Property, Plant, and Equipment (Tables)

3 Months Ended

Mar. 31, 2013

Schedule of Property, Plant, and Equipment

	Estimated Useful Life (Years)	March 31, 2013			December 31, 2012

		($ in thousands)
Oil and Gas Properties:
Unproved oil and gas properties		$	729,793		$	721,853
Less: accumulated valuation allowance			(80,773	)		(78,413	)

			649,020			643,440
Exploratory wells in process			475,750			451,024

Total oil and gas properties, net			1,124,770			1,094,464
Other Property and Equipment:
Computer equipment and software	3		3,202			3,166
Office equipment and furniture	3 - 5		2,128			2,093
Vehicles	3		268			268
Leasehold improvements	3 - 10		2,338			2,298

			7,936			7,825
Less: accumulated depreciation and amortization(1)			(2,992	)		(2,533	)

Total other property and equipment, net			4,944			5,292

Property, plant, and equipment, net		$	1,129,714		$	1,099,756

(1): During the year ended December 31, 2012, the Company wrote off $2.2 million of old computer equipment and leasehold improvements which were fully depreciated and which had no impact on the consolidated statements of operations and consolidated statements of cash flow.

Schedule of net changes in capitalized exploratory well costs

	March 31, 2013			December 31, 2012

	($ in thousands)
Beginning of period	$	451,024		$	178,338
Addition to capitalized exploratory well cost pending determination of proved reserves(1):
U.S. Gulf of Mexico:
Shenandoah #1 Exploratory Well		—			200
Shenandoah #2 Appraisal Well		—			12,716
Shenandoah #2 Replacement Well		13,586			18,271
Shenandoah Vertical Seismic Profile		2,282			—
Heidelberg #1 Exploratory Well		—			(419	)
Heidelberg #3 Appraisal Well		(948	)		8,628
Heidelberg #3 Appraisal Well Side Track		—			4,108
Heidelberg Early Development		7,148			5,941
Ligurian #2 Exploratory Well		—			46,961
North Platte #1 Exploratory Well		3,180			72,559
North Platte #1 By-Pass Core		13,625			7,229
North Platte Early Development		—			2,042
Aegean #1 Exploratory Well pre-spud costs		156			31
Ardennes #1 Exploratory Well		10,508			28
West Africa:
Bicuar #1 Exploratory Well pre-spud costs(2)		—			(3,035	)
Cameia #1 Exploratory Well		—			33,958
Cameia #2 Appraisal Well(3)		(34,215	)		133,328
Cameia #2 Drill Stem Test		65,752			—
Cameia Early Development		3,215			4,058
Mavinga #1 Exploratory Well pre-spud costs		5,317			—
Lontra #1 Exploratory Well pre-spud costs		872			—
Reclassifications to wells, facilities, and equipment based on determination of proved reserves		—			—
Amounts charged to expense(4)		(65,752	)		(73,918	)

End of period	$	475,750		$	451,024

(1): Additions to capitalized exploratory well costs include $1.7 million of capitalized interest costs during the three months ended March 31, 2013.
(2): The amount of $3.0 million represents pre-spud mobilization and insurance costs allocated to the Bicuar #1 pre-salt exploratory well planned as one of two exploratory wells initially scheduled to be drilled offshore Angola. With the success of the Cameia #1 exploratory well, the drilling of the Cameia #2 appraisal well was substituted for the Bicuar #1 pre-salt exploratory well. Hence these costs were reallocated to the Cameia #2 appraisal well.
(3): The amount of $34.2 million represents costs associated with the drill stem test that were allocated to the Cameia #2 appraisal well in 2012 and were reclassified to the Cameia #2 drill stem test during the three months ended March 31, 2013.
(4): The amount of $65.8 million for the three months ended March 31, 2013 represents impairment charges related to the lowest drilled interval evaluated by the Cameia #2 drill stem test, which failed to flow measurable hydrocarbons. The Company expects to write off an additional $10 to $15 million after March 31, 2013 related to the Cameia #2 drill stem test. The amount of $73.9 million for the year ended December 31, 2012 represents impairment charges on exploratory wells, including $4.1 million for the Heidelberg #3 sidetrack well, $8.1 million for the Ligurian #1 exploratory well, $49.0 million for the Ligurian #2 exploratory well and $12.7 million for the Shenandoah #2 appraisal well.

Schedule of cumulative costs of capitalized exploratory well costs

		March 31, 2013		December 31, 2012

		($ in thousands)
Cumulative costs:
U.S. Gulf of Mexico
Shenandoah #1 Exploratory Well	2008	$	69,668	$	69,668
Shenandoah #2 Replacement Well	2012		31,857		18,272
Shenandoah Vertical Seismic Profile	2013		2,282		—
Heidelberg #1 Exploratory Well	2008		19,821		19,822
Heidelberg #3 Appraisal Well	2011		11,736		12,683
Heidelberg Early Development	2012		13,090		5,941
North Platte #1 Exploratory Well	2012		75,738		72,559
North Platte #1 By-Pass Core	2012		20,854		7,229
North Platte Early Development	2012		2,042		2,042
Aegean #1 Exploratory Well pre-spud costs	2012		187		31
Ardennes #1 Exploratory Well	2012		10,537		28
West Africa:
Cameia #1 Exploratory Well	2011		105,363		105,363
Cameia #2 Appraisal Well	2012		99,188		133,328
Cameia Early Development	2012		7,198		4,058
Mavinga #1 Exploratory Well pre-spud costs	2012		5,317		—
Lontra #1 Exploratory Well pre-spud costs	2013		872		—

		$	475,750	$	451,024

Exploratory Well costs capitalized for a period greater than one year after completion of drilling (included in table above)		$	238,445	$	194,853

- Definition

Tabular disclosure of the useful life and salvage value of long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software.

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- Definition

Tabular disclosure of the amount of exploratory well costs that have been capitalized after the completion of drilling and the number of projects for which those costs relate. Additionally, for exploratory well costs that have been capitalized for periods greater than one year at the most recent balance sheet date, this block of text may be used to disclose an aging of those amounts by year, or by using a range of years, and the number of projects to which those costs relate.

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