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Asset Retirement Obligations
12 Months Ended
Dec. 31, 2025
Schedule of Asset Retirement Obligations Liability [Abstract]  
ASSET RETIREMENT OBLIGATIONS

10. ASSET RETIREMENT OBLIGATIONS

 

The Company’s asset retirement obligations primarily relate to the future plugging and abandonment of wells and related assets. The Company estimates the future plugging and abandonment costs of wells, the ultimate productive life of the properties, a risk-adjusted discount rate and an inflation factor in order to determine the current present value of this obligation. To the extent future revisions to these assumptions impact the present value of the existing asset retirement obligation liability, a corresponding adjustment is made to the oil and natural gas property balance.

 

The following table describes the changes to the Company’s asset retirement obligations liability for the year ended December 31, 2025:

 

Asset retirement obligations, beginning of period   $ -  
Liabilities acquired     1,777,335  
Accretion expense     70,745  
Asset retirement obligations, end of period   $ 1,848,080