Quarterly report pursuant to Section 13 or 15(d)

Property, Plant and Equipment

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Property, Plant and Equipment
 3 Months Ended
Mar. 31, 2017
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment

NOTE 5 — PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment is comprised of fixed assets and oil and gas properties, as shown below (in thousands):

 

                                                             
    March 31, 2017     December 31, 2016  

Fixed Assets

    

Land

   $ 9,491     $ 9,491  

Buildings

     549       549  

Leasehold improvements

     1,838       602  

Computer, office equipment and fixtures

     437       420  

Accumulated depreciation

     (129 )      (69 ) 
 

 

 

    

 

 

  

Total fixed assets, net

     12,186       10,993  
 

 

 

    

 

 

  

Oil and Gas Properties

    

Unproved

     13,000       —    

Wells in progress

     332       —    
 

 

 

    

 

 

  

Total oil and gas properties

     13,332       —    
 

 

 

    

 

 

  

Total property, plant and equipment, net

   $ 25,518     $ 10,993  
 

 

 

    

 

 

  

Fixed assets are depreciated using the straight-line depreciation method. Depreciation expense of $60 thousand and zero for the three months ended March 31, 2017 and 2016, respectively, is recorded within development expenses on the Condensed Consolidated Statements of Operations.

In connection with the Merger, in February 2017, the Company acquired interests in certain oil and gas properties. Unproved properties consist of oil and gas interests in the Weald Basin, United Kingdom and the Timor Sea, Australia. In the United Kingdom, Tellurian holds a non-operating interest in certain licenses where a well was recently drilled and is currently under an extended flow test. In Australia, Tellurian holds a non-operating interest in an exploration permit. Under the terms of the permit, Tellurian or a commercial business partner is required to perform a seismic survey to certain specifications by November 12, 2017 or the permit will expire. See also Note 6, Commitments and Contingencies. There is no production and there are no reserves currently associated with any of our licenses. Accordingly, there is no depletion associated with them for the three months ended March 31, 2017.