DERIVATIVE AND HEDGING FINANCIAL INSTRUMENTS (Tables)

9 Months Ended

Sep. 30, 2014

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 for gas collars and gas hedges as of September 30, 2014:

Contract Period of BP Hedge	Volumes		Weighted- Average Floor Price		Weighted- Average Ceiling Price
	(MMBtu)		(per MMBtu)		(per MMBtu)
2014		371,808	$	4.00	$	4.28
2015		464,825	$	4.00	$	4.28
All gas collars*		836,633

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

Contract Period of Morgan Stanley Fixed I	Volumes		Weighted- Average Fixed Price
	(MMBtu)		(per MMBtu)
2014		971,987	$	4.38
2015		3,581,893	$	4.11
2016		3,058,358	$	4.06
2017		2,528,996	$	4.16
2018		2,193,294	$	4.29
All gas hedges*		12,334,528

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

Contract Period of Morgan Stanley Fixed II	Volumes		Weighted- Average Fixed Price
	(MMBtu)		(per MMBtu)
2014		586,700	$	3.92
2015		2,249,200	$	3.92
2016		2,887,048	$	3.92
2017		2,528,996	$	3.92
2018		2,193,294	$	3.92
All gas hedges*		10,445,238

* Gas hedges 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, 2014
	Derivative Assets			Derivative Liabilities
	Balance Sheet Classification	Fair Value		Balance Sheet Classification	Fair Value
Commodity derivative	Current assets	$	780,148	Current liabilities	$	217,451
Commodity derivative	Noncurrent assets		—	Noncurrent liabilities		831,106
		$	780,148		$	1,048,557
	As of December 31, 2013
	Derivative Assets			Derivative Liabilities
	Balance Sheet Classification	Fair Value		Balance Sheet Classification	Fair Value
Commodity derivative	Current assets	$	—	Current liabilities	$	58,176
Commodity derivative	Noncurrent assets		—	Noncurrent liabilities		67,597
		$	—		$	125,773

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, 2014 and 2013.

	Three Months Ended September 30,					Nine Months Ended September 30,
	2014		2013			2014			2013
Realized gains (loss) on commodity derivative	$	530,150	$	237,419		$	80,103		$	237,419
Change in fair value of commodity derivative		2,432,946		(136,623	)		(142,636	)		522,733
Change in fair value of warrant derivative liability		—		3,806			—			595,245
Total realized and unrealized gains (loss) recorded	$	2,963,096	$	104,602		$	(62,533	)	$	1,355,397

These realized and unrealized gains and losses are recorded in the accompanying unaudited condensed consolidated statements of operations as derivative gains (losses).