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6. Asset Retirement Obligations
 12 Months Ended
Mar. 31, 2015
Asset Retirement Obligation Disclosure [Abstract]  
Asset Retirement Obligations

6. Asset Retirement Obligations

 

The Company’s asset retirement obligations relate to the plugging of wells, the removal of facilities and equipment, and site restoration on oil and gas properties. The fair value of a liability for an ARO is recorded in the period in which it is incurred, discounted to its present value using the credit adjusted risk-free interest rate, and a corresponding amount capitalized by increasing the carrying amount of the related long-lived asset. The liability is accreted each period, and the capitalized cost is depreciated over the useful life of the related asset. The ARO is included on the consolidated balance sheets with the current portion being included in the accounts payable and accrued expenses.

  

The following table provides a rollforward of the asset retirement obligations for fiscal years ended March 31:

  

   2015  2014
Carrying amount of asset retirement obligations as of April 1  $961,577   $813,412 
Liabilities incurred   274,148    134,113 
Liabilities settled   (23,441)   (30,314)
Accretion expense   27,932    44,366 
Carrying amount of asset retirement obligations as of March 31   1,240,216    961,577 
Less: Current portion   10,000    35,000 
Non-Current asset retirement obligation  $1,230,216   $926,577