Summary of Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2013

Summary of Significant Accounting Policies [Abstract]

Components of prepayments and other

The components of prepayments and other are as follows (in thousands):

	September 30,		December 31,
	2013		2012
Cash collateral deposits for commodity purchases	$	5,000	$	5,000
Insurance premiums		2,753		1,872
Commodity imbalances and futures		11		353
Rents, license and other		820		867
	$	8,584	$	8,092

Capitalized costs for non-producing oil and gas leasehold interests

Capitalized costs for non-producing oil and gas leasehold interests currently represent approximately four percent of total oil and gas property costs and are categorized as follows (in thousands):

	September 30,		December 31,
	2013		2012
South Texas Project acreage	$	3,669	$	3,263
West Texas Project acreage		129		180
Napoleonville, Louisiana acreage		162		323
Other acreage areas		398		329
Total Non-producing Leasehold Costs	$	4,358	$	4,095

Capitalized cost activity on the other acreage areas

Capitalized cost activity on the ‟other acreage areas” was as follows (in thousands):

	Leasehold
	Costs
Balance December 31, 2012	$	329
Property additions		267
Impairments		(198	)
Balance September 30, 2013	$	398

Components of cash deposits and other assets

Components of cash deposits and other assets are as follows (in thousands):

	September 30,		December 31,
	2013		2012
Insurance collateral deposits	$	3,084	$	3,413
State collateral deposits		166		170
Materials and supplies		591		616
	$	3,841	$	4,199

Derivatives reflected in the Consolidated Balance Sheet

None of the Company’s derivative instruments have been designated as hedging instruments and the estimated fair value of forward month commodity contracts (derivatives) is reflected in the accompanying Unaudited Condensed Consolidated Balance Sheet as of September 30, 2013 as follows (in thousands):

	Balance Sheet Location and Amount
	Current		Other		Current			Other
	Assets		Assets		Liabilities			Liabilities
Asset Derivatives
- Fair Value Forward Hydrocarbon Commodity
Contracts at Gross Valuation	$	555	$	-	$	-		$	-
Liability Derivatives
- Fair Value Forward Hydrocarbon Commodity
Contracts at Gross Valuation		-		-		(39	)		-
Less Counterparty Offsets		-		-		-			-
As Reported Fair Value Contracts	$	555	$	-	$	(39	)	$	-

Forward month commodity contracts (derivatives) are reflected in the accompanying Unaudited Condensed Consolidated Balance Sheet as of December 31, 2012 as follows (in thousands):

	Balance Sheet Location and Amount
	Current			Other		Current			Other
	Assets			Assets		Liabilities			Liabilities
Asset Derivatives
- Fair Value Forward Hydrocarbon Commodity
Contracts at Gross Valuation	$	688		$	-	$	-		$	-
Liability Derivatives
- Fair Value Forward Hydrocarbon Commodity
Contracts at Gross Valuation		-			-		682			-
Less Counterparty Offsets		(270	)		-		(270	)		-
As Reported Fair Value Contracts	$	418		$	-	$	412		$	-

Derivatives reflected in the Consolidated Statement of Operations

Forward month commodity contracts (derivatives) are reflected in the accompanying Unaudited Condensed Consolidated Statement of Operations for the nine months ended September 30, 2013 and 2012 as follows (in thousands):

	Earnings (Loss)						Earnings (Loss)
	Nine Months Ended						Three Months Ended
	September 30,						September 30,
	2013			2012			2013			2012
Revenues – marketing	$	(105	)	$	(2,555	)	$	(103	)	$	(1,562	)

Fair value assets and liabilities

As of September 30, 2013, the Company’s fair value assets and liabilities are summarized and categorized as follows (in thousands):

	Market Data Inputs
	Gross Level 1		Gross Level 2			Gross Level 3		Counterparty
	Quoted Prices		Observable			Unobservable		Offsets		Total
Derivatives
- Current assets	$	-	$	555		$	-	$	-	$	555
- Current liabilities		-		(39	)		-		-		(39	)
Net Value	$	-	$	516		$	-	$	-	$	516

As of December 31, 2012, the Company’s fair value assets and liabilities are summarized and categorized as follows (in thousands):

	Market Data Inputs
	Gross Level 1		Gross Level 2			Gross Level 3		Counterparty
	Quoted Prices		Observable			Unobservable		Offsets			Total
Derivatives
- Current assets	$	299	$	389		$	-	$	(270	)	$	418
- Current liabilities		-		(682	)		-		270			(412	)
Net Value	$	299	$	(293	)	$	-	$	-		$	6