What changed in this filing

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Item 3. Quantitative and Qualitative Disclosures About Market Risk

2021-11-05 compared with 2021-08-11 · 17 added, 38 removed, 10 unchanged (85% of the section changed)

Quantitative and Qualitative Disclosures About Market Risk

primary source of market risk for us includes fluctuations in commodity prices and interest rates.

All of our financial instruments are

for purposes other than trading.

At June 30, 2021, we had an outstanding loan balance of $800,000 under our credit agreement, which bears interest at a

rate equal to the prime rate as quoted in the Wall Street Journal plus one-half of one percent (0.5%) floating daily.

If the interest

rate on our bank debt increases or decreases by one percentage point our annual pretax income would change by $8,000, based on the outstanding

balance at June 30, 2021.

primary source of market risk for us includes fluctuations in commodity prices.

All of our financial instruments are for purposes other

than trading.

Credit risk is the risk of loss as a result of nonperformance by other parties of their contractual obligations.

credit risk is related to oil and gas production sold to various purchasers and the receivables are generally not collateralized.

June 30, 2021, our largest credit risk associated with any single purchaser was $495,512 or 74% of our total oil and gas receivables.

September 30, 2021, our largest credit risk associated with any single purchaser was $594,715 or 76% of our total oil and gas receivables.

We have not experienced any significant credit losses.

3 unchanged sentences

and natural gas.

Prices for oil and natural gas fluctuate widely.

We cannot predict future oil and natural gas prices with any certainty.

Pricing for oil and natural gas production has been volatile and unpredictable for several years, and we expect this volatility to continue

in the future.

that can cause price fluctuations include the level of global demand for petroleum products, foreign and domestic supply of oil and gas,

the establishment of and compliance with production quotas by oil-exporting countries, weather conditions, the price and availability

of alternative fuels and overall political and economic conditions in oil producing countries.

Pricing for oil and natural gas production has been volatile and unpredictable for several years, and we expect this

volatility to continue in the future.

example, in the last twelve months, the NYMEX West Texas Intermediate (“WTI”) posted price for crude oil has ranged from

a low of $31.75 per bbl in October 2020 to a high of $70.03 per bbl in June 2021.

The Henry Hub Spot Market Price (“Henry Hub”)

posted price for natural gas has ranged from a low of $1.33 per MMBtu in September 2020 to a high of $23.86 per MMBtu in February 2021.

On June 30, 2021, the WTI posted price for crude oil was $69.45 and the Henry Hub posted price for natural gas was $3.79.

of Operations above for the Company’s realized prices during the quarter.

in oil and natural gas prices will materially adversely affect our financial condition, liquidity, ability to obtain financing and operating

Changes in oil and gas prices impact both estimated future net revenue and the estimated quantity of proved reserves.

Any reduction

in reserves, including reductions due to price fluctuations, can reduce the borrowing base under our credit facility and adversely affect

the amount of cash flow available for capital expenditures and our ability to obtain additional capital for our acquisition, exploration

and development activities.

In addition, a noncash write-down of our oil and gas properties could be required under full cost accounting

rules if prices declined significantly, even if it is only for a short period of time.

Lower prices may also reduce the amount of crude

oil and natural gas that can be produced economically.

Thus, we may experience material increases or decreases in reserve quantities

solely as a result of price changes and not as a result of drilling or well performance.

a low of $31.75 per bbl in October 2020 to a high of $71.43 per bbl in September 2021.

The Henry Hub Spot Market Price (“Henry

Hub”) posted price for natural gas has ranged from a low of $1.41 per MMBtu in October 2020 to a high of $23.86 per MMBtu in February

On September 30, 2021, the WTI posted price for crude oil was $71.01 and the Henry Hub posted price for natural gas was $5.58.

See Results of Operations above for the Company’s realized prices during the three and six months.

any improvements in oil and gas prices can have a favorable impact on our financial condition, results of operations and capital resources.

Oil and natural gas prices do not necessarily fluctuate in direct relationship to each other.

If the average oil price had increased

or decreased by ten dollars per barrel for the quarter ended June 30, 2021, our pretax income would have changed by $154,380.

average gas price had increased or decreased by one dollar per mcf for the quarter ended June 30, 2021, our pretax income would have

increased or decreased by $90,063.

If the average oil price had increased or decreased by ten dollars per barrel for the first six months of fiscal 2022, our pretax income

would have increased or decreased by $317,150.

If the average gas price had increased or decreased by one dollar per mcf for the first

six months of fiscal 2022, our pretax income would have increased or decreased by $182,670.

about market risks for the six months ended September 30, 2021, does not differ materially from that discussed under Item 7A of the registrant’s

2021 Annual Report on Form 10-K.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 3. Quantitative and Qualitative Disclosures About Market Risk