Summary of Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2013

Summary of Significant Accounting Policies [Abstract]

Components of prepayments and other

The components of prepayments and other are as follows (in thousands):

	March 31,		December 31,
	2013		2012
Cash collateral deposits for commodity purchases	$	5,000	$	5,000
Insurance premiums		1,287		1,872
Commodity imbalances and futures		199		353
Rents, license and other		556		867
	$	7,042	$	8,092

Capitalized costs for non-producing oil and gas leasehold interests

On a quarterly basis, management evaluates the carrying value of non-producing oil and gas leasehold properties and may deem them impaired based on remaining lease term, area drilling activity and the Company's plans for the property.  This fair value measure depends highly on management's assessment of the likelihood of continued exploration efforts in a given area and, as such, data inputs are categorized as unobservable or Level 3 inputs.  Importantly, this fair value measure only applies to the write-down of capitalized costs and will never result in an increase to reported earnings. Accordingly, impairment provisions on non-producing properties totaling $52,000 and $264,000 were recorded for the three-month periods ended March 31, 2013 and 2012, respectively.  Capitalized costs for non-producing oil and gas leasehold interests currently represent approximately four percent of total oil and gas property costs and are categorized as follows (in thousands):
 

	March 31,		December 31,
	2013		2012
South Texas Project acreage	$	3,474	$	3,263
West Texas Project acreage		172		180
Napoleonville, Louisiana acreage		323		323
Other acreage areas		310		329
Total Non-producing Leasehold Costs	$	4,279	$	4,095

Capitalized cost activity on the other acreage areas

The South Texas, West Texas and Napoleonville acreage areas have active or scheduled drilling operations underway and holding the underlying acreage is essential to the ongoing exploration effort.  The ‟other acreage areas" category consists of smaller onshore interests dispersed over a wide geographical area.  Since the Company is generally not the operator of its oil and gas property interest, it does not maintain the underlying detail acreage data and the Company is dependent on the operator when determining which specific acreage will ultimately be drilled.  The capitalized cost detail on a property-by-property basis is reviewed however, by management, and deemed impaired if development is not anticipated prior to lease expiration.  Onshore leasehold periods are normally three years and may contain renewal options.  Capitalized cost activity on the ‟other acreage areas" was as follows (in thousands):

Balance December 31, 2012	$	329
Property additions		33
Impairments		(52	)
Balance March 31, 2013	$	310

Components of cash deposits and other assets

The Company has established certain deposits to support participation in its liability insurance program and remittance of state crude oil severance taxes and other state collateral deposits.  Insurance collateral deposits are invested at the discretion of the Company's insurance carrier and such investments primarily consist of intermediate term federal government bonds and bonds backed by federal agencies.  Components of cash deposits and other assets are as follows (in thousands):

	March 31,		December 31,
	2013		2012
Insurance collateral deposits	$	3,330	$	3,413
State collateral deposits		170		170
Materials and supplies		601		616
	$	4,101	$	4,199

Derivatives reflected in the Consolidated Balance Sheet

None of the Company's derivative instruments have been designated as hedging instruments and the estimated fair value of forward month commodity contracts (derivatives) is reflected in the accompanying Unaudited Condensed Consolidated Balance Sheet as of March 31, 2013 as follows (in thousands):

	Balance Sheet Location and Amount
	Current			Other		Current			Other
	Assets			Assets		Liabilities			Liabilities
Asset Derivatives
- Fair Value Forward Hydrocarbon Commodity Contracts at Gross Valuation	$	908		$	-	$	-		$	-
Liability Derivatives
- Fair Value Forward Hydrocarbon Commodity Contracts at Gross Valuation		-			-		648			-
Less Counterparty Offsets		(146	)		-		(146	)		-
As Reported Fair Value Contracts	$	762		$	-	$	502		$	-

Forward month commodity contracts (derivatives) are reflected in the accompanying Unaudited Condensed Consolidated Balance Sheet as of December 31, 2012 as follows (in thousands):

	Balance Sheet Location and Amount
	Current			Other		Current			Other
	Assets			Assets		Liabilities			Liabilities
Asset Derivatives
- Fair Value Forward Hydrocarbon Commodity Contracts at Gross Valuation	$	688		$	-	$	-		$	-
Liability Derivatives
- Fair Value Forward Hydrocarbon Commodity Contracts at Gross Valuation		-			-		682			-
Less Counterparty Offsets		(270	)		-		(270	)		-
As Reported Fair Value Contracts	$	418		$	-	$	412		$	-

Derivatives reflected in the Consolidated Statement of Operations

Forward month commodity contracts (derivatives) are reflected in the accompanying Unaudited Condensed Consolidated Statement of Operations for the three months ended March 31, 2013 and 2012 as follows (in thousands):

	Earnings (Loss)
	Three Months Ended
	March 31,
Location	2013		2012
Revenues – marketing	$	254	$	(2,882)

Fair value assets and liabilities

As of March 31, 2013, the Company's fair value assets and liabilities are summarized and categorized as follows (in thousands):

	Market Data Inputs
	Gross Level 1		Gross Level 2			Gross Level 3		Counterparty
	Quoted Prices		Observable			Unobservable		Offsets			Total
Derivatives
- Current assets	$	510	$	398		$	-	$	(146	)	$	762
- Current liabilities		-		(648	)		-		146			(502	)
Net Value	$	510	$	(250	)	$	-	$	-		$	260

As of December 31, 2012, the Company's fair value assets and liabilities are summarized and categorized as follows (in thousands):

	Market Data Inputs
	Gross Level 1		Gross Level 2			Gross Level 3		Counterparty
	Quoted Prices		Observable			Unobservable		Offsets			Total
Derivatives
- Current assets	$	299	$	389		$	-	$	(270	)	$	418
- Current liabilities		-		(682	)		-		270			(412	)
Net Value	$	299	$	(293	)	$	-	$	-		$	6