Note 6 - Exploratory Well Costs

12 Months Ended

Dec. 31, 2022

Notes to Financial Statements

Exploratory Well Costs [Text Block]

NOTE 6. Exploratory/Extension Well Costs

The Company capitalizes exploratory/extension wells 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/extension well and project costs are included in proved properties in the consolidated balance sheets. If the exploratory/extension well or project is determined to be impaired, the impaired costs are charged to exploration and abandonments expense.

The changes in capitalized exploratory/extension well costs are as follows (in thousands):

	Year Ended December 31,
	2022			2021
Beginning capitalized exploratory/extension well costs	$	28,076		$	32,592
Additions to exploratory/extension well costs		655,294			189,859
Reclassification to proved properties		(496,943	)		(194,375	)
Exploratory/extension well costs charged to exploration and abandonment expense		—			—
Ending capitalized exploratory/extension well costs	$	186,427		$	28,076

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