LONG-TERM LIABILITIES (Tables)

12 Months Ended

Dec. 31, 2012

LONG-TERM LIABILITIES

Schedule of long-term debt

	2012		2011
	(in thousands)
Debentures consist of the following at December 31:
Secured Convertible Debentures, due December 31, 2020, bearing interest at 12%, due in monthly payments. As of December 31, 2012 and 2011, principal collateralized by $835 thousand and $850 thousand, respectively, principal amount of zero coupon U.S. Treasury Bonds due November 15, 2020.(1)	$	835	$	850
Secured Convertible Debentures, due December 31, 2022, bearing interest at 12%, due in monthly payments. As of December 31, 2012 and 2011, principal collateralized by $801 thousand and $801 thousand respectively, principal amount of zero coupon U.S. Treasury Bonds due November 15, 2022.(1)		801		801
		1,636		1,651
Less current maturities		164		165
Long-term portion	$	1,472	$	1,486

(1)

Debentures can be called at par if the Company's stock trades at or above 133% of the conversion price for a period of ninety consecutive trading days.

Schedule of conversion of debentures that would increase the number of shares outstanding

The Convertible Debentures may be converted from the date of issuance until maturity at 100% of principal amount into common stock of the Company at a price of $50.00 each. Conversion of the Debentures would increase the number of shares outstanding at December 31 as follows:

2012	Maturity date	Outstanding principal amount		Per share conversion price		Common shares if converted
	(in thousands, except share and per share amounts)
Secured Convertible 12% Debentures	December 31, 2020	$	835	$	50.00		16,700
Secured Convertible 12% Debentures	December 31, 2022		801		50.00		16,020
		$	1,636				32,720

Schedule of estimated principal tendered by the secured holders

	(in thousands)
Fiscal year ending December 31:
2013	$	164
2014		147
2015		133
2016		119
2017		107
Thereafter		966
	$	1,636

Schedule of long-term liabilities, excluding derivative financial instruments

Long-term liabilities, excluding derivative financial instruments consist of the following at December 31:

	2012		2011
	(in thousands)
Line of Credit	$	99,500	$	89,500
Debentures		1,636		1,651
Debt collateralized by treasury stock		—		103
Asset retirement obligations		25,236		15,507
Litigation allowance		3,100		3,100
Drilling rig obligation		—		466
		129,472		110,327
Less current maturities		1,790		2,831
Long-term portion	$	127,682	$	107,496