OIL AND GAS PROPERTIES

3 Months Ended

Mar. 31, 2020

NOTE 2 — OIL AND GAS PROPERTIES

Net capitalized costs related to the Company’s oil and gas producing activities at March 31, 2020 and December 31, 2019 are as follows (in thousands):


	March 31,		December 31,
	2020		2019
Oil and gas properties, successful efforts method:
Unproved	$	24,984	$	25,037
Proved		1,104,879		1,090,774
Work in progress		15,372		7,097
		1,145,235		1,122,908
Accumulated depletion, depreciation and amortization		(403,500)		(379,961)
Oil and gas properties, net	$	741,735	$	742,947

Capitalized Interest

The Company capitalized interest of $0.2 million and $0.6 million for the three months ended March 31, 2020 and 2019, respectively.

Impairment

The Company identified an impairment triggering event for its proved oil and gas properties as of March 31, 2020 due to the significant decrease in oil and gas prices during period. As such, the Company performed a quantitative assessment as of March 31, 2020, and the estimated undiscounted cash flows from its proved properties exceeded the carrying value of its proved oil and gas properties and therefore no impairment expense was recorded.

During the three months ended March 31, 2019, the Company recorded impairment expense of $3.3 million related to assets held for sale. The Company’s Dimmit County, Texas, oil and gas properties, were classified as held for sale at March 31, 2019, and were divested in October 2019.