Suspended Exploratory Well Costs

12 Months Ended

Dec. 31, 2014

(6)	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 income. The following table reflects the changes in capitalized exploratory well costs for the years ended December 31, 2014, 2013 and 2012 (in thousands, except for number of projects):

	2014			2013			2012
Balance at beginning of period	$	6,964		$	57,360		$	93,388
Additions to capitalized exploratory well costs pending the determination of proved reserves		18,747			39,832			153,250
Reclassifications to wells, facilities and equipment based on determination of proved reserves		(15,735	)		(84,840	)		(184,298	)
Divested wells		¾			¾			(4,980	)
Capitalized exploratory well costs charged to expense		(6,980	)		(5,388	)		—
Balance at end of period		2,996			6,964			57,360
Less exploratory well costs that have been capitalized for a period of one year or less		(2,996	)		¾			(45,965	)
Capitalized exploratory well costs that have been capitalized for a period greater than one year	$	¾		$	6,964		$	11,395
Number of projects that have exploratory well costs that have been capitalized for a period greater than one year		¾			1			5