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Accounting for suspended exploratory well costs
 12 Months Ended
Dec. 31, 2019
Accounting for suspended exploratory well costs
The company continues capitalization of exploratory well costs when the well has found a sufficient quantity of reserves to justify its completion as a producing well and the company is making sufficient progress assessing the reserves and the economic and operating viability of the project. The term “project” as used in this report can refer to a variety of different activities and does not necessarily have the same meaning as in any government payment transparency reports.
Exploratory well costs that were capitalized in prior years as part of the Horn River project for a period greater than one year were expensed in 2017.
The following two tables provide details of the changes in the balance of suspended exploratory well costs, as well as an aging summary of those costs.
Change in capitalized suspended exploratory well costs:
 
millions of Canadian dollars
  
2019
 
  
        2018
 
  
          2017
 
Balance as at January 1
  
 
-
 
    
-
      
143
 
Additions pending the determination of proved reserves
  
 
-
 
    
-
      
-
 
Charged to expense
  
 
-
 
    
-
      
(143
)
Reclassification to wells, facilities and equipment based on the determination of proved reserves
  
 
-
 
    
-
      
-
 
Balance as at December 31
  
 
-
 
    
-
      
-
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Period end capitalized suspended exploratory well costs:
millions of Canadian dollars
  
2019
 
  
        2018
 
  
          2017
  
Capitalized for a period of one year or less
 
 
-
 
 
 
-
 
 
 
-
  
Capitalized for a period of between one and ten years
 
 
-
 
 
 
-
 
 
 
-
  
Capitalized for a period of greater than one year
 
 
-
 
 
 
-
 
 
 
-
  
 
 
 
 
 
 
 
 
 
 
 
 
  
Total
 
 
-
 
 
 
-
 
 
 
-
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Exploration activity often involves drilling multiple wells, over a number of years, to fully evaluate a project.
 
The table below provides a breakdown of the number of projects with only exploratory well costs capitalized for a period of one year or less and those that have had exploratory well costs capitalized for a period greater than one year.
  
  
2019
 
  
        2018
 
  
          2017
  
Number of projects that only have exploratory well costs capitalized for a period of one year or less
 
 
 
 
-
 
    
-
      
-
  
Number of projects that have exploratory well costs capitalized for a period of greater than one year
  
 
-
 
    
-
      
-
  
Total
  
 
-
 
    
-
      
-