Exploratory Costs

6 Months Ended

Jun. 30, 2012

Exploratory Costs [Abstract]

Exploratory Costs

Exploratory Costs

The Company capitalizes exploratory well and project costs until a determination is made that the well or project has either found proved reserves, is impaired or is sold. The Company's capitalized exploratory well and project costs are presented in proved properties in the accompanying consolidated balance sheets. If the exploratory well or project is determined to be impaired, the impaired costs are charged to exploration and abandonments expense.

The following table reflects the Company's capitalized exploratory well and project activity during the three and six months ended June 30, 2012:

	Three Months Ended June 30, 2012			Six Months Ended June 30, 2012
	(in thousands)
Beginning capitalized exploratory costs	$	138,002		$	107,596
Additions to exploratory costs pending the determination of proved reserves	205,938			380,832
Reclassification due to determination of proved reserves	(148,805		)	(266,415		)
Exploratory well costs charged to exploration expense	(1,408		)	(28,286		)
Ending capitalized exploratory costs	$	193,727		$	193,727

As of June 30, 2012 and December 31, 2011, the Company had no exploratory projects for which exploratory costs have been capitalized for a period greater than one year from the date drilling was completed.