Financial Instruments

9 Months Ended

Sep. 30, 2011

Financial Instruments [Abstract]

FINANCIAL INSTRUMENTS

NOTE 11 FINANCIAL INSTRUMENTS

The Company’s financial instruments include cash and cash equivalents, short-term investments, restricted cash, accounts receivable, accounts payable and senior secured promissory notes. The carrying amount of cash and cash equivalents, short-term investments, restricted cash, accounts receivable, accounts payable, and senior secured promissory notes approximate fair value because of their immediate or short-term maturities.

The Company’s accounts receivable relate to oil and natural gas sold to various industry companies. Credit terms, typical of industry standards, are of a short-term nature and the Company does not require collateral. Management believes the Company’s accounts receivable at September 30, 2011 do not represent significant credit risks as they are dispersed across many counterparties.