Quarterly report pursuant to Section 13 or 15(d)

ASSET RETIREMENT OBLIGATION

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ASSET RETIREMENT OBLIGATION
3 Months Ended
Mar. 31, 2022
ASSET RETIREMENT OBLIGATION.  
ASSET RETIREMENT OBLIGATION

NOTE 9 – ASSET RETIREMENT OBLIGATION

The Company records 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 costs or timing estimates. The asset retirement obligation is incurred using an annual credit-adjusted risk-free discount rate at the applicable dates. Changes in the asset retirement obligation were as follows:

Balance, December 31, 2021

    

$

15,292,054

Liabilities incurred

 

44,458

Accretion expense

 

188,243

Balance, March 31, 2022

$

15,524,755