Note 5 - Exploratory Well Costs

9 Months Ended

Sep. 30, 2020

Notes to Financial Statements

Oil and Gas Exploration and Production Industries Disclosures [Text Block]

NOTE

5

. Exploratory

Well

Costs

The Company capitalizes exploratory well and project costs until a determination is made that the well or project has either found proved reserves, is impaired or is sold. The Company's capitalized exploratory well and project costs are included in proved properties in the condensed consolidated balance sheets. If the exploratory well or project is determined to be impaired, the impaired costs are charged to exploration and abandonments expense.

The changes in capitalized exploratory well costs are as follows:

	Successor			Predecessors
	August 22, through September 30, 2020			January 1, through August 21, 2020
Beginning capitalized exploratory well costs	$	41,524		$	11,427
Additions to exploratory well costs pending the determination of proved reserves		14,652			48,169
Reclassification due to determination of proved reserves		(33,351	)		(18,072	)
Exploratory well costs charged to exploration and abandonment expense		-			-
Ending capitalized exploratory well costs	$	22,825		$	41,524

All capitalized exploratory well costs have been capitalized for less than

one

year based on the date of drilling.