Fortune Creek	9 Months Ended
Sep. 30, 2013
Equity Method Investments and Joint Ventures [Abstract]
Fortune Creek	FORTUNE CREEK Note 16 to the consolidated financial statements in our 2012 Annual Report on Form 10-K contains additional information on Fortune Creek. We committed to minimum gross capital expenditures of $300 million for drilling and completion activities in our Horn River Asset between 2012 and 2014, of which we have achieved $170.9 million as of September 30, 2013, and pursuant to the partnership agreement will be required to achieve an additional $9.1 million by December 31, 2013, with the balance to be achieved through December 31, 2014; provided further that up to $20 million could be deferred until December 31, 2015. These minimum expenditure commitments include gross capital expenditures for wells in which we have a working interest regardless of our working interest percentage. To the extent these minimum capital expenditure commitments are not met, we will incur a penalty in an amount equal to the shortfall, which will be applied against the gathering agreement requirement. Additionally, we committed gas production from our Horn River Asset for ten years beginning 2012, as more fully described below. KKR contributed $125 million cash in exchange for a 50% interest in Fortune Creek. Our Canadian subsidiary has responsibility for the day-to-day operations of Fortune Creek. Our Canadian subsidiary entered into a firm gathering agreement with Fortune Creek, which is guaranteed by us. At our election and based on the satisfaction of certain conditions, KKR has the responsibility to fund up to C$130 million of the capital required for construction of a new gas treatment facility in exchange for preferential cash flow distributions. If our subsidiary does not meet its obligations under the gathering agreement, KKR has the right to liquidate the partnership and consequently we have recorded the funds contributed by KKR as a liability in our consolidated financial statements. We recognize accretion expense to reflect the rate of return earned by KKR via its investment. Fortune Creek has made cash distributions to KKR, which are reported as cash used by financing activities, since May 2012.

FORTUNE CREEK

Note 16 to the consolidated financial statements in our 2012 Annual Report on Form 10-K contains additional information on Fortune Creek. We committed to minimum gross capital expenditures of $300 million for drilling and completion activities in our Horn River Asset between 2012 and 2014, of which we have achieved $170.9 million as of September 30, 2013, and pursuant to the partnership agreement will be required to achieve an additional $9.1 million by December 31, 2013, with the balance to be achieved through December 31, 2014; provided further that up to $20 million could be deferred until December 31, 2015. These minimum expenditure commitments include gross capital expenditures for wells in which we have a working interest regardless of our working interest percentage. To the extent these minimum capital expenditure commitments are not met, we will incur a penalty in an amount equal to the shortfall, which will be applied against the gathering agreement requirement. Additionally, we committed gas production from our Horn River Asset for ten years beginning 2012, as more fully described below. KKR contributed $125 million cash in exchange for a 50% interest in Fortune Creek. Our Canadian subsidiary has responsibility for the day-to-day operations of Fortune Creek.

Our Canadian subsidiary entered into a firm gathering agreement with Fortune Creek, which is guaranteed by us. At our election and based on the satisfaction of certain conditions, KKR has the responsibility to fund up to C$130 million of the capital required for construction of a new gas treatment facility in exchange for preferential cash flow distributions. If our subsidiary does not meet its obligations under the gathering agreement, KKR has the right to liquidate the partnership and consequently we have recorded the funds contributed by KKR as a liability in our consolidated financial statements. We recognize accretion expense to reflect the rate of return earned by KKR via its investment. Fortune Creek has made cash distributions to KKR, which are reported as cash used by financing activities, since May 2012.