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Asset Retirement Obligations
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9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2012
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| Asset Retirement Obligation Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||
| Asset Retirement Obligation Disclosure Text Block |
Asset Retirement Obligations
The estimated valuation 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 $174 thousand and $488 thousand for the three and nine months March 31, 2012, respectively.
The following table summarizes the asset retirement obligation activity for the nine months ended:
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