Exploratory Well Costs

12 Months Ended

Dec. 31, 2011

Notes To Financial Statements [Abstract]

15. Exploratory Well Costs

EOG's net changes in capitalized exploratory well costs for the years ended December 31, 2011, 2010 and 2009 are presented below (in thousands):

	2011			2010			2009

Balance at January 1	$	99,801		$	118,459		$	85,255
Additions Pending the Determination of Proved Reserves		31,271			94,090			75,362
Reclassifications to Proved Properties		(29,227	)		(93,333	)		(40,614	)
Charged to Dry Hole Costs		(42,178	)		(20,267	)		(11,223	)
Foreign Currency Translations		1,444			852			9,679
Balance at December 31	$	61,111		$	99,801		$	118,459

The following table provides an aging of capitalized exploratory well costs at December 31, 2011, 2010 and 2009 (in thousands, except well count):

	2011			2010			2009

Capitalized exploratory well costs that have been capitalized for a period less than one year	$	17,009		$	43,408		$	51,141
Capitalized exploratory well costs that have been capitalized for a period greater than one year		44,102	(1)		56,393	(2)		67,318	(3)
Total	$	61,111		$	99,801		$	118,459
Number of exploratory wells that have been capitalized for a period greater than one year		4			4			4

(1)

Consists of costs related to an outside operated, offshore Central North Sea project in the United Kingdom (U.K.) ($20 million), an East Irish Sea project in the U.K. ($9 million), a project in the Sichuan Basin, Sichuan Province, China ($9 million), and a shale project in British Columbia, Canada (B.C.) ($6 million). In the Central North Sea project, the operator and partners are currently negotiating processing and transportation terms with export infrastructure owners. The operator submitted a revised field development plan to the U.K. Department of Energy and Climate Change (DECC) during the second quarter of 2011 and anticipates receiving approval of this plan during the first half of 2012. In the East Irish Sea project, EOG submitted field development plans to the DECC during the first quarter of 2011 and expects regulatory approval during the first quarter of 2012. Installation of facilities, pipelines and drilling of development wells are planned for 2012 with initial production expected during the first quarter of 2013. The evaluation of the Sichuan Basin project is expected to be completed by mid-2012. In the B.C. shale project, EOG drilled four additional wells during the first half of 2011 and plans to drill seven wells in the first half of 2012 to retain land and further evaluate the project. The related well completion activities are not expected to commence until 2013 or later.

(2)	Consists of costs related to an outside operated, offshore Central North Sea project in the U.K. ($21 million), an East Irish Sea project in the U.K. ($9 million), a project in the Sichuan Basin, Sichuan Province, China ($20 million), and a shale project in B.C. ($6 million).

(3)	Consists of costs related to three shale projects in B.C. ($45 million) and an outside operated, offshore Central North Sea project in the U.K. ($22 million).