2.2.0.7 false Oil and Gas Properties 0205 - Disclosure - Oil and Gas Properties true false false false 1 USD false false USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 Shares Standard http://www.xbrl.org/2003/instance shares xbrli 0 $ 2 Oil and Gas Properties [Abstract] 0 me_OilAndGasPropertiesAbstract me false na duration Oil and Gas Properties. false false false false false true false false false false false false 1 false false false false 0 0 false false false xbrli:stringItemType string Oil and Gas Properties. false 3 Oil and Gas Properties 1 us-gaap_OilAndGasExplorationAndProductionIndustriesDisclosuresTextBlock us-gaap true na duration No definition available. false false false false false false false false false false false verboselabel false 1 false false false false 0 0   <div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 12pt"><b>5. Oil and Gas Properties</b> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     The Company’s oil and gas properties are accounted for using the full cost method of accounting. All direct costs and certain indirect costs associated with the acquisition, exploration and development of oil and gas properties are capitalized, including eligible general and administrative costs (“G&A”). G&A costs associated with production, operations, marketing and general corporate activities are expensed as incurred. These capitalized costs, coupled with the Company’s estimated asset retirement obligations recorded in accordance with accounting for asset retirement and environmental obligations under GAAP, are included in the amortization base and amortized to expense using the unit-of-production method. Amortization is calculated based on estimated proved oil and gas reserves. Proceeds from the sale or disposition of oil and gas properties are applied to reduce net capitalized costs unless the sale or disposition causes a significant change in the relationship between costs and the estimated value of proved reserves. For the three-month periods ended June 30, 2010 and 2009, capitalized G&A totaled $7.2 million and $5.3 million, respectively. For the six-month periods ended June 30, 2010 and 2009, capitalized G&A totaled $13.8 million and $10.3 million, respectively. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     Capitalized costs (net of accumulated depreciation, depletion and amortization and deferred income taxes) of proved oil and gas properties are subject to a full cost ceiling limitation. The ceiling limits these costs to an amount equal to the present value, discounted at 10%, of estimated future net cash flows from estimated proved reserves less estimated future operating and development costs, abandonment costs (net of salvage value) and estimated related future income taxes. In accordance with SEC rules, the natural gas and oil prices used to calculate the full cost ceiling limitation for periods ending on or after December 31, 2009 are the 12-month average prices, calculated as the unweighted arithmetic average of the first-day-of-the-month price for each month within the 12-month period prior to the end of the reporting period, unless prices are defined by contractual arrangements. Prices are adjusted for “basis” or location differentials. Price is held constant over the life of the reserves. The Company uses derivative financial instruments that qualify for cash flow hedge accounting under GAAP to hedge against the volatility of oil and natural gas prices. In accordance with SEC guidelines, Mariner includes estimated future cash flows from its hedging program in the ceiling test calculation. If net capitalized costs related to proved properties exceed the ceiling limit, the excess is impaired and recorded in the Condensed Consolidated Statement of Operations. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     At June 30, 2010 and June 30, 2009 the ceiling limit exceeded the net capitalized costs of the Company’s proved oil and gas properties and no impairment was recorded. The ceiling limit of its proved reserves at June 30, 2010 was calculated based upon 12-month average prices of $4.10 per Mcf for gas and $75.76 per barrel for oil, calculated as the unweighted arithmetic average of the first-day-of-the-month price for each month within the 12-month period prior to the end of the reporting period, unless prices are defined by contractual arrangements. Prices are adjusted for “basis” or location differentials. The ceiling limit of its proved reserves at June 30, 2009 was calculated based upon quoted market prices of $3.89 per Mcf for gas and $70.00 per barrel for oil. The Company may be required to recognize non-cash impairment charges in future reporting periods if average 12-month market prices for oil and natural gas were to decline. At June 30, 2010, the Company had 78,168,919 MMbtus of natural gas and 4,476,544 Bbls of oil of future production hedged. </div> </div>  <!-- Begin Block Tagged Note false false false us-types:textBlockItemType textblock This text block may contain all or parts of the required disclosures for oil and gas producing industries in tables or other formats. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 19 -Paragraph 59A-59Z, 59AA, 59BB, 59CC false 1 2 false UnKnown UnKnown UnKnown false true