Asset Retirement Obligations

3 Months Ended

Mar. 31, 2014

Asset Retirement Obligations [Abstract]

NOTE 7 – 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” or “Other property, plant and equipment” balance sheet captions 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 and other property, plant and equipment.

Changes in our asset retirement obligations for the three months ended March 31, 2014 are presented in the following table:



		Three Months Ended
		March 31, 2014
Beginning of period	$	155,321
Assumed in acquisition		772
Revisions to previous estimates		334
Liabilities incurred		113
Liabilities settled		(404)
Accretion expense		2,134
End of period	$	158,270
Less: Current portion of asset retirement obligations		(4,461)
Asset retirement obligations - non-current	$	153,809