Properties, Plant and Equipment

3 Months Ended

Mar. 31, 2017

4. Properties, Plant and Equipment

Oil and Gas Properties

The Company accounts for its oil and natural gas exploration and production activities under the successful efforts method of accounting. Oil and gas properties consisted of the following at March 31, 2017 and December 31, 2016:


	March 31,		December 31,
(in thousands of dollars)	2017		2016
Mineral interests in properties
Unproved	$	208,913	$	213,153
Proved		1,071,654		1,054,683
Wells and equipment and related facilities		1,440,949		1,395,291
		2,721,516		2,663,127
Less: Accumulated depletion and impairment		(956,569)		(919,539)
Net oil and gas properties	$	1,764,947	$	1,743,588

There were no exploratory wells drilled during the three months ended March 31, 2017 or 2016. As such, no associated costs were capitalized and no exploratory wells resulted in exploration expense during either period.

The Company did not capitalize any interest during the three months ended March 31, 2017 or 2016 as no projects lasted more than six months. Costs incurred to maintain wells and related equipment are charged to expense as incurred.

Depletion of oil and gas properties amounted to $35.4 million and $41.5 million for the three months ended March 31, 2017 and 2016, respectively.

The Company continues to monitor its proved and unproved properties for impairment. No impairments of proved or unproved properties were recorded during the three months ended March 31, 2017 or 2016.

Other Property, Plant and Equipment

Other property, plant and equipment consisted of the following at March 31, 2017 and December 31, 2016:


	March 31,		December 31,
(in thousands of dollars)	2017		2016
Leasehold improvements	$	1,213	$	1,213
Furniture, fixtures, computers and software		4,361		4,170
Vehicles		1,677		1,677
Aircraft		910		910
Other		284		284
		8,445		8,254
Less: Accumulated depreciation and amortization		(5,525)		(5,258)
Net other property, plant and equipment	$	2,920	$	2,996

Depreciation and amortization of other property, plant and equipment amounted to $0.3 million for each of the three months ended March 31, 2017 and 2016, respectively.