Quarterly report pursuant to Section 13 or 15(d)

Capitalization of Exploratory Well Costs (Policies)

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Capitalization of Exploratory Well Costs (Policies)
6 Months Ended
Jun. 30, 2012
Capitalization of Exploratory Well Costs [Abstract]  
Extractive Industries

ASC Topic 932—Extractive Industries provides that an exploratory 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, but those reserves 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 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.