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ASSET RETIREMENT OBLIGATION
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6 Months Ended | ||||||||||||||||||||||||
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Jun. 30, 2014
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NOTE 5 ASSET RETIREMENT OBLIGATION
The Company provides for the obligation to plug and abandon oil and gas wells at the dates properties are either acquired or the wells are drilled. The asset retirement obligation is adjusted each quarter for any liabilities incurred or settled during the period, accretion expense and any revisions made to the estimated cash flows. The asset retirement obligation incurred upon each of the acquisitions or at the time of drilling was computed using the annual credit-adjusted risk-free discount rate at the applicable dates, which rates ranged from 4.65% to 7.09% per annum. Changes in the asset retirement obligation were as follows:
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