Concentrations

12 Months Ended

Dec. 31, 2011

Concentrations [Abstract]

CONCENTRATIONS

NOTE 4 — CONCENTRATIONS:

Sales to Major Customers

Our production is sold on month-to-month contracts at prevailing prices. We obtain credit protections such as parental guarantees from certain of our purchasers. The following table identifies customers from whom we derived 10% or more of our total oil and gas revenue during the years ended:

	December 31,
	2011			2010			2009
Conoco, Inc.		28	%		26	%		27	%
Hess Corporation		(a	)		11	%		11	%
Sequent Energy Management LP		(a	)		10	%		13	%
Shell Trading (US) Company		46	%		40	%		34	%
(a) Less than 10 percent

The maximum amount of credit risk exposure at December 31, 2011 relating to these customers amounted to $69,914.

We believe that the loss of any of these purchasers would not result in a material adverse effect on our ability to market future oil and gas production.

Production and Reserve Volumes

Approximately 50% of our estimated proved reserves (unaudited) at December 31, 2011 and 97% of our production during 2011 were associated with our Gulf Coast Basin conventional shelf properties. Approximately 21% of our estimated proved reserves (unaudited) at December 31, 2011 were associated with our GOM deep water and deep shelf gas properties.

Cash and Cash Equivalents

A substantial portion of our cash balances are not federally insured. At December 31, 2011 approximately $5,551 was invested in the J.P. Morgan Prime Money Market Fund (Capital Shares). An additional $29,868 was in accounts at J.P. Morgan Chase & Co.