Note 6 - Exploratory/Extension Well Costs

3 Months Ended

Mar. 31, 2024

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 condensed 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, 2024
Beginning capitalized exploratory/extension well costs	$	40,888
Additions to exploratory/extension well costs		25,818
Reclassification to proved properties		(41,299	)
Exploratory/extension well costs charged to exploration and abandonment expense		(229	)
Ending capitalized exploratory/extension well costs	$	25,178

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