Item 2. Properties
Item 2. Properties
Effective December 1, 2023, the Company relocated its offices to 12 Greenway Plaza, Suite 1100, Houston, Texas 77046.
Through Simson-Maxwell, the Company has 7 locations in Western Canada, consisting of (i) Port Coquitlam, British Columbia; (ii) Edmonton, Alberta; (iii) Calgary, Alberta; (iv) Nanaimo, British Columbia; (v) Prince George, British Columbia; (vi) Fort St. John, British Columbia; and (vii) Terrace, British Columbia.
Oil and Natural Gas Properties
Oil and Natural Gas Reserves at December 31, 2023 and 2022
As of December 31, 2023, all of our proved oil and natural gas reserves were located in the United States, in the State of Texas.
The following tables set forth summary information with respect to our proved reserves as of December 31, 2023 and 2022. For additional information see Supplemental Information “Oil and Natural Gas Producing Activities (Unaudited)” to our consolidated financial statements in “Item 8-Financial Statements and Supplementary Data” of this Annual Report on Form 10-K. Under SEC reporting requirements, proved undeveloped reserves include only those reserves in which the Company has current plans to develop, generally within five years.
Proved Reserves at December 31, 2023
Reserves Category
Crude Oil
(BBLs)
Natural Gas (MCF)
Total Proved
(BOE) (1)
Proved Reserves
Developed
34,250
160,770
61,045
Developed Non-Producing
-
Total Proved Reserves
34,250
160,770
61,045
Estimated Future Net Cash Flows
-
$ 1,608,240
10% annual discount for estimated timing of cash flows
(669,870 )
Discounted Future Net Cash Flows - (PV10) (2)
$ 938,370
Proved Reserves at December 31, 2022
Reserves Category
Crude Oil
(BBLs)
Natural Gas (MCF)
Total Proved
(BOE) (1)
Proved Reserves
Developed
105,375
-
105,375
Developed Non-Producing
21,369
-
21,369
Total Proved Reserves
126,744
-
126,744
Estimated Future Net Cash Flows
$ 4,503,786
10% annual discount for estimated timing of cash flows
(1,532,187 )
Discounted Future Net Cash Flows - (PV10) (2)
$ 2,971,599
(1) BOE (barrels of oil equivalent) is calculated by a ratio of 6 MCF to 1 BBL of Oil
(2) PV-10 represents the discounted future net cash flows attributable to our proved oil and natural gas reserves discounted at 10%. PV-10 of our total year-end proved reserves is considered a non-US GAAP financial measure as defined by the SEC. We believe that the presentation of the PV-10 is relevant and useful to our investors because it presents the discounted future net cash flows attributable to our proved reserves without consideration of income tax affects. We further believe investors and creditors use our PV-10 as a basis for comparison of the relative size and value of our reserves to other companies.
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Net Production, Unit Prices and Costs
The following table presents certain information with respect to oil and natural gas production attributable to our interests in all of our properties in the United States, the revenue derived from the sale of such production, average sales prices received and average production costs during the years ended December 31, 2023 and 2022. All production and expense data includes the results of Mid-Con Petroleum and Mid-Con Drilling through November 5, 2023 and Petrodome through December 1, 2023, the respective dates of disposition.
Unit of
December 31,
Measure
2023
2022
Production
Oil
Barrels
12,348
24,510
Natural Gas
Mcf
5,589
205,374
BOE
13,280
58,739
Sales
Oil
Barrels
12,348
2,254,134
Natural Gas
Mcf
5,589
978,971
Average Sales Prices
Oil
Barrels
73.83
91.97
Natural Gas
Mcf
6.61
4.77
Production - Lease operating expenses
658,505
1,633,765
Average Cost of Production per BOE
49.59
27.81
Drilling and Other Exploratory and Development Activities
During the year ended December 31, 2023 the Company did not drill any new wells. The Company focused primarily on preserving and maintaining existing assets and selling certain assets to pay down debt. Maintenance included, among other things, replacing tubing and pumps, replacing heater treaters, changing compressors, repressurizing wells, repairing water line leaks, replacing chokes and other items.
Present Activities
The Company is not presently drilling any new wells.
Delivery Commitments
The Company is not currently committed to provide a fixed and determinable quantity of oil or gas in the near future under existing contracts or agreements.
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