Disposition of Property and Equipment

3 Months Ended

Mar. 31, 2023

Property, Plant and Equipment Impairment or Disposal [Abstract]

Disposition of Property and Equipment

DISPOSITION OF PROPERTY AND EQUIPMENT

Oil and Natural Gas

On July 1, 2022, the Company closed on the sale of certain wells and related leases near the Texas Gulf Coast for cash proceeds of $45.4 million, net of customary closing and post-closing adjustments based on an effective date of April 1, 2022. These proceeds reduced the net book value of our full cost pool with no gain or loss recognized as the sale did not result in a significant alteration of the full cost pool.

On March 8, 2022, the Company closed on the sale of certain non-core wells and related leases located near the Oklahoma Panhandle for cash proceeds of $3.6 million, net of customary closing and post-closing adjustments based on an effective date of December 1, 2021. These proceeds reduced the net book value of our full cost pool with no gain or loss recognized as the sale did not result in a significant alteration of the full cost pool.

Net proceeds for the sale of other non-core oil and natural gas assets totaled $0.7 million and $0.5 million during the three months ended March 31, 2023 and 2022, respectively. These proceeds reduced the net book value of our full cost pool with no gain or loss recognized as the sales did not result in a significant alteration of the full cost pool.

Contract Drilling

Proceeds for the sale of non-core contract drilling assets totaled $4.2 million and $2.2 million during the three months ended March 31, 2023 and 2022, respectively. These proceeds resulted in net gains of $3.7 million and $2.1 million during the three months ended March 31, 2023 and 2022, respectively. The net gains are presented within gain on disposition of assets in the unaudited condensed consolidated statements of operations.