ZaZa Energy (ZAZA) 10-Q 12 Nov 14 2014 Q3 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	9 Months Ended
	Sep. 30, 2014	Oct. 31, 2014
Document and Entity Information	'	'
Entity Registrant Name	'ZaZa Energy Corp	'
Entity Central Index Key	'0001528393	'
Document Type	'10-Q	'
Document Period End Date	30-Sep-14	'
Amendment Flag	'false	'
Current Fiscal Year End Date	'--12-31	'
Entity Current Reporting Status	'Yes	'
Entity Filer Category	'Smaller Reporting Company	'
Entity Common Stock, Shares Outstanding	'	12,141,106
Document Fiscal Year Focus	'2014	'
Document Fiscal Period Focus	'Q3	'

CONSOLIDATED_BALANCE_SHEETS

CONSOLIDATED BALANCE SHEETS (USD $)	Sep. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
Current assets:	'	'
Cash and cash equivalents	$11,811	$15,186
Restricted cash	'	11,500
Accounts receivable	1,635	1,822
Income taxes receivable	183	'
Prepayments and other current assets	380	1,606
Total current assets	14,009	30,114
Property and equipment:	'	'
Oil and gas properties, successful efforts method	59,256	51,387
Furniture and fixtures	1,848	1,843
Total property and equipment	61,104	53,230
Accumulated depletion, depreciation and amortization	-12,455	-6,757
Property and equipment, net	48,649	46,473
Other assets	3,691	8,089
Deferred taxes	3,108	2,866
Total assets	69,457	87,542
Current liabilities:	'	'
Accounts payable - trade	278	755
Accrued liabilities	4,197	5,918
Deferred income taxes	3,108	2,866
Senior Secured Notes, net of discount	13,272	10,177
Income taxes payable	'	855
Total current liabilities	20,855	20,571
Long-term accrued liabilities	4,957	14,740
Asset retirement obligations	374	306
Long-term payable - related parties	4,128	4,128
Senior Secured Notes, net of discount	'	12,969
Convertible Senior Notes, net of discount	30,134	27,957
Subordinated Notes	47,330	47,330
Warrants	5,741	15,540
Embedded conversion options associated with Convertible Senior Notes	630	4,995
Quantum put option	11,000	'
Total liabilities	125,149	148,536
Commitments and contingencies (Note 12)	'	'
Stockholders' deficit:	'	'
Common stock, $0.01 par value, 250,000,000 shares authorized; 12,141,106 and 10,760,295 shares issued and outstanding at September 30, 2014 and December 31, 2013, respectively	121	1,076
Additional paid-in capital	116,323	109,636
Accumulated deficit	-172,063	-171,613
Accumulated other comprehensive loss	-73	-93
Total stockholders' deficit	-55,692	-60,994
Total liabilities and stockholders' deficit	$69,457	$87,542

CONSOLIDATED_BALANCE_SHEETS_Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	Sep. 30, 2014	Dec. 31, 2013
CONSOLIDATED BALANCE SHEETS	'	'
Common shares, par value (in dollars per share)	$0.01	$0.01
Common shares, shares authorized	250,000,000	250,000,000
Common shares, shares issued	12,141,106	10,760,295
Common shares, shares outstanding	12,141,106	10,760,295

CONSOLIDATED_STATEMENTS_OF_OPE

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (USD $)	3 Months Ended		9 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Revenues:	'	'	'	'
Oil and gas revenues	$2,689	$1,102	$9,454	$6,266
Total revenues	2,689	1,102	9,454	6,266
Operating costs and expenses:	'	'	'	'
Lease operating expense	1,240	688	2,417	1,627
Depreciation, depletion, amortization, and accretion	2,028	259	5,739	2,550
Impairment of oil and gas properties	'	9,204	3,104	102,349
General and administrative	2,983	4,230	15,969	23,642
Loss (gain) on asset divestitures	'	829	-4,076	829
Total operating costs and expenses	6,251	15,210	23,153	130,997
Operating loss	-3,562	-14,108	-13,699	-124,731
Other expenses (income):	'	'	'	'
Foreign currency exchange (gain) loss	-49	15	-58	30
Loss on extinguishment of debt	51	405	2,033	16,568
Interest expense, net	3,504	3,491	10,579	10,378
Gain on fair value of warrants	-9,820	-1,350	-11,109	-19,772
Gain on fair value of embedded conversion options associated with Convertible Senior Notes	-3,535	-1,408	-4,365	-14,783
Total other expenses (income)	-9,849	1,153	-2,920	-7,579
Income (loss) from continuing operations before income taxes	6,287	-15,261	-10,779	-117,152
Income tax expense (benefit)	-3,835	5,387	-10,329	-35,445
Income (loss) from continuing operations	10,122	-20,648	-450	-81,707
Income from discontinued operations, net of taxes	'	17	'	50
Net income (loss)	10,122	-20,631	-450	-81,657
Basic income (loss) per share:	'	'	'	'
Continuing operations (in dollars per share)	$0.91	($2.01)	($0.04)	($7.93)
Discontinued operations (in dollars per share)	'	'	'	$0.01
Total basic income (loss) per share (in dollars per share)	$0.91	($2.01)	($0.04)	($7.92)
Diluted income (loss) per share:	'	'	'	'
Continuing operations (in dollars per share)	$0.83	($2.01)	($0.04)	($7.93)
Discontinued operations (in dollars per share)	'	'	'	$0.01
Total diluted income (loss) per share (in dollars per share)	$0.83	($2.01)	($0.04)	($7.92)
Weighted average shares outstanding:	'	'	'	'
Basic (in shares)	11,114	10,272	10,756	10,307
Diluted (in shares)	13,613	10,272	10,756	10,307
Consolidated Statement of Comprehensive Income (Loss)	'	'	'	'
Net income (loss)	10,122	-20,631	-450	-81,657
Foreign currency translation, net of taxes	-44	47	20	-110
Comprehensive income (loss )	$10,078	($20,584)	($430)	($81,767)

CONSOLIDATED_STATEMENT_OF_CHAN

CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' DEFICIT (USD $)	Total	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Accumulated Other Comprehensive Income (Loss)
In Thousands, except Share data
Balance at Dec. 31, 2013	($60,994)	$1,076	$109,636	($171,613)	($93)
Balance (in shares) at Dec. 31, 2013	10,760,295	10,761,000	'	'	'
Common stock issuance	3,182	60	3,122	'	'
Common stock issuance (in shares)	'	602,000	'	'	'
Stock-based compensation	2,550	78	2,472	'	'
Stock-based compensation (in shares)	'	778,000	'	'	'
Reverse stock split adjustment	'	-1,093	1,093	'	'
Comprehensive income (loss)	-430	'	'	-450	20
Balance at Sep. 30, 2014	($55,692)	$121	$116,323	($172,063)	($73)
Balance (in shares) at Sep. 30, 2014	12,141,106	12,141,000	'	'	'

CONSOLIDATED_STATEMENTS_OF_CAS

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013
Cash flows from operating activities:	'	'
Net loss	($450)	($81,657)
Adjustments to reconcile net loss to net cash used in operating activities:	'	'
Depreciation, depletion, amortization, and accretion	5,739	2,550
(Gain) loss on asset divestitures	-4,076	779
Loss on impairment of oil and gas properties	3,104	102,349
Deferred income taxes	-10,154	-35,636
Amortization of deferred debt issuance costs and discount	3,862	3,389
Loss on extinguishment of debt	1,644	16,247
Unrealized gain on value of warrants	-11,109	-19,772
Unrealized gain on value of embedded conversion option	-4,365	-14,783
Stock-based compensation expense	2,550	2,573
Changes in operating assets and liabilities:	'	'
Restricted cash	'	6,375
Accounts receivable	188	1,184
Prepayments and other assets	-510	-45
Accounts payable and accrued liabilities	-2,958	-9,515
Cash used in operating activities - continuing operations	-16,535	-25,962
Cash provided by operating activities - discontinued operations	'	50
Net cash used in operating activities	-16,535	-25,912
Cash flows from investing activities:	'	'
Release of restricted cash	11,500	'
Proceeds from divestitures	4,701	50,168
Additions to oil and gas properties	-5,684	-47,099
Cash provided by investing activities - continuing operations	10,517	3,069
Cash flows from financing activities:	'	'
Issuance of common stock and warrants	4,493	1,380
Payment of Senior Secured Notes	-12,870	-6,430
Quantum put option	11,000	'
Cash provided by (used in) financing activities - continuing operations	2,623	-5,050
Effects of foreign currency translation on cash and cash equivalents	20	-110
Net decrease in cash and cash equivalents	-3,375	-28,003
Cash and cash equivalents, beginning of period	15,186	34,649
Cash and cash equivalents, end of period	11,811	6,646
Supplemental disclosures:	'	'
Cash paid during the period for interest	7,845	7,289
Cash paid during the period for income taxes	$855	$2,363

BASIS_OF_PRESENTATION

BASIS OF PRESENTATION	9 Months Ended
	Sep. 30, 2014
BASIS OF PRESENTATION	'
BASIS OF PRESENTATION	'
	NOTE 1 - BASIS OF PRESENTATION
	ZaZa Energy Corporation is an independent oil and gas company focused on the exploration and production of unconventional oil and gas assets.  In this Quarterly Report on Form 10-Q, unless the context provides otherwise, the “Company”, “we”, “our”, “us” and like references refer to ZaZa Energy Corporation and its subsidiaries.  We currently operate primarily through joint ventures in the Eaglebine trend in East Texas and the Eagle Ford trend in South Texas.  Our common stock is traded on the NASDAQ Capital Market under the trading symbol ZAZA.
	During interim periods, ZaZa follows the same accounting policies disclosed in its Annual Report on Form 10-K for the year ended December 31, 2013 (“Form 10-K”) filed with the Securities and Exchange Commission (the “SEC”). The interim financial statements should be read in conjunction with the notes to the consolidated financial statements and information presented in the Form 10-K. In management’s opinion, the accompanying interim consolidated financial statements contain all material adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation. The results for any interim period are not necessarily indicative of the expected results for the entire year.  All material intercompany accounts and transactions have been eliminated in consolidation.
	On August 19, 2014, we completed a 1-for-10 reverse stock split of our outstanding common stock. The accompanying financial statements and notes to the financial statements give retroactive effect to the reverse stock split for all periods presented. In addition, we filed a Certificate of Amendment to the Company’s Restated Certificate of Incorporation, which provides that our authorized capital stock remains 250 million shares of common stock, $0.01 par value per share following the reverse stock split.
	East Texas Joint Venture with EOG
	On March 21, 2013, we entered into a Joint Exploration and Development Agreement (the “JEDA”) with EOG Resources, Inc. (“our counterparty”) for the joint development of certain of our East Texas properties located in Walker, Grimes, Madison, Trinity, and Montgomery Counties, Texas.  As of September 30, 2014, approximately 144,000 net JV acres in East Texas were subject to this agreement and its subsequent amendments.  Our counterparty acts as the operator, has paid us certain cash amounts, bears 100% of the drilling and completion costs of certain specified wells, and pays a portion of our share of any additional seismic or well costs in order to earn its interest in these properties.  Generally, ZaZa has retained a 25% working interest and our counterparty has earned a 75% working interest in the acreage.  This joint development was divided into three phases.
	The first phase commenced on April 2, 2013 and has been completed. In this phase, we transferred approximately 20,000 net acres to our counterparty in exchange for a cash payment by our counterparty to us of $10 million and an obligation of our counterparty to drill and pay 100% of the drilling and completion costs of three wells, the last of which was completed on December 20, 2013.
	On September 25, 2013, ZaZa and its counterparty amended and restated the JEDA, which resulted in the following transactions being closed on October 15, 2013:
	·         Phase II Acceleration.  Our counterparty accelerated Phase II of the joint venture, and we assigned approximately 20,000 net acres to our counterparty in exchange for (i) cash consideration of $17 million and (ii) approximately $3 million of interests (based on an independent reserves report) in 15 producing wells of our counterparty located outside of the Area of Mutual Interest or “AMI” (established by the JEDA). Also, during Phase II, our counterparty agreed to drill two horizontal wells and one vertical well in the parties’ AMI, carry ZaZa’s interests in those wells and provide a miscellaneous work and land carry of up to $1.25 million. On August 7, 2014, we announced that our counterparty had completed drilling the second well that was required to be drilled as part of Phase II of the joint development program.  The third and final Phase II well has reached target depth and is in the process of being recompleted.
	·         Phase III Acceleration. ZaZa assigned approximately 7,800 net acres from the former Phase III acreage for which ZaZa received approximately $11 million of interests (based on an independent reserves report) in the 15 producing wells of our counterparty (part of Phase II and referenced above). In addition, our counterparty was given the option, until January 31, 2014, to acquire an interest in the remaining approximately 12,300 former Phase III net acres from ZaZa. As described below, our counterparty elected to acquire an interest in all of the remaining Phase III net acres.
	·         Exchange of Leases and Wells.  Our counterparty acquired approximately 19,000 additional net acres and interests in related wells in the parties’ Area of Mutual Interest, and assigned to ZaZa a 25% interest in the interests acquired by the counterparty in these leases and wells. In consideration for ZaZa’s participation in our counterparty’s leases and producing wells, ZaZa assigned to our counterparty approximately 13,875 additional net acres and paid approximately $700,000 in cash.
	On March 7, 2014, ZaZa entered into a further amendment to the JEDA pursuant to which we agreed to assign to the counterparty approximately 9,600 net acres, which represents a 75% working interest in our remaining Phase III acreage, in exchange for cash consideration of approximately $4.7 million and the carry by the counterparty of our share of future drilling and completion costs in an aggregate amount up to approximately $9.2 million. Additionally, the counterparty committed to drill two additional test wells, the first of which was spud in September 2014.
	Also pursuant to the amendment and effective March 7, 2014, we and our counterparty agreed to terminate that certain Participation Agreement, effective as of March 1, 2012, by and between the Company and Range Texas Production, LLC (“Range”) (such agreement, as amended, the “Range Agreement”).  Range’s rights and obligations under the Range Agreement were assigned to, and assumed by, the counterparty pursuant to that certain Quitclaim Assignment and Bill of Sale, effective as of December 1, 2013, by and between Range and the counterparty.  The Range Agreement provided for the joint development by Range and the Company of oil and gas leases in the Eaglebine trend.  The joint development of such leases will now be governed by the JEDA.
	East Texas Joint Venture with Quantum
	On September 18, 2014, ZaZa and an affiliate of Quantum Energy Partners (“Quantum”) closed the Purchase and Sale Agreement originally entered into on August 21, 2014 (the “Quantum Purchase and Sale Agreement”). The Quantum Purchase and Sale Agreement was amended by Amendment No. 1 to Quantum Purchase and Sale Agreement, dated September 16, 2014 (“Quantum Amendment No.1”), to allow Quantum to assign its rights under the Purchase and Sale Agreement to a different affiliate and to address other technical matters. The Company also entered into an East Texas Development Agreement, dated September 18, 2014, by and between ZaZa and Quantum (the “Quantum Development Agreement”).  The Quantum Development Agreement establishes an area of mutual interest for future acreage acquisitions in Walker, Grimes, Madison, Trinity and Houston counties in Texas. The Quantum Purchase and Sale Agreement, Quantum Amendment No.1 and the Quantum Development Agreement are collectively referred to as the “Quantum Agreements”. Pursuant to the terms of the Quantum Agreements:
	·         ZaZa assigned to Quantum an approximately 4 percent working interest (6,000 of ZaZa’s net acres) in undeveloped leases within ZaZa’s East Texas JV.  ZaZa retained its interest in all existing wells in the East Texas JV and is reserving the right to participate with respect to Quantum’s working interest in the next 15 East Texas JV wells that are spudded, drilled and completed after the closing of the Quantum transaction, as long as those wells are spudded, drilled and completed on or before the second anniversary of the closing of the transaction (the “Reserved Wells”).
	·         ZaZa received $11 million in cash as initial consideration.
	·         ZaZa will receive ongoing G&A and cost reimbursements from Quantum for providing services related to their jointly owned assets in Walker, Grimes, Madison, Trinity, and Houston counties.
	·         Quantum has the right to cause ZaZa to purchase Quantum’s interest in the jointly owned assets on an all or nothing basis for a cash price based on Quantum’s initial consideration paid of $11 million plus any out-of-pocket cost of acquiring and renewing leases under the Quantum Agreements on September 17, 2016 (the “Quantum Put Option”).
	Following the closing of these Quantum Agreements, ZaZa’s East Texas acreage holdings comprise two separate development areas, each with different operators and ownership structures:
	·         Southern Development Area (Madison, Walker, and Grimes counties). The Southern Development Area comprises approximately 144,000 acres and is operated by EOG Resources, Inc. ZaZa holds a 20.8% working interest, or approximately 30,000 net acres and Quantum holds a 4.2% working interest, or 6,000 net acres in this area. During the next two years, ZaZa has the option to participate for both its and Quantum’s working interest—for a total of a 25% working interest to ZaZa—in the next 15 wells drilled within the Southern Development Area. ZaZa also retained its full 25% working interest in all wells spudded prior to the closing of the Quantum Agreements.
	·         Northern Development Areas (Houston, Trinity, and Leon counties). The Northern Development Areas comprise over 10,000 net acres and is operated and owned 100% by ZaZa. This acreage is not subject to the Quantum Agreements. Through the remainder of 2014 ZaZa will be preparing the acreage block in Houston and Trinity counties to be drill ready from a unit formation perspective, and the Company’s leasing is now focused on contiguous acreage additions.
	Working interests in 6,000 net acres were sold and assigned to Quantum on September 18, 2014.  US Generally Accepted Accounting Principles (“GAAP”) prevents sale accounting due to the Quantum put option. Accordingly, the related oil and gas properties continue to be included on ZaZa’s consolidated balance sheet, and we created a liability, the Quantum put option, equal to Quantum’s initial cash payment of $11 million. Quantum’s out of pocket costs that are incurred subsequent to the initial $11 million will be disclosed as contingent liabilities and recorded as additional liability when and if payment becomes probable. The Quantum transaction did not have any impact on revenue, income from continuing operations, net income, or income per share.
	South Texas Joint Venture with Sabine
	On September 17, 2013, ZaZa entered into an agreement with Sabine South Texas LLC (“Sabine”), a subsidiary of Sabine Oil & Gas LLC, for the joint development of a prospect in the Eagle Ford shale formation located in Lavaca and DeWitt Counties, Texas.  Under this agreement, Sabine agreed to jointly develop with us up to approximately 7,600 net acres that we owned and that comprised a portion of our interest in South Texas.  Sabine agreed to bear 100% of the drilling and completion costs of two commitment wells and up to $750,000 of construction costs related to gathering and infrastructure in order to earn a 75% working interest in 7,600 acres in the “Sweet Home Prospect,” which is in DeWitt and Lavaca Counties, and a well that we refer to as the “Boening well.”  Sabine also agreed to carry up to $300,000 of ZaZa’s expenses related to the extension and renewal of certain leases in the Sweet Home Prospect.
	Sabine completed the first commitment well on February 14, 2014 and ZaZa transferred to Sabine a 75% working interest in approximately 3,200 net acres and the Boening well.  Sabine completed the second commitment well on March 11, 2014, and ZaZa transferred to Sabine a 75% working interest in the remaining net acres.  Participating interests in any additional wells drilled or lease acreage acquired in the Sweet Home prospect will be shared 75% by Sabine and 25% by ZaZa under an area of mutual interest that will expire on September 15, 2015 (assuming affirmative elections to participate in such lease acreage acquisition(s)).
	Sale of Moulton Properties
	On April 5, 2013 the Company closed a purchase and sale agreement and sold certain of its properties in the Eagle Ford trend located in Fayette, Gonzalez and Lavaca Counties, Texas, which we refer to as our Moulton properties, for approximately $9.2 million. Net proceeds from the sale, after closing purchase price adjustments and expenses were approximately $8.8 million. We used approximately $4.6 million of the proceeds to pay down our 10.00% Senior Secured Notes due 2017 (the “Senior Secured Notes”).
	We also entered into an agreement on June 27, 2013 to sell approximately 10,000 net acres of our properties in the Eagle Ford trend located in Fayette, Gonzalez and Lavaca Counties, Texas, including seven producing wells located on the Moulton properties, for approximately $28.8 million.  We closed this transaction on July 26, 2013 and received cash proceeds of $29.3 million. We used approximately $1.8 million of the proceeds to pay down our Senior Secured Notes.
	Crede Securities Purchase Agreement
	On July 21, 2014, we entered into a Securities Purchase Agreement (the “Crede Securities Purchase Agreement”) with Crede CG III, Ltd. (“Crede”).  Under the terms of the Crede Securities Purchase Agreement, the Company sold and issued to Crede 602,410 shares of common stock, at $8.30 per share, and warrants to purchase 361,493 shares of Common Stock with an exercise price of $11.2036 for no additional consideration (the “2019 Warrants”).  Net proceeds of the offering, after expenses, were approximately $4.5 million.
	We estimated the 2019 Warrants’ fair value at issuance was approximately $1.3 million and in accordance with US GAAP allocated the remaining residual amount of $3.2 million, calculated as the difference between the $4.5 million net proceeds and the $1.3 million fair value attributed to the 2019 Warrants, to common stock and additional paid-in capital.
	On October 21, 2014, Crede attempted to exchange warrants received in the first investment for 1,422,908 shares of common stock.  The Company believes the contractual provisions of the 2019 Warrants limit their exchange to a maximum of 361,493 shares of common stock.  Because the Company and Crede were unable to agree upon an interpretation of the contractual provisions in the 2019 Warrants with respect to the number of shares of common stock into which the 2019 Warrants could be exchanged, the Company filed suit on November 4, 2014 in the United States District Court for the Southern District of New York requesting a declaratory judgment that the 2019 Warrants are exchangeable for a maximum of 361,493 shares of common stock.
	According to the Crede Securities Purchase Agreement, a second investment of $2.5 million was scheduled to close on October 20, 2014.  As a result of a dispute between ZaZa and Crede related to whether the conditions to the second closing had been satisfied, this second investment did not occur and the Company does not expect for it to occur.

GOING_CONCERN

GOING CONCERN	9 Months Ended
	Sep. 30, 2014
GOING CONCERN	'
GOING CONCERN	'
	NOTE 2 — GOING CONCERN
	Our independent registered public accounting firm for the year ended December 31, 2013 issued their report dated March 31, 2014, that included an explanatory paragraph describing the existence of conditions that raise substantial doubt about our ability to continue as a going concern due to our dependency on the success of our 2014 drilling program with our joint-venture partners to generate sufficient cash flows to maintain positive liquidity.  These conditions continue to be present as of September 30, 2014.
	Beginning on February 21, 2015, the holders of the Senior Secured Notes may require us to purchase all or a portion of the 10% Senior Secured Notes due 2017 at a price equal to the principal amount of the Senior Secured Notes to be purchased, plus any accrued and unpaid interest on such notes. Accordingly, we have classified the outstanding amount of Senior Secured Notes of $13.3 million with a principal amount of $13.9 million as a current liability. Without access to additional liquidity, we will not be able to fund our commitments to the holders of the Senior Secured Notes if they require us to purchase all or a portion of the Senior Secured Notes and we will be in default under the Senior Secured Notes.  If this default occurs, we will be unable to continue as a going concern.
	As of September 30, 2014, we had $11.8 million in cash and cash equivalents and working capital deficit of $6.8 million. Over the next six months, we intend to fund cash general and administrative expenses, cash interest payments, and capital expenditures from cash currently on hand of $11.8 million and net cash flows from operations, if any.  We do not currently generate sufficient cash flows to maintain positive liquidity to fund operating and debt service requirements throughout the next six months.
	These matters raise substantial doubt about the Company’s ability to continue as a going concern.  The Company’s Board of Directors and management team continue to take steps to try to strengthen the Company’s balance sheet.  We intend to attempt to access the capital markets by issuing equity and debt securities, among others, to fund our cash needs. Any decision regarding a financing transaction, and our ability to complete such a transaction, will depend on prevailing market conditions and other factors.  No assurances can be given that such transactions can be consummated on terms that are acceptable to the Company, or at all.

SUMMARY_OF_SIGNIFICANT_ACCOUNT

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Sep. 30, 2014
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	'
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	'
	NOTE 3 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
	Use of Estimates
	The preparation of financial statements in conformity with United States generally accepted accounting principles requires us to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates.
	Revenue Recognition
	The Company derives its oil and gas revenue primarily from the sale of produced oil and gas. The Company uses the sales method of accounting for the recognition of gas revenue whereby revenues, net of royalties are recognized as the production is sold to the purchaser. The amount of gas sold may differ from the amount to which the Company is entitled based on its working interest or net revenue interest in the properties. Revenue is recorded when title is transferred based on our nominations and net revenue interests. Pipeline imbalances occur when production delivered into the pipeline varies from the gas we nominated for sale. Pipeline imbalances, which have historically been and currently continue to be immaterial, are settled with cash approximately 30 days from date of production and are recorded as a reduction of revenue or increase of revenue depending upon whether we are over-delivered or under-delivered. Settlements of oil and gas sales occur after the month in which the product was produced. We estimate and accrue for the value of these sales using information available at the time financial statements are generated. Differences are reflected in the accounting period during which payments are received from the purchaser.
	Successful Efforts Method of Accounting for Oil and Gas Activities
	The Company accounts for its oil and gas exploration and production activities under the successful efforts method of accounting. Oil and gas lease acquisition costs are capitalized when incurred. Lease rentals are expensed as incurred. Oil and gas exploration costs, other than the costs of drilling exploratory wells, are charged to expense as incurred. The costs of drilling exploratory wells are capitalized pending determination of whether they have discovered proved reserves. Exploratory drilling costs are capitalized when drilling is complete if it is determined that there is economic producibility supported by either actual production or a conclusive formation test. If proved reserves are not discovered, such drilling costs are expensed. In some circumstances, it may be uncertain whether proved reserves have been found when drilling has been completed. Such exploratory well drilling costs may continue to be capitalized if the reserve quantity is sufficient to justify its completion as a producing well and sufficient progress in assessing the reserves and the economic and operating viability of the project is being made. Costs to develop proved reserves, including the costs of all development wells and related equipment used in the production of natural gas and crude oil, are capitalized. Unproved properties with individually significant acquisition costs are analyzed on a property-by-property basis for any impairment in value. If the unproved properties are determined to be productive, the appropriate related costs are transferred to proved oil and gas properties.
	The Company’s third party engineers estimate proved oil and gas reserves, which directly impact financial accounting estimates, including depreciation, depletion, and amortization and impairment considerations. Our proved reserves represent estimated quantities of oil and condensate, natural gas liquids and gas that geological and engineering data demonstrate, with reasonable certainty, to be recovered in future years from known reservoirs under economic and operating conditions existing at the time the estimates were made. The process of estimating quantities of proved oil and gas reserves is very complex requiring significant subjective decisions in the evaluation of all available geological, engineering, and economic data for each reservoir. The data for a given reservoir may also change substantially over time as a result of numerous factors including, but not limited to, additional development activity, evolving producing history, and continual reassessment of the viability of production under varying economic conditions. Consequently, material revisions (upward or downward) to existing reserve estimates may occur from time to time.
	Depreciation, depletion, and amortization of the cost of proved oil and gas properties are calculated using the unit-of-production method. The reserve base used to calculate depreciation, depletion, and amortization for leasehold acquisition costs is the sum of proved developed reserves and proved undeveloped reserves. With respect to lease and well equipment costs, which include development costs and successful exploration drilling costs, the reserve base includes only proved developed reserves. Estimated future dismantlement, restoration, and abandonment costs, net of salvage values are taken into account.
	Unit-of-production rates are revised whenever there is an indication of a need, but at least annually. When circumstances indicate that an asset may be impaired, the Company compares expected undiscounted future cash flows at a producing field level to the net book value of the asset. If the future undiscounted cash flows, based on the Company’s estimate of future natural gas and crude oil prices, operating costs, anticipated production from proved reserves, and other relevant data, are lower than the net book value, the capitalized cost is reduced to fair value. Fair value is calculated by discounting the future cash flows at an appropriate risk-adjusted discount rate.
	Income Taxes
	Deferred tax assets and liabilities are recorded for the estimated future tax consequences attributable to the differences between the financial carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using the tax rate in effect for the year in which those temporary differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in the year of the enacted change.
	The Company records a valuation allowance to reduce deferred tax assets to the amount that is believed more likely than not to be realized. Management periodically assesses, by tax jurisdiction, the probability of recovery of recorded deferred tax assets based on its assessment of future earnings estimates. The Company considers estimates of future production, commodity prices and expenditures, and future taxable income in determining the need for a valuation allowance.  Such estimates are inherently imprecise since many assumptions utilized in the assessments are subject to revision in the future. A valuation allowance is established to reduce deferred tax assets if it is more likely than not that the related tax benefits will not be realized.  In the event we were to determine that it is more likely than not that we will be unable to realize all or part of our deferred tax assets in the future, we would increase the valuation allowance and recognize a corresponding charge to earnings and comprehensive income in the period in which we make such a determination. Likewise, if we later determine that we are more likely than not to realize the deferred tax assets, we would reverse the applicable portion of the previously recognized valuation allowance. In order for us to realize our deferred tax assets, we must be able to generate sufficient taxable income in the tax jurisdictions in which the deferred tax assets are located.
	The Company is required to make judgments, including estimating reserves for potential adverse outcomes regarding tax positions that the Company has taken. The Company accounts for uncertainty in income taxes using a recognition and measurement threshold for tax positions taken or expected to be taken in a tax return. Determining the income tax expense for potential assessments and recording the related effects requires management judgments and estimates. The amounts ultimately paid upon resolution of audits could be materially different from the amounts previously included in our income tax expense and, therefore, could have a material impact on our tax provision, net income and cash flows.
	Income (Loss) Per Common Share
	Basic income (loss) per share is calculated by dividing net income (loss) by the weighted average number of common shares outstanding for the period.
	Diluted income (loss) per share reflects the potential dilutive effect of unvested share-based payments, warrants and debt instruments that can be converted into common stock. We use the treasury stock method to compute potential common shares from unvested share-based payments and warrants and the if-converted method to compute potential common shares from convertible notes. When a net loss occurs, potential common shares have an anti-dilutive effect on loss per share and are excluded from the diluted loss per share calculations.
	Recent Accounting Standards
	In April 2014, the FASB issued ASU 2014-08, which raised the threshold for a disposal to qualify as a discontinued operation and requires new disclosures of both discontinued operations and certain other material disposal transactions that do not meet the revised definition of discontinued operations. Under the updated standard, a disposal of a component or group of components of an entity is required to be reported as discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results when the component or group of components of the entity (1) has been disposed of by a sale, (2) has been disposed of other than by sale or (3) is classified as held for sale. This accounting standards update is effective for annual periods beginning on or after December 15, 2014 and is applied prospectively. Early adoption is permitted but only for disposals (or classifications that are held for sale) that have not been reported in financial statements previously issued or available for use. We adopted the new standard for our fiscal years, and interim periods within those fiscal years, beginning on or after January 1, 2014. The adoption of this had no impact on our financial position, results of operations or cash flows.
	In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, issued as a new Topic, Accounting Standards Codification Topic 606. The new revenue recognition standard provides a five-step analysis of transactions to determine when and how revenue is recognized. The core principle of the guidance is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This ASU is effective beginning in fiscal year 2017 and can be adopted either retrospectively or as a cumulative-effect adjustment as of the date of adoption. The Company is currently evaluating the effect that adopting this guidance will have on its financial position, results of operations or cash flows.
	In June 2014, the FASB issued ASU No. 2014-12, “Compensation — Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period (a consensus of the FASB Emerging Issues Task Force),” (“ASU 2014-12”), which amends current guidance for stock compensation tied to performance targets. The amendments require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition and apply existing guidance in Topic 718 as it relates to awards with performance conditions that affect vesting to account for such awards. ASU 2014-12 will be effective for interim and annual periods beginning after December 15, 2015 with early adoption permitted. The adoption of ASU 2014-12 is not expected to have a material impact on the Company’s consolidated financial position, results of operations or cash flows.
	In August 2014, the FASB issued ASU No. 2014-15, “Presentation of Financial Statements — Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern” (“ASU 2014-15”), which defines management’s responsibility to evaluate whether there is substantial doubt about an organization’s ability to continue as a going concern and to provide related footnote disclosures. This ASU provides guidance to an organization’s management, with principles and definitions that are intended to reduce diversity in the timing and content of disclosures in the financial statement footnotes. ASU 2014-15 will be effective for interim and annual periods beginning after December 15, 2016 with early adoption permitted. We are currently evaluating the provisions of this ASU and assessing the impact, if any, it may have on our financial statement footnotes.

INCOME_LOSS_PER_COMMON_SHARE

INCOME (LOSS) PER COMMON SHARE	9 Months Ended
	Sep. 30, 2014
INCOME (LOSS) PER COMMON SHARE	'
INCOME (LOSS) PER COMMON SHARE	'
	NOTE 4 — INCOME (LOSS) PER COMMON SHARE
	The following table reconciles the numerators and denominators of the basic and diluted income (loss) per common share computation (in thousands, except per share data):
		Three Months Ended September 30,					Nine Months Ended September 30,
		2014		2013			2014			2013
	Basic income (loss) per share:
	Numerator:
	Income (loss) from continuing operations	$	10,122	$	(20,648	)	$	(450	)	$	(81,707	)
	Income from discontinued operations, net of tax	—		17			—			50
	Net income (loss)	$	10,122	$	(20,631	)	$	(450	)	$	(81,657	)
	Denominator:
	Weighted average common shares outstanding	11,114		10,272			10,756			10,307
	Basic income (loss) per share:
	Continuing operations	$	0.91	$	(2.01	)	$	(0.04	)	$	(7.93	)
	Discontinued operations	—		—			—			0.01
	Total basic income (loss) per share	$	0.91	$	(2.01	)	$	(0.04	)	$	(7.92	)
	Diluted income (loss) per share:
	Numerator:
	Income (loss) from continuing operations	$	10,122	$	(20,648	)	$	(450	)	$	(81,707	)
	Impact of conversions on interest expense, net of tax	1,144		—			—			—
		11,266		(20,648		)	(450		)	(81,707		)
	Income from discontinued operations, net of tax	—		17			—			50
	Net income (loss)	$	11,266	$	(20,631	)	$	(450	)	$	(81,657	)
	Denominator:
	Weighted average common shares outstanding	11,114		10,272			10,756			10,307
	Unvested restricted stock	883		—			—			—
	Net option shares issued under treasury stock method	16		—			—			—
	Weighted average shares associated with convertible debt	1,600		—			—			—
	Weighted average diluted common shares outstanding	13,613		10,272			10,756			10,307
	Diluted income (loss) per share:
	Continuing operations	$	0.83	$	(2.01	)	$	(0.04	)	$	(7.93	)
	Discontinued operations	—		—			—			0.01
	Total diluted income (loss) per share	$	0.83	$	(2.01	)	$	(0.04	)	$	(7.92	)
	For the three months ended September 30, 2014, the calculations of diluted income per common share included the dilutive effects attributable to the following: (a) 0.3 million options, (b) 0.9 million unvested restricted common stock outstanding, (c) 1.6 million common equivalent shares from the embedded convertible options associated with the Convertible Senior Notes.  The anti-dilutive effects attributable to following were not included for the three months ended September 30, 2014: (a) 3.3 million warrants which had exercise prices exceeding the average market price for the period.
	For the nine months ended September 30, 2014, the calculations of basic and diluted loss per common share were the same as we did not include the anti-dilutive effects attributable to the following: (a) 0.3 million options, (b) 0.9 million unvested restricted common stock outstanding, (c) 1.6 million common equivalent shares from the embedded convertible options associated with the Convertible Senior Notes, and (d) 3.3 million warrants.
	For the three and nine months ended September 30, 2013, the calculations of basic and diluted loss per common share were the same as we did not include the anti-dilutive effects attributable to the following: (a) 2.7 million warrants, (b) 1.6 million common equivalent shares from the embedded convertible options associated with the Convertible Senior Notes, and (c) 0.3 million unvested restricted common stock outstanding.

INCOME_TAXES

INCOME TAXES	9 Months Ended
	Sep. 30, 2014
INCOME TAXES	'
INCOME TAXES	'
	NOTE 5 —INCOME TAXES
	We are subject to income taxes primarily in the United States. The provision for taxes on income consists primarily of income taxes based on the tax laws and rates of the countries in which operations were conducted during the periods presented. We paid approximately $0.3 million in 2014 related to 2013 U.S. alternative minimum tax that had been previously accrued — though this was subsequently refunded in October 2014 with the filing of the final 2013 tax return. Additionally, we also paid approximately $0.6 million in 2014 related to 2013 Texas franchise taxes that had been previously accrued.  We paid approximately $2.4 million in the second quarter of 2013 related to capital gains taxes from the wind up of our foreign subsidiaries that had been previously accrued.
	We have approximately $120 million in gross net operating losses (“NOL”) that have been offset against our uncertain tax position as currently presented in our balance sheet. Furthermore, as a result of the lack of positive evidence at the consolidated level, it is uncertain whether or when the Company will have enough taxable income to fully benefit from the NOL.  Accordingly, we recorded a valuation allowance to offset a portion of the deferred tax assets.
	The following table reconciles income tax expense (benefit) at the U.S. federal statutory rate to the expense (benefit) for income taxes (in thousands):
		Three Months Ended September 30,						Nine Months Ended September 30,
		2014			2013			2014			2013
	Statutory tax at 35%	$	2,134		$	(5,358	)	$	(3,803	)	$	(41,020	)
	Gain on warrants	(2,274		)	(473		)	(2,565		)	(3,109		)
	Adjustments to valuation allowance	1,736			11,707			995			8,384
	Return to accrual	(5,445		)	—			(5,445		)	—
	Foreign rate differential and other	14			(489		)	489			300
	Income tax expense (benefit)	$	(3,835	)	$	5,387		$	(10,329	)	$	(35,445	)
	The Company has unrecognized tax benefits which currently exceed the net operating loss that is available for carryback and netted against the uncertain position, and as such, the Company is able to recognize this carryback amount up to the unrecognized tax benefit.  As of September 30, 2014, the difference between the gross unrecognized tax benefits of $16.4 million and $5.0 million recorded on the balance sheet in long-term accrued liabilities (of which $4.2 million is related to unrecognized tax benefits) is due to $12.2 million available NOL that is netted against the uncertain tax position. As of December 31, 2013, the difference between the gross unrecognized tax benefits of $16.4 million and $14.7 million recorded on the balance sheet in long-term accrued liabilities (of which $14.3 million is related to unrecognized tax benefits) is due to $2.1 million available NOL that is netted against the uncertain tax position. The uncertain tax position is available to support recognition of a $12.2 million deferred tax asset as of September 30, 2014, an increase of $10.2 million, equal to the tax benefit for the nine months, from December 31, 2013.
	The total amounts of interest and penalties recognized in the statement of operations and the total amounts of interest and penalties recognized in the statement of financial position are not material for the nine month periods ended September 30, 2014 and 2013. Amounts of income tax expense or benefit related to components of other comprehensive income, including reclassifications within other comprehensive income, are not material for the nine month periods ended September 30, 2014 and 2013.

FAIR_VALUE_MEASUREMENTS

FAIR VALUE MEASUREMENTS	9 Months Ended
	Sep. 30, 2014
FAIR VALUE MEASUREMENTS	'
FAIR VALUE MEASUREMENTS	'
	NOTE 6 — FAIR VALUE MEASUREMENTS
	Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The guidance requires disclosure that establishes a framework for measuring fair value expands disclosure about fair value measurements and requires that fair value measurements be classified and disclosed in one of the following categories:
	Level 1:    Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. We consider active markets as those in which transactions for the assets or liabilities occur with sufficient frequency and volume to provide pricing information on an ongoing basis.
	Level 2:    Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability. This category includes those derivative instruments that we value using observable market data. Substantially all of these inputs are observable in the marketplace throughout the full term of the derivative instrument, can be derived from observable data or supported by observable levels at which transactions are executed in the market place.
	Level 3:    Measured based on prices or valuation models that require inputs that are both significant to the fair value measurement and less observable from objective sources (i.e., supported by little or no market activity). Our valuation models for derivative contracts are primarily industry-standard models that consider various inputs including: (a) quoted forward prices for commodities, (b) time value, (c) volatility factors, (d) counterparty credit risk and (e) current market and contractual prices for the underlying instruments, as well as other relevant economic measures. Level 3 instruments primarily include warrants, embedded conversion options and debt. Although we utilize third-party broker quotes to assess the reasonableness of our prices and valuation techniques, we do not have sufficient corroborating market evidence to support classifying these assets and liabilities as Level 2.
	The carrying amounts of financial instruments including cash and cash equivalents, accounts receivable, and accounts payable approximate fair value, due to the short-term nature or maturity of the instruments.
	The Senior Secured Notes and Subordinated Notes were valued under the income approach using discounted cash flows.  The Convertible Senior Notes and embedded conversion option were valued using a Binomial Lattice Model designed to capture incremental value attributed to the conversion options in addition to the value of the note. The warrants issued in association with the Senior Secured Notes (the “2020 Warrants”) were valued as written call options using a Binomial Lattice Model.  The 2019 Warrants were valued using a weighted probability allocation between a Binomial Lattice Model and Black Scholes Option Pricing Model.
	Cash flows were discounted utilizing the US Treasury rate and our credit spread to estimate the appropriate risk adjusted rate.  A Binomial Lattice Model was used to estimate our credit spread by solving for a premium to the US Treasury rate that produces a value of the Convertible Senior Notes.  The fair value measurements are considered Level 3 measurements within the fair value hierarchy.
	The following tables summarize the valuation of our liabilities measured on a recurring basis at levels of fair value at September 30, 2014 and December 31, 2013 (in thousands):
		Fair Value Measurement using
		(Level 1)			(Level 2)			(Level 3)		Total
	At September 30, 2014
	Warrants (A)	$	—		$	—		$	5,741	$	5,741
	Embedded conversion options	—			—			630		630
	Total	$	—		$	—		$	6,371	$	6,371
		Fair Value Measurement using
		(Level 1)			(Level 2)			(Level 3)		Total
	At December 31, 2013
	Warrants	$	—		$	—		$	15,540	$	15,540
	Embedded conversion options	—			—			4,995		4,995
	Total	$	—		$	—		$	20,535	$	20,535
	(A)       Included within the warrants are the 2019 Warrants which were valued at $1.3 million as of September 30, 2014, and were based on them being exchanged for a maximum of 361,493 shares of common stock.  For further information regarding the Crede matter relating to the 2019 Warrants, see Note 1 — Basis of Presentation - Crede Securities Purchase Agreement.
	The following is a reconciliation of changes in fair value of our liabilities classified as Level 3 during the nine months ended September 30, 2014 and 2013 (in thousands):
		Nine Months Ended September 30,
		2014			2013
	Balance at beginning of period	$	20,535		$	49,425
	Issuance of warrants (A)	1,310			—
	Amendment to warrant agreement	—			10,890
	Unrealized gain on warrants included in earnings	(11,109		)	(19,772		)
	Unrealized gain on embedded conversion option included in earnings	(4,365		)	(14,783		)
	Balance at end of period	$	6,371		$	25,760
	(A)       For further information regarding the Crede matter relating to the 2019 Warrants, see Note 1 — Basis of Presentation - Crede Securities Purchase Agreement.
	On September 30, 2014, the Senior Secured Notes, which had a book value of $13.3 million (net of unamortized discount of $0.6 million), had a fair value of approximately $13.7 million.  An increase in the credit spread by 500 basis points results in a $0.2 million decrease in the fair value of the note.
	On September 30, 2014, the Convertible Senior Notes, which had a book value of $30.1 million (net of unamortized discount of $9.9 million), had a fair value of approximately $30.6 million.  An increase in the credit spread by 500 basis points results in a $2.8 million decrease in the fair value of the note.
	On September 30, 2014, Subordinated Notes, which had a book value of $47.3 million, had a fair value of approximately $32.1 million.  An increase in the credit spread by 500 basis points results in a $3.0 million decrease in the fair value of the note.
	As of September 30, 2014, an increase in the volatility by 5% results in a $0.5 million and $0.3 million increase in the fair values of the 2020 Warrants and embedded conversion option, respectively.  The 2019 Warrants however were limited to a ceiling of $1.3 million at September 30, 2014 based on limitations as defined within the certificate of warrant with respect to the 2019 Warrants.  Accordingly, an increase in the volatility by 5% results in no change to the 2019 Warrants fair value.  However, as further described in Note 1 — Basis of Presentation - Crede Securities Purchase Agreement, Crede has requested 1,422,908 shares of common stock in exchange for the 2019 Warrants. The Company has filed suit against Crede seeking a declaratory judgment that Crede’s request exceeds the number of shares into which the 2019 Warrants can be exchanged, or 361,493 shares.  If the Company is not successful in its suit against Crede and the Company must issue in excess of 361,493 shares of common stock to Crede, the fair value of the 2019 Warrants would increase with an increase in volatility.

IMPAIRMENT_OF_ASSETS

IMPAIRMENT OF ASSETS	9 Months Ended
	Sep. 30, 2014
IMPAIRMENT OF ASSETS	'
IMPAIRMENT OF ASSETS	'
	NOTE 7 — IMPAIRMENT OF ASSETS
	The Company reviews non-producing leasehold costs and proved oil and gas properties on a field-by-field basis for impairment when events or circumstances indicate a possible decline in the recoverability of the carrying value of such property. We compare the carrying value of the property to its estimated undiscounted future cash flows. If the carrying value of the property exceeds its estimated undiscounted future cash flows, the carrying value is reduced to its estimated fair value and any impairment is charged to expense in the period incurred. Fair value is estimated using comparable market data, a discounted future cash flow method, or a combination of the two. Significant Level 3 assumptions are used in the fair value determination and include management’s expectations of future production, commodity prices, operating and development costs, risk-adjusted discount rate and other relevant data.
	In the first quarter of 2014, non-producing leasehold costs in South Texas with carrying values of $2.4 million were written down to their fair values of $0.8 million, resulting in pretax impairment charges of $1.6 million. The decline in fair value of these non-producing leases is driven by shorter remaining lease terms.  There were no impairments in the first quarter of 2013.
	In the second quarter of 2014, non-producing leasehold costs in South Texas with carrying values of $1.5 million were written down to their fair value of zero, resulting in pretax impairment charges of $1.5 million.  The decline in fair value of these non-producing leases is driven by the expiration of existing leases in South Texas.
	In the second quarter of 2013, non-producing leasehold costs and producing oil and gas properties with combined carrying values of $145.5 million were written down to their fair values of $52.4 million, resulting in pretax impairment charges of $93.1 million.  Included in the $93.1 million non-cash impairment charge were non-producing leasehold cost impairments of $56.9 million and producing oil and gas properties impairments of $36.2 million.  The impairments of producing oil and gas properties related to one well in South Texas and two wells in East Texas.
	In the third quarter of 2014 there was no impairment of assets.
	In the third quarter of 2013, non-producing leasehold costs with carrying values of $13.1 million were written down to their fair values of $4.1 million.  Additionally, we wrote down the carrying value of our inventory by $0.2 million.  This resulted in pre-tax impairment charges totaling $9.2 million.  The decline in fair value of the non-producing leases was driven by the expiration of leases in South Texas.

ASSET_RETIREMENT_OBLIGATIONS

ASSET RETIREMENT OBLIGATIONS	9 Months Ended
	Sep. 30, 2014
ASSET RETIREMENT OBLIGATIONS	'
ASSET RETIREMENT OBLIGATIONS	'
	NOTE 8 — ASSET RETIREMENT OBLIGATIONS
	The following table summarizes the changes in our asset retirement liability during the nine months ended September 30, 2014 and 2013 (in thousands):
		Nine Months Ended September 30,
		2014			2013
	Asset retirement obligations at beginning of period	$	306		$	130
	Obligations incurred	18			197
	Revisions	11			157
	Accretion expense	41			19
	Obligations extinguished	(2		)	(119		)
	Asset retirement obligations at the end of period	$	374		$	384

LONGTERM_DEBT

LONG-TERM DEBT	9 Months Ended
	Sep. 30, 2014
LONG-TERM DEBT	'
LONG-TERM DEBT	'
	NOTE 9 — LONG-TERM DEBT
	Our long-term debt includes Senior Secured Notes, Convertible Senior Notes, and Subordinated Notes. The fair market values of debt, warrants associated with the Senior Secured Notes and embedded conversion option associated with Convertible Senior Notes are disclosed in “Note 6 — Fair Value Measurement”. At September 30, 2014 and December 31, 2013, gross debt issuance costs were $2.5 million and $2.5 million, and accumulated amortization was $0.8 million and $0.5 million, respectively. The costs are being amortized over the life of the associated debt.
	Our long-term debt consisted of the following (in thousands):
		September 30,			December 31,
		2014			2013
	Senior Secured Notes, net of discount (1)	$	13,272		$	23,146
	Convertible Senior Notes, net of discount (2)	30,134			27,957
	Subordinated Notes	47,330			47,330
	Total debt	90,736			98,433
	Less: current portion (3)	(13,272		)	(10,177		)
	Total long-term debt	$	77,464		$	88,256
	(1)                     The Senior Secured Notes original issuance discount is amortized to the principal amount through the date of the first put right on February 21, 2015 using the effective interest rate method and a rate of 21.5%.
	(2)                     The Convertible Senior Notes original issuance discount is amortized to the principal amount through maturity on August 1, 2017 using the effective interest rate method and a rate of 17.7%.
	(3)                     We classified $13.3 million of our Senior Secured Notes as current as of September 30, 2014 pursuant to the Securities Purchase Agreement described below, which gives the holders of the Senior Secured Notes the right to require us to purchase all or a portion of the Senior Secured Notes beginning February 21, 2015. We classified $10.2 million of our Senior Secured Notes as current as of December 31, 2013 pursuant to Amendment No. 5 to the Securities and Purchase Agreement, which required the principal balance to be reduced to $15 million by February 28, 2014.
	10.00% Senior Secured Notes due 2017 and 2020 Warrants
	The Senior Secured Notes were issued under the Securities Purchase Agreement, dated February 21, 2012 (as amended, the “Securities Purchase Agreement”) and will mature on February 21, 2017.  On February 6, 2014, we received $11.5 million from an escrow account as a result of a settlement of disputes with the Hess Corporation and these proceeds, combined with approximately $1.1 million of cash on hand, were used to reduce the outstanding aggregate principal amount of our Senior Secured Notes from $26.8 million to $15.0 million.  On September 17, 2014, as part of the Quantum Agreements, we received $11 million in cash and used $1.1 million to reduce the outstanding principal amount on our Senior Secured Notes from $15.0 million to $13.9 million.
	Subject to certain adjustments set forth in the Securities Purchase Agreement, interest on the Senior Notes accrues at 10% per annum as of March 1, 2014, payable quarterly in cash. Amendment No. 5 to the Securities Purchase Agreement, dated March 28, 2013 (“Amendment No. 5”), stated that the interest rate would increase from 8% per annum to 10% per annum effective March 1, 2014 if the Senior Notes were not prepaid to zero by February 28, 2014. The balance outstanding on the Senior Secured Notes was $15 million as of February 28, 2014 and therefore the interest rate increased to 10% per annum.
	Beginning on February 21, 2015, the holders of the Senior Secured Notes may require us to purchase all or a portion of the Senior Secured Notes at a price equal to the principal amount of the Senior Secured Notes to be purchased, plus any accrued and unpaid interest on such notes. Accordingly, we classified the outstanding amount of Senior Secured Notes as current as of September 30, 2014.
	Pursuant to the Securities Purchase Agreement, the purchasers of our Senior Secured Notes were also issued the 2020 Warrants, which were originally exercisable for 26,315,789 shares of our common stock at an exercise price of $3.15 per share.  Due to various transactions in prior periods having triggered anti-dilution adjustments in the 2020 Warrants and considering the impact of the reverse stock split, as of September 30, 2014, the number of outstanding shares of Common Stock represented by the 2020 Warrants is 2,982,065 with an exercise price of $18.21 per share.
	At September 30, 2014 and December 31, 2013, the unamortized issuance discount related to Senior Secured Notes was $0.6 million and $3.6 million, respectively.  The outstanding principal of the Senior Secured Notes was $13.9 million and $26.8 million at September 30, 2014 and December 31, 2013, respectively.
	Amendment No.5 was considered an extinguishment of debt. Accordingly, in the first quarter of 2013, for accounting purposes we extinguished the Senior Secured Notes and associated discounts and debt issuance costs of $33.2 million, $9.1 million and $1.2 million, respectively.  We recognized a loss on extinguishment of debt of $15.1 million consisting of a loss from the modification of the terms of the 2020 Warrants of $10.9 million and a difference between the fair value and book value of debt of $4.2 million.  We recorded the modified debt at its fair market value of $27.1 million, consisting of a principal amount of $33.2 million and discount of $6.1 million.  Additionally, we recognized losses on the extinguishment of debt associated with prepayment penalties on the prepayment of principal on our Senior Secured Notes totaling approximately $2.0 and $1.5 million respectively in 2014 and 2013.
	In anticipation of our independent registered public accounting firm for the year ended December 31, 2013 including in their report an explanatory paragraph describing the existence of conditions that raise substantial doubt about our ability to continue as a going concern as described in Note 2 — Going Concern, on March 14, 2014, the Company entered into Amendment No. 6 to the Securities Purchase Agreement, which amended the Securities Purchase Agreement to obtain relief from the “going concern” requirements for the Company’s fiscal year 2013 financial statements.
	9.00% Convertible Senior Notes due 2017
	The Company has $40,000,000 aggregate principal amount of Convertible Senior Notes.  The Convertible Senior Notes are the senior, unsecured obligations of the Company, bear interest at a fixed rate of 9.0% per year, payable semiannually in arrears and mature August 1, 2017 unless earlier converted, redeemed or repurchased.  The Convertible Senior Notes are convertible, at the option of the holder, at any time prior to the third trading day immediately preceding the maturity date, into shares of the Company’s common stock, par value $0.01 per share (the “Conversion Shares”), and cash in lieu of fractional shares of common stock.  The reverse stock split adjusted conversion rate is 40.0052 shares per $1,000 Convertible Senior Notes which equated to an initial conversion price of $25.00 per share.
	At September 30, 2014 and December 31, 2013, the unamortized issuance discount related to Convertible Senior Notes was $9.9 million and $12.0 million, respectively.
	8.00% Subordinated Notes due 2017
	In February 2012, we issued the Subordinated Notes in an aggregate amount of $47.33 million to Todd A. Brooks (President and Chief Executive Officer of the Company) and Blackstone Oil & Gas, LLC (an entity controlled by Mr. Brooks) (together, the “Brooks Note Holders”), (b) John E. Hearn, Jr. (a Director of the Company) and Lara Energy, Inc. (an entity controlled by Mr. Hearn) (together, the “Hearn Note Holders”) and (c) Gaston L. Kearby (a Director of the Company) and Omega Energy Corp. (an entity controlled by Mr. Kearby) (together, the “Kearby Note Holders,” and collectively with the Brooks Note Holders and the Hearn Note Holders, the “Subordinated Note Holders”). The Subordinated Notes accrue interest at a rate of 8% per annum payable monthly in cash, and mature on August 17, 2017.
	On February 24, 2014, ZaZa entered into agreements (the “Subordinated Notes Exchange Agreements”) with the Subordinated Note Holders to exchange all $47.3 million in outstanding Subordinated Notes for a combination of shares of our common stock and a new series of perpetual preferred stock.  Under the terms of the Subordinated Notes Exchange Agreements, in exchange for the $15.8 million in Subordinated Notes held collectively by each individual and the entity that he controls, the Company will issue (i) approximately 0.3 million shares of ZaZa common stock valued at $9.495 per share based on the volume weighted average split adjusted price per share for the ten trading days prior to February 24, 2014 and (ii) a new series of perpetual preferred stock with a liquidation preference of $12.8 million.  If the conditions to the exchange are satisfied, the new series of perpetual preferred stock will be issued in the form of Series A Cumulative Redeemable Preferred Stock with a cash dividend rate of 13% per annum based on a liquidation preference of $25 per share.  The exchange of the Subordinated Notes is conditional on extinguishing our Senior Secured Notes as the Senior Secured Notes prevent us from executing the exchange.  We are currently uncertain as to when and if we are able to extinguish our Senior Secured Notes.
	Interest expense
	For the three and nine months ended September 30, 2014 and 2013, interest expense consisted of the following (in thousands):
		Three Months Ended						Nine Months Ended
		September 30,						September 30,
		2014			2013			2014			2013
	Interest expense on Senior Secured Notes	$	382		$	582		$	1,181		$	1,829
	Interest expense on Convertible Senior Notes	900			900			2,700			2,700
	Interest expense on Subordinated Notes	947			946			2,840			2,840
	Amortization original issuance discount on Senior Secured Notes	415			295			1,351			1,091
	Amortization of issuance costs on Senior Secured Notes	—			—			—			58
	Amortization original issuance discount on Convertible Senior Notes	744			673			2,176			1,969
	Amortization of issuance costs on Convertible Senior Notes	116			95			335			271
	Other interest (income) expense, net	—			—			(4		)	(34		)
	Capitalized interest	—			—			—			(346		)
	Total interest expense, net	$	3,504		$	3,491		$	10,579		$	10,378

STOCKBASED_COMPENSATION

STOCK-BASED COMPENSATION	9 Months Ended
	Sep. 30, 2014
STOCK-BASED COMPENSATION	'
STOCK-BASED COMPENSATION	'
	NOTE 10 — STOCK-BASED COMPENSATION
	Long Term Incentive Plan (the “Plan”)
	We currently have 2.3 million shares authorized for issuance under the Plan adopted in March 2012.  On September 30, 2014, approximately 0.6 million shares were available for future grants under the Plan.
	Stock-based compensation costs for the three and nine months ended September 30, 2014 were $0.8 million and $2.6 million, respectively.  Stock-based compensation costs for the three and nine months ended September 30, 2013 were $0.6 million and $2.4 million, respectively.
	The following table presents the changes in restricted stock awards pursuant to the Plan (in thousands except per share data):
				Weighted average
		Number		grant date		Intrinsic
		of shares		fair value per share		value
	Unvested balance at December 31, 2013	231		$	16.9	$	3,898
	Granted	843		6.98		5,880
	Forfeited	(23	)	16.1		(361		)
	Vested	(168	)	16.33		(2,745		)
	Unvested balance at September 30, 2014	883		$	7.55	$	6,672
	On September 30, 2014 and 2013, we had $6.1 million and $3.2 million, respectively, of total unrecognized compensation costs related to unvested awards which are expected to be recognized over a weighted average period of 2.5 years and 2.0 years, respectively.

SEVERANCE_COSTS

SEVERANCE COSTS	9 Months Ended
	Sep. 30, 2014
SEVERANCE COSTS	'
SEVERANCE COSTS	'
	NOTE 11 — SEVERANCE COSTS
	In May 2014, ZaZa announced the resignation of Ian H. Fay as Chief Financial Officer of the Company.  In connection with Mr. Fay’s resignation, the Company recognized severance costs totaling approximately $2.8 million which are included in general and administrative expenses.
	In April 2013, ZaZa announced a significant reduction in workforce and terminated approximately 37 employees and contractors, and closed offices in Corpus Christi and Dallas. In the second quarter of 2013, we recognized $3.9 million in severance expense and $0.7 million in onerous contracts for a total expense of $4.6 million included in general and administrative expenses.
	As of September 30, 2014, we have reduced the accrual by a total of $4.9 million for severance payments made in 2013 and 2014. The remaining liability as of September 30, 2014 is $2.5 million of which $1.7 million is recorded in current accrued liabilities and $0.8 million is recorded in non-current accrued liabilities.

COMMITMENTS_AND_CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Sep. 30, 2014
COMMITMENTS AND CONTINGENCIES.	'
COMMITMENTS AND CONTINGENCIES	'
	NOTE 12 — COMMITMENTS AND CONTINGENCIES
	From time to time, we are named as a defendant in legal proceedings arising in the normal course of business. In our opinion, the final judgment or settlement, if any, which may be awarded with any such suit or claim would not have a material adverse effect on our financial position, results of operations or cash flows.
	For information regarding the dispute with Crede surrounding the 2019 Warrants and the Crede Securities Purchase Agreement, see Note 1 — Basis of Presentation - Crede Securities Purchase Agreement.

SUMMARY_OF_SIGNIFICANT_ACCOUNT1

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Sep. 30, 2014
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	'
Use of Estimates	'
	Use of Estimates
	The preparation of financial statements in conformity with United States generally accepted accounting principles requires us to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates.
Revenue Recognition	'
	Revenue Recognition
	The Company derives its oil and gas revenue primarily from the sale of produced oil and gas. The Company uses the sales method of accounting for the recognition of gas revenue whereby revenues, net of royalties are recognized as the production is sold to the purchaser. The amount of gas sold may differ from the amount to which the Company is entitled based on its working interest or net revenue interest in the properties. Revenue is recorded when title is transferred based on our nominations and net revenue interests. Pipeline imbalances occur when production delivered into the pipeline varies from the gas we nominated for sale. Pipeline imbalances, which have historically been and currently continue to be immaterial, are settled with cash approximately 30 days from date of production and are recorded as a reduction of revenue or increase of revenue depending upon whether we are over-delivered or under-delivered. Settlements of oil and gas sales occur after the month in which the product was produced. We estimate and accrue for the value of these sales using information available at the time financial statements are generated. Differences are reflected in the accounting period during which payments are received from the purchaser.
Successful Efforts Method of Accounting for Oil and Gas Activities	'
	Successful Efforts Method of Accounting for Oil and Gas Activities
	The Company accounts for its oil and gas exploration and production activities under the successful efforts method of accounting. Oil and gas lease acquisition costs are capitalized when incurred. Lease rentals are expensed as incurred. Oil and gas exploration costs, other than the costs of drilling exploratory wells, are charged to expense as incurred. The costs of drilling exploratory wells are capitalized pending determination of whether they have discovered proved reserves. Exploratory drilling costs are capitalized when drilling is complete if it is determined that there is economic producibility supported by either actual production or a conclusive formation test. If proved reserves are not discovered, such drilling costs are expensed. In some circumstances, it may be uncertain whether proved reserves have been found when drilling has been completed. Such exploratory well drilling costs may continue to be capitalized if the reserve quantity is sufficient to justify its completion as a producing well and sufficient progress in assessing the reserves and the economic and operating viability of the project is being made. Costs to develop proved reserves, including the costs of all development wells and related equipment used in the production of natural gas and crude oil, are capitalized. Unproved properties with individually significant acquisition costs are analyzed on a property-by-property basis for any impairment in value. If the unproved properties are determined to be productive, the appropriate related costs are transferred to proved oil and gas properties.
	The Company’s third party engineers estimate proved oil and gas reserves, which directly impact financial accounting estimates, including depreciation, depletion, and amortization and impairment considerations. Our proved reserves represent estimated quantities of oil and condensate, natural gas liquids and gas that geological and engineering data demonstrate, with reasonable certainty, to be recovered in future years from known reservoirs under economic and operating conditions existing at the time the estimates were made. The process of estimating quantities of proved oil and gas reserves is very complex requiring significant subjective decisions in the evaluation of all available geological, engineering, and economic data for each reservoir. The data for a given reservoir may also change substantially over time as a result of numerous factors including, but not limited to, additional development activity, evolving producing history, and continual reassessment of the viability of production under varying economic conditions. Consequently, material revisions (upward or downward) to existing reserve estimates may occur from time to time.
	Depreciation, depletion, and amortization of the cost of proved oil and gas properties are calculated using the unit-of-production method. The reserve base used to calculate depreciation, depletion, and amortization for leasehold acquisition costs is the sum of proved developed reserves and proved undeveloped reserves. With respect to lease and well equipment costs, which include development costs and successful exploration drilling costs, the reserve base includes only proved developed reserves. Estimated future dismantlement, restoration, and abandonment costs, net of salvage values are taken into account.
	Unit-of-production rates are revised whenever there is an indication of a need, but at least annually. When circumstances indicate that an asset may be impaired, the Company compares expected undiscounted future cash flows at a producing field level to the net book value of the asset. If the future undiscounted cash flows, based on the Company’s estimate of future natural gas and crude oil prices, operating costs, anticipated production from proved reserves, and other relevant data, are lower than the net book value, the capitalized cost is reduced to fair value. Fair value is calculated by discounting the future cash flows at an appropriate risk-adjusted discount rate.
Income Taxes	'
	Income Taxes
	Deferred tax assets and liabilities are recorded for the estimated future tax consequences attributable to the differences between the financial carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using the tax rate in effect for the year in which those temporary differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in the year of the enacted change.
	The Company records a valuation allowance to reduce deferred tax assets to the amount that is believed more likely than not to be realized. Management periodically assesses, by tax jurisdiction, the probability of recovery of recorded deferred tax assets based on its assessment of future earnings estimates. The Company considers estimates of future production, commodity prices and expenditures, and future taxable income in determining the need for a valuation allowance.  Such estimates are inherently imprecise since many assumptions utilized in the assessments are subject to revision in the future. A valuation allowance is established to reduce deferred tax assets if it is more likely than not that the related tax benefits will not be realized.  In the event we were to determine that it is more likely than not that we will be unable to realize all or part of our deferred tax assets in the future, we would increase the valuation allowance and recognize a corresponding charge to earnings and comprehensive income in the period in which we make such a determination. Likewise, if we later determine that we are more likely than not to realize the deferred tax assets, we would reverse the applicable portion of the previously recognized valuation allowance. In order for us to realize our deferred tax assets, we must be able to generate sufficient taxable income in the tax jurisdictions in which the deferred tax assets are located.
	The Company is required to make judgments, including estimating reserves for potential adverse outcomes regarding tax positions that the Company has taken. The Company accounts for uncertainty in income taxes using a recognition and measurement threshold for tax positions taken or expected to be taken in a tax return. Determining the income tax expense for potential assessments and recording the related effects requires management judgments and estimates. The amounts ultimately paid upon resolution of audits could be materially different from the amounts previously included in our income tax expense and, therefore, could have a material impact on our tax provision, net income and cash flows.
Income (loss) Per Common Share	'
	Income (Loss) Per Common Share
	Basic income (loss) per share is calculated by dividing net income (loss) by the weighted average number of common shares outstanding for the period.
	Diluted income (loss) per share reflects the potential dilutive effect of unvested share-based payments, warrants and debt instruments that can be converted into common stock. We use the treasury stock method to compute potential common shares from unvested share-based payments and warrants and the if-converted method to compute potential common shares from convertible notes. When a net loss occurs, potential common shares have an anti-dilutive effect on loss per share and are excluded from the diluted loss per share calculations.
Recent Accounting Standards	'
	Recent Accounting Standards
	In April 2014, the FASB issued ASU 2014-08, which raised the threshold for a disposal to qualify as a discontinued operation and requires new disclosures of both discontinued operations and certain other material disposal transactions that do not meet the revised definition of discontinued operations. Under the updated standard, a disposal of a component or group of components of an entity is required to be reported as discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results when the component or group of components of the entity (1) has been disposed of by a sale, (2) has been disposed of other than by sale or (3) is classified as held for sale. This accounting standards update is effective for annual periods beginning on or after December 15, 2014 and is applied prospectively. Early adoption is permitted but only for disposals (or classifications that are held for sale) that have not been reported in financial statements previously issued or available for use. We adopted the new standard for our fiscal years, and interim periods within those fiscal years, beginning on or after January 1, 2014. The adoption of this had no impact on our financial position, results of operations or cash flows.
	In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, issued as a new Topic, Accounting Standards Codification Topic 606. The new revenue recognition standard provides a five-step analysis of transactions to determine when and how revenue is recognized. The core principle of the guidance is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This ASU is effective beginning in fiscal year 2017 and can be adopted either retrospectively or as a cumulative-effect adjustment as of the date of adoption. The Company is currently evaluating the effect that adopting this guidance will have on its financial position, results of operations or cash flows.
	In June 2014, the FASB issued ASU No. 2014-12, “Compensation — Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period (a consensus of the FASB Emerging Issues Task Force),” (“ASU 2014-12”), which amends current guidance for stock compensation tied to performance targets. The amendments require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition and apply existing guidance in Topic 718 as it relates to awards with performance conditions that affect vesting to account for such awards. ASU 2014-12 will be effective for interim and annual periods beginning after December 15, 2015 with early adoption permitted. The adoption of ASU 2014-12 is not expected to have a material impact on the Company’s consolidated financial position, results of operations or cash flows.
	In August 2014, the FASB issued ASU No. 2014-15, “Presentation of Financial Statements — Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern” (“ASU 2014-15”), which defines management’s responsibility to evaluate whether there is substantial doubt about an organization’s ability to continue as a going concern and to provide related footnote disclosures. This ASU provides guidance to an organization’s management, with principles and definitions that are intended to reduce diversity in the timing and content of disclosures in the financial statement footnotes. ASU 2014-15 will be effective for interim and annual periods beginning after December 15, 2016 with early adoption permitted. We are currently evaluating the provisions of this ASU and assessing the impact, if any, it may have on our financial statement footnotes.

INCOME_LOSS_PER_COMMON_SHARE_T

INCOME (LOSS) PER COMMON SHARE (Tables)	9 Months Ended
	Sep. 30, 2014
INCOME (LOSS) PER COMMON SHARE	'
Schedule of reconciliation of the numerators and denominators of the basic and diluted income (loss) per common share computation	'
	The following table reconciles the numerators and denominators of the basic and diluted income (loss) per common share computation (in thousands, except per share data):
		Three Months Ended September 30,					Nine Months Ended September 30,
		2014		2013			2014			2013
	Basic income (loss) per share:
	Numerator:
	Income (loss) from continuing operations	$	10,122	$	(20,648	)	$	(450	)	$	(81,707	)
	Income from discontinued operations, net of tax	—		17			—			50
	Net income (loss)	$	10,122	$	(20,631	)	$	(450	)	$	(81,657	)
	Denominator:
	Weighted average common shares outstanding	11,114		10,272			10,756			10,307
	Basic income (loss) per share:
	Continuing operations	$	0.91	$	(2.01	)	$	(0.04	)	$	(7.93	)
	Discontinued operations	—		—			—			0.01
	Total basic income (loss) per share	$	0.91	$	(2.01	)	$	(0.04	)	$	(7.92	)
	Diluted income (loss) per share:
	Numerator:
	Income (loss) from continuing operations	$	10,122	$	(20,648	)	$	(450	)	$	(81,707	)
	Impact of conversions on interest expense, net of tax	1,144		—			—			—
		11,266		(20,648		)	(450		)	(81,707		)
	Income from discontinued operations, net of tax	—		17			—			50
	Net income (loss)	$	11,266	$	(20,631	)	$	(450	)	$	(81,657	)
	Denominator:
	Weighted average common shares outstanding	11,114		10,272			10,756			10,307
	Unvested restricted stock	883		—			—			—
	Net option shares issued under treasury stock method	16		—			—			—
	Weighted average shares associated with convertible debt	1,600		—			—			—
	Weighted average diluted common shares outstanding	13,613		10,272			10,756			10,307
	Diluted income (loss) per share:
	Continuing operations	$	0.83	$	(2.01	)	$	(0.04	)	$	(7.93	)
	Discontinued operations	—		—			—			0.01
	Total diluted income (loss) per share	$	0.83	$	(2.01	)	$	(0.04	)	$	(7.92	)

INCOME_TAXES_Tables

INCOME TAXES (Tables)	9 Months Ended
	Sep. 30, 2014
INCOME TAXES	'
Schedule of reconciliation of income tax expense (benefit) at the U.S. federal statutory rate to the expense(benefit) for income taxes	'
	The following table reconciles income tax expense (benefit) at the U.S. federal statutory rate to the expense (benefit) for income taxes (in thousands):
		Three Months Ended September 30,						Nine Months Ended September 30,
		2014			2013			2014			2013
	Statutory tax at 35%	$	2,134		$	(5,358	)	$	(3,803	)	$	(41,020	)
	Gain on warrants	(2,274		)	(473		)	(2,565		)	(3,109		)
	Adjustments to valuation allowance	1,736			11,707			995			8,384
	Return to accrual	(5,445		)	—			(5,445		)	—
	Foreign rate differential and other	14			(489		)	489			300
	Income tax expense (benefit)	$	(3,835	)	$	5,387		$	(10,329	)	$	(35,445	)

FAIR_VALUE_MEASUREMENTS_Tables

FAIR VALUE MEASUREMENTS (Tables)	9 Months Ended
	Sep. 30, 2014
FAIR VALUE MEASUREMENTS	'
Summary of valuation of liabilities measured on recurring basis at levels of fair value	'
	The following tables summarize the valuation of our liabilities measured on a recurring basis at levels of fair value at September 30, 2014 and December 31, 2013 (in thousands):
		Fair Value Measurement using
		(Level 1)			(Level 2)			(Level 3)		Total
	At September 30, 2014
	Warrants (A)	$	—		$	—		$	5,741	$	5,741
	Embedded conversion options	—			—			630		630
	Total	$	—		$	—		$	6,371	$	6,371
		Fair Value Measurement using
		(Level 1)			(Level 2)			(Level 3)		Total
	At December 31, 2013
	Warrants	$	—		$	—		$	15,540	$	15,540
	Embedded conversion options	—			—			4,995		4,995
	Total	$	—		$	—		$	20,535	$	20,535
	(A)       Included within the warrants are the 2019 Warrants which were valued at $1.3 million as of September 30, 2014, and were based on them being exchanged for a maximum of 361,493 shares of common stock.  For further information regarding the Crede matter relating to the 2019 Warrants, see Note 1 — Basis of Presentation - Crede Securities Purchase Agreement.
Schedule of reconciliation of changes in fair value of liabilities	'
	The following is a reconciliation of changes in fair value of our liabilities classified as Level 3 during the nine months ended September 30, 2014 and 2013 (in thousands):
		Nine Months Ended September 30,
		2014			2013
	Balance at beginning of period	$	20,535		$	49,425
	Issuance of warrants (A)	1,310			—
	Amendment to warrant agreement	—			10,890
	Unrealized gain on warrants included in earnings	(11,109		)	(19,772		)
	Unrealized gain on embedded conversion option included in earnings	(4,365		)	(14,783		)
	Balance at end of period	$	6,371		$	25,760
	(A)       For further information regarding the Crede matter relating to the 2019 Warrants, see Note 1 — Basis of Presentation - Crede Securities Purchase Agreement.

ASSET_RETIREMENT_OBLIGATIONS_T

ASSET RETIREMENT OBLIGATIONS (Tables)	9 Months Ended
	Sep. 30, 2014
ASSET RETIREMENT OBLIGATIONS	'
Summary of changes in asset retirement liability	'
	The following table summarizes the changes in our asset retirement liability during the nine months ended September 30, 2014 and 2013 (in thousands):
		Nine Months Ended September 30,
		2014			2013
	Asset retirement obligations at beginning of period	$	306		$	130
	Obligations incurred	18			197
	Revisions	11			157
	Accretion expense	41			19
	Obligations extinguished	(2		)	(119		)
	Asset retirement obligations at the end of period	$	374		$	384

LONGTERM_DEBT_Tables

LONG-TERM DEBT (Tables)	9 Months Ended
	Sep. 30, 2014
LONG-TERM DEBT	'
Schedule of long-term debt	'
	Our long-term debt consisted of the following (in thousands):
		September 30,			December 31,
		2014			2013
	Senior Secured Notes, net of discount (1)	$	13,272		$	23,146
	Convertible Senior Notes, net of discount (2)	30,134			27,957
	Subordinated Notes	47,330			47,330
	Total debt	90,736			98,433
	Less: current portion (3)	(13,272		)	(10,177		)
	Total long-term debt	$	77,464		$	88,256
	(1)                     The Senior Secured Notes original issuance discount is amortized to the principal amount through the date of the first put right on February 21, 2015 using the effective interest rate method and a rate of 21.5%.
	(2)                     The Convertible Senior Notes original issuance discount is amortized to the principal amount through maturity on August 1, 2017 using the effective interest rate method and a rate of 17.7%.
	(3)                     We classified $13.3 million of our Senior Secured Notes as current as of September 30, 2014 pursuant to the Securities Purchase Agreement described below, which gives the holders of the Senior Secured Notes the right to require us to purchase all or a portion of the Senior Secured Notes beginning February 21, 2015. We classified $10.2 million of our Senior Secured Notes as current as of December 31, 2013 pursuant to Amendment No. 5 to the Securities and Purchase Agreement, which required the principal balance to be reduced to $15 million by February 28, 2014.
Schedule of interest expense	'
	For the three and nine months ended September 30, 2014 and 2013, interest expense consisted of the following (in thousands):
		Three Months Ended						Nine Months Ended
		September 30,						September 30,
		2014			2013			2014			2013
	Interest expense on Senior Secured Notes	$	382		$	582		$	1,181		$	1,829
	Interest expense on Convertible Senior Notes	900			900			2,700			2,700
	Interest expense on Subordinated Notes	947			946			2,840			2,840
	Amortization original issuance discount on Senior Secured Notes	415			295			1,351			1,091
	Amortization of issuance costs on Senior Secured Notes	—			—			—			58
	Amortization original issuance discount on Convertible Senior Notes	744			673			2,176			1,969
	Amortization of issuance costs on Convertible Senior Notes	116			95			335			271
	Other interest (income) expense, net	—			—			(4		)	(34		)
	Capitalized interest	—			—			—			(346		)
	Total interest expense, net	$	3,504		$	3,491		$	10,579		$	10,378

STOCKBASED_COMPENSATION_Tables

STOCK-BASED COMPENSATION (Tables)	9 Months Ended
	Sep. 30, 2014
STOCK-BASED COMPENSATION	'
Summary of Changes in Restricted Stock Awards	'
	The following table presents the changes in restricted stock awards pursuant to the Plan (in thousands except per share data):
				Weighted average
		Number		grant date		Intrinsic
		of shares		fair value per share		value
	Unvested balance at December 31, 2013	231		$	16.9	$	3,898
	Granted	843		6.98		5,880
	Forfeited	(23	)	16.1		(361		)
	Vested	(168	)	16.33		(2,745		)
	Unvested balance at September 30, 2014	883		$	7.55	$	6,672

BASIS_OF_PRESENTATION_Details

BASIS OF PRESENTATION (Details) (USD $)

0 Months Ended

9 Months Ended

0 Months Ended

0 Months Ended

0 Months Ended

0 Months Ended

0 Months Ended

0 Months Ended

0 Months Ended

9 Months Ended

Aug. 19, 2014

Sep. 30, 2014

Dec. 31, 2013

Sep. 17, 2014

Sep. 18, 2014

Sep. 18, 2014

Sep. 30, 2014

Sep. 18, 2014

Sep. 18, 2014

Sep. 18, 2014

Sep. 18, 2014

Oct. 15, 2013

Mar. 07, 2014

Mar. 21, 2013

Sep. 30, 2014

Mar. 21, 2013

Apr. 02, 2013

Oct. 15, 2013

Oct. 15, 2013

Oct. 15, 2013

Oct. 15, 2013

Oct. 15, 2013

Oct. 15, 2013

Mar. 07, 2014

Sep. 30, 2014

Quantum Agreements

Quantum Agreements

Affiliate of Quantum Energy Partners

Affiliate of Quantum Energy Partners

Affiliate of Quantum Energy Partners

Affiliate of Quantum Energy Partners

Affiliate of Quantum Energy Partners

Affiliate of Quantum Energy Partners

East Texas properties

East Texas properties

Eaglebine/Eagle Ford East properties

Eaglebine/Eagle Ford East properties

Eaglebine/Eagle Ford East properties

Eaglebine/Eagle Ford East properties

Eaglebine/Eagle Ford East properties

Eaglebine/Eagle Ford East properties

Eaglebine/Eagle Ford East properties

Eaglebine/Eagle Ford East properties

Eaglebine/Eagle Ford East properties

Eaglebine/Eagle Ford East properties

Eaglebine/Eagle Ford East properties

Eaglebine/Eagle Ford East properties

Madison, Walker, and Grimes counties

Madison, Walker, and Grimes counties

Madison, Walker, and Grimes counties

Houston, Trinity, and Leon counties

Quantum Agreements

Quantum Agreements

Quantum Agreements

EOG Resources Inc.

EOG Resources Inc.

Walker, Grimes, Madison, Trinity, and Montgomery Counties, Texas

EOG Resources Inc.

EOG Resources Inc.

EOG Resources Inc.

EOG Resources Inc.

EOG Resources Inc.

EOG Resources Inc.

EOG Resources Inc.

EOG Resources Inc.

EOG Resources Inc.

EOG Resources Inc.

EOG Resources Inc.

acre

acre

acre

Madison, Walker, and Grimes counties

Houston, Trinity, and Leon counties

Joint Development Phase III Acceleration

Exchange of leases and wells

Acreage partially owned by ZaZa

Walker, Grimes, Madison, Trinity, and Montgomery Counties, Texas

Walker, Grimes, Madison, Trinity, and Montgomery Counties, Texas

Joint Development Phase I Acceleration

Joint Development Phase I Acceleration

Joint Development Phase II Acceleration

Joint Development Phase II Acceleration

Joint Development Phase II Acceleration

Joint Development Phase II Acceleration

Joint Development Phase III Acceleration

Joint Development Phase III Acceleration

Exchange of leases and wells

item

acre

acre

Walker, Grimes, Madison, Trinity, and Montgomery Counties, Texas

Walker, Grimes, Madison, Trinity, and Montgomery Counties, Texas

item

Acreage partially owned by ZaZa

Walker, Grimes, Madison, Trinity, and Montgomery Counties, Texas

Walker, Grimes, Madison, Trinity, and Montgomery Counties, Texas

Walker, Grimes, Madison, Trinity, and Montgomery Counties, Texas

Walker, Grimes, Madison, Trinity, and Montgomery Counties, Texas

Walker, Grimes, Madison, Trinity, and Montgomery Counties, Texas

Walker, Grimes, Madison, Trinity, and Montgomery Counties, Texas

Walker, Grimes, Madison, Trinity, and Montgomery Counties, Texas

Walker, Grimes, Madison, Trinity, and Montgomery Counties, Texas

Walker, Grimes, Madison, Trinity, and Montgomery Counties, Texas

acre

acre

acre

acre

item

Horizontal Wells

Vertical Wells

Acreage partially owned by ZaZa

acre

item

acre

item

item

item

item

acre

item

East Texas Joint Venture

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Reverse stock split

0.1

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Authorized capital stock (in shares)

'

250,000,000

250,000,000

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Capital stock, par value (in dollars per share)

'

$0.01

$0.01

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Maximum area to be developed, gross

'

'

'

'

'

'

'

'

'

'

'

'

'

'

144,000

'

'

'

'

'

'

'

'

'

'

Working interest retained in acreage (as a percent)

'

'

'

'

4.20%

20.80%

25.00%

100.00%

'

'

'

'

'

25.00%

'

'

'

'

'

'

'

'

'

'

25.00%

Working interest earned by agreement partner (as a percent)

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

75.00%

'

'

'

'

'

'

'

'

'

Number of phases of joint development

'

'

'

'

'

'

'

'

'

'

'

'

'

'

3

'

'

'

'

'

'

'

'

'

'

Working interest assigned to joint venture partner (as a percent)

'

'

'

'

'

'

'

'

4.00%

'

'

'

75.00%

'

'

'

'

'

'

'

'

'

'

'

'

Gas and oil property transferred to agreement partner

'

'

'

'

'

'

'

'

6,000

'

'

'

9,600

'

'

'

20,000

'

'

'

'

20,000

7,800

'

13,875

Cash received

'

$11,000,000

'

$11,000,000

'

'

'

'

$11,000,000

'

'

'

$4,700,000

'

'

'

$10,000,000

'

'

'

'

'

'

'

'

Areas of operations (in acres)

'

'

'

'

6,000

30,000

'

'

'

144,000

10,000

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Working interest to be earned in acreage (as a percent)

'

'

'

'

'

25.00%

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Exploration Wells to be Drilled

'

'

'

'

'

15

'

'

'

'

'

'

2

'

'

'

3

'

'

2

'

'

'

2

'

Percentage of well costs to be paid by counterparty

'

'

'

'

'

'

'

'

'

'

'

'

'

'

100.00%

'

100.00%

'

'

'

'

'

'

'

'

Cash received

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

17,000,000

'

'

'

'

'

'

Proved oil and gas properties fair value

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

3,000,000

'

'

'

11,000,000

'

'

Number of productive wells received

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

15

'

'

'

15

'

'

Miscellaneous carried work and land costs recognized at acquisition

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

1,250,000

'

'

'

'

'

'

'

Exploration wells drilled and completed

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

1

'

'

'

'

Area of gas and oil property to be acquired under option of agreement

'

'

'

'

'

'

'

'

'

'

'

12,300

'

'

'

'

'

'

'

'

'

'

'

'

'

Maximum miscellaneous work and land carry

'

'

'

'

'

'

'

'

'

'

'

'

9,200,000

'

'

'

'

'

'

'

'

'

'

'

'

Additional net acres and interests in related wells acquired by counterparty in parties' AMI

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

19,000

Cash paid

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

$700,000

BASIS_OF_PRESENTATION_Details_

BASIS OF PRESENTATION (Details 2) (Sabine South Texas LLC, Sweet Home Prospect in Lavaca and DeWitt Counties, USD $)	0 Months Ended
	Feb. 15, 2014	Sep. 17, 2013
	acre	acre
		item
Sabine South Texas LLC | Sweet Home Prospect in Lavaca and DeWitt Counties	'	'
South Texas Joint Venture with Sabine	'	'
Maximum area to be developed, net	'	7,600
Percentage of well costs to be paid by counterparty	'	100.00%
Exploration Wells to be Drilled	'	2
Construction costs to be paid by Sabine	'	$750,000
Working interest to be transferred to agreement partner on additional development (as a percent)	'	75.00%
Maximum miscellaneous work and land carry	'	$300,000
Working interest in additional development (as a percent)	'	25.00%
Gas and oil property transferred to agreement partner	3,200	'
Working interest in transferred to agreement partner (as a percent)	75.00%	'
Working interest retained in acreage (as a percent)	25.00%	'

BASIS_OF_PRESENTATION_Details_1

BASIS OF PRESENTATION (Details 3) (USD $)	9 Months Ended		0 Months Ended			0 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Jul. 26, 2013	Apr. 05, 2013	Sep. 30, 2014	Jul. 26, 2013	Apr. 05, 2013	Jun. 27, 2013
			Senior Secured Notes	Senior Secured Notes	Senior Secured Notes	Moulton Properties	Moulton Properties	Moulton Properties
						item
						acre
Sale of Moulton Properties	'	'	'	'	'	'	'	'
Cash received	'	'	'	'	'	$29,300,000	$9,200,000	'
Net cash received	'	'	'	'	'	'	8,800,000	'
Principal amount of debt paid down	12,870,000	6,430,000	1,800,000	4,600,000	'	'	'	'
Interest rate (as a percent)	'	'	'	10.00%	10.00%	'	'	'
Net acres sold	'	'	'	'	'	10,000	'	'
Number of producing wells sold	'	'	'	'	'	7	'	'
Sales consideration	'	'	'	'	'	'	'	$28,800,000

BASIS_OF_PRESENTATION_Details_2

BASIS OF PRESENTATION (Details 4) (USD $)	9 Months Ended		0 Months Ended	9 Months Ended	0 Months Ended	9 Months Ended	0 Months Ended
	Sep. 30, 2014	Sep. 30, 2014	Jul. 21, 2014	Sep. 30, 2014	Jul. 21, 2014	Sep. 30, 2014	Oct. 21, 2014
		2019 Warrants	Crede	Crede	Crede	Crede	Crede
					2019 Warrants	2019 Warrants	2019 Warrants
							Subsequent events
Crede Securities Purchase Agreement	'	'	'	'	'	'	'
Number of shares of common stock issued	'	'	602,410	'	'	'	'
Share price (in dollars per share)	'	'	$8.30	'	'	'	'
Number of warrants issued to purchase common stock	'	'	'	'	'	361,493	361,493
Exercise price of warrants (in dollars per share)	'	'	'	'	$11.20	'	'
Warrants to purchase common stock additional consideration	'	$0	'	'	'	'	'
Net proceeds from offering of warrants, after expenses	'	'	'	'	4,500,000	'	'
Issuance of warrants	1,310,000	'	'	'	'	1,300,000	'
Remaining residual amount of warrants	'	'	'	'	3,200,000	'	'
Number of warrants exchange in first investment for shares of common stock	'	'	'	'	'	'	1,422,908
Second investment	'	'	'	$2,500,000	'	'	'

GOING_CONCERN_Details

GOING CONCERN (Details) (USD $)	Sep. 30, 2014	Dec. 31, 2013	Sep. 30, 2013	Dec. 31, 2012	Sep. 30, 2014	Dec. 31, 2013	Apr. 05, 2013
					Senior Secured Notes	Senior Secured Notes	Senior Secured Notes
Going concern	'	'	'	'	'	'	'
Interest rate (as a percent)	'	'	'	'	10.00%	'	10.00%
Principal amount outstanding, net of discount	$13,272,000	$10,177,000	'	'	$13,300,000	$10,200,000	'
Outstanding principal	'	'	'	'	13,900,000	26,800,000	'
Cash and cash equivalents	11,811,000	15,186,000	6,646,000	34,649,000	'	'	'
Working capital deficit and capital expenditures	$6,800,000	'	'	'	'	'	'

SUMMARY_OF_SIGNIFICANT_ACCOUNT2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)	9 Months Ended
	Sep. 30, 2014
Revenue Recognition	'
Pipeline imbalances cash settlement period	'30 days

INCOME_LOSS_PER_COMMON_SHARE_D

INCOME (LOSS) PER COMMON SHARE (Details) (USD $)	3 Months Ended		9 Months Ended
In Thousands, except Share data, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Numerator:	'	'	'	'
Income (loss) from continuing operations	$10,122	($20,648)	($450)	($81,707)
Income from discontinued operations, net of tax	'	17	'	50
Net income (loss)	10,122	-20,631	-450	-81,657
Denominator:	'	'	'	'
Weighted average common shares outstanding	11,114,000	10,272,000	10,756,000	10,307,000
Basic income (loss) per share:	'	'	'	'
Continuing operations (in dollars per share)	$0.91	($2.01)	($0.04)	($7.93)
Discontinued operations (in dollars per share)	'	'	'	$0.01
Total basic income (loss) per share (in dollars per share)	$0.91	($2.01)	($0.04)	($7.92)
Numerator:	'	'	'	'
Income (loss) from continuing operations	10,122	-20,648	-450	-81,707
Impact of conversions on interest expense, net of tax	1,144	'	'	'
Income (loss) from continuing operations after impact of conversions on interest expense, net of tax	11,266	-20,648	-450	-81,707
Income from discontinued operations, net of tax	'	17	'	50
Net income (loss)	$11,266	($20,631)	($450)	($81,657)
Denominator:	'	'	'	'
Weighted average common shares outstanding	11,114,000	10,272,000	10,756,000	10,307,000
Unvested restricted stock	883,000	'	'	'
Net option shares issued under treasury stock method	16,000	'	'	'
Weighted average shares associated with convertible debt	1,600,000	'	'	'
Weighted average diluted common shares outstanding	13,613,000	10,272,000	10,756,000	10,307,000
Continuing operations (in dollars per share)	$0.83	($2.01)	($0.04)	($7.93)
Discontinued operations (in dollars per share)	'	'	'	$0.01
Total diluted income (loss) per share (in dollars per share)	$0.83	($2.01)	($0.04)	($7.92)
Options	'	'	'	'
Anti-dilutive securities	'	'	'	'
Dilutive effects of shares	300,000	'	'	'
Excluded from calculation of diluted income (loss) per share due to their anti-dilutive effect (in shares)	'	'	300,000	'
Warrants	'	'	'	'
Anti-dilutive securities	'	'	'	'
Excluded from calculation of diluted income (loss) per share due to their anti-dilutive effect (in shares)	3,300,000	2,700,000	3,300,000	2,700,000
Embedded Convertible Options	'	'	'	'
Anti-dilutive securities	'	'	'	'
Dilutive effects of shares	1,600,000	'	'	'
Excluded from calculation of diluted income (loss) per share due to their anti-dilutive effect (in shares)	'	1,600,000	1,600,000	1,600,000
Restricted Stock	'	'	'	'
Anti-dilutive securities	'	'	'	'
Dilutive effects of shares	900,000	'	'	'
Excluded from calculation of diluted income (loss) per share due to their anti-dilutive effect (in shares)	'	300,000	900,000	300,000

INCOME_TAXES_Details

INCOME TAXES (Details) (USD $)	3 Months Ended			9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Jun. 30, 2013	Sep. 30, 2014	Sep. 30, 2013	Dec. 31, 2013
INCOME TAXES	'	'	'	'	'	'
Federal taxes paid	'	'	'	$300,000	'	'
Capital gains taxes from wind up of foreign subsidiaries, paid	'	'	2,400,000	'	'	'
Income taxes paid related to 2013 Texas franchise	'	'	'	600,000	'	'
Gross net operating losses	120,000,000	'	'	120,000,000	'	'
Reconciliation of income tax benefit at the U.S. federal statutory rate to the benefit for income taxes	'	'	'	'	'	'
Statutory rate	35.00%	35.00%	'	35.00%	35.00%	'
Statutory tax at 35%	2,134,000	-5,358,000	'	-3,803,000	-41,020,000	'
Gain on warrants	-2,274,000	-473,000	'	-2,565,000	-3,109,000	'
Adjustments to valuation allowance	1,736,000	11,707,000	'	995,000	8,384,000	'
Return to accrual	-5,445,000	'	'	-5,445,000	'	'
Foreign rate differential and other	14,000	-489,000	'	489,000	300,000	'
Income tax expense (benefit)	-3,835,000	5,387,000	'	-10,329,000	-35,445,000	'
Unrecognized tax benefits	16,400,000	'	'	16,400,000	'	16,400,000
Long-term accrued liabilities	4,957,000	'	'	4,957,000	'	14,740,000
Long term accrued liabilities attributable to unrecognized tax benefits	4,200,000	'	'	4,200,000	'	14,300,000
Available NOL which is netted against the uncertain tax position	12,200,000	'	'	12,200,000	'	2,100,000
Deferred tax asset	12,200,000	'	'	12,200,000	'	'
Increase in deferred tax asset	'	'	'	'	'	$10,200,000

FAIR_VALUE_MEASUREMENTS_Detail

FAIR VALUE MEASUREMENTS (Details) (USD $)	9 Months Ended
In Thousands, except Share data, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Fair value of liabilities	'	'
Warrants	$5,741	$15,540
Issuance of warrants	1,310	'
Crede | 2019 Warrants	'	'
Fair value of liabilities	'	'
Issuance of warrants	1,300	'
Number of warrants issued to purchase common stock	361,493	'
Recurring Basis | (Level 3)	'	'
Fair value of liabilities	'	'
Warrants	5,741	15,540
Embedded conversion options	630	4,995
Total	6,371	20,535
Recurring Basis | Total	'	'
Fair value of liabilities	'	'
Warrants	5,741	15,540
Embedded conversion options	630	4,995
Total	$6,371	$20,535

FAIR_VALUE_MEASUREMENTS_Detail1

FAIR VALUE MEASUREMENTS (Details 2) (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013
Reconciliation of changes in fair value of our liabilities classified as Level 3	'	'
Balance at beginning of period	$20,535	$49,425
Issuance of warrants	1,310	'
Amendment to warrant agreement	'	10,890
Balance at end of period	6,371	25,760
Warrants	'	'
Reconciliation of changes in fair value of our liabilities classified as Level 3	'	'
Unrealized gain included in earnings	-11,109	-19,772
Embedded Conversion Options	'	'
Reconciliation of changes in fair value of our liabilities classified as Level 3	'	'
Unrealized gain included in earnings	($4,365)	($14,783)

FAIR_VALUE_MEASUREMENTS_Detail2

FAIR VALUE MEASUREMENTS (Details 3) (USD $)

9 Months Ended

0 Months Ended

9 Months Ended

9 Months Ended

9 Months Ended

In Millions, except Share data, unless otherwise specified

Sep. 30, 2014

Sep. 30, 2014

Sep. 30, 2014

Sep. 30, 2014

Oct. 21, 2014

Sep. 30, 2014

Dec. 31, 2013

Sep. 30, 2014

Dec. 31, 2013

Sep. 30, 2014

Sep. 30, 2014

Sep. 30, 2014

Sep. 30, 2014

Sep. 30, 2014

Sep. 30, 2014

Sep. 30, 2014

2020 Warrants

Embedded Conversion Options

2019 Warrants

2019 Warrants

2019 Warrants

Senior Secured Notes

Senior Secured Notes

Convertible Senior Notes

Convertible Senior Notes

Subordinated Notes

Carrying amount

Carrying amount

Carrying amount

Fair value amount

Fair value amount

Fair value amount

Crede

Crede

Senior Secured Notes

Convertible Senior Notes

Subordinated Notes

Level 3 measurement

Level 3 measurement

Level 3 measurement

Subsequent events

Senior Secured Notes

Convertible Senior Notes

Subordinated Notes

Fair value measurements

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Fair market value of debt

'

'

'

'

'

'

'

'

'

'

$13.30

$30.10

$47.30

$13.70

$30.60

$32.10

Potential increase in credit spread basis points

'

'

'

'

'

5.00%

'

5.00%

'

5.00%

'

'

'

'

'

'

Unamortized issuance discount

'

'

'

'

'

0.6

3.6

9.9

12

'

'

'

'

'

'

'

Effect of 500 basis points increase in credit spread on FV of debt instrument

'

'

'

'

'

0.2

'

2.8

'

3

'

'

'

'

'

'

Average stock price volatility increase (as a percent)

5.00%

5.00%

5.00%

'

'

'

'

'

'

'

'

'

'

'

'

'

Effect of 5% increase in stock price volatility on FV of derivative

$0.50

$0.30

$1.30

'

'

'

'

'

'

'

'

'

'

'

'

'

Number of warrants exchange in first investment for shares of common stock

'

'

'

'

1,422,908

'

'

'

'

'

'

'

'

'

'

'

Number of warrants issued to purchase common stock

'

'

'

361,493

361,493

2,982,065

'

'

'

'

'

'

'

'

'

'

IMPAIRMENT_OF_ASSETS_Details

IMPAIRMENT OF ASSETS (Details) (USD $)

3 Months Ended

9 Months Ended

3 Months Ended

3 Months Ended

3 Months Ended

Sep. 30, 2013

Sep. 30, 2014

Sep. 30, 2013

Jun. 30, 2013

Jun. 30, 2013

Jun. 30, 2013

Sep. 30, 2014

Jun. 30, 2014

Mar. 31, 2014

Sep. 30, 2013

Jun. 30, 2013

Mar. 31, 2013

Jun. 30, 2014

Mar. 31, 2014

Sep. 30, 2013

Sep. 30, 2013

Jun. 30, 2014

Mar. 31, 2014

Jun. 30, 2013

Jun. 30, 2013

Jun. 30, 2013

Non-Producing Leasehold Costs and Producing Oil and Gas Properties

Non-Producing Leasehold Costs and Producing Oil and Gas Properties

Non-Producing Leasehold Costs and Producing Oil and Gas Properties

Non-Producing Leasehold Costs

Non-Producing Leasehold Costs

Non-Producing Leasehold Costs

Non-Producing Leasehold Costs

Non-Producing Leasehold Costs

Non-Producing Leasehold Costs

Non-Producing Leasehold Costs

Non-Producing Leasehold Costs

Non-Producing Leasehold Costs

Non-Producing Leasehold Costs

Non-Producing Leasehold Costs

Non-Producing Leasehold Costs

Oil and Gas Properties

Oil and Gas Properties

Oil and Gas Properties

Carrying amount

Fair value amount

Carrying amount

Carrying amount

Carrying amount

Fair value amount

Fair value amount

Fair value amount

South Texas

East Texas

Level 3 measurement

Level 3 measurement

Level 3 measurement

item

item

Impairment of assets

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Properties

'

'

'

'

$145,500,000

$52,400,000

'

'

'

'

'

'

$1,500,000

$2,400,000

$13,100,000

$4,100,000

$0

$800,000

'

'

'

Impairment of leasehold costs

'

'

'

'

'

'

0

1,500,000

1,600,000

9,200,000

56,900,000

0

'

'

'

'

'

'

'

'

'

Impairment of oil and gas properties

9,204,000

3,104,000

102,349,000

93,100,000

'

'

'

'

'

'

'

'

'

'

'

'

'

'

36,200,000

'

'

Number of wells impaired

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

1

2

Inventory write-down

$200,000

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

ASSET_RETIREMENT_OBLIGATIONS_D

ASSET RETIREMENT OBLIGATIONS (Details) (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013
ASSET RETIREMENT OBLIGATIONS	'	'
Asset retirement obligations at the beginning of period	$306	$130
Obligations incurred	18	197
Revisions	11	157
Accretion expense	41	19
Obligations extinguished	-2	-119
Asset retirement obligations at the end of period	$374	$384

LONGTERM_DEBT_Details

LONG-TERM DEBT (Details) (USD $)

9 Months Ended

0 Months Ended

0 Months Ended

Sep. 30, 2014

Dec. 31, 2013

Sep. 17, 2014

Sep. 30, 2014

Dec. 31, 2013

Apr. 05, 2013

Sep. 30, 2014

Dec. 31, 2013

Sep. 30, 2014

Dec. 31, 2013

Sep. 17, 2014

Feb. 06, 2014

Sep. 30, 2014

Mar. 31, 2013

Quantum Agreements

Senior Secured Notes, net of discount

Senior Secured Notes, net of discount

Senior Secured Notes, net of discount

Convertible Notes, net of discount

Convertible Notes, net of discount

Subordinated Notes

Subordinated Notes

Senior secured notes after Amendment No. 5

Senior secured notes after Amendment No. 5

Senior secured notes after Amendment No. 5

Senior secured notes after Amendment No. 5

Long-term debt

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Long-term debt

$90,736,000

$98,433,000

'

$13,272,000

$23,146,000

'

$30,134,000

$27,957,000

$47,330,000

$47,330,000

'

'

'

$27,100,000

Less: current portion

-13,272,000

-10,177,000

'

-13,300,000

-10,200,000

'

'

'

'

'

'

'

'

'

Total long-term debt

77,464,000

88,256,000

'

'

'

'

'

'

'

'

'

'

'

'

Stated interest rate (as a percent)

'

'

'

10.00%

'

10.00%

9.00%

'

8.00%

'

'

'

'

'

Gross debt issuance costs

2,500,000

2,500,000

'

'

'

'

'

'

'

'

'

'

'

'

Accumulated amortization of debt issuance costs

800,000

500,000

'

'

'

'

'

'

'

'

'

'

'

'

Effective interest rate (as a percent)

'

'

'

21.50%

'

'

17.70%

'

'

'

'

'

'

'

Cash received

11,000,000

'

11,000,000

'

'

'

'

'

'

'

'

'

'

'

Outstanding principal amount required by end of two year anniversary of purchase agreement

'

'

'

'

15,000,000

'

'

'

'

'

'

'

'

'

Proceeds released from escrow utilized to prepay debt

'

'

'

'

'

'

'

'

'

'

'

11,500,000

'

'

Cash on hand utilized to prepay debt

'

'

'

'

'

'

'

'

'

'

1,100,000

1,100,000

'

'

Outstanding principal before principal payment

'

'

'

'

'

'

'

'

'

'

15,000,000

26,800,000

'

'

Outstanding principal

'

'

'

$13,900,000

$26,800,000

'

'

'

'

'

$13,900,000

$15,000,000

$15,000,000

'

LONGTERM_DEBT_Details_2

LONG-TERM DEBT (Details 2) (USD $)

3 Months Ended

9 Months Ended

3 Months Ended

12 Months Ended

9 Months Ended

33 Months Ended

Sep. 30, 2014

Sep. 30, 2013

Sep. 30, 2014

Sep. 30, 2013

Dec. 31, 2013

Sep. 30, 2014

Dec. 31, 2013

Apr. 05, 2013

Sep. 30, 2014

Sep. 17, 2014

Feb. 06, 2014

Mar. 31, 2013

Feb. 28, 2014

Feb. 28, 2014

Feb. 28, 2014

Mar. 31, 2013

Dec. 31, 2014

Dec. 31, 2013

Sep. 30, 2014

Dec. 31, 2013

Sep. 30, 2014

Senior Secured Notes

Senior Secured Notes

Senior Secured Notes

Senior secured notes after Amendment No. 5

Senior secured notes after Amendment No. 5

Senior secured notes after Amendment No. 5

Senior secured notes after Amendment No. 5

Senior secured notes after Amendment No. 5

Senior secured notes after Amendment No. 5

Senior secured notes after Amendment No. 5

Senior secured notes due 2017, extinguished with Amendment No. 5

Senior secured notes due 2017, extinguished with Amendment No. 5

Senior secured notes due 2017, extinguished with Amendment No. 5

Subordinated Notes

Subordinated Notes

Subordinated Notes

Minimum

Maximum

By February 28, 2014

Minimum

Long-term debt

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Interest rate (as a percent)

'

'

'

'

'

10.00%

'

10.00%

'

'

'

'

8.00%

10.00%

'

'

'

'

8.00%

'

'

Ratio of current assets to current liabilities

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

1

Threshold period for availability of cash equally cash interest

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'12 months

'

'

Outstanding principal

'

'

'

'

'

'

'

'

'

'

'

'

'

'

$15,000,000

'

'

'

'

'

'

Prepayment on senior secured notes

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

2,000,000

1,500,000

'

'

'

Number of shares of Common Stock that can be purchased through Warrants issued

'

'

'

'

'

2,982,065

'

'

26,315,789

'

'

'

'

'

'

'

'

'

'

'

'

Exercise price of warrants (in dollars per share)

'

'

'

'

'

$18.21

'

'

$3.15

'

'

'

'

'

'

'

'

'

'

'

'

Unamortized issuance discount

'

'

'

'

'

600,000

3,600,000

'

'

'

'

6,100,000

'

'

'

'

'

'

'

'

'

Gross debt amount before unamortized issuance discount

'

'

'

'

'

'

'

'

'

'

'

33,200,000

'

'

'

'

'

'

'

'

'

Outstanding principal

'

'

'

'

'

13,900,000

26,800,000

'

15,000,000

13,900,000

15,000,000

'

'

'

'

'

'

'

'

'

'

Amount of debt extinguishment

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

33,200,000

'

'

'

'

'

Amount of write-off of debt discounts in debt extinguishment

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

9,100,000

'

'

'

'

'

Amount of write-off of debt issuance costs in debt extinguishment

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

1,200,000

'

'

'

'

'

Loss on extinguishment of debt

51,000

405,000

2,033,000

16,568,000

'

'

'

'

'

'

'

'

'

'

'

15,100,000

'

'

'

'

'

Value of warrants written off with debt extinguishment

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

10,900,000

'

'

'

'

'

Fair value adjustment recognized in debt extinguishment

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

4,200,000

'

'

'

'

'

Debt book value

$90,736,000

'

$90,736,000

'

$98,433,000

$13,272,000

$23,146,000

'

'

'

'

$27,100,000

'

'

'

'

'

'

$47,330,000

$47,330,000

'

LONGTERM_DEBT_Details_3

LONG-TERM DEBT (Details 3) (USD $)	9 Months Ended
	Sep. 30, 2014	Dec. 31, 2013
Long-term debt	'	'
Common shares, par value (in dollars per share)	$0.01	$0.01
Convertible Senior Notes	'	'
Long-term debt	'	'
Interest rate (as a percent)	9.00%	'
Aggregate principal amount of notes issued	$40,000,000	'
Common shares, par value (in dollars per share)	$0.01	'
Conversion rate number of shares per note	0.0400052	'
Conversion price per share	$25	'
Unamortized issuance discount	$9,900,000	$12,000,000

LONGTERM_DEBT_Details_4

LONG-TERM DEBT (Details 4) (USD $)	Feb. 29, 2012	Feb. 24, 2014	Sep. 30, 2014	Feb. 24, 2014	Feb. 24, 2014	Feb. 29, 2012	Feb. 24, 2014
Share data in Millions, except Per Share data, unless otherwise specified	Subordinated Note Holders	8.00% Subordinated Notes due 2017	8.00% Subordinated Notes due 2017	8.00% Subordinated Notes due 2017	8.00% Subordinated Notes due 2017	8.00% Subordinated Notes due 2017	8.00% Subordinated Notes due 2017
				Common Stock	Series A Cumulative Redeemable Preferred Stock	ZaZa LLC	ZaZa LLC
							ZaZa founders
Long-term debt	'	'	'	'	'	'	'
Aggregate amount of notes issued	$47,330,000	'	'	'	'	'	'
Interest rate (as a percent)	'	'	8.00%	'	'	8.00%	'
Debt exchange amount	'	47,300,000	'	'	'	'	15,800,000
Exchange common shares issued	'	'	'	0.3	'	'	'
Exchange common shares issued price per share	'	'	'	$9.49	'	'	'
Number of trading days prior to agreement used as a basis for volume weighted average price per share	'	'	'	'10 days	'	'	'
Liquidation preference	'	'	'	'	$12,800,000	'	'
Cash dividend rate (as a percent)	'	'	'	'	13.00%	'	'
Liquidation preference per share	'	'	'	'	$25	'	'

LONGTERM_DEBT_Details_5

LONG-TERM DEBT (Details 5) (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Long-term debt	'	'	'	'
Other interest (income) expense	'	'	($4)	($34)
Capitalized interest	'	'	'	-346
Total interest expense, net	3,504	3,491	10,579	10,378
Senior Secured Notes	'	'	'	'
Long-term debt	'	'	'	'
Interest expense	382	582	1,181	1,829
Amortization issuance costs	'	'	'	58
Amortization original issuance discount	415	295	1,351	1,091
Convertible Senior Notes	'	'	'	'
Long-term debt	'	'	'	'
Interest expense	900	900	2,700	2,700
Amortization issuance costs	116	95	335	271
Amortization original issuance discount	744	673	2,176	1,969
Subordinated Notes	'	'	'	'
Long-term debt	'	'	'	'
Interest expense	$947	$946	$2,840	$2,840

STOCKBASED_COMPENSATION_Detail

STOCK-BASED COMPENSATION (Details) (USD $)	3 Months Ended		9 Months Ended
In Millions, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
STOCK-BASED COMPENSATION	'	'	'	'
Shares authorized for issuance under the Plan	2.3	'	2.3	'
Shares available for future grants under the Plan	0.6	'	0.6	'
Stock-based compensation expense	$0.80	$0.60	$2.60	$2.40

STOCKBASED_COMPENSATION_Detail1

STOCK-BASED COMPENSATION (Details 2) (Restricted stock awards, USD $)	9 Months Ended
Share data in Thousands, except Per Share data, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013
Restricted stock awards	'	'
Number of shares	'	'
Unvested balance at the beginning of the period (in shares)	231	'
Granted (in shares)	843	'
Forfeited (in shares)	-23	'
Vested (in shares)	-168	'
Unvested balance at the end of the period (in shares)	883	'
Weighted Average Grant Date Fair Value per Share	'	'
Unvested balance at the beginning of the period (in dollars per share)	$16.90	'
Granted (in dollars per share)	$6.98	'
Forfeited (in dollars per share)	$16.10	'
Vested (in dollars per share)	$16.33	'
Unvested balance at the end of the period (in dollars per share)	$7.55	'
Intrinsic value	'	'
Unvested balance at the beginning of the period (in dollars)	$3,898,000	'
Granted (in dollars)	5,880,000	'
Forfeited (in dollars)	-361,000	'
Vested (in dollars)	-2,745,000	'
Unvested balance at the end of the period (in dollars)	6,672,000	'
Unrecognized compensation cost related to unvested awards	$6,100,000	$3,200,000
Weighted average period for recognition of unrecognized expense	'2 years 6 months	'2 years

SEVERANCE_COSTS_Details

SEVERANCE COSTS (Details) (USD $)	1 Months Ended		3 Months Ended		9 Months Ended	3 Months Ended	1 Months Ended
In Millions, unless otherwise specified	Apr. 30, 2013	Sep. 30, 2014	Jun. 30, 2013	Jun. 30, 2013	Sep. 30, 2014	Jun. 30, 2013	31-May-14
	item		General and Administrative Expense	General and Administrative Expense	General and Administrative Expense	General and Administrative Expense	General and Administrative Expense
				Employee Severance	Employee Severance	Contract Termination	Termination benefits
Severance Costs	'	'	'	'	'	'	'
Number of employees terminated	37	'	'	'	'	'	'
Restructuring Charges	'	'	$4.60	$3.90	'	$0.70	$2.80
Accrual of restructuring charges	'	'	'	'	4.9	'	'
Restructuring Reserve	'	2.5	'	'	'	'	'
Restructuring Reserve, Current	'	1.7	'	'	'	'	'
Restructuring Reserve, Noncurrent	'	$0.80	'	'	'	'	'