Oil and Gas Disclosures (Unaudited)

12 Months Ended

Dec. 31, 2013

Extractive Industries [Abstract]

Oil and Gas Disclosures (Unaudited)

(16)         OIL AND GAS DISCLOSURES (unaudited)

The following information is presented with regard to our proved oil and gas reserves acquired during the year ended December 31, 2012 (in thousands):

Costs incurred in property acquisition, exploration and development activities (in thousands):

	Years Ended December 31,
	2013		2012
Domestic costs incurred:
Acquisition of properties
Proved	$	4	$	2,451
Unproved		—		—
Exploration		—		—
Development		1,359		502
Total domestic costs incurred	$	1,363	$	2,953

Capitalized Costs Relating to Oil and Gas Producing Activities (in thousands):

	Years Ended December 31,
	2013			2012
Capitalized costs:
Proved properties	$	4,124		$	2,953
Unproved properties		326			—
Total capitalized costs		4,450			2,953
Less accumulated depreciation and amortization		(691	)		(212	)
Net capitalized costs	$	3,759		$	2,741

Included in the capitalized costs of proved properties of $4.1 million are approximately $3.2 million in costs related to producing wells and related equipment and approximately $674 thousand in costs related to mineral interests in properties.

Results of Operations from Oil and Natural Gas Producing Activities

	Years Ended December 31,
	2013		2012
	(in thousands)
Oil and gas revenues	$	1,093	$	394
Less:
Oil and gas operating costs		209		49
Depreciation and amortization		479		212
Accretion expense		—		—
Total oil and gas expenses		688		261
Results of operations from oil and gas producing activities	$	405	$	133

Oil and Gas Reserve Data - (Unaudited) - The following information is presented with regard to our proved oil and gas reserves. The reserve values and cash flow amounts reflected in the following reserve disclosures are based on a simple average of the first day of the month price for the period of January 1, 2013 to December 1, 2013, in accordance with ASC 932, Oil and Gas Reserve Estimation and Disclosure and the Securities and Exchange Commission’s Final Rule, Modernization of the Oil and Gas Reporting Requirements.

The following table presents our independent petroleum consultants’ estimates of our proved crude oil and natural gas reserves. As of December 31, 2012, we did not include immaterial interests in our reserve estimates, and as a result no nonproducing or undeveloped locations were evaluated or included in this reserve report.  At December 31, 2013, we obtained a third party reserve valuation for all our proved reserves. This report resulted in an overall increase of proved reserves of approximately 180 thousand bbls and 231 thousand mcfs. This consisted of an increase to our proved developed reserves of approximately 35 thousand bbls and 44 thousand mcfs, and an increase to our proved undeveloped reserves of approximately 145 thousand bbls and 187 thousand mcfs.

	(Unaudited)
	Total (1)
	Oil (Mbbls)			Gas  (Mmcf)
Proved reserves:
As of December 31, 2011		—			—
Production		(4	)		(6	)
Purchases of reserves in place		21			35
As of December 31, 2012		17			29
Extensions and discoveries		187			247
Revisions		4			(2	)
Production		(11	)		(14	)
As of December 31, 2013		197			260
Proved developed reserves at:
December 31, 2013		52			73
Proved undeveloped reserves at:
December 31, 2013		145			187

 ________________________________________________

(1) All reserves were held within the United States for the years ended December 31, 2013 and 2012.

“Standardized measure” relates to the estimated discounted future net cash flows, as adjusted for our asset retirement obligations, and major components of that calculation relating to proved reserves at the end of the year in the aggregate and by geographic area, based on average prices, costs, and statutory tax rates and using a 10% annual discount rate. Prices at December 31, 2013 were based on a simple average of the first day of the month price for the period of January 1, 2013 to December 1, 2013 of $93.42 per barrel and $3.67 per mmbtu, as adjusted by basin for quality, transportation and regional price differentials.

Standardized Measure of Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves:

		(Unaudited, in thousands)
December 31, 2012:
Future cash inflows	$	1,694
Production costs		(422	)
Development costs		—
Future income taxes		—
Future net cash flows		1,272
10% discount factor		(437	)
Standardized measure of discounted future net cash flows (1)	$	835
December 31, 2013:
Future cash inflows	$	19,778
Production costs		(5,181	)
Development costs		(5,205	)
Future income taxes		—
Future net cash flows		9,392
10% discount factor		(5,142	)
Standardized measure of discounted future net cash flows (1)	$	4,250

__________________________________________________

(1) Cash flows associated with asset retirement obligations are included in the Standardized Measure of Discounted Future Net Cash Flows.

	Years Ended December 31,
	2013			2012
	(Unaudited, in thousands)
Total
Standardized measure -- beginning of year	$	835		$	—
Increase (decrease)
Sales, net of production costs		(884	)		(345	)
Net change in prices, net of production costs		(64	)		37
Revisions of quantity estimates		93			—
Accretion of discount		83			106
Extensions and discoveries, net of future costs		3,925			—
Purchases of reserves-in-place		—			1,037
Other		262			—
Standardized measure -- end of year	$	4,250		$	835