Asset Retirement Obligations

12 Months Ended

Dec. 31, 2017

Asset Retirement Obligation Disclosure [Abstract]

7. Asset Retirement Obligations

Pursuant to ASC 410, Asset Retirement Obligations, the Company recognizes the fair value of its asset retirement obligations related to the plugging, abandonment, and remediation of oil and gas producing properties. The present value of the estimated asset retirement costs has been capitalized as part of the carrying amount of the related long-lived assets, which approximated $5.3 million as of December 31, 2017.

The liability has been accreted to its present value as of December 31, 2017. The Company evaluated its wells and has determined a range of abandonment dates through December 2066.

The following represents a reconciliation of the asset retirement obligations:

	Year Ended December 31,
In thousands	2017			2016
Asset retirement obligations at beginning of period	$	2,683		$	7,488
Wells drilled during the year		220			154
Wells acquired during the year		2,797			28
Wells sold during the year		—			(4,780	)
Accretion of discount		139			180
Revisions of previous estimates (1)		(190	)		(205	)
Wells plugged and abandoned during the year		—			(182	)
Asset retirement obligations at end of period	$	5,649		$	2,683

(1)

Revisions of previous estimates during the year ended December 31, 2017 are primarily attributable to changes in estimates of the timing of future costs for oilfield services required to plug and abandon wells.