Subsequent Events

6 Months Ended

Jun. 30, 2011

Subsequent Events [Abstract]

Subsequent Events (Unaudited)

Note 8. Subsequent Event

On August 1, 2011,we acquired the remaining57.5% working interest in Riley Ridge and a working interest of approximately 33% in the 28,000 acres adjacent to Riley Ridge. As a result of the transaction, we became the operator of both projects. The purchase price was approximately $191 million, including a $15 million contingent payment to be paid at the time the property's gas processing facility is operational and meets specific performance conditions, plus customary closing adjustments including payment for capital expenditures incurred between the effective date of the purchase (April 1, 2011) and closing. We expect the gas processing facility to be operational during the fourth quarter of 2011.

The acquisition of Riley Ridge meets the definition of a business under the FASC Business Combinations topic.  We will account for our acquisition of Riley Ridge under the acquisition method of accounting, which will result in the allocation of the purchase price to the assets acquired and liabilities assumed based on their estimated fair values at the date of acquisition, with the excess purchase price, if any, being recognized as goodwill. We have not yet completed our initial calculation necessary to make this allocation.