Property And Equipment
|6 Months Ended
Jun. 30, 2016
|Property, Plant and Equipment [Abstract]
|Property And Equipment
PROPERTY AND EQUIPMENT
The major categories of property and equipment and related accumulated depletion, depreciation, amortization and impairment as of June 30, 2016 and December 31, 2015 are as follows:
At June 30, 2016, the net book value of the Company's oil and natural gas properties was above the calculated ceiling as a result of the reduced commodity prices for the period leading up to June 30, 2016. As a result, the Company recorded an impairment of its oil and natural gas properties under the full cost method of accounting of $389.6 million for the six months ended June 30, 2016. No impairment of oil and natural gas properties was required under the ceiling test for the six months ended June 30, 2015.
Included in oil and natural gas properties at June 30, 2016 is the cumulative capitalization of $115.6 million in general and administrative costs incurred and capitalized to the full cost pool. General and administrative costs capitalized to the full cost pool represent management’s estimate of costs incurred directly related to exploration and development activities such as geological and other administrative costs associated with overseeing the exploration and development activities. All general and administrative costs not directly associated with exploration and development activities were charged to expense as they were incurred. Capitalized general and administrative costs were approximately $7.9 million and $15.0 million for the three and six months ended June 30, 2016, respectively, and $6.3 million and $13.5 million for the three and six months ended June 30, 2015, respectively.
The following table summarizes the Company’s non-producing properties excluded from amortization by area at June 30, 2016:
At December 31, 2015, approximately $1.8 billion of non-producing leasehold costs was not subject to amortization.
The Company evaluates the costs excluded from its amortization calculation at least annually. Subject to industry conditions and the level of the Company’s activities, the inclusion of most of the above referenced costs into the Company’s amortization calculation typically occurs within three to five years. However, the majority of the Company's non-producing leases have five-year extension terms which could extend this time frame beyond five years.
A reconciliation of the Company's asset retirement obligation for the six months ended June 30, 2016 and 2015 is as follows: