Asset Retirement Obligations

3 Months Ended

Jul. 31, 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 July 31, 2016 and April 30, 2016, based on a future undiscounted liability of $573,069 and $895,292, 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, 2016			April 30, 2016
Balance, beginning of period	$	763,062		$	918,430
Disposals		(216,580	)		(207,827	)
Accretion		4,207			52,459
		550,689			763,062
Less: Current portion for cash flows expected to be incurred within one year		(406,403	)		(561,958	)
Long-term portion, end of period	$	144,286		$	201,104

Expected timing of asset retirement obligations:

Year Ending April 30,
2017 (remainder of year)	$	406,403
2018		-
2019		-
2020		-
2021		-
Thereafter		229,287
Subtotal		635,690
Effect of discount		(85,001	)
Total	$	550,689