Suspended Exploratory Well Costs

3 Months Ended

Mar. 31, 2015

(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 income. We did not have any exploratory well costs that have been capitalized for a period greater than one year for each of the year ended December 31, 2014 and the three months ended March 31, 2015. The following table reflects the change in capitalized exploratory well costs for the three months ended March 31, 2015 and the year ended December 31, 2014 (in thousands):

		March 31, 2015			December 31, 2014
Balance at beginning of period	$	2,996		$	6,964
Additions to capitalized exploratory well costs pending the determination of proved reserves		9,017			18,747
Reclassifications to wells, facilities and equipment based on determination of proved reserves		¾			(15,735	)
Divested wells		¾			(6,980	)
Balance at end of period		12,013			2,996
Less exploratory well costs that have been capitalized for a period of one year or less		(12,013	)		(2,996	)
Capitalized exploratory well costs that have been capitalized for a period greater than one year	$	¾		$	¾