NOTE

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 (in thousands):

	Year Ended December 31, 2020
	Successor			Predecessors
	August 22, through December 31, 2020			January 1, through August 21, 2020			Year Ended December 31, 2019

Beginning capitalized exploratory well costs	$	41,524		$	11,427		$	-
Additions to exploratory well costs pending the determination of proved reserves		53,462			48,169			58,435
Reclassification due to determination of proved reserves		(62,394	)		(18,072	)		(47,008	)
Exploratory well costs charged to exploration and abandonment expense		-			-			-
Ending capitalized exploratory well costs	$	32,592		$	41,524		$	11,427

All capitalized exploratory well costs have been capitalized for less than

one

year based on the date of drilling.