OIL AND NATURAL GAS PROPERTIES

3 Months Ended

Mar. 31, 2020

NOTE 4 - OIL AND NATURAL GAS PROPERTIES

The following table sets forth a summary of oil and natural gas property costs (net of divestitures) at March 31, 2020 and December 31, 2019:



	March 31,			December 31,
	2020			2019
	(In thousands)
Oil and natural gas properties:
Proved	$	484,433		$	478,569
Unproved	86,028			109,590
Total oil and natural gas properties	570,461			588,159
Accumulated depletion, depreciation, amortization and impairment	(362,495		)	(359,304		)
Oil and natural gas properties, net	$	207,966		$	228,855

On February 28, 2020, the Company closed on the sale of approximately 1,185 undeveloped net acres in Lea County, New Mexico, for net cash proceeds of approximately $24.1 million, subject to customary purchase price adjustments.

During the three months ended March 31, 2020 and 2019, $1.3 million and $5.8 million, respectively, of unproved property costs were transferred to proved properties due to the uncertainty that the Company will have access to necessary funding to either extend the leases expiring through the first quarter of 2021 or begin drilling before their expiration dates. The reclassification for the 2019 period was the result of defective titles and lease expirations. During the three months ended March 31, 2020, leases holding 805 net acres in Reeves County and 593 net acres in Winkler County expired which were previously impaired.

Depreciation, depletion and amortization expense related to proved properties was approximately $3.3 million and $8.1 million, respectively for the three months ended March 31, 2020 and 2019.