Asset Retirement Obligations

12 Months Ended

Apr. 30, 2016

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 April 30, 2016 and 2015, based on a future undiscounted liability of $895,291 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:

	April 30, 2016			April 30, 2015
Balance, beginning of period	$	918,430		$	818,010
Additions		-			52,514
Disposals		(207,827	)		-
Accretion		52,459			47,906
Total asset retirement obligations		763,062			918,430
Less: current portion of asset retirement obligations		(561,958	)		(541,959	)
Long-term portion of asset retirement obligations	$	201,104		$	376,471

Expected timing of asset retirement obligations:

Year Ending April 30,
2017	$	561,958
2018		-
2019		-
2020		-
2021		-
Thereafter		394,654
Subtotal		956,612
Effect of discount		(193,550	)
Total	$	763,062

As of April 30, 2016 and 2015, the Company had $0 of reclamation deposits with authorities to secure certain abandonment liabilities.