Asset Retirement Obligations

6 Months Ended

Jun. 30, 2013

Asset Retirement Obligations [Abstract]

NOTE 6 – ASSET RETIREMENT OBLIGATIONS

We record the estimated asset retirement obligation (“ARO”) as a liability on our consolidated balance sheet and capitalize the cost in the “Oil and natural gas properties, using the full cost method of accounting” balance sheet caption during the period in which the obligation is incurred. We record the accretion of our ARO liabilities in “Accretion of asset retirement obligations” in our consolidated statements of operations. Payments to settle asset retirement obligations occur over the lives of the oil and natural gas properties.

Changes in our asset retirement obligations for the six months ended June 30, 2013 are presented in the following table:



		Six Months Ended
		June 30, 2013
Beginning of period	$	126,991
Revisions to previous estimates		2,494
Liabilities incurred		162
Liabilities settled		(3,000)
Accretion expense		3,490
End of period	$	130,137
Less: Current portion of asset retirement obligations		(1,562)
Asset retirement obligations - non-current	$	128,575