Commitments and Contingencies

6 Months Ended

Jun. 30, 2018

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

In February 2018, the Company signed a rig under contract, the original term of which was completed during the second quarter of 2018. As of August 2018, the terms of the extended contract provide for a drilling rate of $22.5 thousand per day with either party eligible to terminate the contract with 30 days' notice.

In March 2018, the Company signed a dedicated fleet contract that provides for hydraulic fracturing and wireline services at variable rates depending on the work performed. The early termination fee equals $133 thousand for each scheduled wells that is not hydraulically fractured as of the date of termination. The contract expires on December 31, 2018. As of August 2018, the Company is currently hydraulically fracturing three wells with a balance of three wells from the original contract remaining. The Company has the ability to extend the contract on any additional wells added to the 2018 drilling schedule.