Asset Retirement obligations

9 Months Ended

Sep. 30, 2016

Asset Retirement Obligation Disclosure [Abstract]

Asset Retirement obligations

5. Asset retirement obligations

The following table summarizes the changes in our asset retirement obligations (“ARO”) for the nine months ended September 30, 2016 and for the year ended December 31, 2015:

	September 30, 2016			December 31, 2015
	(in thousands)
Asset retirement obligations at beginning of period	$	9,237		$	10,543
Change in estimates		-			385
Foreign exchange change effect		(252	)		(2,137	)
Additions		-			78
Accretion expense		285			368
Asset retirement obligations at end of period		9,270			9,237
Less: current portion		-			-
Long-term portion	$	9,270		$	9,237

Our ARO is measured using primarily Level 3 inputs. The significant unobservable inputs to this fair value measurement include estimates of plugging costs, remediation costs, inflation rate and well life. The inputs are calculated based on historical data as well as current estimated costs.