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ASSET RETIREMENT OBLIGATION (Tables)
 12 Months Ended
Dec. 31, 2012
ASSET RETIREMENT OBLIGATION (Tables)  
ASSET RETIREMENT OBLIGATION (Tables)

In the third quarter of 2012 the Company re-evaluated its method of plugging abandoned wells and determined by doing so in-house it could lower the cost. Based upon the Company’s current calculations we have established a sufficient reserve, for accounting purposes, to plug the existing wells when necessary. 

(in thousands)

 

2012

 

 

2011

 

Asset retirement obligation, January 1

 

$

2,702

 

 

$

2,573

 

Acquisition of oil and gas properties

 

 

-

 

 

 

-

 

Revisions in the estimated cash flows

 

 

-

 

 

 

-

 

Liability incurred upon acquiring and drilling wells

 

 

-

 

 

 

-

 

Liability settled upon plugging and abandoning wells

 

 

-

 

 

 

-

 

Accretion of discount expense

 

 

68

 

 

 

129

 

Asset retirement obligation, December 31

 

$

2,770

 

 

$

2,702