Suspended Well Costs

9 Months Ended

Sep. 30, 2012

Suspended Well Costs Disclosure [Text Block]

Note 14 - Suspended Well Costs

In the third quarter of 2012, the Company expensed $3.6 million of costs related to two exploratory wells that had been disclosed as suspended well costs being capitalized for more than one year at December 31, 2011.

The following table reflects the net changes in capitalized exploratory well costs for the nine-month period ended September 30, 2012. The table does not include amounts that were capitalized and either subsequently expensed or reclassified to producing well costs during the period:



	For the Nine Months Ended September 30, 2012
	(in thousands)
Capitalized exploratory well costs, at beginning of year	$	18,600
Additions to capitalized exploratory well costs pending the determination of proved reserves	74,359
Reclassifications to wells, facilities, and equipment based on the determination of proved reserves	(15,176		)
Capitalized exploratory well costs charged to expense	(18,540		)
Capitalized exploratory well costs, at end of quarter	$	59,243

The following table provides an aging of capitalized exploratory well costs based on the date the drilling was completed and the number of projects for which exploratory well costs have been capitalized for more than one year since the completion of drilling:



	For the Nine Months Ended September 30, 2012
	(in thousands)
Exploratory well costs capitalized for one year or less	$	59,243
Exploratory well costs capitalized for more than one year	—
Ending balance at September 30, 2012	$	59,243
Number of projects with exploratory well costs that have been capitalized more than a year	—