Restatement of Previously Issued Financial Statements

As previously disclosed, we determined that instead of using updated oil and natural gas reserve estimates to calculate depreciation, depletion and amortization (“DD&A”) expense calculations looking back to the beginning of the applicable fiscal year, we instead should have used the updated oil and natural gas reserve estimates to calculate DD&A looking back to the beginning of the applicable current quarter. This methodology resulted in the understatement of DD&A expense and the overstatement of oil and gas properties, as well as the related income tax effects.

We concluded that the impact of applying the correct oil and natural gas reserve revision methodology to the DD&A calculation was materially different from our previously reported results under our historical practice. As a result, we are restating our consolidated financial statements for the three-month and nine-month periods ended September 30, 2017.

The table below sets forth the unaudited condensed consolidated statements of operations, including the balances originally reported, corrections and the as restated balances for each period:



	Three Months Ended September 30, 2017									Nine Months Ended September 30, 2017
In thousands	As Previously Reported			Correction			As Restated			As Previously Reported			Correction			As Restated
Depreciation, depletion and amortization	$	15,929		$	601		$	16,530		$	40,623		$	1,380		$	42,003
Total expenses	25,142			601			25,743			94,805			1,380			96,185
Income (loss) from operations	1,741			(601		)	1,140			(32,171		)	(1,380		)	(33,551		)
Loss before income taxes	(11,479		)	(601		)	(12,080		)	(42,196		)	(1,380		)	(43,576		)
Income tax benefit	4,718			238			4,956			15,339			515			15,854
Net loss	(6,761		)	(363		)	(7,124		)	(26,857		)	(865		)	(27,722		)
Net loss attributable to common stockholders	$	(8,585	)	$	(363	)	$	(8,948	)	$	(28,977	)	$	(865	)	$	(29,842	)
Net loss per common share
Basic	$	(0.39	)	$	(0.02	)	$	(0.41	)	$	(1.33	)	$	(0.04	)	$	(1.37	)
Diluted	$	(0.39	)	$	(0.02	)	$	(0.41	)	$	(1.33	)	$	(0.04	)	$	(1.37	)

The table below sets forth the unaudited condensed consolidated statement of cash flows and operating activities, including the balances originally reported, corrections and the as-restated balances for the restated period:



	Nine Months Ended September 30, 2017
In thousands	As Previously Reported			Correction			As Restated
Cash flows from operating activities:
Net loss	$	(26,857	)	$	(865	)	$	(27,722	)
Depreciation, depletion and amortization	40,623			1,380			42,003
Deferred taxes	(15,601		)	(515		)	(16,116		)

None of the information contained in the Notes has been restated.