Oil and Gas Properties
|12 Months Ended|
Dec. 31, 2020
|Oil and Gas Properties|
|Note 4. Oil and Gas Properties||
As discussed in Note 2, on February 3, 2020, the Company, through its subsidiary Elysium Energy, LLC (“Elysium”) completed an acquisition of working interests in certain oil and gas leases in Texas and Louisiana. The aggregate consideration transferred for the working interests of $29,496,356 substantially consisted of (i) the net proceeds from the Company’s borrowings on February 3, 2020 with various lenders represented by 405 Woodbine, LLC and Camber Energy, Inc., less (ii) the net effect of the resolution of February 3, 2020 on all amounts outstanding under the Company’s December 2018 promissory note with RPM Investments in exchange for a new note with EMC Capital Partners, LLC (including the pay-down of such new note as a result of the post-closing adjustments). See Note 7 to the consolidated financial statements for further information on all of these borrowings. The aggregate consideration has been allocated to the fair value of assets and liabilities as follows:
The following table summarizes the Company’s oil and gas activities by classification and geographical cost center for the year ended December 31, 2020:
Primarily as a result of the COVID-19 pandemic and falling oil prices during the year ended December 31, 2020, the Company recognized an impairment of oil and gas properties of $37,500,000 which is included in the accompanying Consolidated Statement of Operations.
The following table summarizes the Company’s oil and gas activities by classification and geographical cost center for the year ended December 31, 2019:
The entire disclosure for properties used in normal conduct of oil and gas exploration and producing operations. This disclosure may include property accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef