NOTE R — SUPPLEMENTAL OIL AND GAS DISCLOSURES (Unaudited)

As part of the Offshore Division activities, Maritech and its subsidiaries previously 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.

Costs Incurred in Property Acquisition, Exploration, and Development Activities

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.



	Year Ended December 31,
	2013		2012		2011
	(In Thousands)
Acquisition	$	—	$	—	$	141
Exploration	—		—		—
Development	—		—		5,798
Total costs incurred	$	—	$	—	$	5,939

Capitalized Costs Related to Oil and Gas Producing Activities

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 Assets Held for Sale in our consolidated balance sheet, and have recorded their value at fair value, less cost to dispose.

Results of Operations for Oil and Gas Producing Activities

Results of operations for oil and gas producing activities excludes general and administrative and interest expenses directly related to such activities as well as any allocation of corporate or divisional overhead.



	Year Ended December 31,
	2013			2012			2011
	(In Thousands)
Oil and gas sales revenues	$	5,560		$	6,158		$	81,941
Production (lifting) costs	2,637			3,749			33,496
Depreciation, depletion, and amortization	37			60			27,640
Impairments of properties	—			—			15,233
Excess decommissioning and abandonment costs	75,313			40,767			78,382
Exploration expenses	—			—			77
Accretion expense	87			979			3,705
Dry hole costs	—			—			(32		)
Gain on insurance recoveries	(5,685		)	—			—
Pretax income (loss) from producing activities	(66,829		)	(39,397		)	(76,560		)
Income tax expense (benefit)	(23,390		)	(13,789		)	(26,797		)
Results of oil and gas producing activities	$	(43,439	)	$	(25,608	)	$	(49,763	)

Estimated Quantities of Proved Oil and Gas Reserves (Unaudited)

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.

Following the 2011 and 2012 sales of substantially all of Maritech’s proved oil and gas reserves, Maritech’s remaining oil and gas reserves are negligible. The reserve values and cash flow amounts reflected in the following reserve disclosures as of December 31, 2011 and 2010, 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. 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, 2011
Proved developed reserves	95		40		676
Proved undeveloped reserves	107		60		480
Total proved reserves at December 31, 2011	202		100		1,156
December 31, 2012
Proved developed reserves	—		—		—
Proved undeveloped reserves	—		—		—
Total proved reserves at December 31, 2012	—		—		—
December 31, 2013
Proved developed reserves	—		—		—
Proved undeveloped reserves	—		—		—
Total proved reserves at December 31, 2013	—		—		—

	Oil		NGL		Gas
	(MBbls)		(MBbls)		(MMcf)
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 estimates	(8	)	39		(52	)
Production	(23	)	(39	)	(311	)
Extensions and discoveries	—		—		—
Purchases of reserves in place	—		—		—
Sales of reserves in place	(171	)	(100	)	(793	)
Total proved reserves at December 31, 2012	—		—		—
Revisions of previous estimates	—		—		—
Production	—		—		—
Extensions and discoveries	—		—		—
Purchases of reserves in place	—		—		—
Sales of reserves in place	—		—		—
Total proved reserves at December 31, 2013	—		—		—

Standardized Measure of Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves

“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. Furthermore, prices used to determine the standardized measure are prior to the impact of hedge derivatives and are influenced by seasonal demand and other factors and may not be representative in estimating future revenues or reserve data.

Changes in Standardized Measure of Discounted Future Net Cash Flows



	Year Ended December 31,
	2013		2012			2011
	(In Thousands)
Standardized measure, beginning of year	$	—	$	6,475		$	133,269
Sales, net of production costs	—		(2,409		)	(48,445		)
Net change in prices, net of production costs	—		—			(11,916		)
Changes in future development and abandonment costs	—		—			43,792
Development and abandonment costs incurred	—		—			25,083
Accretion of discount	—		—			17,909
Net change in income taxes	—		—			44,612
Purchases of reserves in place	—		—			—
Extensions and discoveries	—		—			—
Sales of reserves in place	—		(7,918		)	(198,324		)
Net change due to revision in quantity estimates	—		—			(10,814		)
Changes in production rates (timing) and other	—		3,852			11,309
Subtotal	—		(6,475		)	(126,794		)
Standardized measure, end of year	$	—	$	—		$	6,475