(2) Acquisitions and Dispositions of Oil and Gas Properties

In January 2016, the Company exchanged certain oil and gas properties with another operator in a non-monetary exchange. Under the exchange, the Company received 3,637 net acres in DeSoto Parish, Louisiana, prospective for the Haynesville shale, including four producing wells (3.5 net). The Company exchanged 2,547 net acres in Atascosa County, Texas, including seven producing wells (5.3 net) for the Haynesville shale properties. The Company recognized a gain of $0.7 million on this transaction which was included in the loss on sale of oil and gas properties for the year ended December 31, 2016.

In December 2016, the Company sold certain of its natural gas properties located in South Texas realizing net proceeds of $25.8 million. The Company recognized a loss on the sale of these assets in 2016 totaling $13.4 million and an impairment of $20.8 million in the first quarter of 2016 to adjust the carrying value of these assets to their fair value. The Company also sold certain other oil and gas properties during 2016 for total proceeds of $2.1 million. The Company recognized a loss of $1.6 million on these divestitures. In July 2015, the Company sold its Burleson County, Texas properties for proceeds of $102.5 million, recognizing a net loss on sale of $112.1 million.

Results of operations for the properties that were sold in 2015 and 2016 were as follows:

	Year Ended December 31,
	2014			2015			2016
	(In thousands)
Total oil and gas sales	$	32,984		$	30,169		$	7,480
Total operating expenses⁽¹⁾		(47,639	)		(83,275	)		(5,690	)
Operating income (loss)	$	(14,655	)	$	(53,106	)	$	1,790

(1)	Includes direct operating expenses, depreciation, depletion and amortization and exploration expense. Excludes interest expense, general and administrative expenses and depreciation, depletion and amortization expense subsequent to the date the assets were designated as held for sale.