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):

	Three Months Ended March 31,
	2021			2020
	Successor			Predecessor
Beginning capitalized exploratory well costs	$	32,592		$	11,427
Additions to exploratory well costs		42,098			46,865
Reclassification to proved properties		(67,445	)		(17,315	)
Exploratory well costs charged to exploration and abandonment expense		-			-
Ending capitalized exploratory well costs	$	7,245		$	40,977

All capitalized exploratory well costs have been capitalized for less than

one

year based on the date of drilling.