OIL AND GAS RESERVE DATA (UNAUDITED) (Tables)

12 Months Ended

Dec. 31, 2012

OIL AND GAS RESERVE DATA (UNAUDITED)

Schedule of Summary of Changes in Proved Reserves

Summary of Changes in Proved Reserves

	Year ended December 31,
	2012						2011						2010
	Mbbls			Mmcf			Mbbls			Mmcf			Mbbls			Mmcf
Proved reserves
Beginning of year		14,963			43,860			10,250			68,200			10,221			62,900
Purchase of reserves in place		—			20,649			—			—			—			3,037
Discoveries and extensions		3,337			2,054			3,744			—			658			—
Revisions of previous estimates		(811	)		(9,813	)		1,880			(19,320	)		340			6,915
Production		(1,109	)		(5,514	)		(911	)		(5,020	)		(969	)		(4,652	)
End of year		16,380			51,236			14,963			43,860			10,250			68,200
Proved developed reserves
Beginning of year		8,348			28,515			7,518			49,300			7,933			49,868
End of year		8,064			51,236			8,348			28,515			7,518			49,300
Proved undeveloped reserves
Beginning of year		6,615			15,345			2,732			18,900			2,288			13,032
End of year		8,316			—			6,615			15,345			2,732			18,900

(a)

Undeveloped reserves transferred to developed reserves were 0.9 MMBoe for the year ended December 31, 2012. Capital costs incurred to convert these proved undeveloped reserves to proved developed reserves were $32.4 million.

(b)

The Company revised its 2012 year-end proved natural gas reserves upward by 12.9 Bcfe. Negative revisions decreased proved natural gas reserves by a net amount of 9.8 Bcfe due to pricing and performance. Positive revisions included 2 Bcfe of discoveries and extensions while an additional 20.6 Bcfe can be attributed to the Company purchasing Anadarko's interest in Atlantic Rim area properties on October 9, 2012.

(c)

The Company revised its 2012 year-end proved oil reserves upward by 2.5 MMbbls. In 2012, total extensions and discoveries of 3.3 MMbbls resulted from the Company's drilling and completion activities in the Wilmington Townlot Unit in California. Negative revisions of 0.8 MMbbls were made based on production performance.

Schedule of standardized measure of discounted future net cash flows related to proved oil and gas reserves

Standardized Measure of Discounted Future Net Cash Flows
Relating to Proved Oil and Gas Reserves

	December 31,
	2012			2011			2010
	(Amounts in thousands)
Future cash inflows	$	1,836,212		$	1,708,079		$	1,033,221
Future production costs and taxes		(574,959	)		(514,968	)		(466,507	)
Future development costs		(303,062	)		(254,982	)		(84,606	)
Future income tax expenses		(105,078	)		(108,977	)		—
Net future cash flows		853,113			829,152			482,108
Discounted at 10% for estimated timing of cash flows		(393,233	)		(343,146	)		(194,480	)
Standardized measure of discounted future net cash flows	$	459,880		$	486,006		$	287,628

Schedule of changes in standardized measure of discounted future net cash flows related to proved oil and gas reserves

Changes in Standardized Measure of Discounted Future Net Cash Flows
Related to Proved Oil and Gas Reserves

	Year ended December 31,
	2012			2011			2010
	(Amounts in thousands)
Sales, net of production costs and taxes	$	(88,725	)	$	(72,734	)	$	(59,430	)
Discoveries and extensions		108,438			152,973			15,994
Purchases of reserves in place		4,966			—			721
Changes in prices and production costs		(17,286	)		196,010			119,779
Revisions of quantity estimates		(39,172	)		56,710			17,619
Development costs incurred		36,539			30,892			5,544
Net changes in development costs		(90,392	)		(149,662	)		(68,497	)
Interest factor—accretion of discount		48,601			28,763			24,129
Net change in income taxes		5,037			(40,070	)		—
Changes in production rates (timing) and other		5,868			(4,504	)		(9,523	)
Net (decrease) increase		(26,126	)		198,378			46,336
Balance at beginning of year		486,006			287,628			241,292
Balance at end of year	$	459,880		$	486,006		$	287,628