Oil and Gas Properties

12 Months Ended

Dec. 31, 2015

Oil and Gas Properties And Equipment Tables [Abstract]

3. OIL AND GAS PROPERTIES:

		December 31,		December 31,
		2015		2014
Proven Properties:
Acquisition, equipment, exploration, drilling and environmental costs (1)	$	10,480,165	$	9,731,407
Less: Accumulated depletion, depreciation and amortization (2)		(9,629,020)		(6,094,764)
		851,145		3,636,643
Unproven Properties:
Acquisition and exploration costs not being amortized (3), (4)		-		242,294
Net capitalized costs - oil and gas properties	$	851,145	$	3,878,937

On a unit basis, DD&A from continuing operations was $1.38, $1.18 and $1.05 per Mcfe for the years ended December 31, 2015, 2014 and 2013, respectively.

⁽¹⁾ On September 25, 2014, a wholly owned subsidiary of Ultra Petroleum Corp. completed the acquisition of all producing and non-producing properties in the Pinedale field in Sublette County, Wyoming in exchange for certain of the Company’s producing and non-producing properties in Pennsylvania and a cash payment.

⁽²⁾ During 2015, the Company recorded a $3.1 billion non-cash write-down of the carrying value of the Company’s proved oil and gas properties as a result of ceiling test limitations, which is reflected within ceiling test and other impairments in the accompanying Consolidated Statements of Operations. The ceiling test was calculated based upon the average of quoted market prices in effect on the first day of the month for the preceding twelve month period at December 31, 2015 for Henry Hub natural gas and West Texas Intermediate oil, adjusted for market differentials.

⁽³⁾Interest is capitalized on the cost of unevaluated oil and natural gas properties that are excluded from amortization and actively being evaluated as well as on work in process relating to gathering systems that are not currently in service. For the years ended December 31, 2015 and 2014, total interest on outstanding debt was $185.0 million and $146.6 million, respectively, of which $13.1 million and $20.4 million, respectively, was capitalized on the cost of unevaluated oil and natural gas properties and work in process relating to gathering systems that are not currently in service.

⁽⁴⁾ At December 31, 2015, all costs related to unevaluated properties that were previously excluded from capitalized costs being amortized have been impaired and transferred to the capitalized costs being amortized in the full cost pool.

Unproven Properties

At December 31, 2015, all costs related to unevaluated properties that were previously excluded from capitalized costs being amortized have been impaired or not considered significant and transferred to the capitalized costs being amortized in the full cost pool. Based on the quarterly evaluation of unproved leasehold costs, management determined that assumptions of future oil and gas production, commodity prices, operating and development costs indicate that the recorded carrying value of the unevaluated properties may not be recoverable.

		Total		2015		2014		2013		Prior
Acquisition costs	$	-	$	(228,516)	$	(191,184)	$	419,700	$	-
Exploration costs		-		7,708		173		(7,881)		-
Capitalized interest		-		(21,486)		20,232		1,254		-
Unproven properties	$	-	$	(242,294)	$	(170,779)	$	413,073	$	-