Quarterly report pursuant to Section 13 or 15(d)

OIL AND GAS PROPERTIES

v3.22.2.2
OIL AND GAS PROPERTIES
9 Months Ended
Sep. 30, 2022
OIL AND GAS PROPERTIES  
NOTE 5 - OIL AND GAS PROPERTIES

NOTE 5 – OIL AND GAS PROPERTIES

 

The following table summarizes the Company’s oil and gas activities by classification and geographical cost center for the nine months ended September 30, 2022. The allocation between the classifications is based on the relationships summarized in the Company’s annual analysis of reserves as of December 31, 2021. The Adjustments column reflects depletion and all other increases or decreases that occurred during the nine months ended September 30, 2022:

 

 

 

December 31,

2021

 

 

Depletion and Adjustments

 

 

September 30,

2022

 

 

 

 

 

 

 

 

 

 

 

Proved developed producing oil and gas properties

 

 

 

 

 

 

 

 

 

United States cost center

 

$

78,433,316

 

 

$

-

 

 

$

78,433,316

 

Accumulated depreciation, depletion and amortization

 

 

(78,364,432

)

 

 

(4,538

)

 

 

(78,368,970

)

Proved developed producing oil and gas properties, net

 

$

68,884

 

 

$

(4,538

)

 

$

64,346

 

 

Camber uses the full cost method of accounting for oil and natural gas producing activities. Costs to acquire mineral interests in oil and natural gas properties, to drill and equip exploratory wells used to find proved reserves, and to drill and equip development wells including directly related overhead costs and related asset retirement costs are capitalized.

 

Under this method, all costs, including internal costs directly related to acquisition, exploration and development activities are capitalized as oil and natural gas property costs on a country-by-country basis. Costs not subject to amortization consist of unproved properties that are evaluated on a property-by-property basis. Amortization of these unproved property costs begins when the properties become proved or their values become impaired. Camber assesses overall values of unproved properties, if any, on at least an annual basis or when there has been an indication that impairment in value may have occurred. Impairment of unproved properties is assessed based on management’s intention with regard to future development of individually significant properties and the ability of Camber to obtain funds to finance its programs. If the results of an assessment indicate that the properties are impaired, the amount of the impairment is added to the capitalized costs to be amortized.

 

Sales of oil and natural gas properties are accounted for as adjustments to the net full cost pool with no gain or loss recognized, unless the adjustment would significantly alter the relationship between capitalized costs and proved reserves. If it is determined that the relationship is significantly altered, the corresponding gain or loss will be recognized in the statements of operations.

 

For the nine months ended September 30, 2022 and 2021, the Company did not record any impairments.