Subsequent Events

12 Months Ended

Dec. 31, 2012

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

NOTE 18 — SUBSEQUENT EVENTS

On March 11, 2013, the borrowing base under the Company’s Credit Agreement was increased to $255.0 million based on the lenders’ review of its proved oil and natural gas reserves at December 31, 2012. At that time, the Credit Agreement was also amended to include Capital One, N.A., BMO Harris Financing, Inc. (Bank of Montreal) and IberiaBank in the Company’s lending group, which also includes RBC as administrative agent, Comerica Bank, Citibank, N.A., The Bank of Nova Scotia and SunTrust Bank. At March 14, 2013, the Company had $180.0 million in borrowings and $1.3 million in letters of credit outstanding under its Credit Agreement. The Company incurred $0.3 million of additional deferred loan costs in connection with the borrowing base redetermination and amendment of the Credit Agreement. These costs will be included with the remaining unamortized portion of the deferred loan costs of $1.6 million at December 31, 2012 to be amortized over the term of the agreement.

In March 2013, the Company granted awards of options to purchase 507,500 and 284,292 shares of the Company’s common stock at exercise prices of $8.21 per share and $8.18 per share, respectively, to certain of its employees. The fair value of these awards was approximately $2.8 million. The Company also granted awards of 324,771 shares of restricted stock to certain of its employees in March 2013. The fair value of these restricted stock awards was approximately $2.4 million. All of these awards vest over a term of three to four years.

In February 2013, options to purchase 408,000 shares of the Company’s common stock at $10.00 per share expired unexercised or were forfeited.

During the first quarter of 2013, the Company entered into several additional costless collar transactions to mitigate its risks associated with fluctuations in oil prices, including contracts with a new counterparty, The Bank of Nova Scotia (or affiliates thereof). The following table summarizes these contracts.

Commodity	Calculation Period		Notional Quantity (Bbls/month)		Price Floor ($/Bbl)		Price Ceiling ($/Bbl)
Oil		07/01/2013 - 12/31/2013		20,000		90.00		102.80
Oil		01/01/2014 - 12/31/2014		15,000		85.00		97.50
Oil		01/01/2014 - 12/31/2014		30,000		85.00		98.00
Oil		01/01/2014 - 12/31/2014		15,000		87.00		97.00
Oil		01/01/2014 - 12/31/2014		20,000		90.00		97.00
Oil		01/01/2014 - 12/31/2014		15,000		90.00		97.90
Oil		01/01/2014 - 12/31/2014		15,000		90.00		98.00

During the first quarter of 2013, the Company entered into several additional costless collar transactions to mitigate its risks associated with fluctuations in natural gas prices, including contracts with a new counterparty, The Bank of Nova Scotia (or affiliates thereof). The following table summarizes these contracts.

Commodity	Calculation Period		Notional Quantity (MMBtu/month)		Price Floor ($/MMBtu)		Price Ceiling ($/MMBtu)
Natural Gas		04/01/2013 - 12/31/2013		100,000		3.25		4.41
Natural Gas		04/01/2013 - 12/31/2013		100,000		3.25		4.44
Natural Gas		04/01/2013 - 12/31/2013		100,000		3.50		4.37
Natural Gas		07/01/2013 - 12/31/2013		150,000		3.00		4.24
Natural Gas		01/01/2014 - 12/31/2014		100,000		3.00		5.15
Natural Gas		01/01/2014 - 12/31/2014		100,000		3.25		5.21
Natural Gas		01/01/2014 - 12/31/2014		100,000		3.25		5.22
Natural Gas		01/01/2014 - 12/31/2014		100,000		3.50		4.90

During the first quarter of 2013, the Company entered into several additional swap transactions to mitigate its risks associated with fluctuations in natural gas liquids prices. The following table summarizes these contracts.

Commodity	Calculation Period		Notional Quantity (Gal/month)		Fixed Price ($/Gal)
Normal Butane		03/01/2013 - 12/31/2013		21,000		1.575
Normal Butane		03/01/2013 - 12/31/2013		117,000		1.575
Normal Butane		01/01/2014 - 12/31/2014		17,500		1.540
Normal Butane		01/01/2014 - 12/31/2014		45,500		1.550
Isobutane		03/01/2013 - 12/31/2013		43,500		1.675
Isobutane		03/01/2013 - 12/31/2013		23,000		1.675
Isobutane		01/01/2014 - 12/31/2014		22,000		1.640
Isobutane		01/01/2014 - 12/31/2014		37,000		1.640
Natural Gasoline		03/01/2013 - 12/31/2013		36,000		2.105
Natural Gasoline		03/01/2013 - 12/31/2013		90,500		2.148
Natural Gasoline		01/01/2014 - 12/31/2014		30,000		1.970
Natural Gasoline		01/01/2014 - 12/31/2014		41,000		2.000

During the first quarter of 2013, the Company extended one of its drilling rig contracts in South Texas for an additional six months. Should the Company elect to terminate the contract and if the drilling contractor were unable to secure work for the rig or if the drilling contractor were unable to secure work for the rig at the same daily rate being charged to the Company prior to the end of its term, the Company would incur termination obligations. The Company’s maximum outstanding aggregate termination obligations under this contract were approximately $2.1 million at March 14, 2013.

In January and February 2013, the Company agreed to participate in the drilling and completion of various non-operated wells in the Eagle Ford shale and the Haynesville shale. If all of these wells are drilled and completed, the Company will have minimum outstanding aggregate commitments for its participation in these wells of approximately $5.6 million subsequent to December 31, 2012, which it expects to incur within the next few months.

In January 2013, the Company entered into the fourth amendment to its office lease agreement. This amendment increased the square footage of its corporate headquarters by 7,782 square feet, thereby increasing the size of its corporate headquarters from 28,743 square feet to 36,525 square feet effective January 1, 2013. The future minimum lease payments required under the office lease agreement as of January 1, 2013 are as follows (in thousands).

Year ending December 31,	Amount
2013	$	643
2014		734
2015		752
2016		771
2017		789
Thereafter		3,813
Total	$	7,502