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Exploration and Development, Acquisition and Divestiture Activities
The following table sets forth historical cost information regarding our exploration and development
acquisition and divestiture activities during the periods indicated:
December 31,
2010 2009
($ in millions)
2008
Development and exploration costs:
Development drilling (a) .......................................... $ 4,739 $ 2,729 $ 5,185
Exploratory drilling ............................................. 691 651 612
Geological and geophysical costs (b)(c) .............................. 181 162 314
Asset retirement obligation and other .............................. 2 (2) 10
Acquisition costs:
5,613 3,540 6,121
Unproved properties (d) .......................................... 6,953 2,793 8,250
Proved properties .............................................. 243 61 355
Deferred income taxes .......................................... — — 13
Proceeds from divestitures:
7,196 2,854 8,618
Unproved properties ............................................ (1,524) (1,265) (5,302)
Proved properties .............................................. (2,876) (461) (2,433)
(4,400) (1,726) (7,735)
Total ....................................................... $ 8,409 $ 4,668 $ 7,004
(a) Includes capitalized internal costs of $367 million, $337 million and $326 million, respectively.
(b) Includes capitalized internal costs of $16 million, $22 million and $26 million, respectively.
(c) Includes $24 million, $29 million and $25 million of related capitalized interest, respectively.
(d) Includes $687 million, $598 million and $561 million of related capitalized interest, respectively.
Our development costs included $789 million, $621 million and $1.5 billion in 2010, 2009 and 2008,
respectively, related to properties carried as proved undeveloped locations in the prior year’s reserve reports.
A summary of our exploration and development, acquisition and divestiture activities in 2010 by operating
area is as follows:
Gross
Wells
Drilled
Net Wells
Drilled
Exploration
and
Development (a)
Acquisition
of
Unproved
Properties (b)
Acquisition
of
Proved
Properties
Sales
of
Unproved
Properties
Sales
of
Proved
Properties Total
($ in millions)
Mid-Continent . . . 596 212 $ 1,121 $ 547 $ 90 $ — $ — $ 1,758
Haynesville/
Bossier
Shale ........ 500 202 2,032 411 66 (57) (4) 2,448
Barnett Shale .... 503 287 570 216 — (38) (1,938) (1,190)
Fayetteville
Shale ........ 775 157 725 74 — — — 799
Permian and
Delaware
Basins ........ 156 84 396 41 2 (4) (560) (125)
Marcellus
Shale ........ 329 135 380 1,114 2 (396) — 1,100
Eagle Ford
Shale ........ 82 48 243 1,863 73 (1,029) (73) 1,077
Rockies/ Williston
Basin ......... 32 13 77 912 8 — — 997
Other .......... 58 11 69 1,775 2 — (301) 1,545
Total ......... 3,031 1,149 $ 5,613 $ 6,953 $ 243 $ (1,524)$ (2,876)$ 8,409
(a) Includes $383 million of capitalized internal costs and $24 million of related capitalized interest.
(b) Includes $687 million of related capitalized interest.
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