Shareholders' Equity

6 Months Ended

Jun. 30, 2012

Stockholders' Equity Note [Abstract]

Shareholders' Equity

SHAREHOLDERS’ EQUITY

On November 24, 2009, the Company entered into a Land Agreement, as amended (the “Land Agreement”), with an unrelated third party and its affiliate. The Land Agreement expired pursuant to its terms on May 31, 2011. Under the Land Agreement, the Company was able to acquire up to $20.0 million of oil, gas and mineral interests/leases in certain specified areas in the Barnett Shale from such third party. In consideration for the Company’s receipt of an option to purchase the leases acquired by the third party, each time the third party purchased a lease group under the Land Agreement the Company agreed to issue to the third party’s affiliate warrants to purchase a number of shares of the Company’s common stock with an exercise price of $22.09 and an expiration date of August 21, 2017. In addition, the Company agreed that under certain circumstances where the Company reached surface casing point on an initial well in one of the areas covered by the Land Agreement but has not achieved a specified lease up threshold for acreage in such area, the Company will issue additional warrants. The warrants are subject to antidilution adjustments and may be exercised on a “cashless” basis.

In April 2012, the Company issued warrants to purchase 25,000 shares of the Company’s common stock to the third party’s affiliate for leases acquired prior to the expiration of the Land Agreement. The April 2012 issuance was the final issuance of warrants under the Land Agreement.