CAPITALIZED EXPLORATORY WELL COSTS

3 Months Ended

Mar. 31, 2022

Extractive Industries [Abstract]

CAPITALIZED EXPLORATORY WELL COSTS

CAPITALIZED EXPLORATORY WELL COSTS

The Company’s capitalized exploratory well costs were $59 million and $46 million as of March 31, 2022 and December 31, 2021, respectively. The increase is primarily attributable to additional drilling activity, offset by successful transfer of well costs. No suspended exploratory well costs previously capitalized for greater than one year at December 31, 2021 were charged to dry hole expense during the three months ended March 31, 2022.

Projects with suspended exploratory well costs capitalized for a period greater than one year since the completion of drilling are those identified by management as exhibiting sufficient quantities of hydrocarbons to justify potential development. Management is actively pursuing efforts to assess whether proved reserves can be attributed to these projects.