Asset Retirement Obligations

3 Months Ended

Sep. 30, 2020

Asset Retirement Obligation Disclosure [Abstract]

Our asset retirement obligations represent the estimated present value of the amount we expect to incur to plug, abandon, and remediate our producing properties at the end of their productive lives in accordance with applicable laws. Presently, the Delhi field operator is abandoning two wells and we expect the Hamilton Dome operator to plug two wells during the next twelve months. The following is a reconciliation of the beginning and ending asset retirement obligations for the three months ended September 30, 2020 and for the year ended June 30, 2020:


	September 30, 2020			June 30, 2020
Asset retirement obligations — beginning of period	$	2,588,894		$	1,610,845
Liabilities incurred	—			944,278		(b)
Liabilities settled	—			(86,592)		(c)

Accretion of discount	43,602			146,504
Revision of previous estimates	91,608		(a)	(26,141)
Asset retirement obligations — end of period	$	2,724,104		$	2,588,894
Less: current asset retirement obligations	121,627			—
Long-term portion of asset retirement obligations	$	2,602,477		$	2,588,894

(a) Two non-scheduled Delhi wells currently being abandoned.

(b) Liabilities incurred in fiscal 2020 were primarily due to our acquisition of our Hamilton Dome interest.