Quarterly report pursuant to Section 13 or 15(d)

Asset Retirement Obligations

Asset Retirement Obligations
9 Months Ended
Sep. 30, 2018
Asset Retirement Obligation Disclosure [Abstract]  
Asset Retirement Obligations

6.  Asset Retirement Obligations

Our ARO primarily represents the estimated present value of the amount we will incur to plug, abandon and remediate our producing properties at the end of their productive lives.  

A summary of the changes to our ARO is as follows (in thousands):  


Balance, December 31, 2017




Liabilities settled




Accretion of discount




Liabilities assumed through purchase




Revisions of estimated liabilities (1)




Balance, September 30, 2018




Less current portion











Upward revisions were primarily related to a non-operated field covering multiple wells, which experienced difficulties during the remediation process coupled with scope change due to the size of its platform.  In addition, another non-operated field experienced difficulties with a sub-contractor that had gone bankrupt and a replacement sub-contractor is attempting to re-negotiate the contract.  We do not have control over the remediation projects for non-operated properties.  Along with these two non-operated fields, we had upward revisions at two fields that were operated by us which experienced sustained casing pressure issues during the remediation process.