of the Workover Wells and retain a 50% working and revenue interest To the extent the cash flows from the revenue interest are insufficient to repay the obligations under the term loan, the Company remains required to repay the obligation. In the third quarter of 2022, the activity under the JDA was evaluated to determine if there were sufficient cash flows to support the long-term asset recorded as an offset to the note payable. As there is not sufficient revenue to support the reduction of the asset, the asset was written off to Lease Operating Expense on the Consolidated Statements of Operations. In addition, PIE and Empire entered into a Securities Purchase Agreement ( the “Securities Agreement”) whereby PIE purchased for $525,000 (a) 875,000 shares of Empire common stock, (b) warrants to purchase 656,250 shares of Empire common stock at an exercise price of $0.80 per share, (c) warrants to purchase 450,000 shares of Empire common stock at an exercise price of $1.00 per share, (d) warrants to purchase 2,034,129 shares of Empire common stock at an exercise price of $0.40 per share, and (e) warrants to purchase up to 2,766,666 shares of Empire common stock at an exercise price of $0.564 per share, pursuant to various vesting provisions as detailed in the Securities Agreement 3,349,052

Asset Retirement Obligations

Asset Retirement Obligations	9 Months Ended
	Sep. 30, 2022
Asset Retirement Obligation Disclosure [Abstract]
Asset Retirement Obligations	Note 6 - Asset Retirement Obligations The Company’s asset retirement obligations represent the estimated present value of the estimated cash flows the Company will incur to plug, abandon, and remediate its producing properties at the end of their productive lives, in accordance with applicable state laws. Market risk premiums associated with asset retirement obligations are estimated to represent a component of the Company’s credit-adjusted risk-free rate that is utilized in the calculations of asset retirement obligations. The Company’s asset retirement obligation activity is as follows: September 30, 2022 December 31, 2021 Asset retirement obligations, beginning of period $ 20,640,599 $ 15,364,217 Additions 233,659 6,117,709 Liabilities settled (160,958 ) (2,055,806 ) Accretion expense 1,009,107 1,214,479 Asset retirement obligation, end of period $ 21,722,407 $ 20,640,599

Commodity Derivative Financial

Commodity Derivative Financial Instruments	9 Months Ended
	Sep. 30, 2022
Investments, All Other Investments [Abstract]
Commodity Derivative Financial Instruments	Note 7 – Commodity Derivative Financial Instruments The Company uses derivative financial instruments to manage its exposure to commodity price fluctuations. Commodity derivative instruments are used to reduce the effect of volatility of price changes on the oil and natural gas the Company produces and sells. The Company does not enter into derivative financial instruments for speculative or trading purposes. The Company’s derivative financial instruments consist of put options. The Company does not designate its derivative instruments in such a way that would qualify for hedge accounting. Accordingly, the Company reflects changes in the fair value of its derivative instruments in its consolidated statements of operations as they occur. Unrealized gains and losses related to the contracts are recognized and recorded as changes to the derivative asset or liability on the Company’s consolidated balance sheets. The following table summarizes the net realized and unrealized gains (losses) reported in earnings related to the commodity derivative instruments for the three- and nine-months ended September 30, 2022 and 2021: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Gain (Loss) on Derivatives: Oil derivatives $ 42,474 $ 112,183 $ (93,740 ) $ (427,766 ) Natural gas derivatives — (144,454 ) — (144,454 ) $ 42,474 $ (32,271 ) $ (93,740 ) $ (572,220 ) The following represents the Company’s net cash payments on derivatives for the three- and nine-months ended September 30, 2022 and 2021: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Oil derivatives $ (83,832 ) $ (177,736 ) $ (244,723 ) $ (541,709 ) Natural gas derivatives — (144,454 ) — (144,454 ) $ (83,832 ) $ (322,190 ) $ (244,723 ) $ (686,163 ) The following table sets forth the Company’s outstanding derivative contracts at September 30, 2022: 4 th 2022 WTI Index Put Options: Quarterly volume (MBbls) 24.72 Floor price (Bbl) $ 40.00 70.00 1 st 2 nd 3 rd 4 th 2023 WTI Index Put Options: Quarterly volume (MBbls) 55.40 15.34 16.86 9.00 Floor price (Bbl) $ 40.00 70.00 $55.00 $ 55.00 60.00 $50.00

Debt

Debt	9 Months Ended
	Sep. 30, 2022
Debt Disclosure [Abstract]
Debt	Note 8 - Debt The following table represents the Company’s outstanding debt as of September 30, 2022: Senior Revolver Loan Agreement $ 6,169,500 Term Loan – PIE, a related party 1,399,030 Equipment and vehicle notes, 0 6.99 264,087 2025 to 2027 with monthly principal and interest payments of $ 400 1,400 Total Notes Payable 7,832,617 Less: Current Maturities 1,258,804 Total Long-Term Notes Payable $ 6,573,813 On July 7, 2021, the Company entered into the Fourth Amendment to its Senior Revolver Loan Agreement (the “Amended Agreement”) with CrossFirst Bank (“CrossFirst”). The maximum amount that can be advanced under the Agreement is $20,000,000 and the existing commitment amount at the current period-end is $ 6,480,000 300,000 Prime plus 150 basis points 7.75 March 27, 2024 80 EBITDAX to interest expense of at least 4.5:1 and funded debt to EBITDAX of less than 4:1 on a trailing twelve-month basis. In August 2020, concurrent with the JDA with PIE, a related party, the Company entered into a term loan agreement dated August 1, 2020, whereby PIE will loan up to $ 2,000,000 6 August 7, 2024

Leases

Leases	9 Months Ended
	Sep. 30, 2022
Leases [Abstract]
Leases	Note 9 - Leases The Company leases its corporate office headquarters in Tulsa, Oklahoma and three field offices whose terms expire between 2024 and 2027. The corporate office has an option to renew for an additional five-year term; however, the option to renew the lease is generally not considered reasonably certain to be exercised. Therefore, the period covered by such optional period is not included in the determination of the term of the lease and the lease payments during these periods are similarly excluded from the calculation of right-of-use lease asset and lease liability balances. The Company recognizes right-of-use lease expense on a straight-line basis, except for certain variable expenses that are recognized when the variability is resolved, typically during the period in which they are paid. Variable right-of-use lease payments typically include charges for property taxes, insurance, and variable payments related to non-lease components, including common area maintenance. Right-of-use lease expense was approximately $ 191,000 Supplemental balance sheet information related to the right of use leases is as follows as of September 30, 2022: Net operating lease asset (included in Other Property and Equipment) $ 1,140,037 Current portion of lease liability $ 251,117 Long-term lease liability 613,899 Total right of use lease liabilities $ 865,016 The weighted average remaining term for the Company’s right-of-use leases is 3.3 Maturities of lease liabilities are as follows as of September 30, 2022: 2023 $ 308,358 2024 311,351 2025 258,889 2026 76,315 2027 21,700 Total lease payments 976,613 Less imputed interest (111,597 ) Total lease obligation $ 865,016

Accrued Expenses

Accrued Expenses	9 Months Ended
	Sep. 30, 2022
Payables and Accruals [Abstract]
Accrued Expenses	Note 10 – Accrued Expenses Accrued expenses consisted of the following: September 30, 2022 December 31, 2021 Accrued and suspended third-party revenue $ 5,104,590 $ 4,454,776 Accrued salaries and expenses 187,873 114,954 Accrued taxes 1,164,956 692,742 Accrued expenses 867,591 581,712 Total Total $ 7,325,010 $ 5,844,184

Common and Preferred Stock

Common and Preferred Stock	9 Months Ended
	Sep. 30, 2022
Common And Preferred Stock
Common and Preferred Stock	Note 11 – Common and Preferred Stock Pursuant to the Company’s Amended and Restated Certificate of Incorporation (“Charter”), effective as of March 4, 2022, the total number of shares of all classes of stock that the Company has the authority to issue is 200,000,000, consisting of 190,000,000 0.001 10,000,000 0.001 Preferred Stock Preferred stock may be issued from time to time in one or more series at the direction of the Board of Directors and the directors also have the ability to fix dividend rates and rights, liquidation preferences, voting rights, conversion rights, rights and terms of redemption and other rights, preferences, privileges and restrictions as determined by the Board of Directors, subject to certain limitations set forth in the Charter. Series A Voting Preferred Stock On March 8, 2022, the Company formalized the issuance of preferred stock as was required under the terms of the Company's May 2021 financing agreements with Energy Evolution (Master Fund), Ltd. (the “Fund”) and issued six shares of Series A Voting Preferred Stock. The Series A Voting Preferred Stock was issued in connection with the strategic investment in the Company by the Fund. For so long as the Series A Voting Preferred Stock is outstanding, the Company’s Board of Directors will consist of six directors. Three of the directors are designated as the Series A Directors and the three other directors (each, a “common director”) are elected by the holders of common stock and/or any preferred stock (other than the Series A Voting Preferred Stock) granted the right to vote on the common directors. Any Series A Director may be removed with or without cause but only by the affirmative vote of the holders of a majority of the Series A Voting Preferred Stock voting separately and as a single class. The holders of the Series A Voting Preferred Stock have the exclusive right, voting separately and as a single class, to vote on the election, removal and/or replacement of the Series A Directors. Holders of common stock or other preferred stock do not have the right to vote on the Series A Directors. The approval of the holders of the Series A Voting Preferred Stock, voting separately and as a single class, is required to authorize any resolution or other action to issue or modify the number, voting rights or any other rights, privileges, benefits, or characteristics of the Series A Voting Preferred Stock, including without limitation, any action to modify the number, structure and/or composition of the Company’s current Board of Directors. The Series A Voting Preferred Stock is held by Phil Mulacek, chairman of the Board of Directors and one of the principals of the Fund, as the Fund’s designee (the “Initial Holder”). The Series A Voting Preferred Stock may be transferred only to certain controlled affiliates of the Initial Holder (“Permitted Transferees”), and the voting rights of the Series A Voting Preferred Stock are contingent upon the Initial Holder and Permitted Transferees (collectively, the “Series A Holders”) holding together at least 3,000,000 shares of the Company’s outstanding common stock. The Series A Voting Preferred Stock is not entitled to receive any dividends or distributions of cash or other property except in the event of any liquidation, dissolution or winding up of the Company’s affairs. In such event, before any amount is paid to the holders of the Company’s common stock but after any amount is paid to the holders of the Company’s senior securities, the holders of the Series A Voting Preferred Stock will be entitled to receive an amount per share equal to $1.00. Except as discussed above or as otherwise set forth in the certificate of designation of the Series A Voting Preferred Stock, the holders of the Series A Voting Preferred Stock have no voting rights. The Series A Voting Preferred Stock is not redeemable at the Company’s election or the election of any holder, except the Company may elect to redeem the Series A Voting Preferred Stock for $1.00 per share following satisfaction of its notice and cure requirements in the event that: • any or all shares of Series A Voting Preferred Stock are held by anyone other than the Initial Holder or a Permitted Transferee; or • the Series A Holders together hold less than 3,000,000 The Series A Voting Preferred Stock is not convertible into common stock or any other security. Common Stock The holders of shares of common stock are entitled to one vote per share for all matters on which common stockholders are authorized to vote on. Examples of matters that common stockholders are entitled to vote on include, but are not limited to, election of three of the six directors and other common voting situations afforded to common stockholders.

Equity

Equity	9 Months Ended
	Sep. 30, 2022
Equity [Abstract]
Equity	Note 12 - Equity On August 27, 2021 the Company’s Board of Directors approved a one-for-four reverse stock split such that every holder of the Company’s common stock would receive one share of common stock for every four shares owned. The reverse stock split was effective as of 6:00 p.m. Eastern Time on March 7, 2022, immediately prior to the Company’s listing of its common stock on the NYSE American. All share amounts have retrospectively been stated at post-reverse split amounts and pricing. During February and March 2021, the Company issued to a group of accredited investors 2,248,464 shares of its common stock and warrants to purchase 2,248,464 2.00 3,147,850 180 0.14 2,350,407 1,782,347 In September 2022, a former director of the Company exercised warrants granted in November 2017 to purchase 250,000 1.00 Earnings Per Share The computation of diluted shares outstanding for the three months ended September 30, 2022, excluded 2,379,700 1,000,000 124,477 2,706,887 73,476 no

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
	Sep. 30, 2022
Share-Based Payment Arrangement [Abstract]
Stock-Based Compensation	Note 13 – Stock-Based Compensation Stock Options On April 3, 2019, the Board of Directors of the Company adopted the Empire Petroleum Corporation 2019 Stock Option Plan (the “Stock Option Plan”). The total number of shares of common stock that may be issued pursuant to stock options under the Stock Option Plan is 2,500,000 625,000 1.32 Each option vested in three installments 312,500 156,250 213 2.32 5.375 On August 27, 2021, the Board of Directors of the Company adopted the Empire Petroleum Corporation 2021 Stock and Incentive Compensation Plan (the “Incentive Plan”). The total number of shares of common stock that may be issued pursuant to the Incentive Plan is 750,000 187,500 62,500 229 .81 3 The third grant was for 62,500 options and the valuation used the following inputs: no dividend yield, expected annual volatility of 277%, risk free interest rate of 0.99%, and term of 4 years. The fourth grant was for 62,500 options and inputs used to value the grant included no dividend yield, expected annual volatility of 335%, risk free interest rate of 1.16%, and a term of 5 years On February 28, 2022, management issued a combination of stock options and restricted stock units under the Incentive Plan. 249,000 three August 2025 and 2026 56 1.62 1.67 2.75 3.75 1.2 In July 2022, a former director of the Company exercised 75,000 Restricted Stock Units The Incentive Plan allows for the grant of restricted stock units (“RSUs”). Any grants of RSUs are made in accordance with the terms of the Incentive Plan that allows a maximum of 750,000 Each RSU represents the contingent right to receive one share of common stock. The holders of outstanding RSUs do not receive dividends or have voting rights prior to vesting and settlement. The Company determines the fair value of granted RSUs based on the market price of the common stock on the date of the grant. Compensation expense for granted RSUs is recognized on a straight-line basis over the vesting and is net of forfeitures, as incurred. Stock-based compensation is included in General and Administrative expense in the Condensed Consolidated Statements of Operations and is recorded with a corresponding increase in Additional Paid-in Capital within the Condensed Consolidated Balance Sheets. RSUs were granted on February 28, 2022 with 12- and 13-month service periods. 585,000 339,000 244,000 On May 22, 2022, RSUs were granted to Board members with 13-month service periods. Total value assigned to the RSUs based on grant date was $1,545,000. 491,000 1,054,000 On August 26, 2022, the stockholders of the Company approved the Company’s 2022 Stock and Incentive Compensation Plan which reserves 750,000

Related Party Transactions

Related Party Transactions	9 Months Ended
	Sep. 30, 2022
Related Party Transactions [Abstract]
Related Party Transactions	Note 14 – Related Party Transactions The Fund is a related party of the Company as it beneficially owns approximately 25 16 The Company has a JDA with PIE to perform recompletion or workover on specified mutually agreed upon wells (See Note 5). This JDA has a note payable whose balance increases as work is performed until payout terms have been reached per the agreement (See Note 8).

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 15 – Commitments and Contingencies From time to time, the Company is subject to various legal proceedings arising in the ordinary course of business, including proceedings for which the Company may not have insurance coverage. While these matters involve inherent uncertainty, as of the date hereof, the Company does not currently believe that any such legal proceedings will have a material adverse effect on the Company’s business, financial position, results of operations or liquidity. The Company is subject to federal, state, and local environmental laws and regulations. These laws, among other things, regulate the discharge of materials into the environment and may require the Company to remove or mitigate the environmental effects of the disposal or release of petroleum or chemical substances at various sites. Management believes no materially significant liabilities of this nature existed as of the balance sheet date. The Company has undergone a sales tax audit related to its Texas entity and received the initial assessment notice in April 2022. The maximum exposure of this sales tax assessment is approximately $ 1.3 million 650,000

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2022
Subsequent Events [Abstract]
Subsequent Events	Note 16 – Subsequent Events In October 2022, a former director of the Company exercised warrants to purchase 225,000 1.00 On October 7, 2022, the Company executed a final settlement agreement with XTO. See Note 4 for additional information related to the final settlement. On October 11, 2022, a total of 50,000 718,000 On October 19, 2022, the Company appointed J. Kevin Vann as an executive officer in the newly created position of Vice President, Finance and Strategic Planning. On November 1, 2022, the Company purchased a well in Texas from XTO with a preliminary purchase amount of approximately $ 500,000 The Equity Distribution Agreement, dated June 23, 2022, by and between Empire Petroleum Corporation and Raymond James & Associates, Inc. was terminated on November 2, 2022.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2022
Accounting Policies [Abstract]
Fair Value Measurements	Fair Value Measurements The Financial Accounting Standards Board (“FASB”) ASC Topic 820, Fair Value Measurement , The three-level fair value hierarchy for disclosure of fair value measurements defined by ASC Topic 820 is as follows: Level 1 Level 2 Level 3 A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Where available, fair value is based on observable market prices or parameters or derived from such prices or parameters. Where observable prices or inputs are not available, valuation models are applied. These valuation techniques involve a degree of management estimation and judgment, the degree of which is dependent on the price transparency for the instruments or market and the instrument’s complexity. The Company reflects transfers between the three levels at the beginning of the reporting period in which the availability of observable inputs no longer justifies classification in the original level. There were no transfers between fair value hierarchy levels for the period ended September 30, 2022. Financial instruments and other- Derivatives The fair values of derivative instruments in asset positions include measures of counterparty nonperformance risk, and the fair values of derivative instruments in liability positions include measures of the Company’s nonperformance risk. These measurements were not material to the Consolidated Financial Statements.
Fair Value on a Nonrecurring Basis	Fair Value on a Nonrecurring Basis The Company applies the provisions of fair value measurement on a non-recurring basis to its non-financial assets and liabilities, including oil and gas properties and asset retirement obligations. These assets and liabilities are not measured at fair value on an ongoing basis but are subject to fair value adjustments if events or changes in certain circumstances indicate that adjustments may be necessary. No triggering events that require assessment of such items were observed during the three- or nine-months ended September 30, 2022.
Related Party Transactions	Related Party Transactions Transactions between related parties are considered to be related party transactions even though they may not be given accounting recognition. FASB ASC 850, Related Party Disclosures
Out of Period Adjustments	Out of Period Adjustments In the third quarter of 2022, the Company identified and recorded an out-of-period adjustment related to the Joint Development Agreement discussed in Note 5. The impact of recording this adjustment reduced Utility and Other Deposits and increased Lease Operating Expense by approximately $ 1.3 million 797,000
Concentrations of Credit Risk	Concentrations of Credit Risk The Company’s accounts receivable are primarily receivables from oil and natural gas purchasers and joint interest owners. The purchasers of the Company’s oil and natural gas production consist primarily of independent marketers, major oil and natural gas companies and gas pipeline companies. Historically, the Company has not experienced any significant losses from uncollectible accounts from its oil and natural gas purchasers. The Company operates a substantial portion of its oil and natural gas properties. As the operator of a property, the Company makes full payments for costs associated with the property and seeks reimbursement from the other working interest owners in the property for their share of those costs. Joint operating agreements govern the operations of an oil or natural gas well and, in most instances, provide for offsetting of amounts payable or receivable between the Company and its joint interest owners. The Company’s joint interest partners consist primarily of independent oil and natural gas producers. If the oil and natural gas exploration and production industry in general was adversely affected, the ability of the Company’s joint interest partners to reimburse the Company could be adversely affected.
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements FASB periodically issues new accounting standards in a continuing effort to improve standards of financial accounting and reporting. The Company has reviewed the recently issued pronouncements and concluded that the following new accounting standards are applicable: In August 2020, the FASB issued Accounting Standards Update (“ASU”) Debt—Debt with Conversion and Other Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity. is analyzing the effect that adoption will have but does not expect a material impact as a result of adopting these standards.

Property (Tables)

Property (Tables)	9 Months Ended
	Sep. 30, 2022
Property, Plant and Equipment [Abstract]
Aggregate capitalized costs of oil and natural gas properties are as follows:	Aggregate capitalized costs of oil and natural gas properties are as follows: September 30, 2022 December 31, 2021 Proved producing wells $ 23,294,453 $ 20,689,548 Proved undeveloped 2,865,584 2,724,966 Lease and well equipment 6,707,792 5,311,779 Asset retirement obligation 18,268,308 18,188,033 Wells in progress 1,928,201 — Gross capitalized costs 53,064,338 46,914,326 Accumulated depreciation, depletion, amortization   and impairment (18,703,073 ) (17,525,918 ) Net capitalized costs $ 34,361,265 $ 29,388,408
Other property and equipment consists of operating lease assets, vehicles, office furniture, and equipment with lives ranging from three	Other property and equipment consists of operating lease assets, vehicles, office furniture, and equipment with lives ranging from three five September 30, 2022 December 31, 2021 Other property and equipment, at cost $ 2,030,593 $ 1,547,325 Less: accumulated depreciation (494,828 ) (258,714 ) Other property and equipment, net $ 1,535,765 $ 1,288,611

Acquisition of XTO Properties (

Acquisition of XTO Properties (Tables)	9 Months Ended
	Sep. 30, 2022
Acquisition Of Xto Properties
The following table sets forth the Company’s purchase price allocation:	The following table sets forth the Company’s purchase price allocation: Fair Value of Assets Acquired Oil and natural gas properties $ 17,662,402 Inventory - Oil in tanks 318,546 Vehicles 179,156 Asset retirement obligations 6,117,709 Total assets acquired 24,277,813 Fair Value of Liabilities Assumed Royalty suspense 290,325 Asset retirement obligations 6,117,709 Total liabilities assumed 6,408,034 Purchase Price 17,869,779

Asset Retirement Obligations (T

Asset Retirement Obligations (Tables)	9 Months Ended
	Sep. 30, 2022
Asset Retirement Obligation Disclosure [Abstract]
The Company’s asset retirement obligation activity is as follows:	The Company’s asset retirement obligation activity is as follows: September 30, 2022 December 31, 2021 Asset retirement obligations, beginning of period $ 20,640,599 $ 15,364,217 Additions 233,659 6,117,709 Liabilities settled (160,958 ) (2,055,806 ) Accretion expense 1,009,107 1,214,479 Asset retirement obligation, end of period $ 21,722,407 $ 20,640,599

Commodity Derivative Financia_2

Commodity Derivative Financial Instruments (Tables)	9 Months Ended
	Sep. 30, 2022
Investments, All Other Investments [Abstract]
The following table summarizes the net realized and unrealized gains (losses) reported in earnings related to the commodity derivative instruments for the three- and nine-months ended September 30, 2022 and 2021:	The following table summarizes the net realized and unrealized gains (losses) reported in earnings related to the commodity derivative instruments for the three- and nine-months ended September 30, 2022 and 2021: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Gain (Loss) on Derivatives: Oil derivatives $ 42,474 $ 112,183 $ (93,740 ) $ (427,766 ) Natural gas derivatives — (144,454 ) — (144,454 ) $ 42,474 $ (32,271 ) $ (93,740 ) $ (572,220 )
The following represents the Company’s net cash payments on derivatives for the three- and nine-months ended September 30, 2022 and 2021:	The following represents the Company’s net cash payments on derivatives for the three- and nine-months ended September 30, 2022 and 2021: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Oil derivatives $ (83,832 ) $ (177,736 ) $ (244,723 ) $ (541,709 ) Natural gas derivatives — (144,454 ) — (144,454 ) $ (83,832 ) $ (322,190 ) $ (244,723 ) $ (686,163 )
The following table sets forth the Company’s outstanding derivative contracts at September 30, 2022:	The following table sets forth the Company’s outstanding derivative contracts at September 30, 2022: 4 th 2022 WTI Index Put Options: Quarterly volume (MBbls) 24.72 Floor price (Bbl) $ 40.00 70.00 1 st 2 nd 3 rd 4 th 2023 WTI Index Put Options: Quarterly volume (MBbls) 55.40 15.34 16.86 9.00 Floor price (Bbl) $ 40.00 70.00 $55.00 $ 55.00 60.00 $50.00

Debt (Tables)

Debt (Tables)	9 Months Ended
	Sep. 30, 2022
Debt Disclosure [Abstract]
The following table represents the Company’s outstanding debt as of September 30, 2022:	The following table represents the Company’s outstanding debt as of September 30, 2022: Senior Revolver Loan Agreement $ 6,169,500 Term Loan – PIE, a related party 1,399,030 Equipment and vehicle notes, 0 6.99 264,087 2025 to 2027 with monthly principal and interest payments of $ 400 1,400 Total Notes Payable 7,832,617 Less: Current Maturities 1,258,804 Total Long-Term Notes Payable $ 6,573,813

Leases (Tables)

Leases (Tables)	9 Months Ended
	Sep. 30, 2022
Leases [Abstract]
Supplemental balance sheet information related to the right of use leases is as follows as of September 30, 2022:	Supplemental balance sheet information related to the right of use leases is as follows as of September 30, 2022: Net operating lease asset (included in Other Property and Equipment) $ 1,140,037 Current portion of lease liability $ 251,117 Long-term lease liability 613,899 Total right of use lease liabilities $ 865,016
Maturities of lease liabilities are as follows as of September 30, 2022:	Maturities of lease liabilities are as follows as of September 30, 2022: 2023 $ 308,358 2024 311,351 2025 258,889 2026 76,315 2027 21,700 Total lease payments 976,613 Less imputed interest (111,597 ) Total lease obligation $ 865,016

Accrued Expenses (Tables)

Accrued Expenses (Tables)	9 Months Ended
	Sep. 30, 2022
Payables and Accruals [Abstract]
Accrued expenses consisted of the following:	Accrued expenses consisted of the following: September 30, 2022 December 31, 2021 Accrued and suspended third-party revenue $ 5,104,590 $ 4,454,776 Accrued salaries and expenses 187,873 114,954 Accrued taxes 1,164,956 692,742 Accrued expenses 867,591 581,712 Total Total $ 7,325,010 $ 5,844,184

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Details Narrative)	9 Months Ended
	Sep. 30, 2022 USD ($)
Accounting Policies [Abstract]
Increased lease operating expense	$ 1,300,000
Amount attributable prior	$ 797,000

Aggregate capitalized costs of

Aggregate capitalized costs of oil and natural gas properties are as follows: (Details) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2022	Dec. 31, 2021
Property, Plant and Equipment [Abstract]
Proved producing wells	$ 23,294,453	$ 20,689,548
Proved undeveloped	2,865,584	2,724,966
Lease and well equipment	6,707,792	5,311,779
Asset retirement obligation	18,268,308	18,188,033
Wells in progress	1,928,201
Gross capitalized costs	53,064,338	46,914,326
Depreciation, depletion, amortization and Impairment	(18,703,073)	(17,525,918)
Net capitalized costs	$ 34,361,265	$ 29,388,408

Other property and equipment co

Other property and equipment consists of operating lease assets, vehicles, office furniture, and equipment with lives ranging from three (Details) - USD ($)	Sep. 30, 2022	Dec. 31, 2021
Property, Plant and Equipment [Abstract]
Other property and equipment, at cost	$ 2,030,593	$ 1,547,325
Less: accumulated depreciation	(494,828)	(258,714)
Other property and equipment, net	$ 1,535,765	$ 1,288,611

Property (Details Narrative)

Property (Details Narrative) - USD ($)	1 Months Ended	9 Months Ended
	Apr. 30, 2022	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021	Dec. 31, 2020
Property, Plant and Equipment [Line Items]
Amount of acquisition	$ 1,400,000
Description of properties and impairments		eight producing properties, two properties with behind-pipe reserves
Acquisition cost ratio	80%
Asset retirement obligation	$ 233,659	$ 21,722,407		$ 20,640,599	$ 15,364,217
Depletion and amortization expense		1,300,000	$ 2,000,000
Depreciation expense		$ 99,000	$ 50,000
Wells and Related Equipment and Facilities [Member]
Property, Plant and Equipment [Line Items]
Acquisition cost ratio	20%

The following table sets forth

The following table sets forth the Company’s purchase price allocation: (Details) - USD ($)	Sep. 30, 2022	Apr. 30, 2022	Dec. 31, 2021	Dec. 31, 2020
Impairment Effects on Earnings Per Share [Line Items]
Inventory, Net	$ 1,605,357		$ 1,037,880
Asset Retirement Obligations	21,722,407	$ 233,659	$ 20,640,599	$ 15,364,217
Preliminary Fair Value of Assets Acquired [Member]
Impairment Effects on Earnings Per Share [Line Items]
Oil and natural gas properties	17,662,402
Inventory, Net	318,546
Vehicles	179,156
Asset retirement obligations	6,117,709
Total preliminary assets acquired	24,277,813
Preliminary Fair Value Of Liabilities Acquired [Member]
Impairment Effects on Earnings Per Share [Line Items]
Royalty suspense	290,325
Asset Retirement Obligations	6,117,709
Total preliminary liabilities assumed	6,408,034
Purchase price	$ 17,869,779

Acquisition of XTO Properties_2

Acquisition of XTO Properties (Details Narrative)	9 Months Ended
	Sep. 30, 2022 USD ($)
Purchase price	$ 17,800,000
Purchase of performance bond	5,000,000
Letters of credit outstanding amount	$ 3,750,000
Interest rate	4%
Monthly payment	$ 160,000
Settlement receivable from the seller	1,400,000
Letter of Credit [Member]
Monthly payment	5,450,000
Minimum [Member]
Deposit	100,000
Maximum [Member]
Deposit	$ 1,250,000

Joint Development Agreement (De

Joint Development Agreement (Details Narrative) - USD ($)		9 Months Ended	24 Months Ended
	Aug. 06, 2020	Sep. 30, 2022	Aug. 06, 2022
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Loan from related party		$ 2,000,000
Maturity date			Aug. 07, 2024
Description of working and revenue interest	As part of the JDA, Empire Texas will assign to PIE a combined 85% working and revenue interest in the Workover Wells. Of the assigned interest, 70% working and revenue interest will be used to repay the obligations under the term loan agreement. Once the term loan is repaid, PIE will reassign a 35% working and revenue interest to Empire Texas in each of the Workover Wells and retain a 50% working and revenue interest
Security Purchase Agreement [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Description of security purchase agreement		PIE purchased for $525,000 (a) 875,000 shares of Empire common stock, (b) warrants to purchase 656,250 shares of Empire common stock at an exercise price of $0.80 per share, (c) warrants to purchase 450,000 shares of Empire common stock at an exercise price of $1.00 per share, (d) warrants to purchase 2,034,129 shares of Empire common stock at an exercise price of $0.40 per share, and (e) warrants to purchase up to 2,766,666 shares of Empire common stock at an exercise price of $0.564 per share, pursuant to various vesting provisions as detailed in the Securities Agreement
Aggregate exercise price		$ 3,349,052

The Company_s asset retirement

The Company’s asset retirement obligation activity is as follows: (Details) - USD ($)	9 Months Ended		12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Asset Retirement Obligation Disclosure [Abstract]
Asset retirement obligations, beginning of period	$ 20,640,599	$ 15,364,217	$ 15,364,217
Additions	233,659		6,117,709
Liabilities settled	(160,958)		(2,055,806)
Accretion expense	1,009,107	$ 881,638	1,214,479
Asset retirement obligation, end of period	$ 21,722,407		$ 20,640,599

The following table summarizes

The following table summarizes the net realized and unrealized gains (losses) reported in earnings related to the commodity derivative instruments for the three- and nine-months ended September 30, 2022 and 2021: (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Credit Derivatives [Line Items]
Gain (loss) on derivatives	$ 42,474	$ (32,271)	$ (93,740)	$ (572,220)
Oil Derivatives [Member]
Credit Derivatives [Line Items]
Gain (loss) on derivatives	42,474	112,183	(93,740)	(427,766)
Natural Gas Derivatives [Member]
Credit Derivatives [Line Items]
Gain (loss) on derivatives		$ (144,454)		$ (144,454)

The following represents the Co

The following represents the Company’s net cash payments on derivatives for the three- and nine-months ended September 30, 2022 and 2021: (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Credit Derivatives [Line Items]
Net cash payments on derivative	$ (83,832)	$ (322,190)	$ (244,723)	$ (686,163)
Oil Derivatives [Member]
Credit Derivatives [Line Items]
Net cash payments on derivative	(83,832)	(177,736)	(244,723)	(541,709)
Natural Gas Derivatives [Member]
Credit Derivatives [Line Items]
Net cash payments on derivative		$ (144,454)		$ (144,454)

The following table sets fort_2

The following table sets forth the Company’s outstanding derivative contracts at September 30, 2022: (Details) - Oil Swaps [Member]	Sep. 30, 2022 $ / shares
Fourth quarter [Member] | Two Zero Two Two [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Quarterly volume mbbl	24.72
Fourth quarter [Member] | Two Zero Two Two [Member] | Minimum [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Floor price bbl	$ 40
Fourth quarter [Member] | Two Zero Two Two [Member] | Maximum [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Floor price bbl	$ 70
Fourth quarter [Member] | Two Zero Two Three [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Quarterly volume mbbl	9
Floor price bbl	$ 50
First Quarter [Member] | Two Zero Two Three [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Quarterly volume mbbl	55.40
First Quarter [Member] | Two Zero Two Three [Member] | Minimum [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Floor price bbl	$ 40
First Quarter [Member] | Two Zero Two Three [Member] | Maximum [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Floor price bbl	$ 70
Second Quarter [Member] | Two Zero Two Three [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Quarterly volume mbbl	15.34
Floor price bbl	$ 55
Third Quarter [Member] | Two Zero Two Three [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Quarterly volume mbbl	16.86
Third Quarter [Member] | Two Zero Two Three [Member] | Minimum [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Floor price bbl	$ 55
Third Quarter [Member] | Two Zero Two Three [Member] | Maximum [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Floor price bbl	$ 60

The following table represents

The following table represents the Company’s outstanding debt as of September 30, 2022: (Details)	Sep. 30, 2022 USD ($)
Debt Instrument [Line Items]
Total notes payable	$ 7,832,617
Less current maturities	1,258,804
Total long-term debt	$ 6,573,813
Minimum [Member]
Debt Instrument [Line Items]
Equipment and vehicle notes	0%
Monthly payments	$ 400
Maximum [Member]
Debt Instrument [Line Items]
Equipment and vehicle notes	6.99%
Monthly payments	$ 1,400
Senior Revolver Loan Agreement [Member]
Debt Instrument [Line Items]
Equipment and vehicle notes	6,169,500
Term Loan P I E [Member]
Debt Instrument [Line Items]
Equipment and vehicle notes	1,399,030
Various Vehicleand Equipment Loans [Member]
Debt Instrument [Line Items]
Equipment and vehicle notes	$ 264,087

Debt (Details Narrative)

Debt (Details Narrative) - USD ($)		9 Months Ended	24 Months Ended
	Jul. 07, 2021	Sep. 30, 2022	Aug. 06, 2022
Debt Instrument [Line Items]
Loan from related party		$ 2,000,000
Maturity date			Aug. 07, 2024
Empire Louisiana and Empire North Dakota [Member]
Debt Instrument [Line Items]
Debt instrument interest rate terms		EBITDAX to interest expense of at least 4.5:1 and funded debt to EBITDAX of less than 4:1 on a trailing twelve-month basis.
Empire Louisiana and Empire North Dakota [Member] | Maximum [Member]
Debt Instrument [Line Items]
Interest rate		80%
Revolver Loan Agreement [Member] | Cross First Bank [Member]
Debt Instrument [Line Items]
Revolver commitment amount	$ 6,480,000
Reduction in commitment amount per quarter	$ 300,000
Debt instrument interest rate terms	Prime plus 150 basis points
Long term maturity date	Mar. 27, 2024
Revolver Loan Agreement [Member] | Corss First Bank [Member]
Debt Instrument [Line Items]
Interest rate		7.75%
Joint Development Agreement [Member] | August Six Two Thousand Twenty [Member] | Petroleum And Independent Exploration L L C [Member]
Debt Instrument [Line Items]
Interest rate		6%
Loan from related party		$ 2,000,000
Maturity date		Aug. 07, 2024

Supplemental balance sheet info

Supplemental balance sheet information related to the right of use leases is as follows as of September 30, 2022: (Details)	Sep. 30, 2022 USD ($)
Leases [Abstract]
Net operating lease asset (included in Other Property and Equipment)	$ 1,140,037
Current portion of lease liability	251,117
Long-term lease liability	613,899
Total right of use lease liabilities	$ 865,016

Maturities of lease liabilities

Maturities of lease liabilities are as follows as of September 30, 2022: (Details)	Sep. 30, 2022 USD ($)
Leases [Abstract]
2023	$ 308,358
2024	311,351
2025	258,889
2026	76,315
2027	21,700
Total lease payments	976,613
Less imputed interest	(111,597)
Total lease obligation	$ 865,016

Leases (Details Narrative)

Leases (Details Narrative)	9 Months Ended
	Sep. 30, 2022 USD ($)
Leases [Abstract]
Lease expenses	$ 191,000
Weighted average remaining term for right of use leases	3 years 3 months 19 days

Accrued expenses consisted of t

Accrued expenses consisted of the following: (Details) - USD ($)	Sep. 30, 2022	Dec. 31, 2021
Payables and Accruals [Abstract]
Accrued and suspended third-party revenue	$ 5,104,590	$ 4,454,776
Accrued salaries and expenses	187,873	114,954
Accrued taxes	1,164,956	692,742
Accrued expenses	867,591	581,712
Total	$ 7,325,010	$ 5,844,184

Common and Preferred Stock (Det

Common and Preferred Stock (Details Narrative) - $ / shares		9 Months Ended
	Mar. 08, 2022	Sep. 30, 2022	Dec. 31, 2021
Common stock shares authorized		190,000,000	190,000,000
Common stock par value		$ 0.001	$ 0.001
Preferred stock shares authorized		10,000,000	10,000,000
Preferred stock par value		$ 0.001	$ 0.001
Series A Preferred Stock [Member]
Preferred stock shares authorized		10,000,000	10,000,000
Preferred stock par value		$ 0.001	$ 0.001
Preferred stock voting rights	the Series A Voting Preferred Stock for $1.00 per share following satisfaction of its notice and cure requirements in the event that:
Number of share oustanding		3,000,000
Series A Preferred Stock [Member] | Director [Member]
Preferred stock voting rights	the voting rights of the Series A Voting Preferred Stock are contingent upon the Initial Holder and Permitted Transferees (collectively, the “Series A Holders”) holding together at least 3,000,000 shares of the Company’s outstanding common stock.

Equity (Details Narrative)

Equity (Details Narrative) - USD ($)	1 Months Ended	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Accumulated Other Comprehensive Income (Loss) [Line Items]
Proceeds from the sale					$ 16,131,650
Number of shares outstanding		2,379,700
Debt conversion instrument		1,000,000
Restricted Stock Units (RSUs) [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Incremental common shares		124,477
Share based compensation		2,706,887
Antidilutive securities excluded		73,476	0		0
Common Stock [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Shares compensation authorized	1,782,347	1,782,347		1,782,347
February and March Two Thousand Twenty One [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Warrants issued to purchase common shares	250,000			2,248,464
Issued price per share	$ 2	$ 2		$ 2
Proceeds from the sale				$ 3,147,850
Risk free interest rate				180%
Free interest rate				0.14%
Proceeds from contributed capital				$ 2,350,407
February and March Two Thousand Twenty One [Member] | Warrant [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Issued price per share	$ 1	$ 1		$ 1

Stock-Based Compensation (Detai

Stock-Based Compensation (Details Narrative) - USD ($)							1 Months Ended	6 Months Ended	9 Months Ended
	May 22, 2022	Feb. 28, 2022	Aug. 27, 2021	Apr. 03, 2021	Apr. 03, 2020	Apr. 03, 2019	Jul. 31, 2022	Aug. 28, 2022	Sep. 30, 2022	Aug. 26, 2022
Description of option grant
Fair value option grants		$ 1,200,000
Unrecognised compensation expenses									$ 244,000
Restricted Stock Units (RSUs) [Member]
Description of option grant
Fair value option grants									$ 585,000
Description of service periods	RSUs were granted to Board members with 13-month service periods. Total value assigned to the RSUs based on grant date was $1,545,000.								RSUs were granted on February 28, 2022 with 12- and 13-month service periods.
Share-based payment									$ 339,000
Second Quarter [Member]
Description of option grant
Share-based payment									491,000
Unrecognised compensation expenses									$ 1,054,000
Director [Member]
Description of option grant
Exercise of stock options							75,000
Mr Morrissett [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Expected annual volatility						213%
Risk free interest rate						2.32%
Expected useful life						5 years 45 months
Empire Petroleum Corporation Stock Option Plan2019 [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Common stock reserved under the plan						2,500,000
Empire Petroleum Corporation Stock Option Plan2019 [Member] | Mr Morrissett [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Option to purchase common shares						625,000
Exercise price						$ 1.32
Description of installments						Each option vested in three installments
Option vested				156,250	156,250	312,500
Empire Petroleum Corporation Stock Option Plan 2021 [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Common stock reserved under the plan			750,000
Option to purchase common shares			187,500
Option vested			62,500
Expected annual volatility			229%
Risk free interest rate			0.81%
Expected useful life			3 years
Incentive Plan [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Common stock reserved under the plan		249,000								750,000
Expected annual volatility								56%
Expected useful life		3 years
Description of option grant
Expiration date		August 2025 and 2026
Incentive Plan [Member] | Restricted Stock Units (RSUs) [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Common stock reserved under the plan									750,000
Incentive Plan 2025 [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Risk free interest rate								1.62%
Expected useful life								2 years 9 months
Incentive Plan 2026 [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Risk free interest rate								1.67%
Expected useful life								3 years 9 months

Related Party Transactions (Det

Related Party Transactions (Details Narrative)	9 Months Ended
	Sep. 30, 2022
Energy Evolution Master Fund Ltd [Member]
Related Party Transaction [Line Items]
Percentage of ownership	25%
Energy Evolution Ltd [Member]
Related Party Transaction [Line Items]
Percentage of ownership	16%

Commitments and Contingencies (

Commitments and Contingencies (Details Narrative)	9 Months Ended
	Sep. 30, 2022 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Sales tax assessment	$ 1,300,000
Purchase price	650,000

Subsequent Events (Details Narr

Subsequent Events (Details Narrative) - Subsequent Event [Member] - USD ($)	Oct. 11, 2022	Nov. 01, 2022	Oct. 31, 2022
Subsequent Event [Line Items]
Class of Warrant or Right, Outstanding			225,000
Class of Warrant or Right, Exercise Price of Warrants or Rights			$ 1
Purchase Obligation, to be Paid, Remainder of Fiscal Year		$ 500,000
Restricted Stock Units (RSUs) [Member]
Subsequent Event [Line Items]
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Period Increase (Decrease)	50,000
Grants Receivable, Noncurrent	$ 718,000