Asset Retirement Obligations

9 Months Ended

Mar. 31, 2013

Note 4 — Asset Retirement Obligations

Our asset retirement obligations represent the estimated present value of the amount we will incur to plug, abandon and remediate our producing properties at the end of their productive lives in accordance with applicable laws. The following is a reconciliation of the beginning and ending asset retirement obligation for the nine months ended March 31, 2013 and the year ended June 30, 2012:

	March 31, 2012			June 30, 2012

Asset retirement obligations — beginning of period	$	968,677		$	859,586
Liabilities sold	(170,433		)	—
Liabilities incurred	3,126			175,943
Liabilities settled	(38,077		)	(61,936		)
Accretion of discount	56,090			77,505
Revision of previous estimates	5,432			(82,421		)
Asset retirement obligations — end of period	$	824,815		$	968,677

- Definition

The entire disclosure for an asset retirement obligation and the associated long-lived asset. An asset retirement obligation is a legal obligation associated with the disposal or retirement from service of a tangible long-lived asset that results from the acquisition, construction or development, or the normal operations of a long-lived asset, except for certain obligations of lessees.

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