Annual report pursuant to section 13 and 15(d)

NOTE 8. ASSET RETIREMENT OBLIGATIONS (Tables)

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NOTE 8. ASSET RETIREMENT OBLIGATIONS (Tables)
12 Months Ended
Dec. 31, 2012
Schedule of Assumptions to Determine the Fair Value of Asset Retirement Obligations [Table Text Block]
For the purpose of determining the fair value of ARO incurred during the fiscal years presented, the Company used the following assumptions:

   
December 31, 2012
 
       
Inflation rate
    .6 %
Estimated asset life
 
5 years
 
Credit adjusted risk free interest rate
    12.7 %
Schedule of Asset Retirement Obligations [Table Text Block]
The following table shows the change in the Company's ARO for 2011 and 2012:

Asset retirement obligations at December 31, 2011
  $ -  
         
Obligations assumed in acquisition
    -  
Additional retirement obligations incurred
    51,095  
Change in estimate
    -  
Accretion expense
    1,549  
Settlements
    -  
         
Asset retirement obligations at December 31, 2012
  $ 52,644