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SUPPLEMENTAL OIL AND GAS INFORMATION (UNAUDITED) (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of costs incurred in crude oil and natural gas acquisition, exploration and development activities

Capitalized costs are summarized as follows for the years ended December 31, 2019, 2018 and 2017, respectively:


	December 31,
(In thousands)	2019		2018		2017
Capitalized Certain Payroll and Other Internal Costs	$	995	$	882	$	930
Capitalized Interest Costs	644		147		148
Total	$	1,638	$	1,029	$	1,078

The costs incurred in crude oil and natural gas acquisition, exploration and development activities are highlighted in the table below.


	December 31,
(In thousands)	2019		2018		2017
Costs Incurred for the Year:
Proved Property Acquisition and Other	$	375,145	$	582,697	$	15,722
Unproved Property Acquisition	9,540		4,903		717
Development	369,233		260,945		139,532
Total	$	753,918	$	848,545	$	155,971

The Company is unable to predict the future impact on depletion rates. The following is a summary of capitalized costs excluded from depletion at December 31, 2019 by year incurred.


	December 31,
(In thousands)	2019		2018		2017		Prior Years
Property Acquisition	$	6,594	$	3,497	$	75	$	881
Development	—		—		—		—
Total	$	6,594	$	3,497	$	75	$	881

Schedule of estimates of its proved crude oil and natural gas reserves

The following tables present the Company’s independent petroleum consultants’ estimates of its proved crude oil and natural gas reserves. The Company emphasizes that reserves are approximations and are expected to change as additional information becomes available. Reservoir engineering is a subjective process of estimating underground accumulations of crude oil and natural gas that cannot be measured in an exact way, and the accuracy of any reserve estimate is a function of the quality of available data and of engineering and geological interpretation and judgment.


(In thousands)	Natural Gas (MCF)	Oil (BBLS)	BOE







Proved Developed and Undeveloped Reserves at December 31, 2016	46,832	46,275	54,081

Revisions of Previous Estimates	8,839	890	2,363
Extensions, Discoveries and Other Additions	27,637	20,184	24,791

Production	(5,188)	(4,537)	(5,402)

Proved Developed and Undeveloped Reserves at December 31, 2017	78,121	62,812	75,832

Revisions of Previous Estimates	426	3,470	3,541
Extensions, Discoveries and Other Additions	28,348	28,516	33,241
Purchases of Minerals in Place	37,397	25,965	32,198
Production	(9,225)	(7,790)	(9,328)

Proved Developed and Undeveloped Reserves at December 31, 2018	135,066	112,973	135,484

Revisions of Previous Estimates	(5,146)	(15,497)	(16,355)
Extensions, Discoveries and Other Additions	22,019	19,992	23,662
Purchases of Minerals in Place	53,969	25,611	34,606
Production	(16,591)	(11,325)	(14,091)

Proved Developed and Undeveloped Reserves at December 31, 2019	189,318	131,754	163,307

Proved Developed Reserves:
December 31, 2016	32,808	32,245	37,713
December 31, 2017	46,518	38,593	46,346
December 31, 2018	82,315	62,497	76,216
December 31, 2019	116,846	77,160	96,634
Proved Undeveloped Reserves:
December 31, 2016	14,024	14,030	16,368
December 31, 2017	31,603	24,220	29,487
December 31, 2018	52,752	50,476	59,268
December 31, 2019	72,473	54,594	66,673

Summary of standardized measure of discounted future net cash flows

The following table presents a standardized measure of discounted future net cash flows relating to proved crude oil and natural gas reserves and the changes in standardized measure of discounted future net cash flows relating to proved crude oil and natural gas were prepared in accordance with the provisions of ASC 932 Extractive Activities - Oil and Gas. Future cash inflows were computed by applying average prices of crude oil and natural gas for the last 12 months to estimated future production. Future production and development costs were computed by estimating the expenditures to be incurred in developing and producing the proved crude oil and natural gas reserves at the end of the year, based on year end costs and assuming continuation of existing economic conditions. Future income tax expenses were calculated by applying appropriate year end tax rates to future pretax cash flows relating to proved crude oil and natural gas reserves, less the tax basis of properties involved and tax credits and loss carry forwards relating to crude oil and natural gas producing activities. Future net cash flows are discounted at the rate of 10% annually to derive the standardized measure of discounted future cash flows. Actual future cash inflows may vary considerably, and the standardized measure does not necessarily represent the fair value of the Company’s crude oil and natural gas reserves.


	December 31,
(In thousands)	2019		2018		2017
Future Cash Inflows	$	7,059,586	$	7,524,587	$	3,143,604
Future Production Costs	(2,868,762)		(2,605,279)		(1,265,525)
Future Development Costs	(855,041)		(784,615)		(409,360)
Future Income Tax Expense	(320,528)		(611,989)		(27,476)
Future Net Cash Inflows	$	3,015,255	$	3,522,704	$	1,441,243

10% Annual Discount for Estimated Timing of Cash Flows	(1,337,194)		(1,643,061)		(687,257)

Standardized Measure of Discounted Future Net Cash Flows	$	1,678,061	$	1,879,643	$	753,986

Prices for reserve estimates

The prices for the Company’s reserve estimates were as follows:


	Natural Gas MCF		Oil Bbl
December 31, 2019	$	2.12	$	50.53
December 31, 2018	$	4.50	$	61.23
December 31, 2017	$	3.34	$	45.90

Changes in the Standardized Measure of Discounted Future Net Cash Flows at 10%

Changes in the Standardized Measure of Discounted Future Net Cash Flows at 10% per annum follow:


	December 31,
(In thousands)	2019		2018		2017
Beginning of Period	$	1,879,643	$	753,986	$	379,026
Sales of Oil and Natural Gas Produced, Net of Production Costs	(424,548)		(381,961)		(153,626)
Extensions and Discoveries	282,528		549,353		217,146
Previously Estimated Development Cost Incurred During the Period	100,987		115,542		46,834
Net Change of Prices and Production Costs	(680,119)		484,122		216,217
Change in Future Development Costs	(174,729)		(91,829)		(34,753)
Revisions of Quantity and Timing Estimates	(226,721)		66,185		28,915
Accretion of Discount	218,023		75,800		37,942
Change in Income Taxes	156,621		(296,571)		(3,617)
Purchases of Minerals in Place	338,289		502,193		—
Other	208,087		102,823		19,902
End of Period	$	1,678,061	$	1,879,643	$	753,986

- Definition

Tabular disclosure of the net quantities of an enterprise's interests in proved developed and undeveloped reserves of (a) crude oil (including condensate and natural gas liquids), (b) natural gas (including coal bed methane), (c) synthetic oil, (d) synthetic gas, and (e) other nonrenewable natural resources that are intended to be upgraded during the period as of the beginning of the period, changes in quantities during the period, and as of the end of the period.

+ References + Details

- Definition

Tabular disclosure of the future net cash flows relating to proved oil and gas reserves and oil and gas subject to purchase under long-term agreements in which the enterprise participates in the operation of the properties on which the oil and gas is located or otherwise serves as the producer. This information is presented in aggregate and for each geographic area for which reserve quantities are disclosed.

+ References + Details