Note 6 - Exploratory/Extension Well Costs

6 Months Ended

Jun. 30, 2025

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):

	Six Months Ended June 30, 2025
Beginning capitalized exploratory/extension well costs	$	33,619
Additions to exploratory/extension well costs		72,340
Reclassification to proved properties		(42,890	)
Exploratory/extension well costs charged to exploration and abandonment expense		—
Ending capitalized exploratory/extension well costs	$	63,069

All capitalized exploratory/extension well costs have been capitalized for less than one year based on the date of drilling other than approximately $10.6 million related to one well that had been delayed for an infrastructure connection. The well is now on production pending determination of proved reserves.