XML 77 R16.htm IDEA: XBRL DOCUMENT
v2.4.1.9

PROPERTY AND EQUIPMENT AND ASSET RETIREMENT OBLIGATION | 12 Months Ended
--- | ---
Sep. 30, 2014
PROPERTY AND EQUIPMENT AND ASSET RETIREMENT OBLIGATION |
PROPERTY AND EQUIPMENT AND ASSET RETIREMENT OBLIGATION | 7.PROPERTY AND EQUIPMENT AND ASSET RETIREMENT OBLIGATION Barnwell’s property and equipment is detailed as follows:
|  |  |  |  |  | Accumulated |  |  |
|  |  |  |  |  | Depletion, |  |  |
|  | Estimated |  | Gross |  | Depreciation, |  | Net |
|  | Useful |  | Property and |  | and |  | Property and |
|  | Lives |  | Equipment |  | Amortization |  | Equipment |
At September 30, 2014: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Land |  |  |  |  | $ | 863,000 |  |  |  | $ | - |  |  |  | $ | 863,000 |  |
Oil and natural gas properties |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
(full cost accounting) |  |  |  |  | 209,702,000 |  |  |  | (191,478,000 | ) |  |  | 18,224,000 |  |
Drilling rigs and equipment |  | 3 – 10 years |  |  | 6,759,000 |  |  |  | (5,754,000 | ) |  |  | 1,005,000 |  |
Offices |  | 40 years |  |  | 2,420,000 |  |  |  | (384,000 | ) |  |  | 2,036,000 |  |
Other property and equipment |  | 3 – 17 years |  |  | 3,279,000 |  |  |  | (3,057,000 | ) |  |  | 222,000 |  |
Total |  |  |  |  | $ | 223,023,000 |  |  |  | $ | (200,673,000 | ) |  |  | $ | 22,350,000 |  |
|  |  |  |  |  | Accumulated |  |  |
|  |  |  |  |  | Depletion, |  |  |
|  | Estimated |  | Gross |  | Depreciation, |  | Net |
|  | Useful |  | Property and |  | and |  | Property and |
|  | Lives |  | Equipment |  | Amortization |  | Equipment |
At September 30, 2013: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Land |  |  |  |  | $ | 863,000 |  |  |  | $ | - |  |  |  | $ | 863,000 |  |
Oil and natural gas properties |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
(full cost accounting) |  |  |  |  | 239,243,000 |  |  |  | (202,400,000 | ) |  |  | 36,843,000 |  |
Drilling rigs and equipment |  | 3 – 10 years |  |  | 6,758,000 |  |  |  | (5,513,000 | ) |  |  | 1,245,000 |  |
Offices |  | 40 years |  |  | 2,420,000 |  |  |  | (324,000 | ) |  |  | 2,096,000 |  |
Other property and equipment |  | 3 – 17 years |  |  | 3,588,000 |  |  |  | (3,329,000 | ) |  |  | 259,000 |  |
Total |  |  |  |  | $ | 252,872,000 |  |  |  | $ | (211,566,000 | ) |  |  | $ | 41,306,000 |  |
See Note 18 for discussion of divestitures of oil and natural gas properties in fiscal 2014 and the reduction of carrying value of oil and gas properties recognized in fiscal 2013. Barnwell recognizes the fair value of a liability for an asset retirement obligation in the period in which it is incurred if a reasonable estimate of fair value can be made. The following is a reconciliation of the asset retirement obligation:
|  | Year ended September 30, |
|  | 2014 |  | 2013 |
Asset retirement obligation as of beginning of year |  |  | $ | 7,520,000 |  |  |  | $ | 5,629,000 |  |
Obligations incurred on new wells drilled |  |  | 105,000 |  |  |  | 61,000 |  |
Liabilities associated with properties sold |  |  | (718,000 | ) |  |  | - |  |
Revision of estimated obligation |  |  | 2,437,000 |  |  |  | 1,783,000 |  |
Accretion expense |  |  | 624,000 |  |  |  | 499,000 |  |
Payments |  |  | (111,000 | ) |  |  | (222,000 | ) |
Foreign currency translation adjustment |  |  | (694,000 | ) |  |  | (230,000 | ) |
Asset retirement obligation as of end of year |  |  | 9,163,000 |  |  |  | 7,520,000 |  |
Less current portion |  |  | (978,000 | ) |  |  | - |  |
Asset retirement obligation, long-term |  |  | $ | 8,185,000 |  |  |  | $ | 7,520,000 |  |
Barnwell recognized an additional $2,437,000 and $1,783,000 of abandonment and reclamation capitalized costs and liabilities in fiscal 2014 and 2013, respectively, for upward revisions to prior year estimates of costs as a result of the receipt of new and more specific information regarding costs to abandon wells similar to Barnwell’s. Additionally, in the current year, a portion of the revision in estimate was related to the Inactive Well Compliance Program, which was introduced by the Alberta Energy Regulator in July 2014, which will accelerate expenditures to suspend and/or abandon long-term inactive wells.

X
- Details
Name: | brn_PropertyAndEquipmentAndAssetRetirementObligationDisclosureAbstract
Namespace Prefix: | brn_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Represents the entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale and includes the disclosure for an asset retirement obligation. + References No definition available. + Details
Name: | brn_PropertyAndEquipmentAndAssetRetirementObligationDisclosureTextBlock
Namespace Prefix: | brn_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration