Jerin Petroleum acquired a lease on March 1, 2019. Being short of funds, Jerin Petroleum did...
On October 15, 2018, Richards Oil Corporation acquired a lease for $600,000. Richards decided not to drill on the lease during the first year. Wishing to retain the lease, Richards paid a delay rental of $5,000 on October 15, 2019. During November and December of 2019, three dry holes were drilled on surrounding leases. Based on the dry holes, Richards' management decided that the lease was 75% impaired. Richards had still not started drilling operations by the end of the...