Note 4 - NOTES RECEIVABLE - RELATED PARTY

3 Months Ended

Mar. 31, 2012

Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

(4)           NOTES RECEIVABLE – RELATED PARTY

In September 2010, we issued a Senior Secured Loan and Security Agreement with Global (“Global Note Receivable”) in exchange for cash in the principal amount of $5 million.  At March 31, 2012, the outstanding principal amount of the Global Note Receivable was $5 million. The Global Note Receivable is due and payable to us on or before September 14, 2012 and bears interest at 10.5% per annum. During the three months ended March 31, 2012 and 2011, Global paid $131 thousand and $129 thousand, respectively, in interest under the Global Note Receivable. This note is fully secured by oil producing assets of Global, and interest is paid on a monthly basis.

In January 2012, we executed a separate Loan Agreement (the “Global Loan”) with Global which provides the principal amount of $12 million. The Global Loan is currently unsecured, but we can require Global to provide adequate collateral security in the event of a material adverse effect, as determined in our sole discretion. The Global Loan is due and payable to us on or before September 30, 2013 and bears interest at 10.5% per annum. Accrued and unpaid interest on the outstanding principal amount is due and payable on the last day of each quarter. During the three months ended March 31, 2012, Global paid $210 thousand in interest under the Global Loan. Global also paid to us a 1.75% transaction fee of approximately $210 thousand, of which $189 thousand is deferred at March 31, 2012 and will be recognized over the term of the Global Loan.