Asset Retirement Obligations

12 Months Ended

Mar. 31, 2014

Asset Retirement Obligation Disclosure [Abstract]

Asset Retirement Obligations

6.  Asset Retirement Obligations

The Company's asset retirement obligations 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 ARO is included on the consolidated balance sheets with the current portion being included in the accounts payable and accrued expenses.

The following table provides a rollforward of the asset retirement obligations for fiscal years ended March 31:

	2014			2013
Carrying amount of asset retirement obligations as of April 1	$	813,412		$	663,279
Liabilities incurred		134,113			114,003
Liabilities settled		(30,314	)		(3,246	)
Accretion expense		44,366			39,376
Carrying amount of asset retirement obligations as of March 31		961,577			813,412
Less: Current portion		35,000			50,000
Non-Current asset retirement obligation	$	926,577		$	763,412