DERIVATIVE FINANCIAL INSTRUMENTS (Tables)

6 Months Ended

Jun. 30, 2012

DERIVATIVE FINANCIAL INSTRUMENTS

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

Product	Type	Contract Period	Volume	Price per Mcf or Bbl
Oil	Brent Put	04/01/12 - 12/31/12	1,818 Bbl/d	$	90.00
Oil	NYMEX Put	01/01/12 - 12/31/12	1,000 Bbl/d	$	70.00
Natural Gas Differentials	Swap	01/01/12 - 12/31/12	3,000 Mcf/d	$	-0.51	*

*This represents a differential spread between NYMEX and CIG pricing.

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

Derivatives not designated as	For the Three Months						For the Six Months
Hedging Instrument under	Ended June 30,						Ended June 30,
authoritative guidance	2012			2011			2012			2011
(in thousands)
Realized cash settlements on hedges	$	(474	)	$	(3,383	)	$	(854	)	$	(5,221	)
Unrealized gain (loss) on hedges	963			5,420			465			1,486
Total	$	489		$	2,037		$	(389	)	$	(3,735	)

Schedule of fair value and balance sheet location of net derivatives

	Derivative Assets
June 30, 2012 (in thousands)	Balance Sheet Location	Fair Value
Commodity—Oil	current	$	1,134
Commodity—Natural Gas	current	(162		)
Total derivatives not designated as hedging instruments		$	972

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

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