6.	Impairment of Long-Lived Assets

The Company reviews the carrying values of its long-lived assets annually or whenever events or changes in circumstances indicate that such carrying values may not be recoverable. If, upon review, the sum of the undiscounted pretax cash flows is less than the carrying value of the asset group, the carrying value is written down to estimated fair value. Individual assets are grouped for impairment purposes at the lowest level for which there are identifiable cash flows that are largely independent of the cash flows of other groups of assets, generally on a field-by-field basis. The fair value of impaired assets is determined based on quoted market prices in active markets, if available, or upon the present values of expected future cash flows using discount rates commensurate with the risks involved in the asset group. The impairment analysis performed by the Company may utilize Level 3 inputs. The long-lived assets of the Company consist primarily of proved oil and gas properties and undeveloped leaseholds.

We recorded impairment and abandonment expense in the three months ended March 31, 2014 of $675, due to the write-off of a non-operated property in the Atlantic Rim. Production from the wells at this property has been limited and the operator has indicated that it intends to plug and abandon wells in this area beginning in 2014. The Company also wrote off $0 and $25 during the three months ended March 31, 2014 and 2013, respectively, related to expired undeveloped leaseholds and the write-off of other non-core assets.