Acquisitions

3 Months Ended

Mar. 31, 2013

Acquisitions

Note 6 – Acquisitions

In December 2012, we closed on the acquisition of an office building. The acquisition was accounted for according to the guidance provided in ASC 805, Business Combinations, which requires application of the acquisition method. This methodology requires us to record net assets acquired and consideration transferred at fair value. Differences between the net fair value of assets acquired and consideration transferred are recorded as goodwill or a bargain purchase gain. The building and land were recorded at fair value of $8.5 million. Consideration transferred in the transaction was $8.5 million in cash, with no goodwill or bargain purchase gain recorded.

On June 18, 2012, we completed the acquisition of a 25% working interest in the five block deep water Pompano field in Mississippi Canyon, an approximate 14% working interest in Mississippi Canyon Block 29 and a 10% working interest in certain aliquots of Mississippi Canyon Block 72. The acquisition was accounted for according to the guidance provided in ASC 805, Business Combinations. Consideration transferred in the transaction was $26.4 million in cash, with no goodwill or bargain purchase gain recorded. The following represents the allocation of the recorded value of net assets acquired in the transaction.

	(in millions)
Proved oil and gas properties.	$	39.2
Unevaluated oil and gas properties.		1.6
Asset retirement obligations.		(14.4	)
Total fair value of net assets.	$	26.4