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3. Asset Retirement Obligations
 9 Months Ended
Dec. 31, 2014
Asset Retirement Obligation Disclosure [Abstract]  
Asset Retirement Obligations

The Company’s asset retirement obligations (“ARO”) 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 following table provides a rollforward of the AROs for the first nine months of fiscal 2015:

 

Carrying amount of asset retirement obligations as of April 1, 2014 $       961,577
Liabilities incurred 270,924
Liabilities settled (23,026)
Accretion expense 17,663
Carrying amount of asset retirement obligations as of December 31, 2014 1,227,138
Less: Current portion 10,000
Non-Current asset retirement obligation $    1,217,138

 

The ARO is included on the consolidated balance sheets with the current portion being included in the accounts payable and other accrued expenses.