Property and Equipment

3 Months Ended

Mar. 31, 2026

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

Property and Equipment

4. Property and Equipment

The following table summarizes the Company’s property and equipment as of March 31, 2026 and December 31, 2025:


		March 31,			December 31,
		2026			2025
Property and equipment:
Oil and gas properties, successful efforts method
Proved properties		$	237,783,115		$	233,334,212
Unproved properties			79,690,561			79,307,169
Accumulated depletion, depreciation, amortization and impairment			(134,196,469)			(131,636,141)
Total oil and gas properties, net			183,277,207			181,005,240
Gathering system			43,593,370			43,540,389
Accumulated depletion, depreciation, amortization and impairment			(37,680,704)			(37,472,139)
Total gathering system, net			5,912,666			6,068,250
Land			1,231,965			1,231,965
Buildings and other property and equipment, net			4,077,163			4,132,732
Total property and equipment, net		$	194,499,001		$	192,438,187

Property Impairment

We perform a quantitative impairment test whenever events or changes in circumstances indicate that an asset group's carrying amount may not be recoverable, over proved properties using the published NYMEX forward prices, basis differentials, timing, methods and other assumptions consistent with historical periods. When indicators of impairment are present, GAAP requires that the Company first compare 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 of the properties to their estimated fair value is required. Additionally, if an exploratory well is determined not to have found proved reserves, the costs incurred, net of any salvage value, should be charged to expense.

During the three months ended March 31, 2026, no impairment was recorded.

During the three months ended March 31, 2025, Epsilon recorded an impairment of $0.01 million for one well drilled during 2024 that was deemed non-commercial. 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.