- Definition

Exploration expenses (including prospecting) related to oil and gas producing entities and would be included in operating expenses of that entity. Costs incurred in identifying areas that may warrant examination and in examining specific areas that are considered to have prospects of containing oil and gas reserves, including costs of drilling exploratory wells and exploratory-type stratigraphic test wells. Exploration costs may be incurred both before acquiring the related property (sometimes referred to in part as prospecting costs) and after acquiring the property. Principal types of exploration costs, which include depreciation and applicable operating costs of support equipment and facilities and other costs of exploration activities, are: (i) Costs of topographical, geographical and geophysical studies, rights of access to properties to conduct those studies, and salaries and other expenses of geologists, geophysical crews, and others conducting those studies. Collectively, these are sometimes referred to as geological and geophysical or "G&G" costs. (ii) Costs of carrying and retaining undeveloped properties, such as delay rentals, ad valorem taxes on properties, legal costs for title defense, and the maintenance of land and lease records. (iii) Dry hole contributions and bottom hole contributions. (iv) Costs of drilling and equipping exploratory wells. (v) Costs of drilling exploratory-type stratigraphic test wells.

+ References + Details

Mineral Property Expenditures (Details Narrative) $ in Thousands	9 Months Ended
	Sep. 30, 2016 USD ($) shares	Sep. 21, 2016 a	Aug. 23, 2016 a
Area of land \| a			4,600
Percentage of interest acquired	100.00%
Number of unregistered shares of commonstock \| shares	100,000
First Anniversary Date [Member]
Number of unregistered shares of commonstock \| shares	100,000
Net Smelter Royalty [Member]
Percentage of interest acquired	2.00%
Mesa SPA [Member]
Area of land \| a		9,800
Cash paid	$ 50
Exploration expense	300
Mesa SPA [Member] \| October 19, 2016 [Member
Cash paid	50
Exploration expense	$ 279