As part of the Offshore Division activities, Maritech and its subsidiaries periodically acquired oil and gas reserves and operated the properties in exchange for assuming the proportionate share of the well abandonment and decommissioning obligations associated with such properties. Accordingly, our Maritech segment is included within our Offshore Division.

The following table reflects the costs incurred in oil and gas property acquisition, exploration, and development activities during the years indicated. Consideration given for the acquisition of proved properties includes the assumption, and any subsequent revision, of the amount of the proportionate share of the well abandonment and decommissioning obligations associated with the properties.

Approximately $5.0 million of the exploration costs incurred during 2009 was capitalized as of December 31, 2009, pending the determination of proved reserves. During 2010, these capitalized exploration costs were classified to developed oil and gas properties based on the determination of proved reserves.

In connection with our decision during 2011 to sell Maritech's oil and gas properties, beginning June 30, 2011, we reclassified Maritech's remaining oil and gas properties to Oil and Gas Properties Held for Sale in our consolidated balance sheet, and have recorded their value at fair value, less cost to dispose. Aggregate amounts of capitalized costs relating to our oil and gas producing activities and the aggregate amounts of related accumulated depletion, depreciation, and amortization as of December 31, 2010, are presented below.

	December 31,
	2010
	(In Thousands)
Undeveloped properties	$	12,954
Proved developed properties being amortized		757,663
Total capitalized costs		770,617
Less accumulated depletion, depreciation,
and amortization		(501,048	)
Net capitalized costs	$	269,569

Capitalized costs include the costs of support equipment and facilities. Also included in capitalized costs of proved developed properties being amortized is our estimate of our proportionate share of well abandonment and decommissioning liabilities assumed relating to these properties, which is also reflected as decommissioning and other asset retirement obligations in the accompanying consolidated balance sheets.

	Year Ended December 31,
	2011			2010			2009
	(In Thousands)

Oil and gas sales revenues	$	81,941		$	197,841		$	174,191
Production (lifting) costs (1)		33,496			71,066			79,115
Depreciation, depletion, and amortization		27,640			73,679			79,610
Impairments of properties (2)		15,233			63,774			11,410
Excess decommissioning and abandonment costs		78,382			53,997			23,771
Exploration expenses		77			306			151
Accretion expense		3,705			5,008			7,717
Dry hole costs		(32	)		325			-
Gain on insurance recoveries		-			(2,541	)		(45,391	)
Pretax income (loss) from producing activities		(76,560	)		(67,773	)		17,808
Income tax expense (benefit)		(26,797	)		(25,186	)		6,551
Results of oil and gas producing activities	$	(49,763	)	$	(42,587	)	$	11,257

Proved oil and gas reserves are defined as the estimated quantities of crude oil, natural gas, and natural gas liquids which geological and engineering data demonstrate with reasonable certainty to be recoverable in future years from known reservoirs under existing economic and operating conditions. Reservoirs are considered proved if economic productibility is supported by either actual production or conclusive formation tests. The area of a reservoir considered proved includes (a) that portion delineated by drilling and defined by gas-oil and/or gas-water contacts, if any, and (b) the immediately adjoining portions not yet drilled, but which can be reasonably judged as economically productive on the basis of available geological and engineering data. Reserves which can be produced economically through the application of improved recovery techniques are included in the "proved" classification when successful testing by a pilot project or the operation of an installed program in the reservoir provides support for the engineering analysis on which the project or program was based.

The reliability of reserve information is considerably affected by several factors. Reserve information is imprecise due to the inherent uncertainties in, and the limited nature of, the database upon which the estimating of reserve information is predicated. Moreover, the methods and data used in estimating reserve information are often necessarily indirect or analogical in character, rather than direct or deductive. Furthermore, estimating reserve information involves numerous judgments. The extent and significance of the judgments to be made are, in themselves, sufficient to render reserve information inherently imprecise.

The following information is presented with regard to our proved oil and gas reserve quantities reported in accordance with guidelines established by the SEC, and these guidelines were revised effective with the December 31, 2009 information. In 2009, we adopted SEC Release 33-8995 and the amendments to ASC Topic 932, "Extractive Industries - Oil and Gas," resulting from ASU 2010-03 (collectively, the Modernization Rules). The impact of the revision to these reserve guidelines was not considered significant to our proved oil and gas reserve volumes. The reserve values and cash flow amounts reflected in the following reserve disclosures as of December 31, 2011, 2010, and 2009, are based on the average price of oil and natural gas during the twelve month period then ended, determined as an unweighted arithmetic average of the first-day-of-the-month for each month within the period. The reserve values and cash flow amounts as of December 31, 2008, are based on prices as of each yearend. All of Maritech's reserves are located in U. S. state and federal offshore waters of the Gulf of Mexico and onshore Texas and Louisiana. Proved oil and gas reserve quantities as of December 31, 2011, reflect the 2011 sale of approximately 95% of such reserves.

Reserve Quantity Information	Oil		NGL		Gas
	(MBbls)		(MBbls)		(MMcf)

December 31, 2008
Proved developed reserves		4,365		139		40,988
Proved undeveloped reserves		1,433		-		1,024
Total proved reserves at December 31, 2008		5,798		139		42,012

December 31, 2009
Proved developed reserves		5,502		188		32,387
Proved undeveloped reserves		1,367		16		1,124
Total proved reserves at December 31, 2009		6,869		204		33,511

December 31, 2010
Proved developed reserves		5,760		415		24,795
Proved undeveloped reserves		1,012		74		790
Total proved reserves at December 31, 2010		6,772		489		25,585

December 31, 2011
Proved developed reserves		95		40		676
Proved undeveloped reserves		107		60		480
Total proved reserves at December 31, 2011		202		100		1,156

	Oil			NGL			Gas
	(MBbls)			(MBbls)			(MMcf)

Total proved reserves at December 31, 2008		5,798			139			42,012
Revisions of previous estimates		1,805			166			(623	)
Production		(1,219	)		(106	)		(10,449	)
Extensions and discoveries		564			5			3,365
Purchases of reserves in place		-			-			-
Sales of reserves in place		(79	)		-			(794	)

Total proved reserves at December 31, 2009		6,869			204			33,511
Revisions of previous estimates		266			310			(6,303	)
Production		(1,360	)		(132	)		(7,065	)
Extensions and discoveries		712			107			4,749
Purchases of reserves in place		293			-			876
Sales of reserves in place		(8	)		-			(183	)

Total proved reserves at December 31, 2010		6,772			489			25,585
Revisions of previous estimates		(88	)		22			(1,903	)
Production		(612	)		(88	)		(3,322	)
Extensions and discoveries		-			-			-
Purchases of reserves in place		-			-			-
Sales of reserves in place		(5,870	)		(323	)		(19,204	)

Total proved reserves at December 31, 2011		202			100			1,156

Revisions of previous proved reserves estimates during 2010 were primarily due to the declassification of natural gas reserves associated with a portion of Maritech's Main Pass field due to pipeline and transportation interruptions. Revisions of previous proved reserve estimates during 2009 were the result of improved performance at Maritech's Timbalier Bay field plus improvements in oil prices, which added to the economic lives of certain fields.

"Standardized measure" relates to the estimated discounted future net cash flows and major components of that calculation relating to proved reserves at the end of the year in the aggregate, based on SEC prescribed prices and costs, using statutory tax rates and using a 10% annual discount rate. The standardized measure is not an estimate of the fair value of proved oil and gas reserves. Probable and possible reserves, which may become proved in the future, are excluded from these calculations.

	December 31,
	2011			2010
	(In Thousands)

Future cash inflows	$	28,873		$	673,295
Future costs
Production		10,240			199,196
Development and abandonment		7,922			264,074
Future net cash flows before income taxes		10,711			210,025
Future income taxes		(1,513	)		(53,481	)
Future net cash flows		9,198			156,544
Discount at 10% annual rate		(2,723	)		(23,275	)
Standardized measure of discounted future net cash flows	$	6,475		$	133,269

	Year Ended December 31,
	2011			2010			2009
	(In Thousands)

Standardized measure, beginning of year	$	133,269		$	86,049		$	60,348
Sales, net of production costs		(48,445	)		(74,718	)		(95,076	)
Net change in prices, net of production costs		(11,916	)		92,065			43,098
Changes in future development and abandonment costs		43,792			(48,002	)		2,235
Development and abandonment costs incurred		25,083			42,151			10,585
Accretion of discount		17,909			9,720			6,396
Net change in income taxes		44,612			(34,665	)		(7,536	)
Purchases of reserves in place		-			8,694			-
Extensions and discoveries		-			63,411			27,873
Sales of reserves in place		(198,324	)		(58	)		1,268
Net change due to revision in quantity estimates		(10,814	)		(13,738	)		41,045
Changes in production rates (timing) and other		11,309			2,360			(4,187	)
Subtotal		(126,794	)		47,220			25,701
Standardized measure, end of year	$	6,475		$	133,269		$	86,049