Quarterly report pursuant to Section 13 or 15(d)

Asset Retirement Obligation

v3.7.0.1
Asset Retirement Obligation
6 Months Ended
Jun. 30, 2017
Asset Retirement Obligation Disclosure [Abstract]  
Asset Retirement Obligation

Note 4 – Asset Retirement Obligation

 

The Company’s asset retirement obligations relate to the abandonment of oil and gas wells. The amounts recognized are based on numerous estimates and assumptions, including future retirement costs, inflation rates and credit adjusted risk-free interest rates. The following shows the changes in asset retirement obligations:

 

Asset retirement obligations, January 1, 2017   $ -  
Liabilities incurred during the period     291,659  
Release of liabilities associated with the sale of oil properties     -  
Liabilities settled during the year     -  
Accretion     5,834  
Asset retirement obligations, June 30, 2017   $ 297,493  

 

Depletion expense for the three and six months ended June 30, 2017 was $3,646 and $7,292, respectively.