Note 6 - Exploratory Well Costs

3 Months Ended

Mar. 31, 2023

Notes to Financial Statements

Exploratory Well Costs [Text Block]

NOTE 6. Exploratory 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):

	Three Months Ended March 31, 2023
Beginning capitalized exploratory/extension well costs	$	186,427
Additions to exploratory/extension well costs		193,183
Reclassification to proved properties		(325,724	)
Exploratory/extension well costs charged to exploration and abandonment expense		—
Ending capitalized exploratory/extension well costs	$	53,886

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