DISCONTINUED OPERATIONS:

12 Months Ended

Dec. 31, 2012

DISCONTINUED OPERATIONS:

DISCONTINUED OPERATIONS:

4. DISCONTINUED OPERATIONS:

        During June of 2012, the Company began marketing, with an intent to sell, all of its oil and gas properties in California. Assets are classified as held for sale when the Company commits to a plan to sell the assets and there is reasonable certainty that the sale will take place within one year. The Company determined that its intent to sell these properties qualifies for discontinued operations. The Company sold a majority of the properties for approximately $9.3 million and recorded a gain on the sale of oil and gas properties in the amount of $4.2 million related to these transactions. The carrying amounts of the major classes of assets and liabilities related to the operation of the remaining properties that are held for sale as of December 31, 2012 and December 31, 2011 are presented below:

	As of December 31, 2012			As of December 31, 2011
ASSETS HELD FOR SALE, NET:
Oil and gas properties, successful efforts method:
Proved properties	$	1,721,265		$	13,060,597
Unproved properties		629			32,013
Wells in progress		39,245			167,198
Total property and equipment		1,761,139			13,259,808
Less accumulated depletion and depreciation		(1,178,751	)		(3,364,300	)
Net property and equipment	$	582,388		$	9,895,508

        The current assets and liabilities related to the properties are immaterial. The total revenues and costs and expenses, and the income associated with the operation of the oil and gas properties held for sale are presented below.

	Bonanza Creek Energy, Inc. For the Year Ended December 31, 2012			Bonanza Creek Energy, Inc. For the Year Ended December 31, 2011			Bonanza Creek Energy, Inc. For the Period From Inception December 23, 2010 to December 31, 2010			Bonanza Creek Energy Company, LLC (Predecessor) For the Period January 1, 2010 to December 23, 2010
NET REVENUES:
Oil and gas sales	$	5,410,806		$	6,739,479		$	125,223		$	4,822,010
OPERATING EXPENSES:
Lease operating		2,279,844			3,234,575			63,728			2,843,860
Severance and ad valorem taxes		127,041			169,705			3,429			153,018
Exploration		39,541			7,460			—			134,290
Depreciation, depletion and amortization		2,242,861			3,493,519			70,755			1,626,880
Impairment of proved properties		1,648,190			3,443,984			—			—
TOTAL COSTS AND EXPENSES		6,337,477			10,349,243			137,912			4,758,048
(LOSS) INCOME FROM OPERATIONS ASSOCIATED WITH OIL AND GAS PROPERTIES HELD FOR SALE	$	(926,671	)		(3,609,764	)	$	(12,689	)	$	63,962