Suspended Exploratory Well Costs

9 Months Ended

Sep. 30, 2013

Suspended Exploratory Well Costs

(7) SUSPENDED EXPLORATORY WELL COSTS

We capitalize exploratory well costs until a determination is made that the well has either found proved reserves or that it is impaired. Capitalized exploratory well costs are presented in natural gas and oil properties in the accompanying consolidated balance sheets. If an exploratory well is determined to be impaired, the well costs are charged to exploration expense in the accompanying consolidated statements of operations. The following table reflects the changes in capitalized exploratory well costs for the nine months ended September30, 2013 and the year ended December31, 2012 (in thousands except for number of projects):

	September30, 2013			December31, 2012
Balance at beginning of period	$	57,360		$	93,388
Additions to capitalized exploratory well costs pending the determination of proved reserves		61,751			153,250
Reclassifications to wells, facilities and equipment based on determination of proved reserves		(80,358	)		(184,298	)
Capitalized exploratory well costs charged to expense		(3,950	)		
Divested wells					(4,980	)
Balance at end of period		34,803			57,360
Less exploratory well costs that have been capitalized for a period of one year or less		(21,923	)		(45,965	)
Capitalized exploratory well costs that have been capitalized for a period greater than one year	$	12,880		$	11,395
Number of projects that have exploratory well costs that have been capitalized for a period greater than one year		4			5

As of September 30, 2013, $12.9 million of capitalized exploratory well costs have been capitalized for more than one year which relates totwo wells waiting on pipelines and two wells currently in the completion stage. One of the wells is not operated by us and all of the wells are in Pennsylvania. In 2012, we sold a seventy-five percent interest in an East Texas exploratory well. Refer to Note 4 for additional information.

The following table provides an aging of capitalized exploratory well costs that have been suspended for more than one year as of September 30, 2013 (in thousands):

	Total		2013		2012		2011		2010		2009		2008
Capitalized exploratory well costs that have been capitalized for more than one year	$	12,880	$	208	$	6,904	$	1,289	$	72	$	2,884	$	1,523