ASSET RETIREMENT OBLIGATIONS

3 Months Ended

Jun. 30, 2024

NOTE 4 – ASSET RETIREMENT OBLIGATIONS

The Company has asset retirement obligations for any wells that are permanently removed from service. The primary obligations involve the removal and disposal of surface equipment, plugging and abandoning the wells and site restoration. For the purpose of determining the fair value of ARO incurred during the fiscal year ended March 31, 2016, the Company used the following assumptions.

Inflation Rate		3	%
Estimated asset life	20 years
Credit adjusted risk free interest rate		18	%

As at March 31, 2016, the Company determined to fully impair its shut in wells given a lack of production over a period in excess of two years, and the uncertainty in returning the wells to production in the future. As a result, the Company has recorded a long term liability equal to the full value of the ARO.

As of June 30, 2024 and March 31, 2024, a total of $83,580 is recorded as asset retirement obligations, respectively

PetroGas Co 10-Q