Quarterly report pursuant to Section 13 or 15(d)

Asset Retirement Obligation

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Asset Retirement Obligation
3 Months Ended
Mar. 31, 2017
Asset Retirement Obligation Disclosure [Abstract]  
Asset Retirement Obligation

Note 7 - Asset Retirement Obligation

 

Our 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     2,917  
Asset retirement obligations, March 31, 2017   $ 294,576  

 

Depletion expense for the three months ended March 31, 2017 and 2016 was $3,646 and $0, respectively.