Derivative Instruments

12 Months Ended

Dec. 31, 2011

Derivative Instruments [Abstract]

Derivative Instruments

Note 19 – Derivative Instruments

We have oil and gas commodity derivatives and embedded derivatives related to debt instruments at December 31, 2011 and 2010. The fair market value of these derivative instruments is included in our balance sheet as follows:

					December 31,
					2011		2010
Derivatives not designated as hedges:
	Oil and gas commodity derivatives:
		Assets:
			Prepaid expenses and other current assets	$	1,247	$	709
			Other assets - long term		-		1,296
				$	1,247	$	2,005
	Embedded derivatives related to debt instrument:
		Assets:
			Other assets - long term	$	-	$	315
		Liabilities:
			Other liabilities - long-term		(16,067)		(27,810)

As of December 31, 2011, our outstanding commodity derivatives covered approximately 304 Mbbl of oil and 548 MMcf of gas cumulative through 2010 and consist of fixed price puts. If all counterparties failed to perform, our maximum loss would be $1.2 million as of December 31, 2011.

The effect of the derivatives not designated as hedges on our results of operations was as follows:

			Year Ended December 31,
			2011		2010		2009
Derivatives not designated as hedges:
	Oil and gas commodity derivatives
		Realized gains (losses)	$	-	$	(11,753)	$	35,422
		Unrealized gains (losses)		(3,050)		10,943		(43,791)
				(3,050)		(810)		(8,369)
	Embedded derivatives related to debt and equity instruments
		Unrealized gains (losses)	$	11,428	$	1,348	$	(11,807)

The effect of derivatives designated as cash flow hedges on our results of operations and other comprehensive income was as follows:

				Year Ended December 31,
			Location of
			Reclassification
			into Income		2011	2010	2009
Interest rate swap
	(Gain) loss reclassified from
		accumulated other comprehensive
		income into income	Interest expense		-	-	1,194

We did not exclude any component of the hedging instruments' gain or loss when assessing effectiveness. The ineffective portion of the hedges is not material for the periods presented and is included in other income (expense).

During 2007, we entered into an interest rate swap withfor a notional amount of $37.5 million whereby we paid a fixed rate of 5.05% and received three-month LIBOR through November 2009.