(8) Oil and Gas Properties

The following table sets forth information concerning the Company’s oil and gas properties (in thousands):



	September 30,		December 31,
	2017		2016
Oil and gas properties	$	5,545	$	5,315
Unevaluated properties		—		106
Accumulated depreciation, depletion and amortization		(806)		(196)
Oil and gas properties, net	$	4,739	$	5,225

The Company recorded depletion expense of $608,000 and $806,000 for the nine months ended September 30, 2017 and 2016, respectively. During the nine months ended September 30, 2017, the Company also recorded in “Accumulated depreciation, depletion, and amortization” a $2,000 gain on asset retirement obligations. In addition, during the nine months ended September 30, 2016, the Company recorded an impairment of oil and gas properties in the amount of $2,718,000, but recorded no impairment for the nine months ended September 30, 2017. As a result of the ceiling test impairments during 2015 and the first three quarters of 2016, the accumulated depreciation, depletion, and amortization was netted against the cost to reflect the post impairment value of the oil and gas properties. As no ceiling test impairment was recorded during the quarters ended December 31, 2016, March 31, 2017, June 30, 2017, and September 30, 2017, the depreciation expense during these periods was not netted against cost, but remained in accumulated depreciation, depletion, and amortization at December 31, 2016 and September 30, 2017.