CONCENTRATIONS:

Sales to Major Customers

Our production is sold on month-to-month contracts at prevailing prices. We obtain credit protections, such as parental guarantees, from certain of our purchasers. The following table identifies customers from whom we derived 10% or more of our total oil and natural gas revenue during the indicated periods:



	Year Ended December 31,
	2015		2014		2013
Phillips 66 Company	53	%	31	%	35	%
Shell Trading (US) Company	13	%	32	%	33	%

The maximum amount of credit risk exposure at December 31, 2015 relating to these customers was $20,826.

We believe that the loss of any of these purchasers would not result in a material adverse effect on our ability to market future oil and natural gas production.

Production and Reserve Volumes- Unaudited

Approximately 99% of our estimated proved reserves at December 31, 2015 and 56% of our production during 2015 were associated with our GOM deep water, conventional shelf and deep gas properties. Approximately 1% of our estimated proved reserves at December 31, 2015 and 44% of our production during 2015 were associated with our Appalachian properties.

Cash and Cash Equivalents

A substantial portion of our cash balances are not federally insured.