Stockholders' Equity

12 Months Ended

Dec. 31, 2011

Stockholders' Equity [Abstract]

Stockholders' Equity

13. Stockholders' Equity

Common Stock. Holders of our common stock are entitled to one vote for each share held on all matters submitted to a vote of stockholders and do not have cumulative voting rights. Accordingly, holders of a majority of the shares of common stock entitled to vote in any election of directors may elect all other directors standing for election. Holders of common stock are entitled to receive proportionately any dividends that may be declared by our board of directors, subject to any preferential rights of outstanding preferred stock. In the event of our liquidation, dissolution or winding up, holders of common stock will be entitled to receive proportionately any of our assets remaining after the payment of liabilities and subject to the prior rights of any outstanding preferred stock. Holders of common stock have no preemptive, subscription, redemption or conversion rights.

Shelf Registration. In September 2009, we filed with the SEC a shelf registration statement on Form S-3 for the offer and sale from time to time up to $75 million of our debt and equity securities. The amount available under the registration statement at March 2, 2012 was approximately $9.0 million.

Issuances of Common Stock and Warrants. The table below summarizes placements of our shares of common stock and warrants since the inception of the Company and warrants outstanding at December 31, 2011:

		Shares
		Common			Proceeds			Warrants Outstanding at December 31, 2011
		Stock	Warrant		Gross		Net	Amount		Exercise Price	Expiration
Company
Formation		40,500,000	-	$	53,000	$	53,000	-		-	-
Shares issued
2002		5,250,500	-		3,413,000		3,051,000	-		-	-
2003		10,595,961	8,903,270		6,607,000		5,382,000	-		-	-
2004		18,186,471	11,042,215		15,962,000		14,621,000	-		-	-
2005		14,893,292	150,000		13,404,000		12,469,000	-		-	-
2006		25,514,511	-		25,881,000		24,953,000	-		-	-
2007		11,485,452	4,019,908		15,000,000		14,814,000	4,019,908	$	2.61	Aug 2012
2008	(1)	24,000,000	8,400,000		12,000,000		11,808,000	8,400,000	$	1.00	May 2013
2009	(2)	11,558,645	12,043,458		14,900,855		13,898,173	4,623,458	$	1.25	Dec. 2014
2010	(3)	117,170,416	4,951,616		39,831,749		37,036,759	4,951,616	$	0.54 - $0.80	2014 & 2015
2011	(4)	49,196,388	-		17,527,500		16,696,009	-		-	-
		328,351,636	49,510,467		164,580,104		154,781,941	21,994,982

(1) The issuance of Common Stock and Warrants were consummated pursuant to a registered offering that closed in the second quarter of 2008. The warrants issued pursuant to this registered offering will terminate on the earlier to occur of: (a) the expiration date indicated in the respective warrant agreement and (b) the date fixed for redemption under the respective warrant agreement. We may elect to redeem the warrants (in whole or in part) if the shares of the Company's common stock trade at a price equal to or in excess of $2 per share for fifteen or more consecutive trading days.

(2) The issuance of Common Stock and Warrants were consummated pursuant to a registered offering that closed in the second quarter of 2008. The warrants issued pursuant to this registered offering will terminate on the earlier to occur of: (a) the expiration date indicated in the respective warrant agreement and (b) the date fixed for redemption under the respective warrant agreement. We may elect to redeem the warrants (in whole or in part) if the shares of the Company's common stock trade at a price equal to or in excess of $1.875 per share for fifteen or more consecutive trading days. Additionally, on March 13, 2009, FEEB issued an Exchangeable Note, $10 million principal amount, to Dart Energy for $10 million in cash and Dart Energy received Warrants to purchase 7,420,000 shares of Common Stock, which expired in December 2009.

(3) A Registered offering closed in March 2010 and Warrants to purchase up to 4.9 million shares of Common Stock were issued pursuant to this registered offering. The Warrants that were issued in the registered offering that closed in March 2010 expire on March 11, 2015 for investors who subscribed for Warrants and on November 4, 2014 for the placement agent who participated in the March 2010 registered offering. Another registered offering was closed in August 2010 for shares of Common Stock.

(4) In February 2011, Dart Energy exercised its right to exchange a total of $6.8 million in principal amount under the Exchangeable Note (referenced in footnote 2 of this table) for 14,315,789 shares of Common Stock. A registered offering was closed in March 2011 for shares of Common Stock.

Basic and Diluted Shares Outstanding. Our basic and diluted numbers of shares outstanding in each of the three years presented were the same because we had net losses. There were (1) 10,523,833, 9,075,500, and 9,952,167 options as of December 31, 2011, 2010 and 2009, respectively; and (2) 21,994,982, 21,994,982, and 17,241,680 warrants as of December 31, 2011, 2010 and 2009, respectively.

Resale Restrictions. On December 31, 2011, we had 342,103,218 shares of common stock outstanding, of which 6,150,565 shares, or 1.8%, were subject to resale restrictions.

Preferred Stock. Our board of directors has the authority, without further action by the stockholders, to issue up to 500,000,000 shares of preferred stock in one or more series and to designate the rights, preferences, privileges and restrictions of each series. The issuance of preferred stock could have the effect of restricting dividends on the common stock, diluting the voting power of the common stock, impairing the liquidation rights of the common stock or delaying or preventing our change in control without further action by the stockholders. We have no present plans to issue any shares of preferred stock.

Warrants. The following table summarizes warrant transactions for the years ended December 31, 2011, 2010 and 2009.

	2011	2010		2009
Outstanding at beginning of year	21,994,982	17,241,680		12,618,222
Issued related to
Current year's share placements	-	4,951,616		12,043,458
Exercised	-	-		-
Expired	-	(198,314	)	(7,420,000	)
Outstanding at end of year (1)	21,994,982	21,994,982		17,241,680

⁽¹⁾ The same amount of shares of our common stock authorized was reserved for the exercise of the warrants.

Stock Options. In May 2005, our stockholders approved the 2005 Plan, which permits the granting of incentive stock options, stock appreciation rights, restricted stock, restricted stock units and other stock-based awards to employees, consultants and members of the board of directors. Our shareholders voted in December 2007 to add 4,000,000 shares of common stock to the 2005 Plan. At the annual general meeting of stockholders of the Company held on July 15, 2009, the Company's stockholders approved an amendment to the 2005 Plan which increased the number of shares of common stock issuable from 7,500,000 shares to 12,500,000 shares and increased the number of shares of common stock that may be granted as nonvested stock, nonvested stock units or any other stock-based awards from 2,400,000 to 3,900,000 shares.

     At the annual meeting of stockholders of the Company held on October 11, 2011, the Company's stockholders approved an amendment to the 2005 Plan which increased the number of shares of common stock issuable from 12,500,000 shares to 22,000,000 shares and increased the number of shares of common stock that may be granted as restricted stock (nonvested shares), restricted stock units or any other stock-based awards from 3,900,000 to 8,000,000 shares.

     During the first half of 2011, we awarded options to purchase up to 1,785,000 shares of our common stock and 1,669,800 nonvested shares under the 2005 Plan to employees and members of the board of directors; and options to purchase up to 250,000 shares of our common stock and 190,000 nonvested shares outside the 2005 Plan to a new employee and a consultant. As of December 31, 2011, we had 16,509,199 shares available for awards under the 2005 Plan, of which 4,206,699 shares could be issued as nonvested shares or other full-valued stock-based awards.

     The weighted average remaining life of options exercisable at the end of the year is 4.23 years. The following table summarizes stock option transactions for the years ended December 31, 2011, 2010 and 2009:

	2011				2010				2009
				Weighted				Weighted				Weighted
	Shares			Average	Shares			Average	Shares			Average
	Underlying			Exercise	Underlying			Exercise	Underlying			Exercise
	Options			Price	Options			Price	Options			Price
Outstanding at beginning of year	9,075,500		$	1.18	9,952,167		$	1.14	11,320,500		$	1.25
Granted	2,035,000			0.58	-			-	1,906,000			0.40
Exercised	-			-	(100,000	)		0.31	-			-
Canceled	(400,000	)		2.28	(316,667	)		0.82	-			-
Forfeited	(186,667	)		0.52	(420,000	)		0.63	(433,333	)		0.54
Expired	-			-	(40,000	)		2.00	(2,841,000	)		1.16
Outstanding at end of year	10,523,833			1.04	9,075,500			1.18	9,952,167			1.14
Options exercisable at end of year	8,243,500			1.17	7,620,667			1.32	6,636,167			1.41