Asset Retirement Obligations

6 Months Ended

Dec. 31, 2011

Asset Retirement Obligation Disclosure [Abstract]

Asset Retirement Obligation Disclosure Text Block

Note 12 Asset Retirement Obligations

The fair values of asset retirement obligations ("AROs") are based on management's historical experience and best estimate of plugging and abandonment costs by field. Assumptions and judgments by management include determination of the existence of a legal obligation for an ARO, estimated probabilities, amounts and timing of settlements, the credit-adjusted risk-free rate to be used and inflation rates. Accretion expense is recorded under depletion, depreciation, amortization and accretion in the condensed consolidated statement of operations and was $156,865 and $314,479 for the three and six months December 31, 2011, respectively.

	December 31, 2011
Balance at June 30, 2011	$	11,397,410
Liabilities assumed		58,776
Liabilities incurred		315,066
Accretion expense		314,479
Reclassification to liabilities related to assets held for sale (Note 6)		(6,550,129)
Exchange effect		(360,021)
Balance at December 31, 2011	$	5,175,581