v3.26.1
ASSET RETIREMENT OBLIGATION
12 Months Ended
Dec. 31, 2025
Asset Retirement Obligation Disclosure [Abstract]  
Asset Retirement Obligation Disclosure [Text Block]

NOTE 3 ASSET RETIREMENT OBLIGATION

 

The Asset Retirement and Environmental Obligations Topic of the ASC 410-20 requires that an asset retirement obligation (“ARO”) associated with the retirement of a tangible long-lived asset be recognized as a liability in the period in which it is incurred or becomes determinable (as defined by the standard), with an associated increase in the carrying amount of the related long-lived asset. The cost of the tangible asset, including the initially recognized asset retirement cost, is depreciated over the useful life of the asset.

 

There were no changes in estimates for the years ended December 31, 2025 and 2024.

 

   2025   2024 
Asset retirement obligation        
Beginning of the year  $5,078,595   $4,826,847 
Liabilities incurred during the period   112,417    865 
Settlements   (78,839)   (151,856)
Changes in Working Interest   26,085    (4,716)
Changes in estimates   (67,707)   405,440 
Accretion expense   7,300    2,015 
End of year  $5,077,852   $5,078,595 

  

We record accretion expense as part of Depreciation, Depletion and Amortization. Accretion expense was $7,300 and $2,015 for the years ended December 31, 2025 and 2024, respectively.