The table below summarizes the activity for the Company’s ARO:
|
|
|
|
|
|
Six Months Ended |
|
June 30, 2019 |
Asset retirement obligations at January 1, 2019 |
$ |
14,292 |
|
Accretion expense |
457 |
|
Liabilities incurred |
199 |
|
Liabilities settled |
(630 |
) |
Dispositions |
(1,701 |
) |
Revisions to estimate |
(199 |
) |
Asset retirement obligations at end of period |
12,418 |
|
Less: Current asset retirement obligations |
(3,103 |
) |
Long-term asset retirement obligations at June 30, 2019 |
$ |
9,315 |
|
|
|
• |
Liabilities incurred include additions from acquisitions, asset swaps, and new wells drilled during the year.
|
|
|
• |
Liabilities settled include the retirement of 20 wells during the year.
|
|
|
• |
Dispositions are primarily attributable to the Ranger Asset Divestiture in the second quarter of 2019. See Note 3 for details about the Ranger Asset Divestiture.
|
•
Revisions to estimates were due to changes in plugging cost estimates, timing of abandonment activities, and changes in working interest of producing wells.
|