Suspended Exploratory Well Costs

3 Months Ended

Mar. 31, 2016

(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 included 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. We did not have any exploratory well costs that have been capitalized for a period greater than one year as of March 31, 2016. The following table reflects the change in capitalized exploratory well costs for the three months ended March 31, 2016 and the year ended December 31, 2015 (in thousands):

		March 31, 2016			December 31, 2015
Balance at beginning of period	$	4,161		$	2,996
Additions to capitalized exploratory well costs pending the determination of proved reserves		1,214			1,165
Reclassifications to wells, facilities and equipment based on determination of proved reserves		(5,375	)		¾
Capitalized exploratory well costs charged to expense		¾			¾
Balance at end of period		¾			4,161
Less exploratory well costs that have been capitalized for a period of one year or less		¾			(1,165	)
Capitalized exploratory well costs that have been capitalized for a period greater than one year	$	¾		$	2,996
Number of projects that have exploratory well costs that have been capitalized greater than one year		¾			1