DERIVATIVE FINANCIAL INSTRUMENTS (Tables)

12 Months Ended

Dec. 31, 2012

DERIVATIVE FINANCIAL INSTRUMENTS

Summary of open financial derivative positions related to oil and gas production

The following table summarizes the open financial derivative positions as of December 31, 2012 related to oil and gas production. The Company will receive prices as noted in the table below and will pay a counterparty market price based on the NYMEX (for natural gas production) or WTI (for oil production) index price, settled monthly.

Product	Type	Contract Period		Volume		Price per Mcf or Bbl
BRENT Oil	Put		01/01/13 - 09/30/13		1,375 Bbl/d	$	70
NYMEX Gas	Swap		01/01/13 - 12/31/13		7,000 MMbtu/d	$	3.39
NYMEX Gas	Swap		01/01/14 - 12/31/14		7,000 MMbtu/d	$	3.79

Summary of amount of gains (losses) recognized in income from derivative instruments not designated as hedging instruments

	For the Years Ended December 31,
Derivatives not designated as Hedging Instrument under authoritative guidance	2012			2011			2010
	(in thousands)
Realized cash settlements on hedges	$	(2,780	)	$	(12,216	)	$	2,745
Unrealized gain (loss) on hedges		(195	)		9,490			(1,217	)
Total	$	(2,975	)	$	(2,726	)	$	1,528

Schedule of fair value and balance sheet location of net derivatives

	Derivative Liabilities
December 31, 2012	Balance Sheet Location	Fair Value
	(in thousands)
Commodity—Natural Gas	current	$	(457	)
Commodity—Oil	current		72
Commodity—Oil	Non-current		(567	)
Total derivatives not designated as hedging instruments		$	(952	)

	Derivative Assets
December 31, 2011	Balance Sheet Location	Fair Value
	(in thousands)
Commodity—Natural Gas	current	$	309
Total derivatives not designated as hedging instruments		$	309

	Derivative Liabilities
December 31, 2011	Balance Sheet Location	Fair Value
	(in thousands)
Commodity—Oil	current	$	(980	)
Total derivatives not designated as hedging instruments		$	(980	)