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Property, Plant and Equipment | 12 Months Ended
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Dec. 31, 2023
Property, Plant and Equipment [Abstract] |
Property, Plant and Equipment | Note D – Property, Plant and Equipment The Company’s property, plant and equipment assets for the respective periods are presented as follows:
| December 31, 2023 |  | December 31, 2022 |
(Thousands of dollars) | Cost |  | Net |  | Cost |  | Net |
Exploration and production ¹ | $ | 21,228,490 |  |  | $ | 8,201,475 |  | 2 | $ | 20,567,489 |  |  | $ | 8,204,463 |  | 2
Corporate and other | 132,092 |  |  | 23,722 |  |  | 150,498 |  |  | 23,553 |  |
Property, plant and equipment | $ | 21,360,582 |  |  | $ | 8,225,197 |  |  | $ | 20,717,987 |  |  | $ | 8,228,016 |  |
¹ Includes unproved mineral rights as follows: | $ | 351,000 |  |  | $ | 228,329 |  |  | $ | 476,981 |  |  | $ | 344,507 |  |
2 Includes $15,356 in 2023 and $18,319 in 2022 related to administrative assets and support equipment. Divestments On September 15, 2023, the Company completed the previously announced divestment of certain non-core operated Kaybob Duvernay assets and all of our non-operated Placid Montney assets, located in Alberta, Canada for net cash proceeds of C$139.0 million. No gain or loss was recorded related to this transaction, and the effective date of the transaction was March 1, 2023. During the third quarter of 2022, the Company completed the disposition of its 62.5% operated working interest of the Thunder Hawk field for a purchase price of $20.0 million less closing adjustments of $23.1 million, resulting in a total net payment to the buyer of $3.1 million. Additionally, the buyer assumed the asset retirement obligations of approximately $47.9 million. A $17.9 million gain on sale was recorded in the period related to the sale. In September 2022, the Company completed the disposition of the Block CA-2 asset in Brunei for contingent consideration valued at approximately $8.7 million. No gain or loss was recorded related to this sale. Acquisitions In August 2022, the Company acquired an additional working interest of 3.37% in the Lucius field for a purchase price of $78.5 million, net of closing adjustments. In June 2022, the Company acquired an additional working interest of 11.0% in the Kodiak field for a purchase price of $50.0 million, net of closing adjustments. Impairments The following table reflects the recognized before tax impairments for each of the three years presented.
(Thousands of dollars) | 2023 |  | 2022 |  | 2021
Canada | $ | – |  |  | $ | – |  |  | $ | 171,296 |
Other Foreign | – |  |  | – |  |  | 18,000 |
Corporate | – |  |  | – |  |  | 7,000 |
| $ | – |  |  | $ | – |  |  | $ | 196,296 |
Exploratory Wells Under FASB guidance, exploratory well costs should continue to be capitalized 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. At December 31, 2023, 2022 and 2021, the Company had total capitalized drilling costs pending the determination of proved reserves of $49.1 million, $171.9 million and $179.5 million, respectively. The following table reflects the net changes in capitalized exploratory well costs for each of the three years presented.
(Thousands of dollars) | 2023 |  | 2022 |  | 2021
Beginning balance at January 1 | $ | 171,860 |  |  | $ | 179,481 |  |  | $ | 181,616 |
Additions pending the determination of proved reserves | 48 |  |  | 33,440 |  |  | 16,725 |
Reclassifications to proved properties based on the determination of proved reserves | (82,185) |  |  | – |  |  | – |
Divestment | – |  |  | (7,915) |  |  | – |
Capitalized exploration well costs charged to expense | (40,605) |  |  | (33,146) |  |  | (18,860) |
Ending balance at December 31 | $ | 49,118 |  |  | $ | 171,860 |  |  | $ | 179,481 |
Reclassifications to proved properties of $82.2 million, for the year ended December 31, 2023, are primarily related to LDV-4X in Vietnam. Capitalized well costs charged to dry hole expense of $40.6 million are related to the Cholula-1EXP well in offshore Mexico, and Oso #1 (Atwater Valley 138), and Chinook #7 (Walker Ridge 425) exploration wells in the Gulf of Mexico. The preceding table excludes well costs of $129.2 million incurred and expensed directly to dry hole during the year ended December 31, 2023, related to the Chinook #7 (Walker Ridge 425) and Oso #1 (Atwater Valley 138) explorations well in the Gulf of Mexico. The following table provides an aging of capitalized exploratory well costs based on the date the drilling was completed for each individual well and the number of projects for which exploratory well costs have been capitalized. The projects are aged based on the last well drilled in the project.
| 2023 |  | 2022 |  | 2021
(Thousands of dollars) | Amount |  | No. of Wells |  | No. of Projects |  | Amount |  | No. of Wells |  | No. of Projects |  | Amount |  | No. of Wells |  | No. of Projects
Aging of capitalized well costs |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Zero to one year | $ | – |  |  | – |  | – |  | $ | 15,527 |  |  | 2 |  |  | 2 |  |  | $ | 13,273 |  |  | 3 |  | 3
One to two years | – |  |  | – |  | – |  | 13,307 |  |  | 2 |  |  | 2 |  |  | – |  |  | – |  |  | – |
Two to three years | 2,698 |  |  | 1 |  | 1 |  | – |  |  | – |  | – |  |  | 53,070 |  |  | 5 |  | 5 |
Three years or more | 46,420 |  |  | 3 |  | 3 |  | 143,026 |  |  | 5 |  | 4 |  |  | 113,138 |  |  | 6 |  | – |
| $ | 49,118 |  |  | 4 |  | 4 |  | $ | 171,860 |  |  | 9 |  | 8 |  | $ | 179,481 |  |  | 14 |  | 8
Of the $49.1 million of exploratory well costs capitalized more than one year at December 31, 2023, $26.5 million is in the U.S., $15.1 million is in Vietnam, $4.8 million is in Canada and $2.7 million is in Brunei. In all geographical areas, either further appraisal or development drilling is planned and/or development studies/plans are in various stages of completion.

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