(8)

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 nine months ended September 30, 2012 and the year ended December 31, 2011 (in thousands except for number of projects):


	September 30,			December 31,
	2012			2011
Balance at beginning of period	$	93,388		$	23,908
Additions to capitalized exploratory well costs pending the determination of proved reserves		186,087			86,996
Reclassifications to wells, facilities and equipment based on determination of proved reserves		(178,422	)		(17,516	)
Divested wells		(4,980	)		—

Balance at end of period		96,073			93,388
Less exploratory well costs that have been capitalized for a period of one year or less		(74,269	)		(83,860	)

Capitalized exploratory well costs that have been capitalized for a period greater than one year	$	21,804		$	9,528


Number of projects that have exploratory well costs that have been capitalized for a period greater than one year		8			3

As of September 30, 2012, $21.8 million of capitalized exploratory well costs have been capitalized for more than one year with five of the wells waiting on pipelines and three of the wells currently in the completion stage. Seven of the wells are located in our Marcellus Shale area. In second quarter 2012, we sold a Marcellus Shale exploratory well. In first quarter 2012, we sold a seventy-five percent interest in an East Texas exploratory well. For additional information, see Note 4. The following table provides an aging of capitalized exploratory well costs that have been suspended for more than one year as of September 30, 2012 (in thousands):


	Total		2012		2011		2010		2009		2008

Capitalized exploratory well costs that have been capitalized for more than one year	$	21,804	$	7,019	$	10,306	$	72	$	2,884	$	1,523