Suspended Well Costs

12 Months Ended

Dec. 31, 2011

Suspended Well Costs [Abstract]

Suspended Well Costs Disclosure [Text Block]

Note 13 - Suspended Well Costs

The following table reflects the net changes in capitalized exploratory well costs during 2011, 2010, and 2009. The table does not include amounts that were capitalized and either subsequently expensed or reclassified to producing well costs in the same year:

	For the Years Ended December 31,
	2011			2010			2009
	(in thousands)
Beginning balance on January 1,	$	35,862		$	34,384		$	9,437
Additions to capitalized exploratory well costs pending the determination of proved reserves	15,618			35,862			34,384
Reclassifications to wells, facilities, and equipment based on the determination of proved reserves	(32,880		)	(34,384		)	(7,569		)
Capitalized exploratory well costs charged to expense	—			—			(1,868		)
Ending balance at December 31,	$	18,600		$	35,862		$	34,384

The following table provides an aging of capitalized exploratory well costs based on the date the drilling was completed and the number of projects for which exploratory well costs have been capitalized for more than one year since the completion of drilling:

	For the Years Ended December 31,
	2011		2010		2009
	(in thousands)
Exploratory well costs capitalized for one year or less	$	15,618	$	35,862	$	34,384
Exploratory well costs capitalized for more than one year	2,982		—		—
Ending balance at December 31,	$	18,600	$	35,862	$	34,384
Number of projects with exploratory well costs that have been capitalized more than a year	2		—		—

The table above consists of two exploratory wells located in our Permian region. The Company drilled successful surrounding test wells in the same prospect as the above wells in late 2011 and early 2012 to assess the value of re-entering these exploratory wells to target the formation through horizontal drilling. Minimal capital has been spent on these wells during the year due to further development of the prospect using horizontal drilling. Management is currently analyzing the economics of advancing this project.

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