Suspended Exploratory Well Costs

3 Months Ended

Mar. 31, 2017

(8) 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, 2017. The following table reflects the change in capitalized exploratory well costs for the three months ended March 31, 2017 and the year ended December 31, 2016 (in thousands):

		March 31, 2017			December 31, 2016
Balance at beginning of period	$	7,412		$	4,161
Additions to capitalized exploratory well costs pending the determination of proved reserves		872			9,128
Reclassifications to wells, facilities and equipment based on determination of proved reserves		—			(5,877	)
Balance at end of period		8,284			7,412
Less exploratory well costs that have been capitalized for a period of one year or less		(8,284	)		(7,412	)
Capitalized exploratory well costs that have been capitalized for a period greater than one year	$	—		$	—
Number of projects that have exploration well costs that have been capitalized greater than one year		—			—