Commitments and Contingencies

12 Months Ended

Dec. 31, 2011

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies Disclosure [Text Block]

5. Commitments and Contingencies

Rental and lease expenses which were included in “General and administrative, net” on our accompanying consolidated statements of operations were $5.6 million in 2011, $5.4 million in 2010, and $4.2 million in 2009. Rental and lease expenses which were included in “Lease operating cost” on our accompanying consolidated statements of operations were $13.9 million in 2011 and $10.5 million in both 2010 and 2009. Our remaining minimum annual obligations under non-cancelable operating lease commitments were $6.2 million for 2012, $5.9 million for 2013, $5.8 million for 2014, $1.0 million for 2015 and $18.8 million in total. The rental and lease expenses and remaining minimum annual obligations under non-cancelable operating lease commitments primarily relate to the lease of our office space in Houston, Texas which is a ten year lease and expires in 2015. This lease is renewable for two five-year periods at the prevailing office rental rates in the area at the time of renewal.

In the ordinary course of business, we have entered into agreements for drilling and completion services. The remaining commitments at December 31, 2011 for these services and materials totaled $59.7 million through 2014.

Our employment agreement liabilities constitute the majority of other long-term liabilities on the balance sheet at both December 31, 2011 and 2010.

Our remaining gas transportation and processing minimum obligations were $5.6 million for 2012, $8.1 million for 2013, $8.3 million for 2014, $5.7 million for 2015, $4.3 million for 2016 and $32.0 million in the aggregate.

In the ordinary course of business, we have been party to various legal actions, which arise primarily from our activities as operator of oil and natural gas wells. In management’s opinion, the outcome of any such currently pending legal actions will not have a material adverse effect on our financial position or results of operations.