Asset Retirement Obligations

6 Months Ended

Jun. 30, 2014

Asset Retirement Obligation [Abstract]

Asset Retirement Obligations

ASSET RETIREMENT OBLIGATIONS

The following table describes the changes to the Company’s asset retirement obligation liability for the following periods:

	Six Months Ended
	June 30,
	2014			2013
	(in thousands)
Asset retirement obligation, beginning of period	$	3,029		$	2,145
Additional liability incurred	382			111
Liabilities acquired	1,312			—
Liabilities settled	(10		)	—
Accretion expense	176			88
Revisions in estimated liabilities	588			—
Asset retirement obligation, end of period	5,477			2,344
Less current portion	40			20
Asset retirement obligations - long-term	$	5,437		$	2,324

The Company’s asset retirement obligations primarily relate to the future plugging and abandonment of wells and related facilities. The Company estimates the future plugging and abandonment costs of wells, the ultimate productive life of the properties, a risk-adjusted discount rate and an inflation factor in order to determine the current present value of this obligation. To the extent future revisions to these assumptions impact the present value of the existing asset retirement obligation liability, a corresponding adjustment is made to the oil and natural gas property balance.