- Definition

The capitalized costs incurred during the period (excluded from amortization) in identifying areas that may warrant examination and in examining specific areas that are considered to have prospects of containing oil and gas reserves, including costs of drilling exploratory wells and exploratory-type stratigraphic test wells. Exploration costs may be incurred both before acquiring the related property (sometimes referred to in part as prospecting costs) and after acquiring the property. Principal types of exploration costs, which include depreciation and applicable operating costs of support equipment and facilities and other costs of exploration activities, are: costs of topographical, geographical and geophysical studies, rights of access to properties to conduct those studies, and salaries and other expenses of geologists, geophysical crews, and others conducting those studies. Collectively, these are sometimes referred to as geological and geophysical or "G&G" costs. Exploration costs also include costs of carrying and retaining undeveloped properties, such as delay rentals, ad valorem taxes on properties, legal costs for title defense, the maintenance of land and lease records, dry hole contributions and bottom hole contributions, costs of drilling and equipping exploratory wells and costs of drilling exploratory-type stratigraphic test wells.

+ References + Details

CRUDE OIL AND NATURAL GAS PROPERTIES - Costs Incurred in Crude Oil and Natural Gas Activities (Details) - USD ($)	3 Months Ended			6 Months Ended	9 Months Ended	12 Months Ended
	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Jun. 30, 2017	Sep. 30, 2017	Dec. 31, 2017	Dec. 31, 2016
CRUDE OIL AND NATURAL GAS PROPERTIES
Exploration costs						$ 61,693	$ 2,700
Development costs						18,771,794	3,038,339
Acquisition of properties:
Proved							3,630,195
Unproved						4,049,380	4,045,022
Total						22,882,867	10,716,256
Depletion, depreciation and amortization	$ 836,673	$ 1,102,332	$ 330,912	$ 1,433,245	$ 2,269,918	$ 2,836,891	$ 65,033