CRUDE OIL AND NATURAL GAS PROPERTIES	6 Months Ended
Jun. 30, 2012
CRUDE OIL AND NATURAL GAS PROPERTIES [Abstract]
CRUDE OIL AND NATURAL GAS PROPERTIES	NOTE 3 CRUDE OIL AND NATURAL GAS PROPERTIES The value of the Company's crude oil and natural gas properties consists of all acreage acquisition costs (including cash expenditures and the value of stock consideration), drilling costs and other associated capitalized costs. Acquisitions are accounted for as purchases and, accordingly, the results of operations are included in the accompanying statements of income and comprehensive income from the closing date of the acquisition. Purchase prices are allocated to acquired assets based on their estimated fair value at the time of the acquisition. In the past, acquisitions have been funded with internal cash flow, bank and other borrowings and the issuance of equity securities. At June 30, 2012, approximately $138.7 million of capital expenditures were in accounts payable. Acquisitions For the six months ended June 30, 2012, the Company acquired or earned through farm-in arrangements approximately 17,338 net mineral acres, for an average cost of approximately $1,881 per net acre, in its key prospect areas in the form of effective leases. For the six months ended June 30, 2011, the Company acquired approximately 24,281 net mineral acres, for an average cost of $1,808 per net acre, in its key prospect areas in the form of effective leases. Unproved Properties Unproved properties not being amortized comprise approximately 74,000 net acres and 117,000 net acres of undeveloped leasehold interests at June 30, 2012 and December 31, 2011, respectively. The Company believes that the majority of its unproved costs will become subject to depletion within the next five years by proving up reserves relating to the acreage through exploration and development activities, by impairing the acreage that will expire before the Company can explore or develop it further or by determining that further exploration and development activity will not occur. The timing by which all other properties will become subject to depletion will be dependent upon the timing of future drilling activities and delineation of its reserves. Excluded costs for unproved properties are accumulated by year. Costs are reflected in the full cost pool as the drilling costs are incurred or as costs are evaluated and deemed impaired. The Company anticipates these excluded costs will be included in the depletion computation over the next five years. The Company is unable to predict the future impact on depletion rates. The Company had 150 gross (10.8 net) wells drilling, awaiting completion or completing as of June 30, 2012. All properties that are not classified as proven properties are considered unproved properties and, thus, the costs associated with such properties are not subject to depletion. Once a property is classified as proven, all associated acreage and drilling costs are subject to depletion. At June 30, 2012 and December 31, 2011, the amount of capitalized costs excluded from depletion was $98.1 and $137.8 million, respectively. The Company historically has acquired its properties by purchasing individual or small groups of leases directly from mineral owners or from landmen or lease brokers, which leases historically have not been subject to specified drilling projects, and by purchasing lease packages in identified project areas controlled by specific operators. The Company generally participates in drilling activities on a heads up basis by electing whether to participate in each well on a well-by-well basis at the time wells are proposed for drilling, with the exception of the defined drilling projects with Slawson Exploration Company, Inc. described below. As of June 30, 2012, the Company was participating in three defined drilling projects with Slawson covering an aggregate of approximately 18,540 net acres of leasehold interests held by the Company. The Windsor project area includes approximately 2,722 net acres held by the Company, primarily located in Mountrail and surrounding counties of North Dakota. The South West Big Sky project includes approximately 4,525 net acres held by the Company in Richland County, Montana. The Lambert project includes approximately 11,293 net acres held by the Company in Richland and Dawson Counties, Montana.

NOTE 3 CRUDE OIL AND NATURAL GAS PROPERTIES

The value of the Company's crude oil and natural gas properties consists of all acreage acquisition costs (including cash expenditures and the value of stock consideration), drilling costs and other associated capitalized costs. Acquisitions are accounted for as purchases and, accordingly, the results of operations are included in the accompanying statements of income and comprehensive income from the closing date of the acquisition. Purchase prices are allocated to acquired assets based on their estimated fair value at the time of the acquisition. In the past, acquisitions have been funded with internal cash flow, bank and other borrowings and the issuance of equity securities. At June 30, 2012, approximately $138.7 million of capital expenditures were in accounts payable.

Acquisitions

For the six months ended June 30, 2012, the Company acquired or earned through farm-in arrangements approximately 17,338 net mineral acres, for an average cost of approximately $1,881 per net acre, in its key prospect areas in the form of effective leases.

For the six months ended June 30, 2011, the Company acquired approximately 24,281 net mineral acres, for an average cost of $1,808 per net acre, in its key prospect areas in the form of effective leases.

Unproved Properties

Unproved properties not being amortized comprise approximately 74,000 net acres and 117,000 net acres of undeveloped leasehold interests at June 30, 2012 and December 31, 2011, respectively. The Company believes that the majority of its unproved costs will become subject to depletion within the next five years by proving up reserves relating to the acreage through exploration and development activities, by impairing the acreage that will expire before the Company can explore or develop it further or by determining that further exploration and development activity will not occur. The timing by which all other properties will become subject to depletion will be dependent upon the timing of future drilling activities and delineation of its reserves.

Excluded costs for unproved properties are accumulated by year. Costs are reflected in the full cost pool as the drilling costs are incurred or as costs are evaluated and deemed impaired. The Company anticipates these excluded costs will be included in the depletion computation over the next five years. The Company is unable to predict the future impact on depletion rates.

The Company had 150 gross (10.8 net) wells drilling, awaiting completion or completing as of June 30, 2012. All properties that are not classified as proven properties are considered unproved properties and, thus, the costs associated with such properties are not subject to depletion. Once a property is classified as proven, all associated acreage and drilling costs are subject to depletion. At June 30, 2012 and December 31, 2011, the amount of capitalized costs excluded from depletion was $98.1 and $137.8 million, respectively.

The Company historically has acquired its properties by purchasing individual or small groups of leases directly from mineral owners or from landmen or lease brokers, which leases historically have not been subject to specified drilling projects, and by purchasing lease packages in identified project areas controlled by specific operators. The Company generally participates in drilling activities on a heads up basis by electing whether to participate in each well on a well-by-well basis at the time wells are proposed for drilling, with the exception of the defined drilling projects with Slawson Exploration Company, Inc. described below.

As of June 30, 2012, the Company was participating in three defined drilling projects with Slawson covering an aggregate of approximately 18,540 net acres of leasehold interests held by the Company. The Windsor project area includes approximately 2,722 net acres held by the Company, primarily located in Mountrail and surrounding counties of North Dakota. The South West Big Sky project includes approximately 4,525 net acres held by the Company in Richland County, Montana. The Lambert project includes approximately 11,293 net acres held by the Company in Richland and Dawson Counties, Montana.