Consolidated Statements of Cash Flows (Unaudited) (USD $) In Thousands	6 Months Ended
Jun. 30, 2011	Jun. 30, 2010
Cash flows from operating activities:
Net income	$ 2,062	$ 5,225
Adjustments to reconcile net income to net cash from operating activities:
Depreciation, depletion, amortization and accretion of asset retirement obligation	9,474	9,125
Abandonment of non-producing properties and leases	73	80
Provision for deferred taxes	1,238	2,945
Stock-based compensation expense	525	496
Non-cash gain on transfer of asset retirement obligation to third party		(164)
Change in fair value of derivative contracts	(418)	(6,482)
Revenue from carried interest	(117)	(1,282)
Gain on sale of producing property	(141)	(142)
Changes in current assets and liabilities:
Decrease (Increase) in deposit held in escrow	51	(2)
Decrease (Increase) in accounts receivable	(250)	784
Decrease (Increase) in other current assets	271	(728)
Increase (Decrease) in accounts payable and accrued expenses	(2,221)	196
Increase in accrued production taxes	1,065	667
NET CASH PROVIDED BY OPERATING ACTIVITIES	11,612	10,718
Cash flows from investing activities:
Payments to acquire producing properties and equipment, net	(7,155)	(6,652)
Payments to acquire corporate and non-producing properties	(30)	(439)
Sale of corporate assets		7
NET CASH USED IN INVESTING ACTIVITIES	(7,185)	(7,084)
Cash flows from financing activities:
Principal payments on capital lease obligations	(272)	(265)
Issuance of stock under Company stock plans		6
Tax withholdings related to net share settlement of restricted stock awards	(16)	(3)
Preferred stock dividends	(1,862)	(1,862)
Net borrowings (repayments) on credit facility		(3,000)
NET CASH USED IN FINANCING ACTIVITIES	(2,150)	(5,124)
Change in cash and cash equivalents	2,277	(1,490)
Cash and cash equivalents at beginning of period	2,605	5,682
CASH AND CASH EQUIVALENTS AT END OF PERIOD	4,882	4,192
Supplemental disclosure of cash and non-cash transactions:
Cash paid for interest	699	824
Interest capitalized	64	87
Additions to developed properties included in current liabilities	$ 1,572	$ 4,128

Represents the noncash expense charged against earnings in the period to recognize the consumption of oil and gas reserves that are part of an entities' assets, the noncash expense related to the cost of tangible assets to period that benefit from these assets and the noncash expense recognized during the period, in connection with the accretion, of the discounted liability recognized for the fair value of an asset retirement obligation at the time of acquisition or completion of a well. The accretion is recognized over the remaining estimated lives of the respective oil and gas properties.

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