| 10. | Asset Retirement Obligations |
During the years ended December 31, 2013 and 2012, the Company recorded initial, estimated asset retirement obligations totaling approximately $569,000 and $403,000, respectively, in connection with wells that were drilled and completed during the period. The asset retirement obligations represent the discounted future plugging and abandonment costs for operated and non-operated wells located within its Spyglass Area and Hardy Property. As of December 31, 2013 and 2012, the consolidated discounted value of the Company’s asset retirement obligations was approximately $1.1 million and $442,000, respectively. The projected plugging dates for wells in which the Company owns a working interest ranges from December 31, 2015 to December 31, 2032.
