At September 30, 2011, we had $471.7 million in outstanding debt. Our outstanding credit facilities contain certain financial ratio covenants. We were in compliance with all financial and restrictive covenants of our debt obligations as of September 30, 2011 and December 31, 2010. Our debt consisted of the following at September 30, 2011 and December 31, 2010:

		September 30,		December 31,
		2011		2010

Senior notes, 6% fixed rate, due 2012	$	-	$	81,250
Senior term loan, 15% fixed rate, due 2013		239,123		161,371
Subordinated notes, 12% fixed rate, due 2014		36,828		51,132
Convertible bonds, 11.5% until March 11, 2011 and 7.5% thereafter, due 2016		60,776		55,821
Convertible senior notes, 5.5% fixed rate, due 2016		135,000		-
		471,727		349,574
Less: debt discount		(2,591)		(4,268)
Less: current maturities		(14,850)		(21,600)

Long-term debt	$	454,286	$	323,706

Standby letters of credit outstanding for abandonment liabilities	$	32,136	$	31,726

On April 20, 2011, we redeemed all $81.25 million of our outstanding 6% Senior Notes due 2012 with a portion of the proceeds from our common stock offering completed in March 2011. The redemption was made at a price of 100% of the Senior Notes' principal amount, plus accrued and unpaid interest to the redemption date.

On February 6, 2011, we amended our Senior Term Loan due 2013 to increase the security reserved for potential letters of credit from $25 million to $35 million. In July 2011, we secured new letters of credit that allowed us to release the $33 million of restricted cash that served as collateral for previous letters of credit.

The Amendment of our 11.5% Convertible Bonds and the redemption of all $81.25 million of our outstanding 6% Senior Notes satisfied the two conditions precedent to extend the maturity date of the Senior Term Loan to August 16, 2013

On July 15, 2011, we amended our Senior Term Loan to provide for an increase of $75 million in the borrowings available under the Senior Term Loan. In connection with the increase, we drew down the full additional amounts available and our quarterly scheduled amortization payments on the Senior Term Loan increased from $400,000 to $587,500. The other primary provisions of the amendment include:

On March 11, 2011, we entered into an amendment to the Trust Deed with Smedvig QIF PLC related to our 11.5% Convertible Bonds due 2014. The amendment provides for:

We recorded a loss of $0.8 million in other expenses related to this amendment, representing the difference between the fair value of the debt and the book value of the debt at March 11, 2011.

On July 18, 2011, we issued $135 million aggregate principal amount of our 5.5% Convertible Senior Notes due 2016. Interest on these notes will be payable semiannually at a rate of 5.5% per annum. The 5.5% Convertible Senior Notes are convertible into shares of our common stock at an initial conversion rate of 54.019 shares (equivalent to $18.51 per share) of common stock per $1,000 principal amount of the notes. We issued the 5.5% Convertible Senior Notes, expecting to utilize the majority of the net proceeds of this offering to fund our pending acquisition of acreage and related midstream assets in the Marcellus shale play. If we are unable to complete the Marcellus acquisition, these proceeds may be used for general corporate purposes.

On July 25, 2011, we entered into a letter of credit facility agreement (the “LC Agreement”) with Commonwealth Bank of Australia (“CBA”), pursuant to which CBA issued letters of credit to us in the amount of £20.6 million (approximately $35 million as of July 25, 2011). Concurrent with the issuance of the letters of credit, the restrictions on £20.6 million of our restricted cash were removed and the cash returned for general corporate purposes. The letters of credit secure decommissioning obligations in connection with certain of our United Kingdom Continental Shelf Petroleum Production Licences. The LC Agreement provides that we pay a quarterly fee computed at a rate of 4.5% per year on the outstanding amount of each letter of credit issued under the LC Agreement. The LC Agreement contains similar financial covenants and other covenants as the credit agreement governing our Senior Term Loan. The CBA letters of credit are renewable at our option on October 31, 2012 and through the expiration of the LC Agreement on October 31, 2013.

The fair value of our outstanding debt obligations was $424 million and $361 million at September 30, 2011 and December 31, 2010, respectively. The fair values of long-term debt were determined based upon external market quotes for our Senior Notes and discounted cash flows for other debt.