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Investment in Oil and Gas Properties
 12 Months Ended
Dec. 31, 2011
Investment in Oil and Gas Properties/Oil and Gas Reserve Information - Unaudited [Abstract]  
Investment in Oil and Gas Properties

Note 12—Investment in Oil and Gas Properties

The following tables disclose certain financial data relative to the Company’s oil and gas producing activities, which are located onshore and offshore the continental United States:

Costs Incurred in Oil and Gas Property Acquisition, Exploration and Development Activities

(amounts in thousands)

 

      September 30,       September 30,       September 30,  
    For the Year-Ended December 31,  
    2011     2010     2009  

Acquisition costs:

                        

Proved

   $ 2,720     $ 10,421     $ 427  

Unproved

     43,207       11,310       1,592  

Divestitures—unproved (1)

     (14,461 )      (36,139 )      —    

Exploration costs:

                        

Proved

     92,466       34,310       16,495  

Unproved

     5,919       10,384       3,249  

Development costs

     34,400       34,286       19,333  

Capitalized general and administrative and interest costs

     18,210       19,665       18,009  
   

 

 

    

 

 

    

 

 

  
       

Total costs incurred

   $ 182,461     $ 84,237     $ 59,105  
   

 

 

    

 

 

    

 

 

  

 

      September 30,       September 30,       September 30,  
    For the Year-Ended December 31,  
     2011     2010     2009  

Accumulated depreciation, depletion and amortization (DD&A)

                        

Balance, beginning of year

   $ (1,175,553 )    $ (1,082,381 )    $ (832,290 ) 

Provision for DD&A

     (57,143 )      (58,172 )      (83,613 ) 

Ceiling test writedown

     (18,907 )      —         (156,134 ) 

Sale of proved properties and other (1)

     (14,000 )      (35,000 )      (10,344 ) 
   

 

 

    

 

 

    

 

 

  
       

Balance, end of year

   $ (1,265,603 )    $ (1,175,553 )    $ (1,082,381 ) 
   

 

 

    

 

 

    

 

 

  
       

DD&A per Mcfe

   $ 1.89     $ 1.88     $ 2.44  
   

 

 

    

 

 

    

 

 

  

 

(1)

During 2010, the Company recorded $71 million in consideration from its Woodford joint development agreement. During 2011, the Company received an additional $14 million payment associated with the achievement of certain production metrics stipulated under the joint development agreement (See Note 4). In addition, during 2011, the Company sold a portion of its unproved Mississippian Lime acreage for $14.5 million.

At December 31, 2011 and 2010, unevaluated oil and gas properties totaled $70,408,000 and $54,851,000, respectively, and were not subject to depletion. Unevaluated costs at December 31, 2011 included $5,919,000 of costs related to 44 exploratory wells in progress at year-end. These costs will be transferred to evaluated oil and gas properties during 2012 upon the completion of drilling. At December 31, 2010, unevaluated costs included $10,384,000 related to 28 exploratory wells in progress. All of these costs were transferred to evaluated oil and gas properties during 2011. The Company capitalized $7,034,000, $7,771,000 and $8,679,000 of interest during 2011, 2010 and 2009, respectively. Of the total unevaluated oil and gas property costs of $70,408,000 at December 31, 2011, $38,918,000 or 55%, was incurred in 2011, $11,316,000, or 16%, was incurred in 2010 and $20,174,000 or 29% was incurred in prior years. The Company expects that the majority of the unevaluated costs at December 31, 2011 will be evaluated within the next three years, including $24,186,000 that the Company expects to be evaluated during 2012.