Quarterly report pursuant to Section 13 or 15(d)

Property, Plant and Equipment

v3.7.0.1
Property, Plant and Equipment
 6 Months Ended
Jun. 30, 2017
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment

NOTE 7 — PROPERTY, PLANT AND EQUIPMENT

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

 

   

    June 30, 2017    

  

  December 31, 2016 

Fixed Assets

    

Land

   $                          9,491    $                          9,491 

Buildings

   549    549 

Leasehold improvements

   1,774    602 

Computer, office equipment and fixtures

   436    420 

Accumulated depreciation

   (208)   (69)
 

 

  

 

Total fixed assets, net

   12,042    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

   $                        25,374    $                        10,993 
 

 

  

 

Property, plant and equipment is depreciated using the straight-line depreciation method. Depreciation expense of $79 thousand and $139 thousand for the three and six months ended June 30, 2017, respectively, and $24 thousand for the three and six months ended June 30, 2016, respectively, is recorded within development expenses on the Condensed Consolidated Statement of Operations.

In February 2017, in connection with the Merger, 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 non-operating interests in two licenses which expire in June and September 2021. In Australia, Tellurian holds an operating interest in an exploration permit due to expire on November 12, 2017. At this time, the Company is considering applying for an extension of the exploration permit to the appropriate Australian regulatory authorities. 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 and six months ended June 30, 2017.