Quarterly report pursuant to Section 13 or 15(d)

Property And Equipment

v2.3.0.15
Property And Equipment
9 Months Ended
Sep. 30, 2011
Property And Equipment [Abstract]  
Property And Equipment
3.   PROPERTY AND EQUIPMENT

The major categories of property and equipment and related accumulated depletion, depreciation, amortization and impairment as of September 30, 2011 and December 31, 2010 are as follows:

 

     September 30, 2011     December 31, 2010  

Oil and natural gas properties

   $ 957,752,000      $ 747,344,000   

Office furniture and fixtures

     3,414,000        3,277,000   

Building

     4,049,000        4,049,000   

Land

     283,000        283,000   
  

 

 

   

 

 

 

Total property and equipment

     965,498,000        754,953,000   

Accumulated depletion, depreciation, amortization and impairment

     (553,428,000     (512,822,000
  

 

 

   

 

 

 

Property and equipment, net

   $ 412,070,000      $ 242,131,000   
  

 

 

   

 

 

 

Included in oil and natural gas properties at September 30, 2011 is the cumulative capitalization of $22,252,000 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 $1,338,000 and $4,126,000 for the three months and nine months ended September 30, 2011, respectively, and $1,044,000 and $3,015,000 for the three months and nine months ended September 30, 2010, respectively.

At September 30, 2011, approximately $5,708,000 of oil and gas properties related to the Company's Belize properties is excluded from amortization as they relate to non-producing properties. In addition, approximately $10,349,000 of non-producing leasehold costs resulting from the Company's acquisition of West Texas Permian properties, $302,000 of non-producing leasehold costs related to the Company's Bakken properties and $4,342,000 of non-producing leasehold costs related to the Company's Colorado properties are excluded from amortization at September 30, 2011. Approximately $1,088,000 of non-producing leasehold costs related to the Company's Southern Louisiana assets, $86,855,000 of non-producing leasehold costs related to the Company's Ohio leasehold costs and $34,000 of non-producing leasehold costs related to other projects are also excluded from amortization at September 30, 2011.

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 is expected to occur within three to five years.

 

A reconciliation of the asset retirement obligation for the nine months ended September 30, 2011 and 2010 is as follows:

 

    September 30, 2011     September 30, 2010  

Asset retirement obligation, beginning of period

  $ 10,845,000      $ 10,153,000   

Liabilities incurred

    939,000        1,195,000   

Liabilities settled

    —          (1,253,000

Accretion expense

    491,000        461,000   
 

 

 

   

 

 

 

Asset retirement obligation as of end of period

    12,275,000        10,556,000   

Less current portion

    635,000        635,000   
 

 

 

   

 

 

 

Asset retirement obligation, long-term

  $ 11,640,000      $ 9,921,000