Property and Equipment

12 Months Ended

Dec. 31, 2025

Oil and Gas Property, Successful Effort Method, Gross [Abstract]

Property and Equipment

5. Property and Equipment

The following table summarizes the Company’s property and equipment at December 31, 2025 and 2024:


		December 31,			December 31,
		2025			2024
Property and equipment:
Oil and gas properties, successful efforts method
Proved properties		$	233,334,212		$	191,879,210
Unproved properties			79,307,169			28,364,186
Accumulated depletion, depreciation, amortization and impairment			(131,636,141)			(123,281,395)
Total oil and gas properties, net			181,005,240			96,962,001
Gathering system			43,540,389			43,116,371
Accumulated depletion, depreciation, amortization and impairment			(37,472,139)			(36,449,511)
Total gathering system, net			6,068,250			6,666,860
Land			1,231,965			637,764
Buildings and other property and equipment, net			4,132,732			259,335
Total property and equipment, net		$	192,438,187		$	104,525,960

Asset Acquisitions

During the year ended December 31, 2025, Epsilon had no asset acquisitions.

During the year ended December 31, 2024, Epsilon made the following four acquisitions. Management determined that substantially all of the fair value of the gross assets acquired were concentrated in oil and gas properties and therefore accounted for these transactions as asset acquisitions and allocated the purchase price based on the relative fair value of the assets acquired and liabilities assumed.

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a 25% working interest in producing wells in Ector County, Texas for $12.1 million.

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a 25% working interest in undeveloped acreage in Ector County, Texas for $2.6 million.

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a 50% working interest in undeveloped acreage in Alberta, Canada for $1.0 million.

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a joint venture covering undeveloped acreage in Alberta, Canada with a commitment to provide an approximately $7.0 million drilling carry to earn a 25% working interest

Property Sale

During the year ended December 31, 2025, Epsilon sold all of its interest in Dewey Energy Holding, LLC for $2.5 million. This sale resulted in a loss of $19.3 million. During the year ended December 31, 2024, Epsilon had no asset sales.

Property Impairment

Epsilon performs a quantitative impairment test whenever events or changes in circumstances indicate that an asset group's carrying amount may not be recoverable. When indicators of impairment are present, the Company first compares expected future undiscounted cash flows by asset group to their respective carrying values. If the carrying amount exceeds the estimated undiscounted future cash flows, a reduction of the carrying amount to the estimated fair values is required. This is determined based on discounted cash flow techniques using significant assumptions including production volumes, future commodity prices, and a market-specific weighted average cost of capital which are affected by expectations about future market and economic conditions. Additionally, U.S. GAAP requires that if an exploratory well is determined not to have found proved reserves, the costs incurred, net of any salvage value, are charged to expense. For unproved properties, such as leasehold costs, expected current and future market prices for similar assets are considered relative to carrying values in evaluating impairment.

For the year ended December 31, 2025, the Company recorded an impairment of $3.2 million on the Canadian wells (2 gross, 0.5 net) and $0.7 million on the New Mexico wells (2 gross, 0.2 net) due to low forward oil prices on December 31, 2025 (which are required to be used in impairment testing) and an offset frac hit impacting production and reserves in New Mexico. During the year ended December 31, 2024, Epsilon recorded an impairment of $1.45 million on the Killam project (interest acquired in April 2024) in Alberta, Canada as a result of a decrease in forecasted reserves. Refer to Note 16 – Fair Value Measurements.