Suspended Exploratory Well Costs

9 Months Ended

Sep. 30, 2011

(8) SUSPENDED EXPLORATORY WELL COSTS

The following table reflects the changes in capitalized exploratory well costs for the nine months ended September 30, 2011 and the year ended December 31, 2010 (in thousands):


	September 30,			December 31,
	2011			2010
Beginning balance at January 1	$	23,908		$	19,052
Additions to capitalized exploratory well costs pending the determination of proved reserves		71,779			28,897
Reclassifications based on determination of proved reserves		(12,488	)		(24,041	)
Capitalized exploratory well costs charged to expense		—			—

Balance at end of period		83,199			23,908
Less exploratory well costs that have been capitalized for a period of one year or less		(68,171	)		(13,181	)

Capitalized exploratory well costs that have been capitalized for a period greater than one year	$	15,028		$	10,727

Number of projects that have exploratory well costs that have been capitalized for a period greater than one year		5			4

At September 30, 2011, of the $15.0 million of capitalized exploratory well costs that have been capitalized for more than one year, all of the wells are Marcellus Shale wells and are waiting on the completion of pipelines. The following provides an aging of capitalized exploratory well costs that have been suspended for more than one year as of September 30, 2011 (in thousands):


	Total		2011		2010		2009		2008
Capitalized exploratory well costs that have been capitalized for more than one year	$	15,028	$	494	$	10,127	$	2,884	$	1,523