ASSET RETIREMENT OBLIGATIONS

12 Months Ended

Dec. 31, 2022

Asset Retirement Obligation Disclosure [Abstract]

ASSET RETIREMENT OBLIGATIONS [Text Block]

6. ASSET RETIREMENT OBLIGATIONS

		2022			2021
Balance as at January 1	$	431,704		$	219,937
Liabilities incurred and acquired		89,636			121,553
Liabilities settled		(127,862	)		(29,913	)
Revision of estimates		20,844			95,918
Accretion expense		43,756			24,209
Balance as at December 31	$	458,078		$	431,704

The total future AROs were estimated based on the Company's net ownership interest in petroleum and natural gas assets including well sites, the estimated costs to abandon and reclaim the petroleum and natural gas assets and the estimated timing of the costs to be incurred in future periods.

As at December 31, 2022, the Company estimated the total undiscounted amount of cash flows required to settle its ARO to be approximately $2,634,225 (December 31, 2021 – $ 1,340,178) which will be incurred between 2023 and 2054. As at December 31, 2022, a weighted average credit-adjusted risk-free interest rate of 10.32% (December 31, 2021 – 9.73%) and an inflation rate of 2.28% (December 31, 2021 – 2.42%) were used to calculate the ARO.

The Company has no assets that are legally restricted for purposes of settling AROs.