Hedging Program and Derivatives

12 Months Ended

Dec. 31, 2013

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Hedging Program and Derivatives

Hedging Program and Derivatives

The derivative instruments we utilize are based on index prices that may and often do differ from the actual oil and gas prices realized in our operations.  Our derivative contracts do not qualify for hedge accounting as prescribed by ASC 815; therefore, fluctuations in the market value of the derivative contracts are recognized in earnings during the current period.

The following table sets forth the summary position of our derivative contracts as of December 31, 2013:

	Oil - WTI			Oil - Brent			Oil - LLS
Contract Periods	Daily Volume (Bbl)	Swap Price (per Bbl)		Daily Volume (Bbl)	Swap Price (per Bbl)		Daily Volume (Bbl)	Swap Price (per Bbl)
2014	687	$	94.16	505	$	100.56	100	$	101.26
2015	560	$	83.03	500	$	97.04	—	$	—
2016	963	$	84.10	—	$	—	—	$	—
2017	500	$	84.18	—	$	—	—	$	—

Subsequent to December 31, 2013 we entered into the following derivative contracts:

	Natural Gas - NYMEX
Contract Periods	Daily Volume (Mcf)	Swap Price (Per Mcf)
2014	1,597	$	4.10
2015	1,450	$	4.22

The following table illustrates the impact of derivative contracts on the Company’s balance sheet:

Fair Value of Derivative Instruments as of December 31, 2012
	Asset Derivatives			Liability Derivatives
Derivatives not designated as hedging instruments	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Commodity price derivatives	Derivatives – current	$	41	Derivatives – current	$	3,462
Commodity price derivatives	Derivatives – long-term	594		Derivatives – long-term	3,568
		$	635		$	7,030

Fair Value of Derivative Instruments as of December 31, 2013
	Asset Derivatives			Liability Derivatives
Derivatives not designated as hedging instruments	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Commodity price derivatives	Derivatives – current	$	85	Derivatives – current	$	2,728
Commodity price derivatives	Derivatives – long-term	925		Derivatives – long-term	2,274
		$	1,010		$	5,002

Gains and losses from derivative activities are reflected as “Loss (gain) on derivative contracts” in the accompanying Consolidated Statements of Operations.