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Schedule of Asset Retirement Obligations (Tables)
 12 Months Ended
Dec. 31, 2014
ASSET RETIREMENT OBLIGATION  
Schedule of Asset Retirement Obligations

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.

 

 

 

2014

 

 

2013

 

Asset retirement obligation, January 1

 

$

2,770

 

 

$

2,770

 

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 discounnt expense

 

 

-

 

 

 

-

 

Asset retirement obligation, December 31

 

$

2,770

 

 

$

2,770