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Related Party Transactions
3 Months Ended
Mar. 31, 2012
Related Party Transactions Petro Harvester [Abstract]  
Related Party Transactions - Petro Harvester

Note 7. Related Party

 

During the first quarter of 2012, we purchased and marketed $1.2 million of oil produced by a privately-held entity of which a member of our Board of Directors serves as chairman of the board. The oil purchased under this agreement is related to the non-core assets in central and southern Mississippi and in southern Louisiana (see further discussion in Note 2, Acquisitions and Divestitures) sold to this same entity. We are under no obligation to purchase oil under this agreement.

 

In addition, during the first quarter of 2012, we entered into a sublease of excess office space at our former corporate headquarters with the same privately-held entity. The sublease provides for payment of $2.4 million in lease rentals to us over the lease term, which expires on July 31, 2016. During the first quarter of 2012, we recorded $27 thousand in lease income related to the new sublease arrangement, which is classified as “Interest income and other income” in the Unaudited Condensed Consolidated Statements of Operations.