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,
	2013			2012			2011
Conoco, Inc.		(a	)		13	%		28	%
Phillips 66 Company		35	%		18	%		(a	)
Shell Trading (US) Company		33	%		41	%		46	%

(a)	Less than 10 percent.

The maximum amount of credit risk exposure at December 31, 2013 relating to these customers amounted to $74,273.

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- Unaudited

Approximately 16% of our estimated proved reserves at December 31, 2013 and 49% of our production during 2013 were associated with our Gulf Coast Basin conventional shelf and deep gas properties. Approximately 29% of our estimated proved reserves at December 31, 2013 and 25% of our production during 2013 were associated with our deep water properties. Approximately 55% of our estimated proved reserves at December 31, 2013 and 26% of our production during 2013 were associated with our Appalachian properties.

Cash and Cash Equivalents

A substantial portion of our cash balances are not federally insured.