Asset Retirement Obligations

6 Months Ended

Sep. 30, 2013

Asset Retirement Obligation Disclosure [Abstract]

Asset Retirement Obligations

3.  Asset Retirement Obligations

The Company’s asset retirement obligations (“ARO”) relate to the plugging of wells, the removal of facilities and equipment, and site restoration on oil and gas properties.  The fair value of a liability for an ARO is recorded in the period in which it is incurred, discounted to its present value using the credit adjusted risk-free interest rate, and a corresponding amount capitalized by increasing the carrying amount of the related long-lived asset.  The liability is accreted each period, and the capitalized cost is depreciated over the useful life of the related asset.

The following table provides a rollforward of the AROs for the first six months of fiscal 2014:

Carrying amount of asset retirement obligations as of April 1, 2013	$	813,412
Liabilities incurred		10,672
Liabilities settled		(818	)
Accretion expense		21,937
Carrying amount of asset retirement obligations as of September 30, 2013		845,203
Less: Current portion		50,000
Non-Current asset retirement obligation	$	795,203

The ARO is included in the Consolidated Balance Sheets with the current portion being included in the accounts payable and other accrued expenses.