Note 3 — Dispositions

Assets Held for Sale

On May 17, 2011, we closed the transaction to sell all of our interest in the oil and gas assets located in our Antelope Project area in the Uinta Basin of Utah which consisted of approximately 69,000 gross acres (47,600 net acres), and the related contracts, reserves, production, wells, pipelines production facilities and other rights, title and interests located in the Uintah Basin in Duchesne and Uintah Counties, Utah. The transaction included the Mesaverde Gas Exploration and Appraisal Project (“Mesaverde”), the Lower Green River/Upper Wasatch Oil Delineation and Development Project (“Lower Green River/Upper Wasatch”) and the Monument Butte Extension Appraisal and Development Project (“Monument Butte Extension”). We owned an approximate working interest of 70 percent in the Mesaverde and Lower Green River/Upper Wasatch, an approximate 60 percent working interest in one well in the Monument Butte Extension, an approximate 43 percent working interest in the initial eight well program in the Monument Butte Extension, and 37 percent working interest in the follow-up six well program in the Monument Butte Extension. The initial eight well program and follow-up six well program in the Monument Butte Extension were non-operated. The sale had 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. All activities associated with the Antelope Project, as well as the related gain on sale of $104.0 million, have been reflected as discontinued operations on the consolidated statement of operations. We do not have any continuing involvement with the Antelope Project.

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					Nine Months Ended
	September 30,					September 30,
	2011			2010		2011		2010
				(in thousands)
Revenue applicable to discontinued operations	$	—		$	1,919	$	6,488	$	7,957
Net income (loss) from discontinued operations	$	(3,464	)	$	390	$	92,483	$	3,208

Net loss from discontinued operations for the three months ended September 30, 2011 includes a $3.5 million increase in U.S. income tax related to the sale of the Antelope Project. Net income from discontinued operations for the nine months ended September 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 $8.7 million of U.S. income tax related to the sale of our Antelope Project.

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 SAR. These SARs are exercisable by the key employee for up to one year after termination.