NOTE 5 — 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 indicated periods:


	Year Ended December 31,
	2014			2013			2012
Conoco, Inc.		(a	)		(a	)		13	%
Phillips 66 Company		31	%		35	%		18	%
Shell Trading (US) Company		32	%		33	%		41	%

(a) Less than 10 percent.

The maximum amount of credit risk exposure at December 31, 2014 relating to these customers was $31,929.

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 42% of our estimated proved reserves at December 31, 2014 and 60% of our production during 2014 were associated with our GOM deep water, conventional shelf and deep gas properties. Approximately 58% of our estimated proved reserves at December 31, 2014 and 40% of our production during 2014 were associated with our Appalachian properties.

Cash and Cash Equivalents

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