Oil and Gas Exploration and Production Industries Disclosures [Text Block] | NOTE 13—Oil Overview All of our reserve information related to crude oil, condensate and natural gas was compiled based on estimates prepared and reviewed by our engineers. The technical persons primarily responsible for overseeing the preparation of the reserves estimates meet the requirements regarding qualifications. Our principal internal engineer has over 35 30 35 December 31, 2019 2018 December 31, 2019 2018 December 31, 2019 2018 2019 99.1 99.2, 10 Many assumptions and judgmental decisions are required to estimate reserves. Quantities reported are considered reasonable but are subject to future revisions, some of which may may Regulations published by the SEC define proved oil and natural gas reserves as those quantities of oil and natural gas which, by analysis of geoscience and engineering data can be estimated with reasonable certainty to be economically producible from a given date forward, from known reservoirs, and under existing economic conditions, operating methods, and government regulation before the time at which contracts providing the right to operate expire, unless evidence indicates that renewal is reasonably certain, regardless of whether the estimate is a deterministic estimate or probabilistic estimate. Proved developed oil and natural gas reserves are proved reserves that can be expected to be recovered through existing wells with existing equipment and operating methods or in which the cost of the required equipment is relatively minor compared with the cost of a new well or through installed extraction equipment and infrastructure operational at the time of the reserves estimates if the extraction is by means not Prices we used to value our reserves are based on the twelve first January December 2019. $55.69 $2.58 Capitalized Costs The table below reflects our capitalized costs related to our oil and natural gas producing activities at December 31, 2019 and 2018 (in thousands): Year Ended December 31, 2019 Year Ended December 31, 2018 Proved properties $ 302,859 $ 206,097 Unproved properties 123 180 302,982 206,277 Less: accumulated depreciation, depletion and amortization (91,958 ) (41,886 ) Net oil and natural gas properties $ 211,024 $ 164,391 We did not December 31, 2019 and 2018 , respectively. Costs Incurred Costs incurred in oil and natural gas property acquisition, exploration and development activities, whether capitalized or expensed, are summarized as follows (in thousands): Year Ended December 31, 2019 Year Ended December 31, 2018 Property Acquisition Unproved $ 269 $ 178 Proved - - Exploration - - Development (1) 98,141 106,583 Total (2) $ 98,410 $ 106,761 ( 1 Includes asset retirement costs of $0.1 2019 $0.1 2018. ( 2 Substantially all the costs incurred related to the Haynesville Shale Trend. The following table sets forth our net proved oil and natural gas reserves at December 31, 2019 , 2018 and 2017 and the changes in net proved oil and natural gas reserves during such years, as well as proved developed and proved undeveloped reserves at the beginning and end of each year: Natural Gas (Mmcf) Oil, Condensate and NGLs (MBbls) 2019 2018 2017 2019 2018 2017 Net proved reserves at beginning of period 470,937 415,224 286,038 1,441 2,130 2,815 Revisions of previous estimates (1) 37,136 (16,993 ) 106,639 (166 ) (388 ) (381 ) Extensions, discoveries and improved recovery (2) 218,015 100,499 32,871 - - - Purchases of minerals in place - - - - - - Sales of minerals in place (169,310 ) (3,349 ) - - (84 ) - Production (46,712 ) (24,444 ) (10,324 ) (171 ) (217 ) (304 ) Net proved reserves at end of period 510,066 470,937 415,224 1,104 1,441 2,130 Net proved developed reserves: Beginning of period 92,118 52,861 21,872 1,441 2,130 2,815 End of period 138,607 92,118 52,861 1,104 1,441 2,130 Net proved undeveloped reserves: Beginning of period 378,819 362,363 264,166 - - - End of period 371,459 378,819 362,363 - - - Natural Gas Equivalents (Mmcfe) 2019 2018 2017 Net proved reserves at beginning of period 479,583 428,002 302,927 Revisions of previous estimates (1) 36,141 (19,320 ) 104,354 Extensions, discoveries and improved recovery (2) 218,015 100,499 32,871 Purchases of minerals in place - - - Sales of minerals in place (3) (169,310 ) (3,852 ) - Production (47,738 ) (25,746 ) (12,150 ) Net proved reserves at end of period 516,691 479,583 428,002 Net proved developed reserves: Beginning of period 100,764 65,639 44,432 End of period 145,232 100,764 65,639 Net proved undeveloped reserves: Beginning of period 378,819 362,363 258,495 End of period 371,459 378,819 362,363 ( 1 Revisions of previous estimates in 2019 2018 2017 ( 2 Extensions and discoveries were positive on an overall basis in all three ( 3 In 2019, 54,571 2018, 2,500 Standardized Measure The standardized measure of discounted future net cash flows relating to proved oil and natural gas reserves as of year-end is shown below (in thousands): 2019 2018 2017 Future revenues $ 1,272,504 $ 1,494,557 $ 1,260,490 Future lease operating expenses and production taxes (377,851 ) (410,957 ) (430,048 ) Future development costs (1) (338,116 ) (349,552 ) (329,938 ) Future income tax expense (13,552 ) (56,784 ) (17,113 ) Future net cash flows 542,985 677,264 483,391 10% annual discount for estimated timing of cash flows (246,031 ) (279,679 ) (223,081 ) Standardized measure of discounted future net cash flows $ 296,954 $ 397,585 $ 260,310 Index price used to calculate reserves (2) Natural gas (per Mcf) $ 2.58 $ 3.10 $ 2.98 Oil (per Bbl) $ 55.69 $ 65.56 $ 51.34 ( 1 Includes cumulative asset retirement obligations of $7.4 $7.3 2019 2018, ( 2 These index prices, used to estimate our reserves at these dates, are before deducting or adding applicable transportation and quality differentials on a well-by-well basis. The estimated future net cash flows are discounted using a rate of 10 Changes in the Standardized Measure The following are the principal sources of change in the standardized measure of discounted net cash flows for the years shown (in thousands): Year Ended December 31, 2019 2018 2017 Balance, beginning of year $ 397,585 $ 260,310 $ 56,922 Net changes in prices and production costs related to future production (337,911 ) 95,927 113,319 Sales and transfers of oil and natural gas produced, net of production costs (82,706 ) (63,846 ) (32,012 ) Net change due to revisions in quantity estimates 33,181 (25,595 ) 107,499 Net change due to extensions, discoveries and improved recovery 101,012 129,207 8,970 Net change due to purchases and sales of minerals in place (2,009 ) (3,382 ) - Changes in future development costs 125,179 (4,608 ) (59,560 ) Previously estimated development cost incurred in period 31,340 7,923 8,114 Net change in income taxes 20,185 (16,336 ) (3,686 ) Accretion of discount 41,777 26,416 5,709 Change in production rates (timing) and other (30,679 ) (8,431 ) 55,035 Net increase (decrease) in standardized measures (100,631 ) 137,275 203,388 Balance, end of year $ 296,954 $ 397,585 $ 260,310 |