Oil and Gas Properties

6 Months Ended

Jun. 30, 2017

7. Oil and Gas Properties

A summary of oil and gas properties is as follows:

	June 30, 2017 (Unaudited)			December 31, 2016
	(In thousands)
Proved properties and equipment	$	654,074		$	538,695
Unproved properties		114,848			72,584
Less accumulated depreciation, depletion, amortization, and impairment		(223,433	)		(172,051	)
	$	545,489		$	439,228

During the three months ended June 30, 2017, the Company recorded an impairment charge of approximately $27.1 million relating to its West Poplar property in Roosevelt County, Montana. Upon completion of the Company’s recent major acquisitions in the Eagle Ford Shale (the Marquis Acquisition and the Battlecat Acquisition), the Company expects to divert virtually all of its capital expenditures towards development of its 57,172 net acres in the Eagle Ford Shale. In accordance with FASB ASC 932-360-35, whenever events or circumstances indicate that the carrying amount of oil and gas properties may not be recoverable, they must be tested for recoverability. As a result of the West Poplar asset recoverability test, we have impaired the asset.

If pricing declines, the Company may have to record impairment of its Eagle Ford oil and gas properties subsequent to June 30, 2017.