Suspended Exploratory Well Costs

12 Months Ended

Dec. 31, 2011

Suspended Exploratory Well Costs [Abstract]

SUSPENDED EXPLORATORY WELL COSTS

(7) SUSPENDED EXPLORATORY WELL COSTS

We capitalize exploratory well costs until a determination is made that the well has either found proved reserves or that it is impaired. Capitalized exploratory well costs are presented in natural gas and oil properties in the accompanying consolidated balance sheets. If an exploratory well is determined to be impaired, the well costs are charged to exploration expense in the accompanying consolidated statements of operations. The following table reflects the changes in capitalized exploratory well costs for the year ended December 31, 2011, 2010 and 2009 (in thousands except for number of projects):

	2011			2010			2009
Balance at beginning of period	$	23,908		$	19,052		$	47,623
Additions to capitalized exploratory well costs pending the determination of proved reserves		86,996			28,897			26,216
Reclassifications to wells, facilities and equipment based on determination of proved reserves		(17,516	)		(24,041	)		(52,849	)
Capitalized exploratory well costs charged to expense		—			—			(1,938	)
Balance at end of period		93,388			23,908			19,052
Less exploratory well costs that have been capitalized for a period of one year or less		(83,860	)		(13,181	)		(10,778	)
Capitalized exploratory well costs that have been capitalized for a period greater than one year	$	9,528		$	10,727		$	8,274
Number of projects that have exploratory well costs that have been capitalized for a period greater than one year		3			4			6

As of December 31, 2011, the $9.5 million of capitalized exploratory well costs that have been capitalized for more than one year relates primarily to wells waiting on pipelines, with all three wells in our Marcellus Shale area. The following table provides an aging of capitalized exploratory well costs that have been suspended for more than one year as of December 31, 2011 (in thousands):

	Total		2011		2010		2009		2008
Capitalized exploratory well costs that have been capitalized for more than one year	$	9,528	$	414	$	4,707	$	2,884	$	1,523