Annual report pursuant to Section 13 and 15(d)

Asset Retirement Obligations (Tables)

v3.21.1
Asset Retirement Obligations (Tables)
 12 Months Ended
Dec. 31, 2019
Asset Retirement Obligation Disclosure [Abstract]  
Schedule of Measurement of Fair Value Liability

Revisions to estimated AROs can result from changes in retirement cost estimates, revisions to estimated discount rates and changes in the estimated timing of abandonment.

 

December 31, 2019   Level 1     Level 2     Level 3     Total  
Derivative liabilities     —       —       24,509       24,509  
ARO liabilities     —       —       1,723,364       1,723,364  
                                 
December 31, 2018                                
Derivative liabilities     —       —       37,013       37,013  
ARO liabilities     —       —       1,509,622       1,509,622  
Schedule of Fair value of Asset Retirement Obligations

For the purpose of determining the fair value of AROs incurred during the years presented, the Company used the following assumptions:

 

      December 31, 2019  
Inflation rate     1.92 - 2.15 %
Estimated asset life     12 - 22 years  
Schedule of Asset Retirement Obligations

The following table shows the change in the Company’s ARO liability for the years ended December 31, 2019 and 2018:

 

    Canadian properties     United States properties     Total  
Asset retirement obligations, December 31, 2017   $ —     $ 473,868     $ 473,868  
Additions     1,313,982       —       1,313,982  
Accretion expense     4,353       23,618       23,618  
Disposition     —       (246,263 )     (246,263 )
Foreign currency translation     (59,936 )     —       (59,936 )
Asset retirement obligations, December 31, 2018     1,258,399       251,223       1,509,622  
Additions     —       —       —  
Accretion expense     123,474       26,150       149,624  
Disposition     —       —       —  
Foreign currency translation     64,118       —       64,118  
Asset retirement obligations, December 31, 2019   $ 1,445,991     $ 277,373     $ 1,723,364