Exploratory Costs

3 Months Ended

Mar. 31, 2012

Exploratory Costs [Abstract]

Exploratory Costs

NOTE C. 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 months ended March 31, 2012:

	Three Months Ended March  31, 2012
	(in thousands)
Beginning capitalized exploratory costs	$	107,596
Additions to exploratory costs pending the determination of proved reserves		174,894
Reclassification due to determination of proved reserves		(117,610	)
Exploratory well costs charged to exploration expense		(26,878	)
Ending capitalized exploratory costs	$	138,002

As of March 31, 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.