Dispositions

6 Months Ended

Jun. 30, 2011

Dispositions [Abstract]

Dispositions

Note 3 — Dispositions

Assets Held for Sale

     On May 17, 2011, we closed the transaction to sell our Antelope Project (see Note 9 — United States Operations, Western United States — Antelope). The sale has an effective date of March 1, 2011. We received cash proceeds of approximately $217.8 million which reflects increases to the purchase price for customary adjustments and deductions for transaction related costs. We do not have any continuing involvement with the Antelope Project. The related gain on the sale of $103.9 million is reported in discontinued operations in the second quarter of 2011.

     The Antelope Project has been classified as discontinued operations. The Antelope Project assets and liabilities held for sale as of December 31, 2010, are reported in the consolidated balance sheet as follows:

	December 31,
	2010
	(in thousands)
Proved oil and gas properties	$	31,037
Unproved oil and gas properties		57,737
Total assets held for sale	$	88,774
Asset retirement liabilities	$	663
Total liabilities held for sale	$	663

Discontinued Operations

     Revenue and net income on these dispositions are shown in the table below:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2011		2010		2011		2010
	(in thousands)
Revenue applicable to discontinued operations	$	2,368	$	2,914	$	6,488	$	6,038
Net income from discontinued operations	$	99,213	$	803	$	95,947	$	2,818

     Net income from discontinued operations for the three months ended June 30, 2011 includes $0.2 million for employee severance and special accomplishment bonuses and $5.2 million of U.S. income tax related to the sale of our Antelope Project. Net income from discontinued operations for the six months ended June 30, 2011 includes $1.4 million for impairment of inventory from cost to market, $3.6 million for employee severance and special accomplishment bonuses, and $5.2 million of U.S. income tax related to the sale of our Antelope Project. See Note 2 — Summary of Significant Accounting Policies — Revisions for a discussion of adjustments to net income for the three months ended March 31, 2011 and 2010.

     Special accomplishment bonuses of $1.2 million directly related to the sale of the Antelope Project were paid at the closing of the sale. Employee severance costs of $0.1 million were paid in the three months ended June 30, 2011, and $1.3 million is expected to be paid in January 2012. Severance costs for key employees include $0.5 million of restricted stock units which was paid in July 2011. Severance costs for key employees also include 58,000 stock appreciation rights (“SAR”) granted at an exercise price of $4.595 per right. These SARs are exercisable by the key employee for up to one year after termination.