
	December 31, 2024					December 31, 2023
(Thousands of dollars)	Cost		Net			Cost		Net
Exploration and production ¹	$	21,716,358	$	8,021,620	2	$	21,228,490	$	8,201,475	2
Corporate and other	149,834		33,033			132,092		23,722
Property, plant and equipment	$	21,866,192	$	8,054,653		$	21,360,582	$	8,225,197
¹ Includes unproved mineral rights as follows:	$	283,015	$	151,341		$	351,000	$	228,329

2 Includes $13,335 in 2024 and $15,356 in 2023 related to administrative assets and support equipment.

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% 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 ARO liabilities 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 its working interests in Block CA-2 in Brunei for contingent consideration valued at approximately $8.7 million. No gain or loss was recorded related to this sale.

In August 2022, the Company acquired an additional working interest of 3.37% in the non-operated 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 non-operated Kodiak field for a purchase price of $50.0 million, net of closing adjustments.

In 2024, the Company recorded a pretax impairment charge of $62.9 million. In the first quarter of 2024, the Company recorded an impairment charge of $34.5 million related to the Calliope field, and in the fourth quarter of 2024, the Company recorded an impairment charge of $28.4 million related to the Nearly Headless Nick field. Both of the impairments were the result of operational issues that led to reserve reductions. There were no impairments recognized in 2023 and 2022.

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, 2024, 2023 and 2022, the Company had total capitalized drilling costs pending the determination of proved reserves of $72.1 million, $49.1 million and $171.9 million, respectively. The following table reflects the net changes in capitalized exploratory well costs for each of the three years presented.


(Thousands of dollars)	2024		2023		2022
Beginning balance at January 1	$	49,118	$	171,860	$	179,481
Additions pending the determination of proved reserves	49,408		48		33,440
Reclassifications to proved properties based on the determination of proved reserves	—		(82,185)		—
Divestment	—		—		(7,915)
Capitalized exploration well costs charged to expense	(26,471)		(40,605)		(33,146)
Ending balance at December 31	$	72,055	$	49,118	$	171,860

Capital additions of $49.4 million, for the year ended December 31, 2024, are mainly for the non-operated Ocotillo #1 (Mississippi Canyon 40) exploration well in the Gulf of America and the Hai Su Vang-1X (Golden Sea Lion), Block 15/2-17 exploration well in Vietnam. Capitalized well costs charged to dry hole expense of $26.5 million, for the year ended December 31, 2024, related to the Hoffe Park #1 (Mississippi Canyon 166) exploration well.

The preceding table excludes well costs of $46.7 million and $129.2 million incurred and expensed directly to dry hole during the year ended December 31, 2024 and 2023, respectively. In 2024, these costs primarily include $27.6 million for the non-operated Orange #1 (Mississippi Canyon 216) and $26.1 million for the Sebastian #1 (Mississippi Canyon 387) exploration wells in the Gulf of America. In 2023, the amount primarily includes $82.0 million for the Chinook #7 (Walker Ridge 425) and $47.2 million for the non-operated Oso #1 (Atwater Valley 138) exploration wells in the Gulf of America.

The following table provides an aging of capitalized exploratory well costs based on the date the drilling was completed for each individual well.


	2024			2023			2022
(Thousands of dollars)	Amount		No. of Wells		Amount		No. of Wells	Amount		No. of Wells
Aging of capitalized well costs
Zero to one year	$	49,790	5		$	—	—	$	15,527	2
One to two years	—		—		—		—	13,307		2
Two to three years	—		—		2,698		1	—		—
Three years or more	22,265		3		46,420		3	143,026		5
	$	72,055	8		$	49,118	4	$	171,860	9

Of the $22.3 million of exploratory well costs capitalized more than one year at December 31, 2024, $15.1 million was in Vietnam, $4.4 million was in Canada and $2.7 million was 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.