Asset Retirement Obligations

6 Months Ended

Dec. 31, 2021

Asset Retirement Obligation Disclosure [Abstract]

The Company’s asset retirement obligations represent the estimated present value of the amount expected to incur to plug, abandon, and remediate its oil and natural gas assets at the end of their productive lives in accordance with applicable laws and regulations. Currently, the Company does not expect any wells to be plugged for the remainder of the fiscal year ended June 30, 2022 at its Delhi or Barnett Shale assets. The Company expects to incur costs for one well to be plugged at Hamilton Dome prior to the fiscal year end. The following is a reconciliation of the beginning and ending asset retirement obligations for the six months ended December 31, 2021 and for the year ended June 30, 2021:


	December 31, 2021		June 30, 2021
Asset retirement obligations — beginning of period	$	5,583,272	$	2,588,894
Liabilities incurred	—		—
Liabilities settled	—		(99,231)		(a)
Liabilities acquired	—		2,806,331		(b)
Accretion of discount	203,559		210,182
Revision of previous estimates	—		77,096		(c)
Asset retirement obligations — end of period	$	5,786,831	$	5,583,272
Less: current asset retirement obligations	22,264		44,520
Long-term portion of asset retirement obligations	$	5,764,567	$	5,538,752

(a) Abandonment of two non-scheduled Delhi field wells in fiscal 2021.

(b) Liabilities acquired in fiscal 2021 were primarily due to the acquisition of the Barnett Shale assets.