Empire Petroleum (EP) 10-K 31 Mar 22 2021 FY Annual report Financial data

Cover

Cover - USD ($)	12 Months Ended
	Dec. 31, 2021	Mar. 15, 2022
Cover [Abstract]
Document Type	10-K
Amendment Flag	false
Document Annual Report	true
Document Transition Report	false
Document Period End Date	Dec. 31, 2021
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2021
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 Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Public Float	$ 78,937,171
Entity Common Stock, Shares Outstanding		19,855,107
Auditor Firm ID	659
Auditor Name	Moss Adams LLP
Auditor Location	Texas

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Dec. 31, 2021	Dec. 31, 2020
Current Assets:
Cash	$ 3,611,871	$ 157,695
Accounts Receivable	7,733,905	1,251,634
Unrealized Gain on Derivative Instruments	55,242
Inventory	1,037,880	531,309
Prepaids	679,122	281,895
Total Current Assets	13,118,020	2,222,533
Property and equipment:
Oil and Natural Gas Properties, Successful Efforts	46,914,326	22,711,445
Less: Accumulated Depreciation, Depletion and Impairment	(17,525,918)	(15,148,444)
Net	29,388,408	7,563,001
Other Property and Equipment, net of $258,714 and $76,421 Accumulated Depreciation in 2021 and 2020, respectively	1,288,611	662,017
Total Property and Equipment, Net	30,677,019	8,225,018
Unrealized Gain on Derivative Instruments - Long Term	194,018
Sinking Fund	4,810,000
Utility and Other Deposits	1,290,594	802,050
Total Assets	50,089,651	11,249,601
Current Liabilities:
Accounts Payable	4,329,535	1,937,743
Accrued Expenses	5,844,184	2,697,831
Unrealized Loss on Derivative Instruments		5,749
Contingent Payment		40,000
Current Portion of Lease Liability	180,105	89,769
Current Portion of Long-term Notes Payable	1,700,663	1,301,618
Total Current Liabilities	12,054,487	6,072,710
Long-Term Notes Payable	6,914,101	7,719,703
Long Term Lease Liability	646,311	534,009
Asset Retirement Obligations	20,640,599	15,364,217
Total Liabilities	40,255,498	29,690,639
Stockholders' Equity (Deficit):
19,840,648 and 6,223,069 Shares Issued and Outstanding, Respectively	79,362	24,892
Additional Paid-in Capital	69,988,134	22,152,451
Accumulated Deficit	(59,233,343)	(40,618,381)
Total Stockholders' Equity (Deficit)	9,834,153	(18,441,038)
Total Liabilities and Stockholders' Equity (Deficit)	$ 50,089,651	$ 11,249,601

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)	Dec. 31, 2021	Dec. 31, 2020
Statement of Financial Position [Abstract]
Other property and equipment, accumulated depreciation	$ 258,714	$ 76,421
Common stock par value	$ 0.001	$ 0.001
Common stock shares authorized	190,000,000	190,000,000
Common stock shares issued	19,840,648	6,223,069
Common stock shares outstanding	19,840,648	6,223,069

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Revenue:
Oil Sales	$ 22,326,289	$ 5,452,187
Gas Sales	2,593,081	347,355
NGL Sales	3,396,097	100,718
Other	174,609	88,703
Net Realized and Unrealized Gain (Loss) on Derivatives	(586,181)	1,738,871
Total Revenue	27,903,895	7,727,834
Costs and Expenses:
Operating	14,095,708	4,871,755
Taxes - Production	2,102,772	346,101
Depletion, Depreciation & Amortization	2,502,275	3,118,019
Impairment of Oil and Natural Gas Properties		8,671,303
Accretion of Asset Retirement Obligation	1,214,479	929,858
General and Administrative	8,462,031	7,373,804
Total Cost and Expenses	28,377,265	25,310,840
Operating Loss	(473,370)	(17,583,006)
Other Income and (Expense):
Convertible Debt Modification Inducement Expense	(2,276,813)
Loss on Convertible Debt Redemption Option	(3,169,201)
Loss on Embedded Conversion Option	(4,504,104)
Gain on Sale of Assets		1,268,760
Other Income	409,225
Interest Expense	(8,600,699)	(521,187)
Net Loss	$ (18,614,962)	$ (16,835,433)
Net Loss per Common Share, Basic & Diluted	$ (1.27)	$ (2.97)
Weighted Average Number of Common Shares Outstanding,
Basic & Diluted	14,630,168	5,677,008

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Total
Balances,  December 31, 2020 at Dec. 31, 2019	$ 20,367	$ 18,823,926	$ (23,782,948)	$ (4,938,655)
Shares, issued, beginning balance at Dec. 31, 2019	5,091,819
Net Loss			(16,835,433)	(16,835,433)
and Conversion Features Issued	$ 4,525	3,328,525		$ 3,333,050
Issuance of common stock and warrants (in shares)	1,131,250
Warrants exercised (in shares)				1,042
Balances,  December 31, 2021 at Dec. 31, 2020	$ 24,892	22,152,451	(40,618,381)	$ (18,441,038)
Shares, issued, ending balance at Dec. 31, 2020	6,223,069
Net Loss			(18,614,962)	(18,614,962)
Issuance of common stock and warrants (in shares)	2,248,865
Stock Compensation Expense	$ 137	1,502,083		1,502,220
Stock compensation expense (in shares)	34,192
Stock Options Exercised	$ 839	93,936		94,775
Stock options exercised (in shares)	209,679
Warrants Exercised	$ 30,731	8,020,749		$ 8,051,480
Warrants exercised (in shares)	7,682,761			246,800
Issuance of Common Stock and Warrants	$ 8,995	3,139,655		$ 3,148,650
Shares and Warrants Issued for Secured Convertible Note	$ 6,700	16,005,940		16,012,640
Shares and warrants issued for secured convertible note (in shares)	1,675,000
Warrants Issued with Unsecured Convertible Notes		544,824		544,824
Right to Buy Issued with Secured Convertible Notes		989,115		989,115
Unsecured Convertible Note Conversion	$ 2,334	2,915,666		2,918,000
Unsecured convertible note conversion (in shares)	583,600
Shares Issued for Secured Convertible Note Conversion, Including Payment of Accrued Interest	$ 4,734	13,623,715		13,628,449
Shares Issued for Secured Convertible Note Conversion, Including Payment of Accrued Interest (in shares)	1,183,482
Balances,  December 31, 2021 at Dec. 31, 2021	$ 79,362	$ 68,988,134	$ (59,233,343)	$ 9,834,153
Shares, issued, ending balance at Dec. 31, 2021	19,840,648

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Cash Flows From Operating Activities:
Net Loss	$ (18,614,962)	$ (16,835,433)
Adjustments to Reconcile Net Loss to Net Cash
Gain on Sale of Assets		(1,268,760)
Value of Warrants and Options Granted	1,502,220	2,705,550
Stock Issued in Lieu of Cash Interest Payment - Senior Secured Convertible Note	296,127
Loss on Embedded Conversion Option - Senior Secured Convertible Note	4,504,104
Convertible Debt Modification Inducement Expense	2,276,813
Amortization of Discount on Convertible Notes	7,727,213
Amortization of Loan Issue Costs	14,587	58,344
Loss on Extinguishment of Debt	3,169,201
Change in Right of Use Assets, net	137,046	9,877
Depreciation, Depletion and Amortization	2,502,275	3,143,130
Impairment of Oil and Natural Gas Properties		8,671,303
Accretion of Asset Retirement Obligation	1,214,479	929,858
Paycheck Protection Program Loan Forgiveness	(267,550)
Deposit paid to Ovintiv		(800,000)
Loss Relating to Ovintiv Purchase Deposit		800,000
Change in Operating Assets and Liabilities:
Accounts Receivable	(6,482,271)	(168,612)
Unrealized Loss on Derivatives	(255,009)	(217,883)
Inventory	(506,571)	92,293
Prepaids, Current	95,371	(152,354)
Other Assets	(488,544)	9,400
Accounts Payable	2,210,285	891,702
Accrued Expenses	3,146,353	408,328
Net Cash Provided By (Used In) Operating Activities	3,170,282	(1,723,257)
Cash Flows from Investing Activities:
Acquisition of Oil and Natural Gas Properties	(19,545,505)	(507,411)
Purchase of Other Fixed Assets	(220,769)	(6,099)
Cash Paid for Right of Use Assets	(140,604)
Sinking Fund Deposit	(4,810,000)
Proceeds from Sale of Oil and Natural Gas Properties		1,369,800
Net Cash Provided By (Used In) Investing Activities	(24,716,878)	856,290
Cash Flows from Financing Activities:
Proceeds from Debt Issued	19,493,000	765,000
Paycheck Protection Program Loan Proceeds	106,850	160,700
Principal Payments of Debt	(5,893,984)	(426,038)
Proceeds from Stock and Warrant Issuance	11,294,906	525,000
Net Cash Provided by Financing Activities	25,000,772	1,024,662
Net Change in Cash	3,454,176	157,695
Cash - Beginning of Period	157,695
Cash - End of Period	3,611,871	157,695
Supplemental Cash Flow Information:
Cash Paid for Interest	436,053	599,350
Non-cash Investing and Financing Activities:
Non-cash Additions and Revisions to Asset Retirement Obligations	4,021,953	8,646,079
Common Stock Issued in Exchange for Outstanding Notes Payable	32,611,376	102,500
Equipment purchased utilizing note payable	1,255,503	60,719
Property additions in notes payable	181,507
Purchases of oil and natural gas properties and deposits in accounts and notes payable, accrued expenses, royalty suspense, and contingent payable to seller		1,523,834
Note Payable issued - PIE Agreement (see Note 5)		$ 315,273

Organization and Basis of Prese

Organization and Basis of Presentation	12 Months Ended
	Dec. 31, 2021
Organization And Basis Of Presentation
Organization and Basis of Presentation	Note 1 - Organization and Basis of Presentation Empire Petroleum Corporation (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 four wholly-owned subsidiaries in its areas of operations: ● Empire North Dakota LLC (“Empire North Dakota”) ● Empire New Mexico, LLC (“Empire New Mexico”) ● Empire Texas (“Empire Texas”), consisting of the following entities: o Empire Texas LLC o 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 Utah in August 1983 and subsequently in the State of Delaware in 1985. The consolidated financial statements of Empire Petroleum Corporation and subsidiaries include the accounts of the Company and its wholly-owned subsidiaries.

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2021
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Note 2 – Summary of Significant Accounting Policies Principles of Consolidation The consolidated financial statements include the accounts and balances of the Company and have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). All intercompany accounts and transactions, including revenues and expenses, have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Estimated quantities of crude oil, natural gas and natural gas liquids (“NGL”) reserves are the most significant of the Company’s estimates. All reserve data used in the preparation of the Consolidated Financial Statements, as well as included in Supplemental Information On Oil And Gas Exploration And Production Activities (Unaudited) Other items subject to estimates and assumptions include, but are not limited to, the carrying amounts of property, plant and equipment, asset retirement obligations, valuation allowances for deferred income tax assets, conversion features on debt convertible, and valuation of derivative instruments. Management evaluates estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic and commodity price environment. The volatility of commodity prices results in increased uncertainty inherent in such estimates and assumptions. Although management believes these estimates are reasonable, actual results may differ from estimates and assumptions of future events and these revisions could be material. Future production may vary materially from estimated oil and natural gas proved reserves. Actual future prices may vary significantly from price assumptions used for determining proved reserves and for financial reporting. Accounts Receivable Accounts receivable include estimated amounts due from crude oil, natural gas, and NGL purchasers and from non-operating working interest owners. Accrued revenue related to product sales from purchasers and operators are due under normal trade terms, generally requiring payment withing 60 days of production. For receivables from joint interest owners, the Company generally has the ability to withhold future revenue disbursements to recover any non-payment of joint interest billings. Receivables are considered past due if full payment is not received by the contractual due date. Past due accounts are generally written off against the allowance for doubtful accounts only after all collection attempts have been exhausted. The Company did not have an allowance for doubtful accounts at either December 31, 2021 or 2020. Derivative Instruments The Company enters into hedge agreements to manage its exposure to oil and natural gas price fluctuations. The fair value of derivative contracts is recognized as an asset or liability on the Company’s consolidated balance sheets. Realized gain or loss is recognized as a component of revenue when the derivative contracts mature. For contracts which have not matured, an unrealized gain or loss is recorded based on the value of the outstanding contracts. Inventory Inventory consists of oil in tanks which has not been delivered and is valued at the lower of cost or net realizable value. Oil and Natural Gas and Other Properties The Company uses the successful efforts method of accounting for its oil and gas activities. Costs incurred are deferred until exploration and completion results are evaluated. At such time, costs of activities with economically recoverable reserves are capitalized as proven properties, and costs of unsuccessful or uneconomical activities are expensed. Capitalized drilling costs are reviewed periodically for impairment. Costs related to impaired prospects or unsuccessful exploratory drilling is charged to expense. Management's assessment of the results of exploration activities, commodity price outlooks, planned future sales or expiration of all or a portion of such leaseholds impact the amount and timing of impairment provisions. An impairment expense could result if oil and gas prices decline in the future as it may not be economical to develop some of these unproved properties. Lease options are capitalized as unproved property acquisition costs and are reviewed for impairment if indicators exist that the carrying value of the lease option may not be recoverable. If the lease options become impaired, expire or are abandoned, the options will be expensed. If proved reserves are discovered after the options are exercised, these costs will be reclassified as proved property. 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 is depreciated on the straight-line method. Segment Reporting Operating segments are components of an enterprise that engage in activities from which it may earn revenues and incur expenses and for which separate operational financial information is available and is regularly evaluated by management. Based on the Company’s organization and management, it has only one reportable operating segment, which is oil and natural gas exploration and production. Comprehensive Income The Company has no elements of comprehensive income other than net income. Asset Retirement Obligations The Company records the fair value of a liability for an asset retirement obligation in the period in which it is incurred and a corresponding increase in the carrying amount of the related oil and natural gas property asset. Subsequently, the asset retirement cost included in the carrying amount of the related asset is allocated to expense through depletion of the asset. Changes in the liability due to passage of time are recognized as an increase in the carrying amount of the liability through accretion expense. Based on certain factors, including commodity prices and costs, the Company may revise its previous estimates of the liability, which would also increase or decrease the related oil and natural gas property asset. Revenue Recognition The Company’s revenues are comprised solely of revenues from customers and include the sale of oil, natural gas and NGL. The Company believes that the disaggregation of revenue into these three major product types, as presented in the Consolidated Statements of Operations, appropriately depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors based on its single geographic region, the continental United States. at a point in time when production is sold to a purchaser at a determinable price, delivery has occurred, control has transferred and collection of the revenue is probable At the end of each month when the performance obligation is satisfied, the variable consideration can be reasonably estimated and amounts due from customers are recorded in Accounts Receivable in the Consolidated Balance Sheets. Taxes assessed by governmental authorities on oil, natural gas and NGL sales are presented separately from such revenues in the Consolidated Statements of Operations. Oil Sales Oil production is transported from the wellhead to tank batteries or delivery points through flow-lines or gathering systems. Purchasers of the oil take delivery at the tank batteries and transport the oil by truck or at a pipeline delivery point and the Company collects a market price, net of pricing differentials. Revenue is recognized when control transfers to the purchaser at the net price received by the Company. Natural Gas and NGL Sales Under the Company’s natural gas sales arrangements, the purchaser takes control of wet gas at a delivery point near the wellhead or at the inlet of the purchaser’s processing facility. The purchaser gathers and processes the wet gas and remits proceeds to the Company for the resulting natural gas and NGL sales. Based on the nature of these arrangements, the processor is the agent and the purchaser is the Company’s customer, thus, the Company recognizes natural gas and NGL sales based on the net amount of proceeds received from the purchaser. Contract Balances Under the Company’s product sales contracts, the Company invoices customers once performance obligations have been satisfied, at which point payment is unconditional. Accordingly, the Company’s product sales contracts do not give rise to contract assets or liabilities under ASC 606. Transaction Price Allocated to Remaining Performance Obligations Substantially all For the Company’s product sales that have a contract term greater than one year, the Company has utilized the practical expedient in ASC 606 which states the Company is not required to disclose the transaction price allocated to remaining performance obligations if the variable consideration is allocated entirely to a wholly unsatisfied performance obligation. Under these contracts, each unit of product generally represents a separate performance obligation; therefore, future volumes are wholly unsatisfied, and disclosure of the transaction price allocated to remaining performance obligations is not required. Prior-Period Performance Obligations The Company records revenue in the month that product is delivered to the purchaser. Settlement statements for certain natural gas and NGLs sales, however, may not be received for 30 to 90 days after the date the product is delivered, and as a result the Company is required to estimate the amount of product delivered to the purchaser and the price that will be received for the sale of the product. In these situations, the Company records the differences between its estimates and the actual amounts received for product sales in the month that payment is received from the purchaser. Any identified differences between the Company’s revenue estimates and actual revenue received have historically been insignificant. For the years ended December 31, 2021 and 2020, revenue recognized in the reporting period related to performance obligations satisfied in prior reporting periods was not material. Stock-Based Compensation The Company recognized stock-based compensation expense associated with granted stock options. The Company accounts for forfeitures of equity-based incentive awards as they occur. Stock-based compensation expense related to time-based restricted stock units is based on the price of the common stock on the grant date and recognized as vesting occurs. Income Taxes The Company accounts for income taxes in accordance with the asset and liability method of accounting for income taxes. Under the asset and liability method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to the taxable income in the years in which those temporary differences are expected to be recovered or settled. A valuation allowance is established if management determines it is more likely than not that some portion of a deferred tax asset will not be realized. Per Share Amounts The Company calculates and discloses basic earnings per share ("Basic EPS") and diluted earnings per share ("Diluted EPS"). The computation of basic earnings per share is computed by dividing earnings available to common stockholders by the weighted average number of outstanding common shares during the period. Diluted Earnings per Share ("EPS") gives effect to all dilutive potential common shares outstanding during the period. The computation of Diluted EPS does not assume conversion, exercise or contingent exercise of securities that would have an anti-dilutive effect on losses. As a result, if there is a loss from continuing operations, Diluted EPS is computed in the same manner as Basic EPS. Fair Value Measurements The Financial Accounting Standards Board ("FASB") fair value measurement standards define fair value, establish a consistent framework for measuring fair value and establish a fair value hierarchy based on the observability of inputs used to measure fair value. 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 some level 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 year ended December 31, 2021. Impairment of oil and natural gas properties - The fair value of asset retirement obligations is included in proved oil and natural gas properties with a corresponding liability. 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. The inputs used to value oil and natural gas properties for impairments and asset retirement obligations require significant judgment and estimates made by management and represent Level 3 inputs. Financial instruments and other- Derivatives – Derivative financial instruments are carried at fair value and measured on a recurring basis. The Company’s commodity price hedges are valued based on discounted future cash flow models that are primarily based on published forward commodity price curves and published LIBOR forward curves; thus, these inputs are designated as Level 2 within the valuation hierarchy. 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. 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 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 ASU 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity. The amendments in this ASU affect entities that issue convertible instruments and/or contracts in an entity’s own equity. The amendments in this ASU primarily affect convertible instruments issued with beneficial conversion features or cash conversion features because the accounting models for those specific features are removed. However, all entities that issue convertible instruments are affected by the amendments to the disclosure requirements of this ASU. For contracts in an entity’s own equity, the contracts primarily affected are freestanding instruments and embedded features that are accounted for as derivatives under the current guidance because of failure to meet the settlement conditions of the derivatives scope exception related to certain requirements of the settlement assessment. Also affected is the assessment of whether an embedded conversion feature in a convertible instrument qualifies for the derivatives scope exception. Additionally, the amendments in this ASU affect the diluted EPS calculation for instruments that may be settled in cash or shares and for convertible instruments. The amendments in this ASU are effective for public business entities, excluding entities eligible to be smaller reporting companies, for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. The Board specified that an entity should adopt the guidance as of the beginning of its annual fiscal year. The Board decided to allow entities to adopt the guidance through either a modified retrospective method of transition or a fully retrospective method of transition. The Company is analyzing the effect that adoption will have but does not expect a material impact as a result of adopting these standards.

Property

Property	12 Months Ended
	Dec. 31, 2021
Property, Plant and Equipment [Abstract]
Property	Note 3 – Property In May 2021 the Company purchased oil and natural gas properties in New Mexico (see Note 4). The aggregate capitalized costs of oil and natural gas properties as of December 31, 2021 and 2020 are as follows: 2021 2020 Proved producing wells $ 20,689,548 $ 4,508,739 Proved undeveloped 2,724,966 2,715,980 Lease and well equipment 5,311,779 1,360,596 Asset retirement obligation 18,188,033 14,126,130 Gross capitalized costs 46,914,326 22,711,445 Depreciation, depletion, amortization and impairment (17,525,918 ) (15,148,444 ) Net capitalized costs $ 29,388,408 $ 7,563,001 Other property and equipment consists of operating lease assets, vehicles, office furniture, and equipment with lives ranging from three to five years 2021 2020 Other property and equipment, at cost $ 1,547,325 738,438 Less: accumulated depreciation (258,714 ) (76,421 ) Oher property and equipment, net $ 1,288,611 662,017

Acquisition of XTO Properties

Acquisition of XTO Properties	12 Months Ended
	Dec. 31, 2021
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 with XTO Holdings, LLC (a subsidiary of ExxonMobil) (the “Seller’) to acquire, among other things, certain oil and natural gas properties in New Mexico. The purchase price was $ 17,800,000 The XTO acquisition has been assessed under the screen test for business combinations under FASB ASC 805, Business Combinations (“ASC 805”). The XTO acquisition met the screen test and has been accounted for as an asset acquisition using the acquisition method of accounting. Under the accounting for asset acquisitions, the acquisition is recorded using a cost accumulation and allocation model under which the cost of the acquisition is allocated on a relative fair value basis to the assets acquired and liabilities assumed. Acquisition-related transaction costs are capitalized as a component of the cost of the assets acquired. 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 The following table sets forth the Company's preliminary purchase price allocation: Preliminary Fair Value of Assets Acquired Oil and natural gas properties $ 17,662,402 Inventory of oil in tanks 318,546 Vehicles 179,156 Asset retirement obligations 6,117,709 Total preliminary assets acquired 24,277,813 Preliminary Fair Value of Liabilities Assumed Royalty suspense 290,325 Asset retirement obligations 6,117,709 Total preliminary 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. Final settlement on this acquisition is in process and is expected to occur in 2022.

Joint Development Agreement

Joint Development Agreement	12 Months Ended
	Dec. 31, 2021
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 12), 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 6 August 7, 2024 800,000 As part of the JDA, Empire Texas will assign to PIE a combined 85% working and revenue interest in the Workover Wells; an assignment was completed in October 2020 for the initial three 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 (See Note 8). In addition, PIE and Empire entered into a Securities Purchase Agreement (“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	12 Months Ended
	Dec. 31, 2021
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 transactions during the years ended December 31, 2021 and 2020 are summarized in the table below. For the Year Ended December 31, 2021 2020 Asset retirement obligations, beginning of period $ 15,364,217 $ 5,788,280 Liabilities assumed in acquisitions 6,117,709 9,508,484 Revision to estimates (2,055,806 ) (862,405 ) Accretion expense 1,214,479 929,858 Asset retirement obligation, end of period $ 20,640,599 $ 15,364,217

Commodity Derivative Financial

Commodity Derivative Financial Instruments	12 Months Ended
	Dec. 31, 2021
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 to 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 an asset or liability on the Company’s consolidated balance sheets. The following table summarizes the net realized and unrealized amounts reported in earnings related to the commodity derivative instruments for the years ended December 31, 2021 and 2020: For the Year Ended December 31, 2021 2020 Gain (loss) on derivatives: Oil derivatives $ (586,181 ) $ 1,738,871 The following represents the Company’s net cash receipts from (payments on) derivatives for the years ended December, 2021 and 2020: For the Year Ended December 31, 2021 2020 Oil derivatives $ (299,481 ) $ 1,520,988 Natural gas derivatives (535,960 ) — Total $ (835,441 ) $ 1,520,988 The following table sets forth the Company’s outstanding derivative contracts at December 31, 2021: 1st Quarter 2 nd 3 rd 4 th 2022 WTI Index Put Options: Quarterly volume (MBbl) 20.56 20.43 20.32 15.72 Floor Price (Bbl) $40.00 $40.00 $40.00 $40.00 1 st 2 nd 3 rd 2023 WTI Index Put Options: Quarterly volume (MBbl) 13.40 15.34 10.86 Floor Price (Bbl) $40.00 $55.00 $55.00

Debt

Debt	12 Months Ended
	Dec. 31, 2021
Debt Disclosure [Abstract]
Debt	Note 8 - Debt The following table represents the Company’s outstanding debt December 31, 2021 2020 Senior Revolver Loan Agreement $ 7,069,500 $ 8,124,000 Term Loan – PIE 797,010 315,273 Equipment and vehicle notes, 0 6.99 400 1,400 305,739 57,935 Unsecured Note, Pardus Acquisition — 378,000 Note Payable to Insurance Provider, bears 3.63 50,083 442,515 — SBA Payroll Protection Program Note Payable — 160,700 Total Debt 8,614,764 9,035,908 Unamortized debt issue costs — 14,587 Total debt, net of debt issue costs 8,614,764 9,021,321 Less Current Maturities 1,700,663 1,301,618 Total Long-Term Debt $ 6,914,101 $ 7,719,703 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 is $ 7,680,000 300,000 September 30, 2021 Prime plus 150 basis points 4.75 March 27, 2024 80 EBITDAX to interest expense of at least 3:1 and funded debt to EBITDAX of 6:1 on a trailing twelve-month basis and reducing quarterly to 4:1 as of March 31, 2022 and thereafter 7,069,500 In August 2020, concurrent with the Joint Development Agreement with Petroleum and Independent Exploration, LLC (“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 In addition, the Company assigned 85% working and revenue interest to PIE in the designated wells which will be applied to repayment of the loan On April 1, 2020, in conjunction with the purchase of assets from Pardus Oil & Gas, LLC, the Company entered into an unsecured promissory note agreement with the seller in the amount of $ 378,000 The note was payable in one installment on April 1, 2021 and bore interest at the one-year LIBOR rate. The note was paid on April 1, 2021 On May 5, 2020, the Company received an SBA Payroll Protection Plan (“PPP”) loan for $ 160,700 May 5, 2022 1 In June 2021 the Company was informed that the SBA had forgiven the entire loan balance On April 30, 2021 the Company received a Second Draw SBA “PPP” loan for $ 106,850 April 30, 2026

Convertible Notes Payable

Convertible Notes Payable	12 Months Ended
	Dec. 31, 2021
Debt Disclosure [Abstract]
Convertible Notes Payable	Note 9 – Convertible Notes Payable Senior Secured Note Agreement On May 14, 2021, the Company’s wholly owned subsidiary, Empire New Mexico entered into a Senior Secured Convertible Note Agreement (the “Secured Note”) in the amount of $ 16,250,000 December 31, 2021 3.8 The Secured Note provides that up to 40% of the balance, together with accrued interest, can be converted into the Company’s common stock at the lesser of $1.25 per share or the offering price if the Company has a subsequent capital raise or an aggregate of 1,300,000 shares of common stock (without giving effect to any interest that may be converted) 5,530,677 5,437,746 As partial consideration for the issuance of the Secured Note, Energy Evolution received a closing fee of 375,000 750,000 three million 4.00 10,125,177 5,530,677 2,773,500 1,819,500 3,000,000 On September 29, 2021 the parties entered into a Loan Modification Agreement (the “Amended Secured Note”) pursuant to which Energy Evolution exchanged $ 6,500,000 1,326,302 500,000 1.25 5,700,000 8 Prior to maturity, interest accrues quarterly at 3.8% and Energy Evolution has the option to receive interest in common stock at $5.00 per share in lieu of cash Pursuant to the Amended Secured Note, the Company’s obligations with respect to a registration statement under the Secured Note were extended, the Company executed and delivered a Pledge and Security Agreement granting Energy Evolution a first priority perfected security interest in the Company’s membership interest in Empire New Mexico, d/b/a Green Tree New Mexico, the Company and Green Tree New Mexico agreed to use commercial reasonable best efforts to separate Green Tree New Mexico from the Company as an independent business on or before December 31, 2022 in a spin-off to stockholders of the Company. In accordance with ASC 470-20, the Company accounted for this exchange as an induced conversion based on the short period time of the offer was open and the substantive conversion feature offer. The Company accounted for the conversion of the debt instruments as an inducement by expensing the fair value of the instruments that were issued in excess of the original terms of the Secured Notes. The Company reduced the outstanding debt by $ 9,141,327 6,500,000 2,796,419 5,437,746 2,276,813 500,000 5.00 2,017,287 23,802 On December 30, 2021, the Company amended the Amended Secured Note to allow full conversion of the remaining principal and accrued interest at that date. $ 5,715,353 55,075 1,154,085 Unsecured Convertible Notes In May 2021 the Empire New Mexico entered into $ 3,243,000 May 9, 2022 5 The Unsecured Note holders had the ability to convert their notes to common stock of the Company at the lesser of $5.00 per share or the price per share offered by the Company if the Company has a future capital raise for an aggregate 648,600 shares of common stock (without giving effect to any interest that may be converted) 325,000 The Company determined the embedded conversion features of the Unsecured Notes were equity-classified financing instruments. The fair value of the conversion feature was determined using a beneficial conversion model based on a 60-day weighted average stock price and the maximum number of shares to be received if converted. As issuance, the amount recorded to additional paid in capital was $ 544,824 540,000 As an inducement for investors to enter into the Unsecured Convertible Notes, the Company’s Chief Executive Officer and President collectively offered to each investor the right to purchase a number of shares of common stock equal to 40 3.00 150,000 160,000 1.00 989,155

Leases

Leases	12 Months Ended
	Dec. 31, 2021
Leases [Abstract]
Leases	Note 10 - Leases As a lessee, the Company leases its corporate office headquarters in Tulsa, Oklahoma and three field offices. The leases expire between 2024 and 2027. The corporate office has an option to renew for an additional five-year term. 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 $ 190,000 142,000 Supplemental balance sheet information related to the right of use leases as of December 31, 2021 is as follows: Operating lease asset (included in Other Property and Equipment) $ 779,183 Current portion of lease liability $ 180,105 Long-term lease liability 646,311 Total right of use lease liabilities $ 826,416 The weighted average remaining term for the Company’s right of use leases is 3.7 Maturities of lease liabilities as of December 31, 2021 are as follows: 2022 $ 235,983 2023 238,931 2024 239,644 2025 193,660 2026 37,200 Thereafter 12,400 Total lease payments 957,819 Less imputed interest (131,403 ) Total lease obligation $ 826,416

Equity

Equity	12 Months Ended
	Dec. 31, 2021
Equity [Abstract]
Equity	Note 11 – Equity Diluted Earnings per Share (“EPS”) gives effect to all dilutive potential common shares outstanding during the period. The computation of Diluted EPS does not assume conversion, exercise or contingent exercise of securities that would have an anti-dilutive effect on losses. As a result, if there is a loss from continuing operations, Diluted EPS is computed in the same manner as Basic EPS. At December 31, 2021 and 2020, the Company had 2,440,700 2,500,000 On August 7, 2020 concurrently with the Joint Development Agreement with Petroleum & Independent Exploration, LLC and related entities (“PIE”), the companies entered into a Securities Purchase Agreement (“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 2,034,129 0.564 147 19 4 450,848 3,349,052 During February and March 2021, the Company issued to a group of accredited investors 2,248,464 2,248,464 2.00 December 31, 2022 3,147,850 180 14 21 2,350,407 700,714 In connection with the purchase of XTO assets the Company issued a Senior Secured Convertible Note due December 31, 2021 16,250,000 Empire issued to Energy Evolution Ltd (i) 375,000 shares of common stock along with (ii) a warrant certificate to purchase up to 750,000 10,125,177 Under the Amended Secured Notes, among other terms the Company issued a warrant certificate to purchase up to 500,000 two million shares of common stock at an exercise price of $5.00 per Warrant Share until December 31, 2023 Additionally, in conjunction with the purchase of XTO assets, the Company entered into $ 3,243,000 May 9, 2022 5 5.00 2,918,000 583,600 589,194 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 1.32 312,500 156,250 2.32 5.375 812,500 406,250 On August 27, 2021, the Board of Directors of the Company adopted the Empire Petroleum Corporation 2021 Incentive Plan (the “Incentive Plan”). The total number of shares of common stock that may be issued pursuant to the Incentive Plan is three million. As of December 31, 2021, grants were made amounting to 187,500 A summary of the Company's Incentive Plan as of December 31, 2021, and changes during the year is presented below: Weighted Average Options Exercise Price Outstanding at December 31, 2019 1,251,042 $ 1.32 Granted 1,250,000 1.40 Expired (1,042 ) 12.48 Outstanding at December 31, 2020 2,500,000 $ 1.36 Granted 187,500 12.20 Exercised (246,800 ) 1.36 Outstanding at December 31, 2021 2,440,700 $ 2.19 The following table summarizes information about stock options outstanding at December 31, 2021: Options Outstanding Options Exercisable Weighted Average Weighted Weighted Range of Number Remaining Average Average Exercise Outstanding Contractual Exercise Exercise Prices at 12/31/21 Life Price Exercisable Price $ 1.32 12.20 2,440,700 8.83 years $2.19 2,315,700 $1.65

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2021
Income Tax Disclosure [Abstract]
Income Taxes	Note 12 – Income Taxes The current income tax provision and deferred income tax provision for the years ended December 31, 2021 and 2020 were comprised for the following: 2021 2020 Expected tax benefit $ (4,802,660 ) $ (4,343,542 ) Nondeductible expenses 3,503,996 0 Increase in valuation allowance 1,298,664 4,343,542 Tax provision (benefit) as reported $ — $ — At December 31, 2021, the Company had net operating loss carryforwards of approximately $ 20.7 million Deferred tax assets and liabilities are the result of temporary differences between the financial statement carrying values and the tax basis of assets and liabilities. The Company’s nettax position as of December 31, 2021 and 2020 is as follows : 2021 2020 Deferred tax assets (liabilities): Loss carry-forwards $ 5,341,256 $ 4,071,054 Depreciation, depletion and impairment 1,239,723 2,696,706 Right of use assets 8,036 — Stock option grants 796,188 — Other property and equipment (459,745 ) — Unrecognized losses on derivatives 27,210 1,207 Total deferred tax assets 6,952,668 6,768,967 Valuation allowance (6,952,668 ) (6,768,967 ) Net deferred taxes $ — $ — Reconciliations of the tax expense (benefit) computed at the statutory federal rate to the Company’s total income tax benefit for the years ended December 31, 2021 and 2020 are as follows: 2021 2020 $ % $ % Pretax GAAP Loss (18,614,962 ) — (16,835,434 ) — Pretax GAAP Loss at Statutory Rate (3,909,142 ) 21.0 (3,535,441 ) 21.0 State Taxes (893,518 ) 4.8 (808,101 ) 4.8 Nondeductible Expenses 3,503,996 -18.8 — 0 Valuation Allowance 1,298,664 -7.0% 4,343,542 -25.8% Effective — 0 — 0 Utilization of the Company’s loss carryforwards is dependent on realizing taxable income. The Company recorded valuation allowances as of December 31, 2021 and 2020 due to the uncertainty related to its ability to utilize some of its deferred income tax assets, primarily consisting of net operating loss carryforwards prior to expiration. The Company has evaluated all tax positions for which the statute of limitations remains open and believes that the material positions taken would likely than not would be sustained by examination. Therefore, at December 31, 2021, the Company has not established any reserves for, nor recorded any unrecognized benefits related to uncertain tax positions.

Related Party Transactions

Related Party Transactions	12 Months Ended
	Dec. 31, 2021
Related Party Transactions [Abstract]
Related Party Transactions	Note 13 – Related Party Transactions The Energy Evolution Master Fund, Ltd. (“Energy Evolution”) is a related party of the Company as it beneficially owns approximately 27 18 & Independent Exploration, LLC and related entities (“PIE”). In October 2021 another Energy Evolution member was appointed to the Company’s board of directors. In March 2021, the majority owner of PIE, through the exercise of warrants, became a significant shareholder of the Company’s outstanding shares of stock (See Note 11). The Company has a joint development agreement with PIE to perform recompletion or workover on specified mutually agreed upon wells (See Note 5). As of December 31, 2021, the Company has incurred obligations of approximately $ 800,000

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Dec. 31, 2021
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 14 – 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 many of 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 extensive 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 is undergoing a sales tax audit related to its Texas entity. No formal assessment has been provided to the Company. The maximum exposure of this sales tax assessment is approximately $ 1.3

Concentrations

Concentrations	12 Months Ended
	Dec. 31, 2021
Risks and Uncertainties [Abstract]
Concentrations	Note 15 – Concentrations The Company’s producing properties and oil and natural gas reserves are all located in Louisiana, New Mexico, North Dakota, Montana, and Texas. Because of the concentration, the Company is exposed to the impact of regional supply and demand factors, processing or transportation capacity constraints, severe weather events, water shortages, and government regulations specific to the geographic area. For the year ended December 31, 2021, the Company sold 63 96

Subsequent Events

Subsequent Events	12 Months Ended
	Dec. 31, 2021
Subsequent Events [Abstract]
Subsequent Events	Note 16 – Subsequent Events The Company uplisted from the OTCQB to the NYSE American effective March 8, 2022. Immediately prior to the listing, a reverse stock split of 1 for 4 On February 28, 2022, the Company granted approximately 249,000 These options vest in equal 1/3 increments over the course of three 3.5 11.80 The Company named Eugene J. Sweeney as Chief Operating Officer in March 2022. Mr. Sweeney previously served as the Company’s Vice President of Operations from May 2021 to the date of his promotion. EMPIRE PETROLEUM CORPORATION Supplemental Information “Oil and Natural Gas Producing Activities (Unaudited) December 31, 2021 and 2020 The following reserve estimates present the Company's estimate of the proven natural gas and oil reserves and net cash flow of the Company’s properties, in accordance with the guidelines established by the Securities and Exchange Commission. The Company emphasizes that reserve estimates are inherently imprecise and that estimates of new discoveries are more imprecise than those of producing natural gas and oil properties. Accordingly, the estimates are expected to change as future information becomes available. All the oil and natural gas reserves are located in Louisiana, New Mexico, North Dakota, Montana and Texas. Costs Incurred Related to Oil and Gas Activities Capitalized costs include the cost of properties, equipment, and facilities for oil and natural gas producing activities. Capitalized costs for proved properties includes costs for oil and natural gas leaseholds where proved reserves have been identified and non-operated development wells and related equipment and facilities. Years Ended December 31, 2021 2020 Proved acquisition costs $ 23,780,111 $ 10,913,393 Revisions to abandonment costs (1,547,640 ) (862,405 ) Development costs 1,970,410 — Total additions $ 24,202,881 $ 10,050,988 Reserve Quantity Information Proved oil and natural gas reserves are those quantities of oil and gas, which by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be economically producible from a given date forward, from known reservoirs, and under existing economic conditions, operating methods, and government regulations. Proved developed reserves are proved reserves that can be expected to be recovered through existing wells with existing equipment and operating methods or in which the cost of the required equipment is relatively minor compared to the cost of a new well. Proved undeveloped reserves are proved reserves that are expected to be recovered from new wells on undrilled acreage, or from existing wells where a relatively major expenditures is required for recompletion. Below are the net quantities of net proved developed reserves of the Company’s properties: Oil (MMBbls) Gas (MMcf) MBOE Balance, December 31, 2019 3,643 404 3,710 Acquisition of Reserves 580 1,092 762 Revisions (397) (385) (461) Production (165) (140) (188) Balance, December 31, 2020 3,661 971 3,823 Acquisition of Reserves 5,634 10,533 7,390 Revisions (617) 251 (576) Extensions 150 51 159 Divestiture of Reserves (47) 27 (42) Production (333) (625) (437) Total Reserves 8,449 11,208 10,317 Standardized Measure of Discounted Future Net Cash Flows Relating to Oil and Natural Gas Reserves The standardized measure of discounted future net cash flows relating to oil and natural gas reserves and associated changes in standard measure amounts were prepared in accordance with the provision of Financial Accounting Standard Board ASC 932-235-555. Future cash inflows were computed by applying average prices of oil and natural gas for the last 12 months to estimated future production. Future production and development costs were computed by estimating the expenditures to be incurred in developing the oil and natural gas reserves at the end of the year, based on year end costs and assuming continuation of existing economic conditions. Future net cash flows are discounted at the rate of 10% annually to derive the standardized measure of discounted cash flows. Actual future cash inflows may vary considerably, and the standardized measure does not necessarily represent the fair value of the acquired properties' oil and natural gas reserves. Standard measure amounts are: December 31, Description 2021 2020 Future cash inflows $ 627,654,125 $ 121,959,450 Future production costs (362,254,813 ) (55,350,840 ) Future development costs (33,021,749 ) (1,682,210 ) Future income tax expense (30,614,383 ) — Future net cash flows 201,763,180 64,926,400 10% annual discount for estimated timing of cash flows (107,911,087 ) (44,156,400 ) Standardized measure $ 93,852,093 $ 20,770,000 The 12-month average prices were adjusted to reflect applicable transportation and quality differentials on a well-by-well basis to arrive at realized sales prices used to estimate the properties' reserves. The prices for the properties' reserves were as follows: 2021 2020 Oil (BBl) $ 64.31 $ 32.94 Natural gas (MMBtu) $ 7.34 * $ 1.41 *Pricing includes revenue received from NGL sales as well as natural gas. Changes in the Standardized Measure of Discounted Future Net Cash Flows at 10% per annum are as follows: December 31, Description 2021 2020 Beginning of year $ 20,770,080 $ 37,301,920 Net change in prices and production costs 13,080,689 (18,386,232 ) Net change in future development costs 782,210 16,937,402 Oil & Gas net revenue (10,587,395 ) (2,164,496 ) Extensions 5,026,479 — Acquisition of reserves 90,104,017 13,694,856 Divestiture of reserves (318,813 ) — Revisions of previous quantity estimates (3,794,860 ) (4,348,703 ) Net change in taxes (15,544,094 ) — Accretion of discount 2,077,008 5,099,678 Changes in timing and other (7,743,228 ) (27,364,345 ) End of year $ 93,852,093 $ 20,770,080 Estimates of economically recoverable natural gas and oil reserves and of future net revenues are based upon a number of variable factors and assumptions, all of which are to some degree subjective and may vary considerably from actual results. Therefore, actual production, revenues, development and operating expenditures may not occur as estimated. The reserve data are estimates only, are subject to many uncertainties, and are based on data gained from production histories and on assumptions as to geologic formations and other matters. Actual quantities of natural gas and oil may differ materially from the amounts estimated. -65-

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2021
Accounting Policies [Abstract]
Principles of Consolidation	Principles of Consolidation The consolidated financial statements include the accounts and balances of the Company and have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). All intercompany accounts and transactions, including revenues and expenses, have been eliminated in consolidation.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Estimated quantities of crude oil, natural gas and natural gas liquids (“NGL”) reserves are the most significant of the Company’s estimates. All reserve data used in the preparation of the Consolidated Financial Statements, as well as included in Supplemental Information On Oil And Gas Exploration And Production Activities (Unaudited) Other items subject to estimates and assumptions include, but are not limited to, the carrying amounts of property, plant and equipment, asset retirement obligations, valuation allowances for deferred income tax assets, conversion features on debt convertible, and valuation of derivative instruments. Management evaluates estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic and commodity price environment. The volatility of commodity prices results in increased uncertainty inherent in such estimates and assumptions. Although management believes these estimates are reasonable, actual results may differ from estimates and assumptions of future events and these revisions could be material. Future production may vary materially from estimated oil and natural gas proved reserves. Actual future prices may vary significantly from price assumptions used for determining proved reserves and for financial reporting.
Accounts Receivable	Accounts Receivable Accounts receivable include estimated amounts due from crude oil, natural gas, and NGL purchasers and from non-operating working interest owners. Accrued revenue related to product sales from purchasers and operators are due under normal trade terms, generally requiring payment withing 60 days of production. For receivables from joint interest owners, the Company generally has the ability to withhold future revenue disbursements to recover any non-payment of joint interest billings. Receivables are considered past due if full payment is not received by the contractual due date. Past due accounts are generally written off against the allowance for doubtful accounts only after all collection attempts have been exhausted. The Company did not have an allowance for doubtful accounts at either December 31, 2021 or 2020.
Derivative Instruments	Derivative Instruments The Company enters into hedge agreements to manage its exposure to oil and natural gas price fluctuations. The fair value of derivative contracts is recognized as an asset or liability on the Company’s consolidated balance sheets. Realized gain or loss is recognized as a component of revenue when the derivative contracts mature. For contracts which have not matured, an unrealized gain or loss is recorded based on the value of the outstanding contracts.
Inventory	Inventory Inventory consists of oil in tanks which has not been delivered and is valued at the lower of cost or net realizable value.
Oil and Natural Gas and Other Properties	Oil and Natural Gas and Other Properties The Company uses the successful efforts method of accounting for its oil and gas activities. Costs incurred are deferred until exploration and completion results are evaluated. At such time, costs of activities with economically recoverable reserves are capitalized as proven properties, and costs of unsuccessful or uneconomical activities are expensed. Capitalized drilling costs are reviewed periodically for impairment. Costs related to impaired prospects or unsuccessful exploratory drilling is charged to expense. Management's assessment of the results of exploration activities, commodity price outlooks, planned future sales or expiration of all or a portion of such leaseholds impact the amount and timing of impairment provisions. An impairment expense could result if oil and gas prices decline in the future as it may not be economical to develop some of these unproved properties. Lease options are capitalized as unproved property acquisition costs and are reviewed for impairment if indicators exist that the carrying value of the lease option may not be recoverable. If the lease options become impaired, expire or are abandoned, the options will be expensed. If proved reserves are discovered after the options are exercised, these costs will be reclassified as proved property. 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 is depreciated on the straight-line method.
Segment Reporting	Segment Reporting Operating segments are components of an enterprise that engage in activities from which it may earn revenues and incur expenses and for which separate operational financial information is available and is regularly evaluated by management. Based on the Company’s organization and management, it has only one reportable operating segment, which is oil and natural gas exploration and production.
Comprehensive Income	Comprehensive Income The Company has no elements of comprehensive income other than net income.
Asset Retirement Obligations	Asset Retirement Obligations The Company records the fair value of a liability for an asset retirement obligation in the period in which it is incurred and a corresponding increase in the carrying amount of the related oil and natural gas property asset. Subsequently, the asset retirement cost included in the carrying amount of the related asset is allocated to expense through depletion of the asset. Changes in the liability due to passage of time are recognized as an increase in the carrying amount of the liability through accretion expense. Based on certain factors, including commodity prices and costs, the Company may revise its previous estimates of the liability, which would also increase or decrease the related oil and natural gas property asset.
Revenue Recognition	Revenue Recognition The Company’s revenues are comprised solely of revenues from customers and include the sale of oil, natural gas and NGL. The Company believes that the disaggregation of revenue into these three major product types, as presented in the Consolidated Statements of Operations, appropriately depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors based on its single geographic region, the continental United States. at a point in time when production is sold to a purchaser at a determinable price, delivery has occurred, control has transferred and collection of the revenue is probable At the end of each month when the performance obligation is satisfied, the variable consideration can be reasonably estimated and amounts due from customers are recorded in Accounts Receivable in the Consolidated Balance Sheets. Taxes assessed by governmental authorities on oil, natural gas and NGL sales are presented separately from such revenues in the Consolidated Statements of Operations. Oil Sales Oil production is transported from the wellhead to tank batteries or delivery points through flow-lines or gathering systems. Purchasers of the oil take delivery at the tank batteries and transport the oil by truck or at a pipeline delivery point and the Company collects a market price, net of pricing differentials. Revenue is recognized when control transfers to the purchaser at the net price received by the Company. Natural Gas and NGL Sales Under the Company’s natural gas sales arrangements, the purchaser takes control of wet gas at a delivery point near the wellhead or at the inlet of the purchaser’s processing facility. The purchaser gathers and processes the wet gas and remits proceeds to the Company for the resulting natural gas and NGL sales. Based on the nature of these arrangements, the processor is the agent and the purchaser is the Company’s customer, thus, the Company recognizes natural gas and NGL sales based on the net amount of proceeds received from the purchaser. Contract Balances Under the Company’s product sales contracts, the Company invoices customers once performance obligations have been satisfied, at which point payment is unconditional. Accordingly, the Company’s product sales contracts do not give rise to contract assets or liabilities under ASC 606. Transaction Price Allocated to Remaining Performance Obligations Substantially all For the Company’s product sales that have a contract term greater than one year, the Company has utilized the practical expedient in ASC 606 which states the Company is not required to disclose the transaction price allocated to remaining performance obligations if the variable consideration is allocated entirely to a wholly unsatisfied performance obligation. Under these contracts, each unit of product generally represents a separate performance obligation; therefore, future volumes are wholly unsatisfied, and disclosure of the transaction price allocated to remaining performance obligations is not required. Prior-Period Performance Obligations The Company records revenue in the month that product is delivered to the purchaser. Settlement statements for certain natural gas and NGLs sales, however, may not be received for 30 to 90 days after the date the product is delivered, and as a result the Company is required to estimate the amount of product delivered to the purchaser and the price that will be received for the sale of the product. In these situations, the Company records the differences between its estimates and the actual amounts received for product sales in the month that payment is received from the purchaser. Any identified differences between the Company’s revenue estimates and actual revenue received have historically been insignificant. For the years ended December 31, 2021 and 2020, revenue recognized in the reporting period related to performance obligations satisfied in prior reporting periods was not material.
Stock-Based Compensation	Stock-Based Compensation The Company recognized stock-based compensation expense associated with granted stock options. The Company accounts for forfeitures of equity-based incentive awards as they occur. Stock-based compensation expense related to time-based restricted stock units is based on the price of the common stock on the grant date and recognized as vesting occurs.
Income Taxes	Income Taxes The Company accounts for income taxes in accordance with the asset and liability method of accounting for income taxes. Under the asset and liability method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to the taxable income in the years in which those temporary differences are expected to be recovered or settled. A valuation allowance is established if management determines it is more likely than not that some portion of a deferred tax asset will not be realized.
Per Share Amounts	Per Share Amounts The Company calculates and discloses basic earnings per share ("Basic EPS") and diluted earnings per share ("Diluted EPS"). The computation of basic earnings per share is computed by dividing earnings available to common stockholders by the weighted average number of outstanding common shares during the period. Diluted Earnings per Share ("EPS") gives effect to all dilutive potential common shares outstanding during the period. The computation of Diluted EPS does not assume conversion, exercise or contingent exercise of securities that would have an anti-dilutive effect on losses. As a result, if there is a loss from continuing operations, Diluted EPS is computed in the same manner as Basic EPS.
Fair Value Measurements	Fair Value Measurements The Financial Accounting Standards Board ("FASB") fair value measurement standards define fair value, establish a consistent framework for measuring fair value and establish a fair value hierarchy based on the observability of inputs used to measure fair value. 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 some level 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 year ended December 31, 2021. Impairment of oil and natural gas properties - The fair value of asset retirement obligations is included in proved oil and natural gas properties with a corresponding liability. 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. The inputs used to value oil and natural gas properties for impairments and asset retirement obligations require significant judgment and estimates made by management and represent Level 3 inputs. Financial instruments and other- Derivatives – Derivative financial instruments are carried at fair value and measured on a recurring basis. The Company’s commodity price hedges are valued based on discounted future cash flow models that are primarily based on published forward commodity price curves and published LIBOR forward curves; thus, these inputs are designated as Level 2 within the valuation hierarchy. 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.
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
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 ASU 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity. The amendments in this ASU affect entities that issue convertible instruments and/or contracts in an entity’s own equity. The amendments in this ASU primarily affect convertible instruments issued with beneficial conversion features or cash conversion features because the accounting models for those specific features are removed. However, all entities that issue convertible instruments are affected by the amendments to the disclosure requirements of this ASU. For contracts in an entity’s own equity, the contracts primarily affected are freestanding instruments and embedded features that are accounted for as derivatives under the current guidance because of failure to meet the settlement conditions of the derivatives scope exception related to certain requirements of the settlement assessment. Also affected is the assessment of whether an embedded conversion feature in a convertible instrument qualifies for the derivatives scope exception. Additionally, the amendments in this ASU affect the diluted EPS calculation for instruments that may be settled in cash or shares and for convertible instruments. The amendments in this ASU are effective for public business entities, excluding entities eligible to be smaller reporting companies, for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. The Board specified that an entity should adopt the guidance as of the beginning of its annual fiscal year. The Board decided to allow entities to adopt the guidance through either a modified retrospective method of transition or a fully retrospective method of transition. The Company 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)	12 Months Ended
	Dec. 31, 2021
Property, Plant and Equipment [Abstract]
The aggregate capitalized costs of oil and natural gas properties as of December 31, 2021 and 2020 are as follows:	The aggregate capitalized costs of oil and natural gas properties as of December 31, 2021 and 2020 are as follows: 2021 2020 Proved producing wells $ 20,689,548 $ 4,508,739 Proved undeveloped 2,724,966 2,715,980 Lease and well equipment 5,311,779 1,360,596 Asset retirement obligation 18,188,033 14,126,130 Gross capitalized costs 46,914,326 22,711,445 Depreciation, depletion, amortization and impairment (17,525,918 ) (15,148,444 ) Net capitalized costs $ 29,388,408 $ 7,563,001
Other property and equipment consists of operating lease assets, vehicles, office furniture, and equipment with lives ranging from three to five years	Other property and equipment consists of operating lease assets, vehicles, office furniture, and equipment with lives ranging from three to five years 2021 2020 Other property and equipment, at cost $ 1,547,325 738,438 Less: accumulated depreciation (258,714 ) (76,421 ) Oher property and equipment, net $ 1,288,611 662,017

Acquisition of XTO Properties (

Acquisition of XTO Properties (Tables)	12 Months Ended
	Dec. 31, 2021
Acquisition Of Xto Properties
The following table sets forth the Company's preliminary purchase price allocation:	The following table sets forth the Company's preliminary purchase price allocation: Preliminary Fair Value of Assets Acquired Oil and natural gas properties $ 17,662,402 Inventory of oil in tanks 318,546 Vehicles 179,156 Asset retirement obligations 6,117,709 Total preliminary assets acquired 24,277,813 Preliminary Fair Value of Liabilities Assumed Royalty suspense 290,325 Asset retirement obligations 6,117,709 Total preliminary liabilities assumed 6,408,034 Purchase Price 17,869,779

Asset Retirement Obligations (T

Asset Retirement Obligations (Tables)	12 Months Ended
	Dec. 31, 2021
Asset Retirement Obligation Disclosure [Abstract]
The Company’s asset retirement obligation transactions during the years ended December 31, 2021 and 2020 are summarized in the table below.	The Company’s asset retirement obligation transactions during the years ended December 31, 2021 and 2020 are summarized in the table below. For the Year Ended December 31, 2021 2020 Asset retirement obligations, beginning of period $ 15,364,217 $ 5,788,280 Liabilities assumed in acquisitions 6,117,709 9,508,484 Revision to estimates (2,055,806 ) (862,405 ) Accretion expense 1,214,479 929,858 Asset retirement obligation, end of period $ 20,640,599 $ 15,364,217

Commodity Derivative Financia_2

Commodity Derivative Financial Instruments (Tables)	12 Months Ended
	Dec. 31, 2021
Investments, All Other Investments [Abstract]
The following table summarizes the net realized and unrealized amounts reported in earnings related to the commodity derivative instruments for the years ended December 31, 2021 and 2020:	The following table summarizes the net realized and unrealized amounts reported in earnings related to the commodity derivative instruments for the years ended December 31, 2021 and 2020: For the Year Ended December 31, 2021 2020 Gain (loss) on derivatives: Oil derivatives $ (586,181 ) $ 1,738,871
The following represents the Company’s net cash receipts from (payments on) derivatives for the years ended December, 2021 and 2020:	The following represents the Company’s net cash receipts from (payments on) derivatives for the years ended December, 2021 and 2020: For the Year Ended December 31, 2021 2020 Oil derivatives $ (299,481 ) $ 1,520,988 Natural gas derivatives (535,960 ) — Total $ (835,441 ) $ 1,520,988
The following table sets forth the Company’s outstanding derivative contracts at December 31, 2021:	The following table sets forth the Company’s outstanding derivative contracts at December 31, 2021: 1st Quarter 2 nd 3 rd 4 th 2022 WTI Index Put Options: Quarterly volume (MBbl) 20.56 20.43 20.32 15.72 Floor Price (Bbl) $40.00 $40.00 $40.00 $40.00 1 st 2 nd 3 rd 2023 WTI Index Put Options: Quarterly volume (MBbl) 13.40 15.34 10.86 Floor Price (Bbl) $40.00 $55.00 $55.00

Debt (Tables)

Debt (Tables)	12 Months Ended
	Dec. 31, 2021
Debt Disclosure [Abstract]
The following table represents the Company’s outstanding debt	The following table represents the Company’s outstanding debt December 31, 2021 2020 Senior Revolver Loan Agreement $ 7,069,500 $ 8,124,000 Term Loan – PIE 797,010 315,273 Equipment and vehicle notes, 0 6.99 400 1,400 305,739 57,935 Unsecured Note, Pardus Acquisition — 378,000 Note Payable to Insurance Provider, bears 3.63 50,083 442,515 — SBA Payroll Protection Program Note Payable — 160,700 Total Debt 8,614,764 9,035,908 Unamortized debt issue costs — 14,587 Total debt, net of debt issue costs 8,614,764 9,021,321 Less Current Maturities 1,700,663 1,301,618 Total Long-Term Debt $ 6,914,101 $ 7,719,703

Leases (Tables)

Leases (Tables)	12 Months Ended
	Dec. 31, 2021
Leases [Abstract]
Supplemental balance sheet information related to the right of use leases as of December 31, 2021 is as follows:	Supplemental balance sheet information related to the right of use leases as of December 31, 2021 is as follows: Operating lease asset (included in Other Property and Equipment) $ 779,183 Current portion of lease liability $ 180,105 Long-term lease liability 646,311 Total right of use lease liabilities $ 826,416
Maturities of lease liabilities as of December 31, 2021 are as follows:	Maturities of lease liabilities as of December 31, 2021 are as follows: 2022 $ 235,983 2023 238,931 2024 239,644 2025 193,660 2026 37,200 Thereafter 12,400 Total lease payments 957,819 Less imputed interest (131,403 ) Total lease obligation $ 826,416

Equity (Tables)

Equity (Tables)	12 Months Ended
	Dec. 31, 2021
Equity [Abstract]
A summary of the Company's Incentive Plan as of December 31, 2021, and changes during the year is presented below:	A summary of the Company's Incentive Plan as of December 31, 2021, and changes during the year is presented below: Weighted Average Options Exercise Price Outstanding at December 31, 2019 1,251,042 $ 1.32 Granted 1,250,000 1.40 Expired (1,042 ) 12.48 Outstanding at December 31, 2020 2,500,000 $ 1.36 Granted 187,500 12.20 Exercised (246,800 ) 1.36 Outstanding at December 31, 2021 2,440,700 $ 2.19
The following table summarizes information about stock options outstanding at December 31, 2021:	The following table summarizes information about stock options outstanding at December 31, 2021: Options Outstanding Options Exercisable Weighted Average Weighted Weighted Range of Number Remaining Average Average Exercise Outstanding Contractual Exercise Exercise Prices at 12/31/21 Life Price Exercisable Price $ 1.32 12.20 2,440,700 8.83 years $2.19 2,315,700 $1.65

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2021
Income Tax Disclosure [Abstract]
The current income tax provision and deferred income tax provision for the years ended December 31, 2021 and 2020 were comprised for the following:	The current income tax provision and deferred income tax provision for the years ended December 31, 2021 and 2020 were comprised for the following: 2021 2020 Expected tax benefit $ (4,802,660 ) $ (4,343,542 ) Nondeductible expenses 3,503,996 0 Increase in valuation allowance 1,298,664 4,343,542 Tax provision (benefit) as reported $ — $ —
Deferred tax assets and liabilities are the result of temporary differences between the financial statement carrying values and the tax basis of assets and liabilities. The Company’s nettax position as of December 31, 2021 and 2020 is as follows :	Deferred tax assets and liabilities are the result of temporary differences between the financial statement carrying values and the tax basis of assets and liabilities. The Company’s nettax position as of December 31, 2021 and 2020 is as follows : 2021 2020 Deferred tax assets (liabilities): Loss carry-forwards $ 5,341,256 $ 4,071,054 Depreciation, depletion and impairment 1,239,723 2,696,706 Right of use assets 8,036 — Stock option grants 796,188 — Other property and equipment (459,745 ) — Unrecognized losses on derivatives 27,210 1,207 Total deferred tax assets 6,952,668 6,768,967 Valuation allowance (6,952,668 ) (6,768,967 ) Net deferred taxes $ — $ —
Reconciliations of the tax expense (benefit) computed at the statutory federal rate to the Company’s total income tax benefit for the years ended December 31, 2021 and 2020 are as follows:	Reconciliations of the tax expense (benefit) computed at the statutory federal rate to the Company’s total income tax benefit for the years ended December 31, 2021 and 2020 are as follows: 2021 2020 $ % $ % Pretax GAAP Loss (18,614,962 ) — (16,835,434 ) — Pretax GAAP Loss at Statutory Rate (3,909,142 ) 21.0 (3,535,441 ) 21.0 State Taxes (893,518 ) 4.8 (808,101 ) 4.8 Nondeductible Expenses 3,503,996 -18.8 — 0 Valuation Allowance 1,298,664 -7.0% 4,343,542 -25.8% Effective — 0 — 0

The aggregate capitalized costs

The aggregate capitalized costs of oil and natural gas properties as of December 31, 2021 and 2020 are as follows: (Details) - USD ($)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Property, Plant and Equipment [Abstract]
Proved producing wells	$ 20,689,548	$ 4,508,739
Proved undeveloped	2,724,966	2,715,980
Lease and well equipment	5,311,779	1,360,596
Asset retirement obligation	18,188,033	14,126,130
Gross capitalized costs	46,914,326	22,711,445
Depreciation, Depletion, Amortization and Impairment	(17,525,918)	15,148,444
[custom:DepreciationDepletionAmortizationAndImpairment]	17,525,918	(15,148,444)
Net capitalized costs	$ 29,388,408	$ 7,563,001

Other property and equipment co

Other property and equipment consists of operating lease assets, vehicles, office furniture, and equipment with lives ranging from three to five years (Details) - USD ($)	Dec. 31, 2021	Dec. 31, 2020
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment, Other, Gross	$ 1,547,325	$ 738,438
Property, Plant and Equipment, Other, Accumulated Depreciation	(258,714)	(76,421)
Property, Plant and Equipment, Other, Net	$ 1,288,611	$ 662,017

The following table sets forth

The following table sets forth the Company's preliminary purchase price allocation: (Details) - USD ($)	Dec. 31, 2021	Dec. 31, 2020
Impairment Effects on Earnings Per Share [Line Items]
Inventory, Net	$ 1,037,880	$ 531,309
Asset Retirement Obligation	20,640,599	$ 15,364,217
Preliminary Fair Value Of Assets Acquired [Member]
Impairment Effects on Earnings Per Share [Line Items]
Oil and Gas Property, Full Cost Method, Net	17,662,402
Inventory, Net	318,546
Vehicles	179,156
Asset Retirement Obligation, Legally Restricted Assets, Fair Value	6,117,709
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net	24,277,813
Preliminary Fair Value Of Liabilities Acquired [Member]
Impairment Effects on Earnings Per Share [Line Items]
Royalty suspense	290,325
Asset Retirement Obligation	6,117,709
Total preliminary liabilities assumed	6,408,034
Business Acquisition, Transaction Costs	$ 17,869,779

Acquisition of XTO Properties_2

Acquisition of XTO Properties (Details Narrative)	12 Months Ended
	Dec. 31, 2021USD ($)
Purchase price	$ 17,800,000
Purchase of performance bond	5,000,000
Letters of credit outstanding amount	$ 3,750,000
Intersest rate	4.00%
Monthly payment	$ 160,000
Minimum [Member]
Deposit	100,000
Maximum [Member]
Deposit	$ 1,250,000

Joint Development Agreement (De

Joint Development Agreement (Details Narrative) - USD ($)	Mar. 11, 2021	Dec. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Loan from related party		$ 2,000,000
Debt Instrument, Interest Rate During Period		6.00%
Maturity date		Aug. 7, 2024
Proceeds from loan		$ 800,000
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; an assignment was completed in October 2020 for the initial three 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 (See Note 8).
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 transactions during the years ended December 31, 2021 and 2020 are summarized in the table below. (Details) - USD ($)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Asset Retirement Obligation Disclosure [Abstract]
Asset retirement obligations, beginning of period	$ 15,364,217	$ 5,788,280
Liabilities assumed in acquisitions	6,117,709	9,508,484
Revision to estimates	(2,055,806)	(862,405)
Accretion expense	1,214,479	929,858
Asset retirement obligation, end of period	$ 20,640,599	$ 15,364,217

The following table summarizes

The following table summarizes the net realized and unrealized amounts reported in earnings related to the commodity derivative instruments for the years ended December 31, 2021 and 2020: (Details) - USD ($)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Credit Derivatives [Line Items]
Gain (loss) on derivatives	$ (586,181)	$ 1,738,871
Oil Derivatives [Member]
Credit Derivatives [Line Items]
Gain (loss) on derivatives	$ (586,181)	$ 1,738,871

The following represents the Co

The following represents the Company’s net cash receipts from (payments on) derivatives for the years ended December, 2021 and 2020: (Details) - USD ($)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Credit Derivatives [Line Items]
Net cash receipts from (payments on) derivatives	$ (835,441)	$ 1,520,988
Oil Derivatives [Member]
Credit Derivatives [Line Items]
Net cash receipts from (payments on) derivatives	(299,481)	1,520,988
Natural Gas Derivatives [Member]
Credit Derivatives [Line Items]
Net cash receipts from (payments on) derivatives	$ (535,960)	$ 0

The following table sets fort_2

The following table sets forth the Company’s outstanding derivative contracts at December 31, 2021: (Details) - Oil Swaps [Member]	Dec. 31, 2021$ / shares
First Quarter [Member] | Two Zero Two Two [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Quarterly volume mbbl	0.2056
PricePerBbl-0	$ 40
First Quarter [Member] | Two Zero Two Three [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Quarterly volume mbbl	0.1340
PricePerBbl-0	$ 40
Second Quarter [Member] | Two Zero Two Two [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Quarterly volume mbbl	0.2043
PricePerBbl-0	$ 40
Second Quarter [Member] | Two Zero Two Three [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Quarterly volume mbbl	0.1534
PricePerBbl-0	$ 55
Third Quarter [Member] | Two Zero Two Two [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Quarterly volume mbbl	0.2032
PricePerBbl-0	$ 40
Third Quarter [Member] | Two Zero Two Three [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Quarterly volume mbbl	0.1086
PricePerBbl-0	$ 55
Forth Quarter [Member] | Two Zero Two Two [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Quarterly volume mbbl	15.72
Fourth Quarter [Member] | Two Zero Two Two [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
PricePerBbl-0	$ 40

The following table represents

The following table represents the Company’s outstanding debt (Details)	Dec. 31, 2021USD ($)	Dec. 31, 2020USD ($)
Debt Instrument [Line Items]
Total Debt	$ 8,614,764	$ 9,035,908
Note Payable to Insurance Provider	3.63%
Monthly payments of principal and interest	$ 50,083
Unamortized Debt Issue Costs		14,587
Total Debt net of Debt Issue Costs and Discount	8,614,764	9,021,321
Less current maturities	1,700,663	1,301,618
Total Long-Term Debt	$ 6,914,101	7,719,703
Minimum [Member]
Debt Instrument [Line Items]
Equipment and vehicle notes	0
monthly payments	$ 400
Maximum [Member]
Debt Instrument [Line Items]
Equipment and vehicle notes	0.0699
monthly payments	$ 1,400
Senior Revolver Loan Agreement [Member]
Debt Instrument [Line Items]
Total Debt	7,069,500	8,124,000
Term Loan P I E [Member]
Debt Instrument [Line Items]
Total Debt	797,010	315,273
Various Vehicleand Equipment Loans [Member]
Debt Instrument [Line Items]
Total Debt	305,739	57,935
Unsecured Promissory Note Pardus [Member]
Debt Instrument [Line Items]
Total Debt		378,000
Note Payable To Insurance [Member]
Debt Instrument [Line Items]
Total Debt	442,515
S B A Paycheck Protection Program Loan 2020 [Member]
Debt Instrument [Line Items]
Total Debt		$ 160,700

Debt (Details Narrative)

Debt (Details Narrative) - USD ($)	Jul. 07, 2021	May 05, 2020	Apr. 30, 2021	Dec. 31, 2021	Dec. 30, 2021	May 05, 2021
Debt Instrument [Line Items]
Loan from related party				$ 2,000,000
Debt Instrument, Maturity Date				Aug. 7, 2024
April First Two Zero Two Zero [Member] | Pardus Oil And Gas L L C [Member]
Debt Instrument [Line Items]
Promissory note				$ 378,000
Description of notes payable					The note was payable in one installment on April 1, 2021 and bore interest at the one-year LIBOR rate. The note was paid on April 1, 2021
Empire Louisiana And Empire North Dakota [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate Terms					EBITDAX to interest expense of at least 3:1 and funded debt to EBITDAX of 6:1 on a trailing twelve-month basis and reducing quarterly to 4:1 as of March 31, 2022 and thereafter
Empire Louisiana And Empire North Dakota [Member] | Maximum [Member]
Debt Instrument [Line Items]
Interest Rate				80.00%
Revolver Loan Agreement [Member]
Debt Instrument [Line Items]
Short-term Debt, Average Outstanding Amount					$ 7,069,500
Revolver Loan Agreement [Member] | Cross First Bank [Member]
Debt Instrument [Line Items]
Revolve rCommitmen tAmount	$ 7,680,000
Reduction In Commitment Amount Per Quarter	$ 300,000
Debt Instrument, Interest Rate Terms	Prime plus 150 basis points
Long-term Debt, Maturity Date	Mar. 27, 2024
Revolver Loan Agreement [Member] | Cross First Bank Loan [Member]
Debt Instrument [Line Items]
Debt Instrument, Maturity Date Range, Start	Sep. 30, 2021
Revolver Loan Agreement [Member] | Corss First Bank [Member]
Debt Instrument [Line Items]
Interest Rate				4.75%
Joint Development Agreement [Member] | August Six Two Thousand Twenty [Member] | Petroleum And Independent Exploration L L C [Member]
Debt Instrument [Line Items]
Interest Rate				6.00%
Loan from related party				$ 2,000,000
Debt Instrument, Maturity Date					Aug. 7, 2024
Description Of Working And Revenue Interest					In addition, the Company assigned 85% working and revenue interest to PIE in the designated wells which will be applied to repayment of the loan
S B A Payroll Protection Plan Note [Member]
Debt Instrument [Line Items]
Interest Rate				1.00%
Debt Instrument, Maturity Date		May 5, 2022
Promissory note						$ 160,700
Description of forgiven of loans		In June 2021 the Company was informed that the SBA had forgiven the entire loan balance
Second Draw S B A Payroll Protection Plan Note [Member]
Debt Instrument [Line Items]
Debt Instrument, Maturity Date			Apr. 30, 2026
Promissory note			$ 106,850

Convertible Notes Payable (Deta

Convertible Notes Payable (Details Narrative) - USD ($)	Dec. 30, 2021	Sep. 29, 2021	May 14, 2021	May 31, 2021	Sep. 30, 2021	Dec. 31, 2021	Dec. 31, 2020
Short-term Debt [Line Items]
Maturity date						Aug. 7, 2024
Derivative fair value						$ 5,530,677
Derivative revalued						$ 5,437,746
Shares issued for closing fee						375,000
Issuance of warrant to purchase common stock						$ 589,194
Amortization of Debt Issuance Costs						14,587	$ 58,344
Proceeds from issuance of debt						19,493,000	$ 765,000
Amortization of Debt Discount (Premium)						540,000
Secured Debt [Member]
Short-term Debt [Line Items]
Warrants to purchase		500,000
Issued price per shares		$ 5
Outstanding debt balance	$ 5,715,353	$ 9,141,327
Stock Issued During Period, Value, Conversion of Convertible Securities		6,500,000
Amortization of Debt Issuance Costs		2,796,419
Debt Instrument, Convertible, Beneficial Conversion Feature		5,437,746
Induced conversion expense		2,276,813
Fair value of secured note		$ 2,017,287
Stock issued for accrued interest	1,154,085				23,802
Debt Instrument, Increase (Decrease), Net	$ 55,075
Secured Note [Member]
Short-term Debt [Line Items]
Issuance discount						10,125,177
Embedded derivative liability						$ 5,530,677
Unsecured Convertible Note [Member]
Short-term Debt [Line Items]
Maturity date				May 9, 2022
Interest rate				5.00%
Debt instrument conversion terms				The Unsecured Note holders had the ability to convert their notes to common stock of the Company at the lesser of $5.00 per share or the price per share offered by the Company if the Company has a future capital raise for an aggregate 648,600 shares of common stock (without giving effect to any interest that may be converted)
Unsecured Convertible Note [Member] | Empire New Mexico [Member]
Short-term Debt [Line Items]
Face amount				$ 3,243,000
Unsecured Convertible Note [Member] | Energy Evoluation [Member]
Short-term Debt [Line Items]
Conversion of Stock, Amount Converted					$ 325,000
Warrant [Member]
Short-term Debt [Line Items]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights						750,000
Warrants to purchase		500,000				3,000,000
Issued price per shares						$ 4
Proceeds from warrant exercises						$ 3,000,000
Debt Conversion, Converted Instrument, Shares Issued		1,326,302
Debt Instrument, Convertible, Conversion Price						$ 8
Description of accrued interest						Prior to maturity, interest accrues quarterly at 3.8% and Energy Evolution has the option to receive interest in common stock at $5.00 per share in lieu of cash
Additional Paid-in Capital [Member]
Short-term Debt [Line Items]
Issuance discount						$ 2,773,500
Issuance of warrant to purchase common stock						1,819,500
Proceeds from issuance of debt						$ 544,824
Warrant 1 [Member]
Short-term Debt [Line Items]
Issued price per shares		$ 1.25
Common Stock [Member]
Short-term Debt [Line Items]
Warrants to purchase						2,248,865	1,131,250
Common Stock [Member] | Unsecured Convertible Note [Member] | Energy Evoluation [Member]
Short-term Debt [Line Items]
Shares exercised						150,000
Chief Executive Officer And President [Member] | Unsecured Convertible Note [Member]
Short-term Debt [Line Items]
Percentage principal balance right to buy						40.00%
Principal balance right to buy per shares						$ 3
Chief Executive Officer And President [Member] | Warrant [Member]
Short-term Debt [Line Items]
Shares exercised						160,000
Class of Warrant or Right, Exercise Price of Warrants or Rights						$ 1
Issued expense						$ 989,155
Senior Secured Convertible Note Agreement [Member]
Short-term Debt [Line Items]
Maturity date						Dec. 31, 2021
Face amount						$ 16,250,000
Senior Secured Convertible Note Agreement [Member] | Enerry Evolution Master Fund Ltd [Member]
Short-term Debt [Line Items]
Convertible notes payable			$ 16,250,000
Maturity date			Dec. 31, 2021
Interest rate			3.80%
Debt instrument conversion terms			The Secured Note provides that up to 40% of the balance, together with accrued interest, can be converted into the Company’s common stock at the lesser of $1.25 per share or the offering price if the Company has a subsequent capital raise or an aggregate of 1,300,000 shares of common stock (without giving effect to any interest that may be converted)
Conversion of Stock, Amount Converted						$ 10,125,177
Loan Modification Agreement [Member]
Short-term Debt [Line Items]
Convertible notes payable		$ 5,700,000
Loan Modification Agreement [Member] | Enerry Evolution Master Fund Ltd [Member]
Short-term Debt [Line Items]
Convertible notes payable		$ 6,500,000

Supplemental balance sheet info

Supplemental balance sheet information related to the right of use leases as of December 31, 2021 is as follows: (Details)	Dec. 31, 2021USD ($)
Leases [Abstract]
Operating lease asset (included in Other Property and Equipment)	$ 779,183
Current portion of lease liability	180,105
Long-term lease liability	646,311
Total right of use lease liabilities	$ 826,416

Maturities of lease liabilities

Maturities of lease liabilities as of December 31, 2021 are as follows: (Details)	Dec. 31, 2021USD ($)
Leases [Abstract]
2022	$ 235,983
2023	238,931
2024	239,644
2025	193,660
2026	37,200
Thereafter	12,400
Total lease payments	957,819
Less imputed interest	(131,403)
Total lease obligation	$ 826,416

Leases (Details Narrative)

Leases (Details Narrative)	12 Months Ended
	Dec. 31, 2021USD ($)
Leases [Abstract]
Right of use lease expense	$ 190,000
Cash paid	$ 142,000
Weighted average remaining term for right of use leases	3 years 8 months 12 days

A summary of the Company's Ince

A summary of the Company's Incentive Plan as of December 31, 2021, and changes during the year is presented below: (Details) - $ / shares	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Equity [Abstract]
Outstanding at beginning	2,500,000	1,251,042
Weighted average exercise price beginning		$ 1.32
Granted	187,500	1,250,000
Exercise Price granted	$ 12.20	$ 1.40
Exercised	(246,800)	(1,042)
Cancelled or Exercised		$ 12.48
Weighted average exercise price beginning	$ 1.36
Exercised	$ 1.36
Outstanding at ending	2,440,700
Weighted average exercise price ending	$ 2.19	$ 1.36

The following table summarize_2

The following table summarizes information about stock options outstanding at December 31, 2021: (Details)	12 Months Ended
	Dec. 31, 2021$ / sharesshares
Outstanding at beginning | shares	2,440,700
Options Outstanding Weighted Average Remaining Contractual Life	8 years 9 months 29 days
Options Exercisable Weighted Average Exercise Price	$ 2.19
Options Exercisable Ending | shares	2,315,700
Options Exercisable Weighted Average Exercise Price Ending	$ 1.65
Minimum [Member]
Options Outstanding Range of Exercise Prices	1.32
Maximum [Member]
Options Outstanding Range of Exercise Prices	$ 12.20

Equity (Details Narrative)

Equity (Details Narrative) - USD ($)	May 14, 2021	Aug. 07, 2020	Apr. 03, 2019	Mar. 31, 2021	Jun. 30, 2021	Dec. 31, 2021	Dec. 30, 2021	Dec. 31, 2020
Accumulated Other Comprehensive Income (Loss) [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount						2,440,700	2,500,000
Warrants to purchase		2,034,129
Stock Issued During Period, Value, Conversion of Units						$ 32,611,376		$ 102,500
Free interest rate				14.00%
Expected useful life				21 months
Maturity date						Aug. 7, 2024
Issuance of warrant to purchase common stock						$ 589,194
Option vested			406,250
Compensation expense			$ 812,500
Options granted						187,500		1,250,000
Amended Secured Notes [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Description of partial considerations						Under the Amended Secured Notes, among other terms the Company issued a warrant certificate to purchase up to 500,000 two million shares of common stock at an exercise price of $5.00 per Warrant Share until December 31, 2023
Senior Secured Convertible Note Agreement [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Maturity date						Dec. 31, 2021
DebtInstrumentFaceAmount						$ 16,250,000
Senior Secured Convertible Note Agreement [Member] | Enerry Evolution Master Fund Ltd [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Maturity date	Dec. 31, 2021
Description of partial considerations						Empire issued to Energy Evolution Ltd (i) 375,000 shares of common stock along with (ii) a warrant certificate to purchase up to 750,000 three million shares of common stock at an exercise price of $4.00 per Warrant Share until May 14, 2022. Under the warrant certificate, the exercise price is subject to customary downward adjustments
Conversion of Stock, Amount Converted						$ 10,125,177
Interest rate	3.80%
Warrant [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Warrants issued to purchase common shares						750,000
Common Stock [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Share-based Payment Arrangement, Option, Exercise Price Range, Shares Outstanding						700,714
Common Stock [Member] | Warrant [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Warrants issued to purchase common shares						450,000
February And March Two Thousand Twenty One [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Warrants issued to purchase common shares						2,248,464
Warrants to purchase						2,248,464
Risk free interest rate						180.00%
Issued price per share						$ 2
Maturity date						Dec. 31, 2022
Stock Issued During Period, Value, Conversion of Units						$ 3,147,850
Proceeds from Contributed Capital						$ 2,350,407
April 32019 [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Risk free interest rate						2.32%
Expected useful life						5 years 45 months
Mr Pritchard [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Option to purchase common shares			625,000
Exercise price			$ 1.32
Mr Pritchard [Member] | April Two Zero Two Zero [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Option vested			312,500
Mr Morrissett [Member] | April Two Zero Two One [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Option vested			156,250
Joint Development Agreement [Member] | Petroleum And Independent Exploration L L C [Member] | August Seven Two Thousand Twenty [Member]
Accumulated Other Comprehensive Income (Loss) [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 (c) warrants to purchase up to 2,766,666 shares of Empire common stock at an exercise price of $0.564 per share
Share Price						$ 0.564
Expected volatility rate						147.00%
Risk free interest rate						19.00%
Expected useful life					4 years
Additional paid in capital						$ 450,848
Aggregate exercise price						3,349,052
Unsecured Convertible Notes [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Conversion of Stock, Amount Converted						$ 2,918,000
Conversion of Stock, Shares Issued						583,600
Unsecured Convertible Notes [Member] | Accredited Investors [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Maturity date						May 9, 2022
DebtInstrumentFaceAmount						$ 3,243,000
Interest rate						5.00%
Conversion price per share						$ 5

The current income tax provisio

The current income tax provision and deferred income tax provision for the years ended December 31, 2021 and 2020 were comprised for the following: (Details) - USD ($)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Income Tax Disclosure [Abstract]
Expected tax benefit	$ (4,802,660)	$ (4,343,542)
Nondeductible expenses	3,503,996	0
Increase in valuation allowance	1,298,664	4,343,542
Tax provision (benefit) as reported

Deferred tax assets and liabili

Deferred tax assets and liabilities are the result of temporary differences between the financial statement carrying values and the tax basis of assets and liabilities. The Company’s nettax position as of December 31, 2021 and 2020 is as follows : (Details) - USD ($)	Dec. 31, 2021	Dec. 31, 2020
Deferred tax assets (liabilities):
Loss carry-forwards	$ 5,341,256	$ 4,071,054
Depreciation, depletion and impairment	1,239,723	2,696,706
Right of use assets	8,036
Stock option grants	796,188
Other property and equipment	(459,745)
Unrecognized losses on derivatives	27,210	1,207
Total deferred tax assets	6,952,668	6,768,967
Valuation allowance	(6,952,668)	(6,768,967)
Net deferred taxes

Reconciliations of the tax expe

Reconciliations of the tax expense (benefit) computed at the statutory federal rate to the Company’s total income tax benefit for the years ended December 31, 2021 and 2020 are as follows: (Details) - USD ($)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Income Tax Disclosure [Abstract]
Statutory income tax rate, amount	$ (18,614,962)	$ (16,835,434)
Pretax gaap loss	$ (3,909,142)	$ (3,535,441)
Percentage of pretax gaap loss	21.00%	21.00%
State taxes	$ (893,518)	$ (808,101)
Percentage of state taxes	4.80%	4.80%
Nondeductible expenses	$ 3,503,996	$ 0
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Percent	(18.80%)	0.00%
Valuation allowance	$ 1,298,664	$ 4,343,542
Effective
Percentage of effective	0.00%	0.00%

Income Taxes (Details Narrative

Income Taxes (Details Narrative)	Dec. 31, 2021USD ($)
Income Tax Disclosure [Abstract]
Operating loss carryforward	$ 20,700,000

Related Party Transactions (Det

Related Party Transactions (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Related Party Transaction [Line Items]
Total Debt	$ 8,614,764	$ 9,035,908
Term Loan [Member]
Related Party Transaction [Line Items]
Total Debt	$ 800,000
Energy Evolution Master Fund Ltd [Member]
Related Party Transaction [Line Items]
Percentage of ownership	27.00%
Energy Evolution Ltd [Member]
Related Party Transaction [Line Items]
Percentage of ownership	18.00%

Commitments and Contingencies (

Commitments and Contingencies (Details Narrative) $ in Millions	12 Months Ended
	Dec. 31, 2021USD ($)
Commitments and Contingencies Disclosure [Abstract]
Purchase Price	$ 1.3

Concentrations (Details Narrati

Concentrations (Details Narrative)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Risks and Uncertainties [Abstract]
Concentrations credit risk percentage	63.00%	96.00%

Subsequent Events (Details Narr

Subsequent Events (Details Narrative) - $ / shares	Feb. 28, 2022	Dec. 31, 2021
Subsequent Event [Line Items]
Reverse stock split		1 for 4
Subsequent Event [Member]
Subsequent Event [Line Items]
Stock option and incentive	249,000
Description of option increments	These options vest in equal 1/3 increments over the course of three years
Per share price	$ 11.80
Subsequent Event [Member] | Minimum [Member]
Subsequent Event [Line Items]
Expire years	3 years
Subsequent Event [Member] | Maximum [Member]
Subsequent Event [Line Items]
Expire years	3 years 6 months