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Asset Retirement Obligation
 12 Months Ended
Dec. 31, 2014
Asset Retirement Obligation [Abstract]  
Asset Retirement Obligation
Asset Retirement Obligation
 
Changes in the carrying amounts of the asset retirement obligation associated with the Company’s oil and natural gas properties were as follows:
 
Year Ended December 31,
(Thousands of U.S. Dollars)
2014
 
2013
Balance, beginning of year
$
21,973

 
$
18,292

Settlements
(1,137
)
 
(2,068
)
Liability incurred
11,956

 
2,623

Liabilities associated with the Argentina business unit sold
(10,170
)
 
—

Foreign exchange
(53
)
 
(25
)
Accretion
1,406

 
1,279

Revisions in estimated liability
11,837

 
1,872

Balance, end of year
$
35,812

 
$
21,973

 
 
 
 
Asset retirement obligation - current
$
8,026

 
$
518

Asset retirement obligation - long-term
27,786

 
21,455

Balance, end of year
$
35,812

 
$
21,973


 
For the year ended December 31, 2014, settlements included cash payments of $0.8 million with the balance in accounts payable and accrued liabilities at December 31, 2014. Revisions in estimated liabilities relate primarily to changes in estimates of asset retirement costs and include, but are not limited to, revisions of estimated inflation rates, changes in property lives and the expected timing of settling the asset retirement obligation. During the year ended December 31, 2014, estimated asset retirement liabilities were increased by $7.6 million to reflect accelerated revised outcome probabilities and their timing as a result of the decision to cease all further development expenditures on the Bretaña field on Block 95 in Peru other than what is necessary to maintain tangible asset integrity and security. At December 31, 2014, the fair value of assets that are legally restricted for purposes of settling asset retirement obligations was $2.0 million (December 31, 2013 - $1.9 million). These assets are included in restricted cash on the Company's balance sheet.