NOTE 6. NATURAL RESOURCES ASSETS

Natural Resources Properties

The following table summarizes the Company’s oil and gas properties as of March 31, 2013 and December 31, 2012 (amounts in thousands):

	As of March 31, 2013			As of December 31, 2012
Proved oil and natural gas properties (successful efforts method)	$	331,792		$	315,446
Unproved oil and natural gas properties	2,719			2,596
Less: Accumulated depreciation, depletion and amortization	(36,995		)	(28,113		)
Oil and gas properties, net	$	297,516		$	289,929

For the three months ended March 31, 2013 and 2012, the Company recorded zero and $0.1 million, respectively, of impairments which are included in net realized and unrealized gain on investments in the condensed consolidated statements of operations.

Acquisitions

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

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 working capital and costs, partially financed through its asset-based borrowing facility.

The results of operations of these properties have been included in the condensed 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 was not complete and adjustments were subsequently recorded as additional information was obtained about the facts and circumstances that existed as of the acquisition dates. During the three months ended March 31, 2013, the Company recorded adjustments to the recognized fair values of the identifiable assets acquired and liabilities assumed in connection with the Company’s acquisitions as of their respective acquisition dates. The table below reflects updated 2012 information including an increase of $3.8 million to both proved property and accounts payable and accrued liabilities (amounts in thousands):

	2013		2012
Proved property	$	—	$	164,557
Unproved property	—		2,658
Other assets	—		16,789
Risk management liabilities	—		(1,037		)
Accounts payable and accrued liabilities	—		(9,030		)
Asset retirement obligation	—		(5,491		)
Total	$	—	$	168,446

Development and Other Purchases

In addition to the acquisitions above, 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 condensed consolidated balance sheets.