Asset Retirement Obligations

3 Months Ended

Jul. 31, 2015

Asset Retirement Obligation Disclosure [Abstract]

Asset Retirement Obligations

The total future asset retirement obligation was estimated based on the Company’s ownership interest in all wells and facilities, the estimated legal obligations required to retire, dismantle, abandon and reclaim the wells and facilities and the estimated timing of such payments. The Company estimated the present value of its asset retirement obligations at both July 31, 2015 and April 30, 2015, based on a future undiscounted liability of $1,144,990 and $1,143,857, respectively. These costs are expected to be incurred within one to 24 years. A credit-adjusted risk-free discount rate of 10% and an inflation rate of 2% were used to calculate the present value.

Changes to the asset retirement obligation were as follows:

	July 31, 2015			April 30, 2015
Balance, beginning of period	$	918,430		$	818,010
Additions		-			52,514
Accretion		10,056			47,906
		928,486			918,430
Less: Current portion for cash flows expected to be incurred within one year		(541,958	)		(541,959	)
Long-term portion, end of period	$	386,528		$	376,471

Expected timing of asset retirement obligations:

Year Ending April 30,
2016 (remainder of year)		541,958
2017		212,000
2018		-
2019		-
2020		-
Thereafter		391,032
		1,144,990
Effect of discount		(216,504	)
Total	$	928,486

As of July 31, 2015 and April 30, 2015, the Company has $0 of reclamation deposits with authorities to secure certain abandonment liabilities.