Oil and Gas Properties

12 Months Ended

Dec. 31, 2011

4. OIL AND GAS PROPERTIES:

		December 31,		December 31,
		2011		2010
Developed Properties:
Acquisition, equipment, exploration, drilling and environmental costs	$	5,974,604	$	4,575,222
Less: Accumulated depletion, depreciation and amortization		(2,322,982)		(1,985,799)
		3,651,622		2,589,423
Unproven Properties:
Acquisition and exploration costs not being amortized (1), (2)		537,526		486,247
Net capitalized costs - oil and gas properties	$	4,189,148	$	3,075,670

On a unit basis, DD&A from continuing operations was $1.41, $1.13 and $1.12 per Mcfe for the years ended December 31, 2011, 2010 and 2009, respectively.

(1) In 2010, a wholly-owned subsidiary of the Company acquired, for $403.8 million in cash, non-producing mineral acres and a small number of producing gas wells in the Pennsylvania Marcellus Shale. Additionally, the Company purchased additional undeveloped acreage in the Marcellus Shale for approximately $63.4 million during 2010.

(2) Interest is capitalized on the cost of unevaluated oil and natural gas properties that are excluded from amortization and actively being evaluated as well as on work in process relating to gathering systems that are not currently in service. For the years ended December 31, 2011 and 2010, total interest on outstanding debt was $93.9 million and $70.2 million, respectively, of which, $30.7 million and $21.2 million, respectively, was capitalized on the cost of unevaluated oil and natural gas properties and work in process relating to gathering systems that are not currently in service.

The Company holds interests in domestic projects in which costs related to these interests are not being depleted pending determination of existence of estimated proved reserves. The Company will continue to assess and allocate the unproven properties over the next several years as proved reserves are established and as exploration dictates whether or not future areas will be developed.

		Total		2011		2010		2009		Prior
Acquisition costs	$	681,370	$	69,330	$	521,149	$	36,432	$	54,459
Exploration costs		22,439		3,364		2,985		2,829		13,261
Capitalized interest		48,084		28,474		19,610		-		-
Sales		(77,498)		(5,821)		(68,420)		(3,257)		-
Less transfers to proved		(136,869)		(44,068)		(44,621)		(36,004)		(12,176)
	$	537,526	$	51,279	$	430,703	$	-	$	55,544