Note 6 - Exploratory Well Costs

9 Months Ended

Sep. 30, 2022

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 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, 2022
Beginning capitalized exploratory well costs	$	28,076
Additions to exploratory well costs		385,440
Reclassification to proved properties		(319,220	)
Exploratory well costs charged to exploration and abandonment expense		—
Ending capitalized exploratory well costs	$	94,296

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