Note 6 - Exploratory Well Costs

9 Months Ended

Sep. 30, 2021

Notes to Financial Statements

Exploratory Well Costs [Text Block]

NOTE 6. 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):

	Nine Months Ended September 30, 2021
Beginning capitalized exploratory well costs	$	32,592
Additions to exploratory well costs		127,444
Reclassification to proved properties		(155,528	)
Exploratory well costs charged to exploration and abandonment expense		—
Ending capitalized exploratory well costs	$	4,508

All capitalized exploratory well costs have been capitalized for less than one year based on the date of drilling.