Oil and Gas Reserves (unaudited) (Tables)

12 Months Ended

Dec. 31, 2012

Oil and Gas Reserves (unaudited)

Schedule of net proved natural gas, crude oil and natural gas liquids reserves quantities

	Crude Oil (MBbls)		Natural Gas (MMcf)		Natural Gas Liquids (MBbls)		Total (Mcfe)
QUANTITIES OF PROVED RESERVES:
Balance December 31, 2010	2,164		135,675		2,973		166,498
Revisions (1)	2		(18,645	)	(165	)	(19,625	)
Extensions, discoveries and additions	1,943		57,311		154		69,890
Sales (2)	22		35		—		170
Production	(397	)	(11,676	)	(418	)	(16,564	)
Balance December 31, 2011	3,734		162,700		2,544		200,369
Revisions (1)	134		(98,683	)	189		(96,738	)
Extensions, discoveries and additions	3,088		5,666		559		27,544
Sales (2)	—		—		—		—
Production	(754	)	(7,799	)	(300	)	(14,126	)
Balance December 31, 2012	6,202		61,884		2,992		117,049
PROVED DEVELOPED RESERVES:
December 31, 2010	1,403		60,325		1,898		80,130
December 31, 2011	1,845		53,024		1,637		73,913
December 31, 2012	2,343		39,554		1,686		63,732
PROVED UNDEVELOPED RESERVES:
December 31, 2010	761		75,350		1,075		86,368
December 31, 2011	1,890		109,676		907		126,456
December 31, 2012	3,859		22,330		1,306		53,317

(1) Periodic revisions to the estimated reserves and future cash flows may be necessary as a result of a number of factors, including reservoir performance, new drilling, oil and natural gas prices, cost changes, technological advances, new geological or geophysical data, or other economic factors.

(2) Sales are calculated based on the beginning of the year reserves adjusted for current year production with no adjustment for revisions.

Schedule of capitalized costs relating to oil and gas producing activities

	2012			2011
Unproved oil and gas properties	$	14,016,656		$	17,799,420
Proved oil and gas properties	662,277,626			592,699,504
Wells and related equipment and facilities	63,775,863			52,915,523
	740,070,145			663,414,447
Less accumulated depreciation, depletion, amortization and impairment	(439,829,372		)	(267,614,210		)
Net capitalized costs	$	300,240,773		$	395,800,237

Schedule of costs incurred in crude oil and gas producing activities

The following table shows the costs incurred in our crude oil and gas producing activities for the past three years ended December 31, 2012:

	2012		2011		2010
Property Acquisitions:
Proved	$	—	$	1,101,868	$	—
Unproved	1,724,053		8,221,361		5,774,043
Development Costs	68,636,057		69,595,880		47,973,323
Exploration Costs	10,139,041		10,199,440		2,000,941
Total	$	80,499,151	$	89,118,549	$	55,748,307

Schedule of results of operations for oil and natural gas producing activities

The following table shows the results of operations for oil and natural gas producing activities for the years ended December 31, 2012, 2011 and 2010, respectively:

	2012			2011			2010
Oil, natural gas and natural gas liquids sales	$	108,938,208		$	106,138,430		$	75,019,664
Production costs	18,055,355			21,001,717			22,030,309
Depreciation, depletion and amortization	58,764,443			56,920,515			45,022,272
Impairment and abandonment of oil and gas properties	117,890,239			14,954,633			22,254,059
Income (loss) before income taxes	(85,771,829		)	13,261,565			(14,286,976		)
Income tax benefit (expense)	23,502,016			(4,485,385		)	5,000,118
Results of operations	$	(62,269,813	)	$	8,776,180		$	(9,286,858	)

Schedule of standardized measure relating to proved reserves

	2012			2011			2010
Future cash inflows	$	895,951,200		$	1,133,153,500		$	860,655,250
Future production and development costs:
Production	(193,747,800		)	(305,301,493		)	(218,221,203		)
Development	(155,937,800		)	(299,390,312		)	(195,819,078		)
Future cash flows before income taxes	546,265,600			528,461,695			446,614,969
Future income taxes	(80,702,813		)	(40,347,466		)	(37,624,289		)
Future net cash flows after income taxes	465,562,787			488,114,229			408,990,680
10% annual discount for estimated timing of cash flows	(169,123,190		)	(232,782,186		)	(182,476,004		)
Standardized measure of discounted future net cash flows	$	296,439,597		$	255,332,043		$	226,514,676

Schedule of reconciliation of change in standardized measure

	2012			2011			2010
Beginning of year	$	255,332,043		$	226,514,676		$	176,422,700
Changes from:
Change in prices and in production costs	61,122,312			35,843,018			(1,102,871		)
Changes in estimated future development costs	(1,336,336		)	(11,283,184		)	(11,801,896		)
Sales of crude oil, natural gas and natural gas liquids produced, net of production costs	(91,175,504		)	(86,132,123		)	(53,956,677		)
Extensions, discoveries and improved recovery, less related costs	98,539,507			113,088,953			109,361,697
Purchases of minerals in place	—			226,395			—
Sales of minerals in place	—			—			(408,190		)
Revision of quantity estimates	(52,958,824		)	(29,416,407		)	9,476,255
Previously estimated development costs incurred during the period	22,482,000			75,258,100			11,788,100
Accretion of discount	24,482,116			(70,061,524		)	17,642,270
Changes in production rates (timing) and other	12,448,329			(770,619		)	(17,700,497		)
Change in income taxes	(32,496,046		)	2,064,758			(13,206,215		)
Total change in the Standardized Measure	41,107,554			28,817,367			50,091,976
End of year	$	296,439,597		$	255,332,043		$	226,514,676