CONSOLIDATED BALANCE SHEETS (USD $) In Thousands, unless otherwise specified	Dec. 31, 2012		Dec. 31, 2011
Current assets:
Cash and cash equivalents	$ 1,056		$ 3,012
Accounts receivable	67,516		79,089
Derivative instruments	40,190		89,621
Other current assets	16,318		38,950
Total current assets	125,080		210,672
Oil and natural gas properties, full cost method of accounting:
Proved, net of accumulated depletion of $8,237,186 and $6,901,997	1,459,312		1,923,145
Unproved	277,798		675,995
Net oil and natural gas properties	1,737,110		2,599,140
Other property and equipment, net of accumulated depreciation and amortization of $46,908 and $47,989	17,128		51,976
Net property and equipment	1,754,238	[1]	2,651,116	[1]
Deferred income taxes	14,681		231,116
Goodwill	239,420		239,420
Derivative instruments	8,335		10,422
Other assets	60,108		38,405
TOTAL ASSETS	2,201,862		3,381,151
Current liabilities:
Accounts payable and accrued liabilities	164,786		247,880
Accrued interest	23,407		23,259
Derivative instruments	9,347		28,944
Deferred income taxes	14,681		20,172
Current portion of long-term debt	12	[2]	0
Other current liabilities	14,092		20,582
Total current liabilities	226,325		340,837
Long-term debt	1,862,088		1,693,044
Asset retirement obligations	56,155		77,898
Derivative instruments	7,204		0
Other liabilities	92,914		76,259
Total liabilities	2,244,686		2,188,038
Commitments and contingencies (Note 10)
Shareholders’ equity:
Preferred stock, none issued and outstanding	0		0
Common stock, 118,245,320 and 114,525,673 shares issued and outstanding	11,825		11,454
Capital surplus	2,541,859		2,486,994
Accumulated deficit	(2,575,994)		(1,287,063)
Accumulated other comprehensive loss	(20,514)		(18,272)
Total shareholders’ (deficit) equity	(42,824)		1,193,113
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 2,201,862		$ 3,381,151

[1] At December 31, 2011, $98.7 million of the Company’s total net property and equipment was located in foreign countries. This balance was written off during 2012 when the South African properties were impaired and the Italian natural gas reserves were reclassified from proved to probable, causing a full ceiling test write-down of the Italian cost center, both of which are discussed in Note 1.

[2] Due in June 2013.