Item 2. Properties
ITEM 2. PROPERTIES.
The information regarding the Company’s oil and gas properties as required by Item 102 of Regulation S-K is included in “ Item 1. Business ”, above and incorporated in this Item 2 by reference. Additional information regarding our oil and gas properties can be found in “ Part II ” - “ Item 8 Financial Statements and Supplementary Data ” – “ Supplemental Oil and Gas Disclosures (Unaudited) ”.
Office Leases
The Company had a lease for its corporate offices in Houston, Texas on approximately 5,200 square feet of office space that expired on August 31, 2023 and had a base monthly rent of approximately $10,000. In December 2022, the Company entered into a lease agreement for its existing office space that commenced on September 1, 2023, and expires on February 28, 2027. The base monthly rent is approximately $9,200 for the first 18 months and increases to approximately $9,500 thereafter. The Company paid both a security deposit and prepaid rent for $14,700, respectively.
For the years ended December 31, 2024 and 2023, the Company incurred lease expense of $110,000, for the lease.
The Company believes its existing leased office space is suitable for the conduct of its business. We believe that this arrangement is suitable for the conduct of our business.
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