Quarterly report pursuant to Section 13 or 15(d)

Asset Retirement Obligation

Asset Retirement Obligation
9 Months Ended
Sep. 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     8,751  
Asset retirement obligations, September 30, 2017   $ 300,410  


Depletion expense for the three and nine months ended September 30, 2017 was $3,647 and $10,939, respectively.