Fair Value Measurements (Tables)

9 Months Ended

Jun. 30, 2012

Fair Value Measurements [Abstract]

Summary of fair value measurement information for financial assets and liabilities measured at fair value on a recurring basis

The following table provides fair value measurement information for financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2012.

	Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)		Total Fair Value
Financial Assets (Liabilities):
Derivative Contracts—Swaps	$	—	$	(193,252	)	$	—	$	(193,252	)
Derivative Contracts—Collars	$	—	$	—		$	362,724	$	362,724

Summary of reconciliation of assets classified as Level 3 measurements

A reconciliation of the Company’s assets classified as Level 3 measurements is presented below. All gains and losses are presented on the Gains (losses) on derivative contracts line item on our Statement of Operations.

	Derivatives
Balance of Level 3 as of October 1, 2011	$	293,847
Total gains or (losses)—realized and unrealized:
Included in earnings
Realized		482,125
Unrealized		(413,248	)
Included in other comprehensive income (loss)		—
Purchases, issuances and settlements		—
Transfers in and out of Level 3		—
Balance of Level 3 as of June 30, 2012	$	362,724

Summary of impairments associated with certain assets measured at fair value on a nonrecurring basis within Level 3

The following table presents impairments associated with certain assets that have been measured at fair value on a nonrecurring basis within Level 3 of the fair value hierarchy.

	Quarter Ended June 30,
	2012					2011
	Fair Value		Impairment			Fair Value		Impairment
Producing Properties	$	378,864	$	205,915	(a)	$	8,155	$	2,927	(a)
	Nine Months Ended June 30,
	2012					2011
	Fair Value		Impairment			Fair Value		Impairment
Producing Properties	$	1,287,827	$	786,724	(a)	$	1,049,898	$	830,946	(a)

(a) At the end of each quarter, the Company assesses the carrying value of its producing properties for impairment. This assessment utilizes estimates of future cash flows. Significant judgments and assumptions in these assessments include estimates of future oil and natural gas prices using a forward NYMEX curve adjusted for locational basis differentials, drilling plans, expected capital costs and an applicable discount rate commensurate with risk of the underlying cash flow estimates. These assessments identified certain properties with carrying value in excess of their calculated fair values.