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Property, Plant and Equipment
 12 Months Ended
Dec. 31, 2023
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment
Note D – Property, Plant and Equipment
The Company’s property, plant and equipment assets for the respective periods are presented as follows:

December 31, 2023December 31, 2022
(Thousands of dollars)CostNetCostNet
Exploration and production ¹$21,228,490 $8,201,475 
2
$20,567,489 $8,204,463 
2
Corporate and other132,092 23,722 150,498 23,553 
Property, plant and equipment$21,360,582 $8,225,197 $20,717,987 $8,228,016 
¹  Includes unproved mineral rights as follows:$351,000 $228,329 $476,981 $344,507 
2  Includes $15,356 in 2023 and $18,319 in 2022 related to administrative assets and support equipment.
Divestments
On September 15, 2023, the Company completed the previously announced divestment of certain non-core operated Kaybob Duvernay assets and all of our non-operated Placid Montney assets, located in Alberta, Canada for net cash proceeds of C$139.0 million. No gain or loss was recorded related to this transaction, and the effective date of the transaction was March 1, 2023.
During the third quarter of 2022, the Company completed the disposition of its 62.5% operated working interest of the Thunder Hawk field for a purchase price of $20.0 million less closing adjustments of $23.1 million, resulting in a total net payment to the buyer of $3.1 million. Additionally, the buyer assumed the asset retirement obligations of approximately $47.9 million. A $17.9 million gain on sale was recorded in the period related to the sale. In September 2022, the Company completed the disposition of the Block CA-2 asset in Brunei for contingent consideration valued at approximately $8.7 million. No gain or loss was recorded related to this sale.
Acquisitions
In August 2022, the Company acquired an additional working interest of 3.37% in the Lucius field for a purchase price of $78.5 million, net of closing adjustments.
In June 2022, the Company acquired an additional working interest of 11.0% in the Kodiak field for a purchase price of $50.0 million, net of closing adjustments.
Impairments
The following table reflects the recognized before tax impairments for each of the three years presented.
(Thousands of dollars)202320222021
Canada$– $– $171,296 
Other Foreign– – 18,000 
Corporate– – 7,000 
$– $– $196,296 
Exploratory Wells
Under FASB guidance, exploratory well costs should continue to be capitalized when the well has found a sufficient quantity of reserves to justify its completion as a producing well, and the company is making sufficient progress assessing the reserves and the economic and operating viability of the project.
At December 31, 2023, 2022 and 2021, the Company had total capitalized drilling costs pending the determination of proved reserves of $49.1 million, $171.9 million and $179.5 million, respectively. The following table reflects the net changes in capitalized exploratory well costs for each of the three years presented.
(Thousands of dollars)
202320222021
Beginning balance at January 1$171,860 $179,481 $181,616 
Additions pending the determination of proved reserves48 33,440 16,725 
Reclassifications to proved properties based on the determination of proved reserves(82,185)– – 
Divestment
– (7,915)– 
Capitalized exploration well costs charged to expense(40,605)(33,146)(18,860)
Ending balance at December 31$49,118 $171,860 $179,481 
Reclassifications to proved properties of $82.2 million, for the year ended December 31, 2023, are primarily related to LDV-4X in Vietnam. Capitalized well costs charged to dry hole expense of $40.6 million are related to the Cholula-1EXP well in offshore Mexico, and Oso #1 (Atwater Valley 138), and Chinook #7 (Walker Ridge 425) exploration wells in the Gulf of Mexico. The preceding table excludes well costs of $129.2 million incurred and expensed directly to dry hole during the year ended December 31, 2023, related to the Chinook #7 (Walker Ridge 425) and Oso #1 (Atwater Valley 138) explorations well in the Gulf of Mexico.
The following table provides an aging of capitalized exploratory well costs based on the date the drilling was completed for each individual well and the number of projects for which exploratory well costs have been capitalized. The projects are aged based on the last well drilled in the project.
202320222021
(Thousands of dollars)
AmountNo. of
Wells		No. of
Projects		AmountNo. of
Wells		No. of
Projects		AmountNo. of
Wells		No. of
Projects
Aging of capitalized well costs
Zero to one year$– ––$15,527 2 2 $13,273 33
One to two years– ––13,307 2 2 – – – 
Two to three years2,698 11– –– 53,070 55 
Three years or more46,420 33143,026 54 113,138 6– 
$49,118 44$171,860 98$179,481 148
Of the $49.1 million of exploratory well costs capitalized more than one year at December 31, 2023, $26.5 million is in the U.S., $15.1 million is in Vietnam, $4.8 million is in Canada and $2.7 million is in Brunei. In all geographical areas, either further appraisal or development drilling is planned and/or development studies/plans are in various stages of completion.