Note 6 - Exploratory Extension Well Costs

12 Months Ended

Dec. 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 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,
	2024			2023			2022
Beginning capitalized exploratory/extension well costs	$	40,888		$	186,427		$	28,076
Additions to exploratory/extension well costs		162,190			527,502			655,294
Reclassification to proved properties		(169,230	)		(673,041	)		(496,943	)
Exploratory/extension well costs charged to exploration and abandonment expense		(229	)		—			—
Ending capitalized exploratory/extension well costs	$	33,619		$	40,888		$	186,427

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