Capitalization Of Exploratory Well Costs |
9 Months Ended | ||
|---|---|---|---|
Sep. 30, 2011 | |||
| Capitalization Of Exploratory Well Costs [Abstract] | |||
| Capitalization Of Exploratory Well Costs |
ASC Topic 932 - Extractive Industries provides that an exploration well shall be capitalized as part of the entity's uncompleted wells pending the determination of whether the well has found proved reserves. Further, an exploration well that discovers oil and gas reserves, which cannot be classified as proved when drilling is completed, shall be capitalized if the well has found a sufficient quantity of reserves to justify its completion as a producing well and the entity is making sufficient progress towards assessing the reserves and the economic and operating viability of the project. If either condition is not met, the exploration well would be assumed to be impaired and its costs would be charged to expense. In the second and third quarters of 2010, the Company drilled the Southeast Etame No. 1 well with two sidetracks in the Etame Marin block offshore Gabon. The well discovered a five meter sand of oil. The Company and its partners are evaluating development options for this well in conjunction with other potential initiatives in the Etame Marin block. The Company has capitalized $8.0 million for this well in accordance with the criteria in ASC Topic 932. |