Oil and Gas Properties

6 Months Ended

Jun. 30, 2016

Oil And Gas Property [Abstract]

Oil and Gas Properties

7. Oil and Gas Properties

A summary of oil and gas properties follows:

	June 30, 2016 (unaudited)			December 31, 2015
	(In thousands)
Proved properties and equipment	$	592,259		$	584,692
Unproved properties		73,176			70,298
Less accumulated depreciation, depletion, and amortization		(187,072	)		(166,890	)
	$	478,363		$	488,100

In the second quarter of 2016, the Company recorded impairment of oil and gas properties of $1,938,000, which is included in accumulated depreciation, depletion, and amortization.

During 2016, certain leased acreage was set to expire in Montana as part of the Bakken, Three Forks, and Lower Lodgepole formations (the “Poplar Properties”).  Based on our decision to defer drilling on the Poplar Properties during the three months ended June 30, 2016, we recorded a $1,938,000 impairment charge related to leased acreage expiring during 2016.  This was calculated through the allocation of our current carrying value of the properties across our proportionate share of the acreage.  

If pricing continues to decline, it is reasonably likely that the Company may have to record impairment of its oil and gas properties subsequent to June 30, 2016.