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NOTE 8. ASSET RETIREMENT OBLIGATIONS
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12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2012
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| Asset Retirement Obligation Disclosure [Text Block] |
NOTE
8. ASSET RETIREMENT OBLIGATIONS
During
the fiscal years presented, the Company brought a number of
oil and gas wells into productive status and will have
asset retirement obligations once the wells are permanently
removed from service. The primary obligations involve the
removal and disposal of surface equipment, plugging and
abandoning the wells, and site restoration. For the purpose
of determining the fair value of ARO incurred during the
fiscal years presented, the Company used the following
assumptions:
The
following table shows the change in the Company's ARO for
2011 and 2012:
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