Derivatives (Tables)

9 Months Ended

Jun. 30, 2012

Derivatives [Abstract]

Summary of derivative instruments contracts

Derivative contracts in place as of June 30, 2012

(prices below reflect the Company’s net price from the listed Oklahoma pipelines)

Contract period	Production volume covered per month	Indexed (1) pipeline	Fixed price
Natural gas basis protection swaps
January - December 2012	50,000 Mmbtu	CEGT	NYMEX - $.29
January - December 2012	40,000 Mmbtu	CEGT	NYMEX - $.30
January - December 2012	50,000 Mmbtu	PEPL	NYMEX - $.29
January - December 2012	50,000 Mmbtu	PEPL	NYMEX - $.30
Natural gas costless collars
March - October 2012	50,000 Mmbtu	NYMEX Henry Hub	$2.50 floor/$3.25 ceiling
April - October 2012	120,000 Mmbtu	NYMEX Henry Hub	$2.50 floor/$3.10 ceiling
April - October 2012	60,000 Mmbtu	NYMEX Henry Hub	$2.50 floor/$3.20 ceiling
April - October 2012	50,000 Mmbtu	NYMEX Henry Hub	$2.50 floor/$3.20 ceiling
April - October 2012	50,000 Mmbtu	NYMEX Henry Hub	$2.50 floor/$3.45 ceiling
April - October 2012	50,000 Mmbtu	NYMEX Henry Hub	$2.50 floor/$3.30 ceiling
Oil costless collars
January - December 2012	2,000 Bbls	NYMEX WTI	$90 floor/$105 ceiling
February - December 2012	3,000 Bbls	NYMEX WTI	$90 floor/$110 ceiling
May - December 2012	2,000 Bbls	NYMEX WTI	$90 floor/$114 ceiling

(1) CEGT - Centerpoint Energy Gas Transmission’s East pipeline in Oklahoma

PEPL - Panhandle Eastern Pipeline Company’s Texas/Oklahoma mainline

Derivative contracts in place as of September 30, 2011

(prices below reflect the Company’s net price from the listed Oklahoma pipelines)

Contract period	Production volume covered per month	Indexed (1) pipeline	Fixed price
Natural gas fixed price swaps
April - October 2011	50,000 Mmbtu	NYMEX Henry Hub	$4.65
April - October 2011	50,000 Mmbtu	NYMEX Henry Hub	$4.65
April - October 2011	50,000 Mmbtu	NYMEX Henry Hub	$4.70
April - October 2011	50,000 Mmbtu	NYMEX Henry Hub	$4.75
May - October 2011	50,000 Mmbtu	NYMEX Henry Hub	$4.50
May - October 2011	50,000 Mmbtu	NYMEX Henry Hub	$4.60
June - October 2011	50,000 Mmbtu	NYMEX Henry Hub	$4.63
Natural gas basis protection swaps
January - December 2011	50,000 Mmbtu	CEGT	NYMEX - $.27
January - December 2011	50,000 Mmbtu	CEGT	NYMEX - $.27
January - December 2011	50,000 Mmbtu	PEPL	NYMEX - $.26
January - December 2011	50,000 Mmbtu	PEPL	NYMEX - $.27
January - December 2011	70,000 Mmbtu	PEPL	NYMEX - $.36
January - December 2012	50,000 Mmbtu	CEGT	NYMEX - $.29
January - December 2012	40,000 Mmbtu	CEGT	NYMEX - $.30
January - December 2012	50,000 Mmbtu	PEPL	NYMEX - $.29
January - December 2012	50,000 Mmbtu	PEPL	NYMEX - $.30
Oil costless collars
April - December 2011	5,000 Bbls	NYMEX WTI	$100 floor/$112 ceiling

(1) CEGT - Centerpoint Energy Gas Transmission’s East pipeline in Oklahoma

PEPL - Panhandle Eastern Pipeline Company’s Texas/Oklahoma mainline

Summary of realized and unrealized gains and (losses)

Realized and unrealized gains and (losses) for the periods ended June 30, 2012, and June 30, 2011, are scheduled below:

Gains (losses) on	Three months ended					Nine months ended
derivative contracts	6/30/2012			6/30/2011		6/30/2012			6/30/2011
Realized	$	221,350		$	195,210	$	496,465		$	1,681,060
Increase (decrease) in fair value		(140,186	)		149,646		(46,468	)		(1,348,877	)
Total	$	81,164		$	344,856	$	449,997		$	332,183

Summary of derivative contracts

The following table summarizes the Company’s derivative contracts as of June 30, 2012, and September 30, 2011:

	Balance Sheet Location	6/30/2012 Fair Value		9/30/2011 Fair Value
Asset Derivatives:
Derivatives not designated as Hedging Instruments:
Commodity contracts	Short-term derivative contracts	$	169,472	$	269,329
Commodity contracts	Long-term derivative contracts		—		—
Total Asset Derivatives (a)		$	169,472	$	269,329
Liability Derivatives:
Derivatives not designated as Hedging Instruments:
Commodity contracts	Short-term derivative contracts	$	—	$	—
Commodity contracts	Long-term derivative contracts		—		53,389
Total Liability Derivatives (a)		$	—	$	53,389

(a) See Fair Value Measurements section for further disclosures regarding fair value of financial instruments.