DERIVATIVE AND HEDGING FINANCIAL INSTRUMENTS (Tables)

9 Months Ended

Sep. 30, 2013

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Summary of Volumes and Average Contract Prices of Contracts

The following tables summarize the approximate volumes and average contract prices of contracts the Company had in place as of September 30, 2013:

Gas Collars
Contract Period	Volumes		Weighted- Average Floor Price		Weighted- Average Ceiling Price
	(MMBtu)		(per MMBtu)		(per MMBtu)
Remainder of 2013		504,061	$	4.00	$	4.28
2014		1,650,248	$	4.00	$	4.28
2015		464,825	$	4.00	$	4.28
All gas collars*		2,619,134

* Gas collars are comprised of IF Henry Hub (100%).

Summary of Fair Value of Derivatives

The following tables detail the fair value of derivatives recorded in the accompanying balance sheets, by category:

	As of September 30, 2013
	Derivative Assets			Derivative Liabilities
	Balance Sheet Classification	Fair Value		Balance Sheet Classification	Fair Value
Commodity derivative	Current assets	$	464,874	Current liabilities	$	—
Commodity derivative	Noncurrent assets		57,859	Noncurrent liabilities		—
Warrant derivative liability			—	Noncurrent liabilities		2,213,033
		$	522,733		$	2,213,033

	As of December 31, 2012
	Derivative Assets			Derivative Liabilities
	Balance Sheet Classification	Fair Value		Balance Sheet Classification	Fair Value
Commodity derivative	Current assets	$	—	Current liabilities	$	—
Commodity derivative	Noncurrent assets		—	Noncurrent liabilities		—
Warrant derivative liability			—	Noncurrent liabilities		2,808,278
		$	—		$	2,808,273

Summary of Realized and Unrealized Gains and Losses Related to Derivative Instrument

The table below summarizes the realized and unrealized gains and losses related to our derivative instruments for the three and nine months ended September 30, 2013 and 2012.

	Three Months Ended September 30,						Nine Months Ended September 30,
	2013			2012			2013		2012
Realized gains on commodity derivative	$	237,419		$	—		$	237,419	$	639
Change in fair value of commodity derivative		(136,623	)		—			522,733		—
Change in fair value of warrant derivative liability		3,806			(63,023	)		595,245		780,317
Total realized and unrealized gains recorded	$	104,602		$	(63,023	)	$	1,355,397	$	780,956