Quarterly report pursuant to Section 13 or 15(d)

Asset Retirement Obligations (Tables)

Asset Retirement Obligations (Tables)

9 Months Ended

Sep. 30, 2020

Asset Retirement Obligation Disclosure [Abstract]

Schedule of Fair value of Asset Retirement Obligations

The Company’s ARO is measured using primarily Level 3 inputs. The significant unobservable inputs to this fair value measurement include estimates of plugging costs, remediation costs, inflation rate and well life. The inputs are calculated based on historical data as well as current estimated costs. For the Canadian properties, abandonment and reclamation liabilities are prescribed by the province in which the Company operates in. For the purpose of determining the fair value of AROs incurred during the years presented, the Company used the following assumptions:

	September 30, 2020
Inflation rate	1.92 - 2.15	%
Estimated asset life	15 - 21 years

Schedule of Asset Retirement Obligations

The following table shows the change in the Company’s ARO liability:

	Canadian properties			United States properties		Total
Asset retirement obligations, December 31, 2018	$	1,258,399		$	251,223	$	1,509,622
Accretion expense		123,474			26,150		149,624
Foreign currency translation		64,118			—		64,118
Asset retirement obligations, December 31, 2019		1,445,991			277,373		1,723,364
Acquisition of Canadian property - Utikuma		906,146					906,146
Accretion expense		177,839			21,253		199,092
Foreign currency translation		(16,733	)		—		(16,733	)
Asset retirement obligations, September 30, 2020	$	2,388,292		$	291,453	$	2,811,869