13. ASSET RETIREMENT OBLIGATION

12 Months Ended

Dec. 31, 2015

Asset Retirement Obligation Disclosure [Abstract]

13. ASSET RETIREMENT OBLIGATION

During 2013, the Company began the re-work project on various well associated with the Ownbey Oil and Gas Lease purchased on December 31, 2012. The Company will be required as part of the purchase of this lease to remediate the Ownbey property upon it’s abandonment of the lease. In accordance with FASB ASC 410-20, Asset Retirement Obligations, the Company recognized the fair value of the liability for an asset retirement obligation in the amount of $101,250. Because the Company does not have a certified valuation report for the Ownbey lease we have not capitalized this cost, but instead have expensed the entire amount during the 2013 year. The following table describes all changes to the Company’s asset retirement obligation liability during 2015:

	December 31,
	2015		2014
Asset retirement obligation-beginning of year	$	101,250	$	101,250
Liabilities incurred		-		-
Accretion expense		-		-
Revisions in estimated cash flows		-		-
Asset retirement obligation-end of year	$	101,250	$	101,250