Common Stock

12 Months Ended

Dec. 31, 2011

Common Stock

Common Stock

NOTE 10: Common Stock

The holders of common stock have full voting rights on all matters requiring stockholder action, with each share of common stock entitled to one vote. Holders of common stock are not entitled to cumulate votes in elections of directors.  No stockholder has any preemptive right to subscribe to an additional issue of any stock or to any security convertible into such stock.

In addition, as long as any shares of the Series B, Series C or Series D Preferred Stock discussed above are outstanding, the Company may not pay or declare any dividends on common stock (other than dividends payable in common stock) unless the Company has paid, or at the same time pays or provides for the payment of, all accrued and unpaid dividends on the Series B, Series C and Series D Preferred Stock.  In addition, the terms of the Company’s preferred stock and the Company’s debt agreements further restrict the Company’s ability to pay dividends on common stock.  No dividends on common stock have been declared for any periods presented.

On December 18, 2009, the Company issued 4,000,000 shares of its common stock at a public offering price of $9.25 per share. In addition, the Company issued 750,000 shares to Avista in connection with the exchange of the Series B-2 preferred stock for the new series C preferred stock.

On January 14, 2010, in conjunction with the December 18, 2009 common stock issuance, the underwriters of the stock exercised their option to purchase 207,200 shares of common stock for approximately $1.8 million.

On February 12, 2010, the Company issued 2,153,616 shares of its common stock to PGS in connection with the acquisition of PGS Onshore.

On August 29, 2011, the Company issued 1,041,668 shares of its common stock to the Lenders as payment of the advisory fee associated with the Whitebox Revolving Credit Facility.

Common Stock Warrants

As part of the Trace Acquisition in December 2005, the Company issued 274,105 warrants at an exercise price of $20.00, which expired on December 1, 2010.

As part of the issuance of Series B-2 Preferred Stock on July 28, 2008, the Company issued the 2008 Warrants to purchase 240,000 shares of common stock which expire on July 28, 2013.  The current exercise price of the 2008 Warrants is $9.05 per share.  At December 31, 2011 and 2010, the 2008 Warrants are recorded as derivative liabilities on the Company’s consolidated balance sheets.

In connection with the issuance of Series D Preferred Stock in December 2010, the Company issued the 2010 Warrants to purchase 3,495,000 shares of common stock which expire on December 15, 2016.  The current exercise price of the 2010 Warrants is $3.84 per share.  At December 31, 2011 and 2010, the 2010 Warrants are recorded as derivative liabilities on the Company’s consolidated balance sheets.

At December 31, 2011 and 2010, there were outstanding warrants to purchase 3,735,000 shares of common stock.