NOTE 6. NATURAL RESOURCES ASSETS

Natural Resources Properties

The following table summarizes the Company's oil and gas properties as of December 31, 2012 and 2011 (amounts in thousands):

	As of December 31, 2012			As of December 31, 2011

Proved oil and natural gas properties (successful efforts method)	$	315,446		$	146,457
Unproved oil and natural gas properties		2,596			344
Less: Accumulated depreciation, depletion and amortization		(28,113	)		(8,276	)

Oil and gas properties, net	$	289,929		$	138,525

For the years ended December 31, 2012 and 2011, the Company recorded $3.3 million and zero, respectively, of impairments which are included in net realized and unrealized gain on investments in the consolidated statements of operations.

The Company accounts for certain of its oil and natural gas properties as business combinations under the acquisition method of accounting.

During 2011, the Company completed the acquisition of certain oil and natural gas properties located in the Barnett Shale in Texas by funding approximately $56.7 million including costs, partially financed through its asset-based borrowing facility. The acquisition included proved reserves as of the acquisition date.

During 2012, the Company completed the acquisition of certain oil and natural gas properties located in Louisiana, Mississippi, and Texas (most notably in the Barnett and Eagle Ford Shale), by funding approximately $178.3 million including costs, partially financed through its asset-based borrowing facility.

The results of operations of these properties have been included in the consolidated financial statements since the acquisition dates. As these acquisitions were accounted for under the acquisition method of accounting, the Company conducted assessments of net assets acquired and recognized amounts for identifiable assets acquired and liabilities assumed at their estimated acquisition date fair values Transaction and integration costs associated with the acquisitions were expensed as incurred. The initial accounting for the 2012 business combinations are not complete and adjustments to provisional amounts, or recognition of additional assets acquired or liabilities assumed, may occur as more detailed analyses are completed and additional information is obtained about the facts and circumstances that existed as of the acquisition dates.

The recognized fair values of the identifiable assets acquired and liabilities assumed in connection with all of these acquisitions are as follows (amounts in thousands):

	2012(1)			2011

Proved property	$	160,751		$	56,588
Unproved property		2,535			—
Other assets		16,724			—
Risk management liabilities		(1,037	)		—
Accounts payable and accrued liabilities		(5,229	)		(558	)
Asset retirement obligation		(5,440	)		(553	)

Total	$	168,304		$	55,477

(1): The amounts above represent a preliminary estimate of the fair values of the identifiable assets acquired and liabilities assumed for the acquisitions. The fair values of the identifiable assets acquired and liabilities assumed related to the acquisitions are expected to be finalized during 2013.

In addition to the acquisitions above, during 2011, the Company purchased overriding royalty interests in the Eagle Ford Shale for approximately $55.0 million. During 2012, the Company participated and earned working interests in oil and natural gas properties located in Texas by funding approximately $1.4 million including costs. These amounts are included in oil and gas properties, net on the consolidated balance sheets.