Quarterly report pursuant to Section 13 or 15(d)

Asset Retirement Obligations

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Asset Retirement Obligations
 6 Months Ended
Dec. 31, 2011
Asset Retirement Obligation Disclosure [Abstract]  
Asset Retirement Obligation Disclosure Text Block

Note 12 Asset Retirement Obligations

The fair values of asset retirement obligations ("AROs") are based on management's historical experience and best estimate of plugging and abandonment costs by field. Assumptions and judgments by management include determination of the existence of a legal obligation for an ARO, estimated probabilities, amounts and timing of settlements, the credit-adjusted risk-free rate to be used and inflation rates. Accretion expense is recorded under depletion, depreciation, amortization and accretion in the condensed consolidated statement of operations and was $156,865 and $314,479 for the three and six months December 31, 2011, respectively.

                December 31, 2011      
Balance at June 30, 2011               $ 11,397,410      
Liabilities assumed                 58,776      
Liabilities incurred                 315,066      
Accretion expense                 314,479      
Reclassification to liabilities related to assets held for sale (Note 6)                 (6,550,129)      
Exchange effect                 (360,021)      
Balance at December 31, 2011               $ 5,175,581