Warren Resources (WRES) Inactive 10-K6 Mar 142013 FY Annual reportFinancial data

Company Profile

Document_and_Entity_Informatio

Document and Entity Information (USD $)	12 Months Ended
In Millions, except Share data, unless otherwise specified	Dec. 31, 2013	Mar. 05, 2014	Jun. 30, 2013
Document and Entity Information	'	'	'
Entity Registrant Name	'WARREN RESOURCES INC	'	'
Entity Central Index Key	'0000892986	'	'
Document Type	'10-K	'	'
Document Period End Date	31-Dec-13	'	'
Amendment Flag	'false	'	'
Current Fiscal Year End Date	'--12-31	'	'
Entity Well-known Seasoned Issuer	'No	'	'
Entity Voluntary Filers	'No	'	'
Entity Current Reporting Status	'Yes	'	'
Entity Filer Category	'Accelerated Filer	'	'
Entity Public Float	'	'	$191.80
Entity Common Stock, Shares Outstanding	'	73,080,348	'
Document Fiscal Year Focus	'2013	'	'
Document Fiscal Period Focus	'FY	'	'

CONSOLIDATED_BALANCE_SHEETS

CONSOLIDATED BALANCE SHEETS (USD $)	Dec. 31, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Current Assets	'	'
Cash and cash equivalents	$11,620	$8,475
Accounts receivable-trade, net	21,874	18,110
Restricted investments in U.S. Treasury bonds-available for sale, at fair value (amortized cost of $100 in 2013 and $94 in 2012)	131	142
Other current assets	1,859	1,096
Total current assets	35,484	27,823
Other Assets	'	'
Oil and gas properties-at cost, based on full cost method of accounting, net of accumulated depreciation, depletion and amortization (includes unproved properties excluded from amortization of $18,015 and $20,507 as of December 31, 2013 and 2012)	335,354	301,599
Property and equipment-at cost, net	18,772	17,941
Restricted investments in U.S. Treasury bonds-available for sale, at fair value (amortized cost of $904 in 2013 and $849 in 2012)	1,183	1,273
Other assets	3,969	4,108
Derivative financial instruments	43	'
Total other assets	359,321	324,921
Total assets	394,805	352,744
Current Liabilities	'	'
Current maturities of debentures and other long-term liabilities	1,936	1,790
Accounts payable and accrued expenses	39,174	29,278
Derivative financial instruments	3,517	385
Total current liabilities	44,627	31,453
Long-Term Liabilities	'	'
Debentures, less current portion	1,472	1,472
Other long-term liabilities, less current portion	28,113	26,710
Derivative financial instruments	'	567
Line of credit	94,500	99,500
Total noncurrent liabilities	124,085	128,249
Commitments and contingencies (Note F)	'	'
Stockholders' Equity	'	'
8% convertible preferred stock-$.0001 par value; authorized, 10,000,000 shares; issued and outstanding 10,703 shares in 2013 and 2012 (aggregate liquidation preference $128 in 2013 and 2012)	128	128
Common stock-$.0001 par value; authorized, 100,000,000 shares; issued, 72,887,650 shares in 2013 and 72,440,898 shares in 2012	7	7
Additional paid-in capital	470,441	468,406
Accumulated deficit	-244,673	-275,058
Accumulated other comprehensive income, net of applicable income taxes of $124 in 2013 and $188 in 2012	190	287
Total stockholders' equity including common stock in Treasury	226,093	193,770
Less common stock in Treasury-at cost; 632,250 shares in 2012	'	728
Total Stockholders' Equity	226,093	193,042
Total liabilities and stockholders' equity	$394,805	$352,744

CONSOLIDATED_BALANCE_SHEETS_Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	12 Months Ended
In Thousands, except Share data, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
CONSOLIDATED BALANCE SHEETS	'	'
Restricted investments in U.S. Treasury bonds-available for sale, amortized cost (in dollars)	$100	$94
Oil and gas properties, unproved properties excluded from amortization (in dollars)	18,015	20,507
Restricted investments in U.S. Treasury bonds-available for sale, amortized cost (in dollars)	904	849
8% convertible preferred stock, par value (in dollars per share)	$0.00	$0.00
8% convertible preferred stock, authorized shares	10,000,000	10,000,000
8% convertible preferred stock, issued shares	10,703	10,703
8% convertible preferred stock, outstanding shares	10,703	10,703
8% convertible preferred stock, aggregate liquidation preference (in dollars)	128	128
Preferred stock dividend rate (as a percent)	8.00%	8.00%
Common stock, par value (in dollars per share)	$0.00	$0.00
Common stock, authorized shares	100,000,000	100,000,000
Common stock, issued shares	72,887,650	72,440,898
Accumulated other comprehensive income, applicable income taxes (in dollars)	$124	$188
Common stock in Treasury, shares	'	632,250

CONSOLIDATED_STATEMENTS_OF_OPE

CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)	3 Months Ended								12 Months Ended
In Thousands, except Share data, unless otherwise specified	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Operating Revenues	'	'	'	'	'	'	'	'	'	'	'
Oil and gas sales	$32,608	$34,682	$30,735	$30,819	$31,904	$31,361	$30,178	$28,354	$127,925	$121,797	$103,371
Transportation revenue	'	'	'	'	'	'	'	'	919	'	'
Total revenues	'	'	'	'	'	'	'	'	128,844	121,797	103,371
Operating Expenses	'	'	'	'	'	'	'	'	'	'	'
Lease operating expenses	'	'	'	'	'	'	'	'	36,779	33,072	30,637
Depreciation, depletion and amortization	'	'	'	'	'	'	'	'	44,806	47,172	30,517
Transportation expenses	'	'	'	'	'	'	'	'	311	'	'
General and administrative	'	'	'	'	'	'	'	'	15,389	19,844	14,819
Total operating expenses	'	'	'	'	'	'	'	'	97,285	100,088	75,973
Income from operations	'	'	'	'	'	'	'	'	31,559	21,709	27,398
Other income (expense)	'	'	'	'	'	'	'	'	'	'	'
Interest and other income	'	'	'	'	'	'	'	'	5,362	90	77
Interest expense	'	'	'	'	'	'	'	'	-2,995	-3,311	-3,188
Gain (loss) on derivative financial instruments	'	'	'	'	'	'	'	'	-3,477	-2,975	-2,726
Net other expense	'	'	'	'	'	'	'	'	-1,110	-6,196	-5,837
Income before provision for income taxes	'	'	'	'	'	'	'	'	30,449	15,513	21,561
Deferred income tax expense (benefit)	'	'	'	'	'	'	'	'	64	-7	-78
Net income	3,713	14,658	9,185	2,829	4,042	2,408	5,259	3,811	30,385	15,520	21,639
Less dividends and accretion on preferred shares	'	'	'	'	'	'	'	'	10	10	10
Net income applicable to common stockholders	$3,710	$14,656	$9,183	$2,826	$4,040	$2,405	$5,257	$3,808	$30,375	$15,510	$21,629
Income per common share-Basic (in dollars per share)	$0.05	$0.20	$0.13	$0.04	$0.06	$0.03	$0.07	$0.05	$0.42	$0.22	$0.31
Income per common share-Diluted (in dollars per share)	$0.05	$0.20	$0.13	$0.04	$0.06	$0.03	$0.07	$0.05	$0.42	$0.22	$0.30
Weighted average common shares outstanding-Basic (in shares)	'	'	'	'	'	'	'	'	72,390,584	71,376,046	70,830,855
Weighted average common shares outstanding-Diluted (in shares)	'	'	'	'	'	'	'	'	72,546,209	72,096,672	72,047,488

CONSOLIDATED_STATEMENTS_OF_COM

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $)	3 Months Ended								12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME	'	'	'	'	'	'	'	'	'	'	'
Net income	$3,713	$14,658	$9,185	$2,829	$4,042	$2,408	$5,259	$3,811	$30,385	$15,520	$21,639
Other comprehensive income	'	'	'	'	'	'	'	'	'	'	'
Holding gains (losses) on available for sale investments, net of income tax	'	'	'	'	'	'	'	'	-97	10	119
Comprehensive income	'	'	'	'	'	'	'	'	$30,288	$15,530	$21,758

CONSOLIDATED_STATEMENT_OF_STOC

CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (USD $)	Total	Preferred stock	Common stock	Additional paid-in capital	Accumulated deficit	Accumulated other comprehensive income	Treasury stock
In Thousands, except Share data, unless otherwise specified	Total	Preferred stock	Common stock	Additional paid-in capital	Accumulated deficit	Accumulated other comprehensive income	Treasury stock
Balance at Dec. 31, 2010	$150,674	$128	$7	$463,326	($312,217)	$158	($728)
Balance (in shares) at Dec. 31, 2010	'	11,000	71,338,000	'	'	'	'
Increase (Decrease) in Stockholders' Equity	'	'	'	'	'	'	'
Shares issued from exercise of options	123	'	'	123	'	'	'
Shares issued from exercise of options (in shares)	'	'	156,000	'	'	'	'
Shares issued from vesting of restricted stock (in shares)	'	'	25,000	'	'	'	'
Dividends declared on preferred stock	-10	'	'	-10	'	'	'
Stock based compensation	1,546	'	'	1,546	'	'	'
Net income	21,639	'	'	'	21,639	'	'
Net change in unrealized gain on investment securities available for sale, net of applicable income taxes	119	'	'	'	'	119	'
Comprehensive income	21,758	'	'	'	'	'	'
Balance at Dec. 31, 2011	174,091	128	7	464,985	-290,578	277	-728
Balance (in shares) at Dec. 31, 2011	'	11,000	71,519,000	'	'	'	'
Increase (Decrease) in Stockholders' Equity	'	'	'	'	'	'	'
Shares issued from exercise of options	839	'	'	839	'	'	'
Shares issued from exercise of options (in shares)	'	'	658,000	'	'	'	'
Shares issued from vesting of restricted stock (in shares)	'	'	264,000	'	'	'	'
Dividends declared on preferred stock	-10	'	'	-10	'	'	'
Stock based compensation	2,592	'	'	2,592	'	'	'
Net income	15,520	'	'	'	15,520	'	'
Net change in unrealized gain on investment securities available for sale, net of applicable income taxes	10	'	'	'	'	10	'
Comprehensive income	15,530	'	'	'	'	'	'
Balance at Dec. 31, 2012	193,042	128	7	468,406	-275,058	287	-728
Balance (in shares) at Dec. 31, 2012	'	11,000	72,441,000	'	'	'	'
Increase (Decrease) in Stockholders' Equity	'	'	'	'	'	'	'
Shares issued from exercise of options	711	'	'	711	'	'	'
Shares issued from exercise of options (in shares)	'	'	823,000	'	'	'	'
Shares issued from vesting of restricted stock (in shares)	'	'	256,000	'	'	'	'
Retirement of treasury stock	'	'	'	-728	'	'	728
Retirement of treasury stock (in shares)	'	'	-632,000	'	'	'	'
Dividends declared on preferred stock	-10	'	'	-10	'	'	'
Stock based compensation	2,062	'	'	2,062	'	'	'
Net income	30,385	'	'	'	30,385	'	'
Net change in unrealized gain on investment securities available for sale, net of applicable income taxes	-97	'	'	'	'	-97	'
Comprehensive income	30,288	'	'	'	'	'	'
Balance at Dec. 31, 2013	$226,093	$128	$7	$470,441	($244,673)	$190	'
Balance (in shares) at Dec. 31, 2013	'	11,000	72,888,000	'	'	'	'

CONSOLIDATED_STATEMENTS_OF_CAS

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Cash flows from operating activities:	'	'	'
Net income	$30,385	$15,520	$21,639
Adjustments to reconcile net income to net cash provided by operating activities:	'	'	'
Accretion of discount on available for sale debt securities	-61	-58	-54
Amortization of deferred offering costs	218	207	478
Gain on sale of U.S. Treasury bonds-available for sale	'	-4	'
Depreciation, depletion and amortization	44,806	47,172	30,517
Deferred tax expense (benefit)	64	-7	-78
Change in fair value of derivative financial instruments	2,523	281	-9,165
Stock option expense	2,062	2,592	1,546
Change in assets and liabilities:	'	'	'
Increase in accounts receivable-trade	-3,890	-4,157	-879
Decrease (increase) in other assets	-764	-41	71
Increase in accounts payable and accruals	5,856	6,618	3,646
Decrease in other long term liabilities	-1,846	-1,286	-965
Net cash provided by operating activities	79,353	66,837	46,756
Cash flows from investing activities:	'	'	'
Purchase, exploration and development of oil and gas properties	-69,162	-61,397	-56,598
Acquisition of oil and gas properties	'	-15,607	'
Purchases of property and equipment	-2,680	-2,666	-7,578
Proceeds from U.S. Treasury bonds-available for sale	'	13	'
Net cash used in investing activities	-71,842	-79,657	-64,176
Cash flows from financing activities:	'	'	'
Proceeds from line of credit	5,000	20,000	98,657
Payments on debt and debentures	-10,077	-10,158	-81,838
Proceeds from the exercise of stock options	711	839	123
Net cash provided by (used in) financing activities	-4,366	10,681	16,942
Net increase (decrease) in cash and cash equivalents	3,145	-2,139	-478
Cash and cash equivalents at beginning of year	8,475	10,614	11,092
Cash and cash equivalents at end of year	11,620	8,475	10,614
Supplemental disclosure of cash flow information	'	'	'
Cash paid for interest	2,672	3,181	2,699
Noncash investing and financing activities:	'	'	'
Accrued preferred stock dividend	10	10	10
Change in accounts payable relating to oil and gas property	4,029	-15,750	10,630
Increase in asset retirement liability	$1,139	$9,491	$5,260

ORGANIZATION_AND_ACCOUNTING_PO

ORGANIZATION AND ACCOUNTING POLICIES	12 Months Ended
ORGANIZATION AND ACCOUNTING POLICIES	Dec. 31, 2013
ORGANIZATION AND ACCOUNTING POLICIES	'
ORGANIZATION AND ACCOUNTING POLICIES	'

	NOTE A—ORGANIZATION AND ACCOUNTING POLICIES

	Nature of Operations

	Warren Resources, Inc. (the "Company" or "Warren"), was originally formed on June 12, 1990 for the purpose of acquiring and developing oil and gas properties. The Company is incorporated under the laws of the state of Maryland. The Company's properties are located primarily in California and Wyoming.

	Principles of Consolidation

	The consolidated financial statements include accounts of the Company, its wholly-owned subsidiaries, Warren Development Corp., Warren Drilling Corp., Warren Management Corp., Warren Resources of California, Inc., Warren Energy Services LLC and Warren E&P, Inc. All significant intercompany accounts and transactions have been eliminated in consolidation.

	Oil and Gas Properties

	The Company accounts for its oil and gas activities using the full cost method. As prescribed by full cost accounting rules, all costs associated with property acquisition, exploration and development activities are capitalized. Exploration and development costs include dry hole costs, geological and geophysical costs, direct overhead related to exploration and development activities and other costs incurred for the purpose of finding oil and gas reserves. Salaries and benefits paid to employees directly involved in the exploration and development of oil and gas properties as well as other internal costs that can be specifically identified with acquisition, exploration and development activities are also capitalized. Proceeds received from disposals are credited against accumulated cost except when the sale represents a significant disposal of reserves, in which case a gain or loss is recognized. The sum of net capitalized costs and estimated future development and dismantlement costs are depleted on the equivalent unit-of-production method, based on proved oil and gas reserves as determined by independent petroleum engineers.

	In accordance with full cost accounting rules, the Company is subject to a limitation on capitalized costs. The capitalized cost of oil and gas properties, net of accumulated depreciation, depletion and amortization, may not exceed the estimated future net cash flows from proved oil and gas reserves discounted at 10 percent, plus the cost of unproved properties excluded from amortization, as adjusted for related tax effects. If capitalized costs exceed this limit (the "ceiling limitation"), the excess must be charged to expense. There was no impairment charge in 2013, 2012 or 2011.

	The costs of certain unevaluated oil and gas properties and exploratory wells being drilled are not included in the costs subject to amortization. The Company assesses costs not being amortized for possible impairments or reductions in value and if impairments or a reduction in value has occurred, the portion of the carrying cost in excess of the current value is transferred to costs subject to amortization.

	Revenue Recognition

	Oil and gas sales result from undivided interests held by the Company in various oil and gas properties. Sales of natural gas and oil produced are recognized when delivered to, or picked up by, the purchaser. For 2013, the largest purchasers and marketers for the Company's production primarily included Phillips 66 and Devlar Energy, which accounted for 52% and 40%, respectively, of total oil and natural gas sold in 2013. For 2012, the largest purchasers and marketers for the Company's production primarily included Phillips 66 and Anadarko Energy Services, which accounted for 55% and 38%, respectively, of total oil and natural gas sold in 2012. For 2011, the largest purchasers and marketers for the Company's production primarily included ConocoPhillips and Anadarko Energy Services, which accounted for 52% and 38%, respectively, of total oil and natural gas sold in 2011.

	Cash and Cash Equivalents

	The Company considers all highly liquid investments with maturities of three months or less when acquired to be cash equivalents. The Company maintains its cash and cash equivalents in bank deposit accounts that may exceed federally insured limits. At December 31, 2013, the Company had the majority of its cash and cash equivalents with one financial institution. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk on cash and cash equivalents.

	Accounts Receivable

	Accounts receivable include trade receivables from joint interest owners and oil and gas purchasers. Credit is extended based on evaluation of a customer's financial condition and, generally, collateral is not required. Accounts receivable under joint operating agreements generally have a right of offset against future oil and gas revenues if a producing well is completed. Accounts receivable are due within 30 days and are stated at amounts due from customers net of an allowance for doubtful accounts when the Company believes collection is doubtful. Accounts outstanding longer than the contractual payment terms are considered past due. The Company determines its allowance by considering a number of factors, including the length of time trade accounts receivable are past due, the Company's previous loss history, the customer's current ability to pay its obligation to the Company, and the condition of the general economy and the industry as a whole. The Company writes off specific accounts receivable when they become uncollectible, and payments subsequently received on such receivables are credited to the allowance for doubtful accounts. As of December 31, 2013 and 2012, the Company has an allowance of $16,000 and $13,000 respectively, for doubtful accounts.

	Investments

	The Company classifies its investment in debt securities into two categories: trading securities and available-for-sale securities. Trading securities, classified as current assets, are recorded at fair value with net unrealized gains or losses included in the determination of net earnings. Available-for-sale securities are recorded at fair value, with net unrealized gains and losses excluded from net earnings and reported as other comprehensive income (loss). Available-for-sale securities represent the market value of zero coupon Treasury Bonds collateralizing convertible debentures and are classified as current or non-current based on the classification of the related debentures. Realized gains and losses are determined on the basis of specific identification of the securities.

	Offering Costs

	Costs incurred in connection with the issuance of debt are capitalized and amortized over the term of the related debt using the effective interest rate method. The Company has $1.6 million and $1.5 million, net of accumulated amortization of $802 thousand and $584 thousand, included in other assets at December 31, 2013 and 2012, respectively. Costs associated with the issuance of preferred and common stock are reflected as a reduction of proceeds.

	Income Taxes

	Deferred income taxes are recognized for the tax consequences in future years of differences between the tax basis of assets and liabilities and their financial reporting amounts based on enacted tax laws and statutory rates applicable to the period in which the differences are expected to affect taxable income. Valuation allowances are established when, in management's opinion, it is more likely than not that a portion or all of the deferred tax assets will not be realized. The Company's policy is to classify accrued penalties and interest related to unrecognized tax benefits in the Company's income tax provision. The Company routinely assesses potential uncertain tax positions and, if required, establishes accruals for such amounts. Only tax positions that meet the more-likely-than-not recognition threshold are recorded.

	Use of Estimates

	In preparing financial statements, accounting principles generally accepted in the United States of America require management to make estimates and assumptions in determining the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. In addition, significant estimates are used in determining year end proved oil and gas reserves. Actual results could differ from those estimates. The estimate of the Company's oil and natural gas reserves, which is used to compute depreciation, depletion, amortization and impairment of oil and gas properties, is the most significant of the estimates and assumptions that affect reported results.

	Gas Imbalances

	The Company follows the sales method of accounting for gas imbalances. A liability is recorded when the Company's excess takes of natural gas volumes exceed its estimated remaining recoverable reserves. No receivables are recorded for those wells where the Company has taken less than its ownership share of gas production. The Company has no significant gas imbalances at December 31, 2013 or December 31, 2012.

	Stock Based Compensation

	The Company uses the Black-Scholes option-pricing formula and the Monte Carlo Simulation method to estimate the fair value of stock based compensation expense at the grant date related to stock options and restricted stock issued. This expense is then recognized using the straight-line method over the vesting period. For the years ended December 31, 2013, 2012 and 2011, the Company recognized approximately $2.1 million, $2.6 million and $1.5 million in compensation expense, respectively, related to stock option plans and restricted stock. Both the Black-Scholes and the Monte Carlo Simulation method require numerous assumptions, including volatility, service periods and cancellations in their calculations.

	The fair value of each stock option grant is estimated on the date of grant using the Black-Scholes options-pricing model with the following weighted-average assumptions used for grants in 2013, 2012 and 2011, respectively: No expected dividends, weighted average volatility of 71%, 72%, and 75%, risk-free interest rates of 0.53%, 0.43%, and 1.26% and expected lives of 3.5 years for incentive options issued in 2013, 2012 and 2011. The volatility assumptions were calculated based on the performance of our stock prices for the year. The weighted average fair values of the options issued in 2013, 2012 and 2011 were $1.43, $1.41, and $2.04, respectively.

	Accounting for Long-Lived Assets

	The Company reviews property and equipment for impairment whenever indicators of impairment are present to determine if the carrying amounts exceed the estimated future net cash flows to be realized. Impairment losses are recognized based on the estimated fair value of the asset.

	Derivative financial instruments

The Company has entered into several crude oil and natural gas hedges in order to minimize any effect of a downturn in oil and gas prices and protect profitability. These derivative financial instruments are carried on the balance sheet at fair value. If a derivative is designated as a fair value hedge, the changes in the fair value of the derivative and of the hedged item attributable to the hedged risk are recognized in earnings. If a derivative is designated as a cash flow hedge, the effective portions of changes in the fair value of the derivative are recorded in other comprehensive income ("OCI") and are recognized in the statement of operations when the hedged item affects earnings. Ineffective portions of changes in the fair value of cash flow hedges are recognized in earnings. The Company has elected not to designate its derivatives as fair value or cash flow hedges (Note I). Gains and losses resulting from changes in the fair value of the non-designated hedges are recognized in earnings.

Property and Equipment

Property and equipment are stated at cost and are depreciated using the straight-line method over the estimated useful lives of the assets, ranging from three through 25 years, except for land which is not depreciated. Property and equipment consisted of the following at December 31:


		2013			2012
		(in thousands)
Drilling rig		$	20,666		$	18,318
Equipment			1,543			1,542
Automobiles and trucks			979			876
Furniture and fixtures			461			461
Land and buildings			906			905
Office equipment			1,874			1,786


			26,429			23,888
Less accumulated depreciation and amortization			7,657			5,947


		$	18,772		$	17,941





Earnings (Loss) Per Common Share

Basic earnings (loss) per common share is computed by dividing the net earnings (loss) applicable to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share is based on the assumption that stock options and warrants are converted into common shares using the treasury stock method and convertible debentures and preferred stock are converted using the if-converted method. Conversion or exercise is not assumed if the results are antidilutive.


		Year ended December 31,
		2013			2012			2011
Weighted average shares outstanding—basic			72,390,584			71,376,046			70,830,855
Incremental shares issuable from dilutive stock options			155,625			720,626			1,216,633


Weighted average shares outstanding—diluted			72,546,209			72,096,672			72,047,488





Potential common shares relating to options, warrants, preferred stock, restricted stock and convertible debentures excluded from the computations of diluted earnings (loss) per share because they are antidilutive are as follows:


		Year ended December 31,
		2013			2012			2011
Employee stock options			891,405			575,750			918,416
Convertible debentures			32,720			32,720			47,170
Preferred stock			5,352			5,352			5,352
Restricted Stock			1,898,133			1,606,460			615,731

Preferred stock is convertible from the date of issuance until redemption at 100% of the redemption price amount into common stock of the Company at a conversion rate between 1 to 1 and 1 to 0.5 (Note D).

At December 31, 2013, the Convertible Debentures may be converted until maturity at 100% of principal amount into common stock of the Company at a price of $50.00. At December 31, 2012 and 2011, the Convertible Debentures may have been converted until maturity at 100% of principal amount into common stock of the Company at prices ranging from $35.00 to $50.00 (Note C).

Asset Retirement Obligations

The estimated fair value of the future costs associated with dismantlement, abandonment and restoration of oil and gas properties is recorded generally upon acquisition or completion of a well. The net estimated costs are discounted to present values using a risk adjusted rate over the estimated economic life of the oil and gas properties. Such costs are capitalized as part of the related asset. The asset is depleted on the units-of-production method. The associated liability is classified in other long-term liabilities, net of current portion, in the accompanying Consolidated Balance Sheets. The liability is periodically adjusted to reflect (1) new liabilities incurred, (2) liabilities settled during the period, (3) accretion expense, and (4) revisions to estimated future cash flow requirements. The accretion expense is recorded as a component of depreciation, depletion and amortization. The Company has cash held in escrow with a fair market value of $3.2 million that is legally restricted for potential plugging and abandonment liability in the Wilmington field which is recorded in other assets in the Consolidated Balance Sheets. A reconciliation of the Company's asset retirement obligations is as follows:


		December 31,
		2013			2012
		(in thousands)
Balance at beginning of year		$	25,236		$	15,507
Liabilities incurred in current year			1,139			261
Obligations on properties acquired			—			3,499
Liabilities settled in current year			(1,846	)		(1,287	)
Accretion expense			2,256			1,525
Revisions in estimated cash flows			—			5,731


Carrying amount		$	26,785		$	25,236





Recent Accounting Pronouncements

In December 2011, the FASB issued ASU No. 2011-11, "Disclosures about Offsetting Assets and Liabilities" requiring additional disclosures about offsetting and related arrangements. ASU 2011-11 is effective retrospectively for annual reporting periods beginning on or after January 1, 2013. Also, in January 2013, the FASB issued ASU No. 2013-01, "Balance Sheet (Topic 210). Clarifying the Scope of Disclosures about offsetting Assets and Liabilities." ASU 2013-01 limited the disclosures required by ASU No. 2011-11. The adoption of these requirements in the first quarter 2013 did not have a material effect on our consolidated financial statements.

INVESTMENTS

INVESTMENTS	12 Months Ended
INVESTMENTS	Dec. 31, 2013
INVESTMENTS	'
INVESTMENTS	'

	NOTE B—INVESTMENTS

	The amortized cost, unrealized gains and estimated fair values of the Company's available-for-sale securities held are summarized as follows:


		December 31,
		2013		2012
		(in thousands)
	U.S. Treasury Bonds, stripped of interest, maturing 2020 and 2022, aggregate par value of $1.6 million and $1.6 million, respectively
	Amortized cost	$	1,004	$	943
	Gross unrealized gains		310		472


	Estimated fair value	$	1,314	$	1,415





	During 2013, 2012, and 2011, the Company recognized approximately $0, $4,000 and $0, respectively, of realized gains from its investments in available-for-sale securities. The basis of available for sale securities sold is determined using the specific identification method.

	The realized gains for each year results from the disposition of such securities due to the release of the Company's obligation related to securing its commitment under debentures (Notes C & F).

	The amortized cost and estimated fair values of available-for-sale securities, by contractual maturity at December 31, 2013 are shown below.


		Amortized		Estimated
		cost		fair value
		(in thousands)
	Due within one year	$	100	$	131
	Due after one year through five years		—		—
	Due after five years through ten years		904		1,183
	Due after ten years		—		—


	Total	$	1,004	$	1,314

LONGTERM_LIABILITIES

LONG-TERM LIABILITIES	12 Months Ended
LONG-TERM LIABILITIES	Dec. 31, 2013
LONG-TERM LIABILITIES	'
LONG-TERM LIABILITIES	'

	NOTE C—LONG-TERM LIABILITIES


			2013			2012
			(in thousands)
	Debentures consist of the following at December 31:
	Secured Convertible Debentures, due December 31, 2020, bearing interest at 12%, due in monthly payments. As of December 31, 2013 and 2012, principal collateralized by $835 thousand and $835 thousand, respectively, principal amount of zero coupon U.S. Treasury Bonds due November 15, 2020.(1)		$	835		$	835
	Secured Convertible Debentures, due December 31, 2022, bearing interest at 12%, due in monthly payments. As of December 31, 2013 and 2012, principal collateralized by $801 thousand and $801 thousand respectively, principal amount of zero coupon U.S. Treasury Bonds due November 15, 2022.(1)			801			801


				1,636			1,636
	Less current maturities			164			164


	Long-term portion		$	1,472		$	1,472






	-1
	Debentures can be called at par if the Company's stock trades at or above 133% of the conversion price for a period of ninety consecutive trading days.

	The Convertible Debentures may be converted from the date of issuance until maturity at 100% of principal amount into common stock of the Company at a price of $50.00 each. Conversion of the Debentures would increase the number of shares outstanding at December 31 as follows:


	2013		Maturity date		Outstanding			Per share		Common
					principal			conversion		shares if
					amount			price		converted
			(in thousands, except share and per share amounts)
	Secured Convertible 12% Debentures		December 31, 2020		$	835		$	50		16,700
	Secured Convertible 12% Debentures		December 31, 2022			801			50		16,020


					$	1,636					32,720





	Each year, holders of the Secured Convertible Debentures may tender to the Company up to 10% of the aggregate amount outstanding. As of December 31, 2013, the estimated principal that can be tendered by the secured holders is as follows:


			(in thousands)
	Fiscal year ending December 31:
	2014		$	164
	2015			147
	2016			133
	2017			119
	2018			107
	Thereafter			966


			$	1,636





	Long-term liabilities, excluding derivative financial instruments consist of the following at December 31:


		2013			2012
		(in thousands)
Line of Credit		$	94,500		$	99,500
Debentures			1,636			1,636
Asset retirement obligations			26,785			25,236
Litigation allowance			3,100			3,100


			126,021			129,472
Less current maturities			1,936			1,790


Long-term portion		$	124,085		$	127,682





During 2002, the Company entered into an agreement to purchase 702,500 shares of common stock from a shareholder through the issuance of a noninterest-bearing note, which matured in 2012. The Company discounted the note at 10% per annum. The note required monthly payments of $13 thousand until August 2012 and was collateralized by treasury stock. During 2010, the Company acquired a drilling rig for a purchase price of $7 million. The Company paid $3.5 million at closing and executed a non-interest bearing secured note for the remaining $3.5 million, payable in fifteen equal monthly payments commencing September 2010.

On December 15, 2011, the Company entered into a five-year $300 million Second Amended and Restated Credit Agreement with Bank of Montreal. This replaced the prior $250 million credit agreement with GE Business Financial Services, Inc. The Credit Facility provides for a revolving credit facility up to the lesser of: (i) $300 million, (ii) the Borrowing Base, or (iii) the Draw Limit requested by the Company. The Credit Facility matures on December 15, 2016, is secured by substantially all of Warren's oil and gas assets, and is guaranteed by the two wholly-owned subsidiaries of the Company.

As of December 31, 2013, the Borrowing Base was $165 million. The maximum amount available is subject to semi-annual redeterminations of the borrowing base in April and October of each year, based on the value of the Company's proved oil and natural gas reserves in accordance with the lenders' customary procedures and practices. Both the Company and the lenders have the right to request one additional redetermination each year.

The Company is subject to various covenants required by the Credit Facility, including the maintenance of the following financial ratios: (1) a minimum current ratio of not less than 1.0 to 1.0 (including the unused borrowing base and excluding unrealized gains and losses on derivative financial instruments), and (2) a minimum annualized consolidated EBITDAX (as defined in the Credit Facility) to net interest expense of not less than 2.5 to 1.0.

Depending on the amount outstanding and the level of borrowing base usage, the annual interest rate on each base rate loan under the Credit Facility will be, at the Company's option, either: (a) a "LIBOR Loan", which has an interest rate equal to the sum of the applicable LIBOR period plus the applicable "LIBOR Margin" that ranges from 1.75% to 2.75%, or (b) a "Base Rate Loan", or any other obligation other than a LIBOR Loan, which has an interest rate equal to the sum of the "Base Rate", calculated to be the higher of: (i) the Agent's prime rate of interest announced from time to time, or (ii) the Federal Funds rate most recently determined by the Agent plus one-half percent, plus an applicable "Base Rate Margin" that ranges from 0.75% to 1.75%. As of December 31, 2013, the Company had borrowed $94.5 million under the Credit Facility and was in compliance with all covenants. The weighted average interest rate as of December 31, 2013, was 2.4%.

The Credit Facility also places restrictions on certain additional indebtedness, dividends to shareholders, liens, investments, mergers, acquisitions, asset dispositions, repurchase or redemption of our common stock, speculative commodity transactions, transactions with affiliates and other matters.

The Credit Facility is subject to customary events of default. If an event of default occurs and is continuing, the Agent may, or at the request of the Lenders shall, accelerate amounts due under the Credit Facility (except for a bankruptcy event of default, in which case such amounts will automatically become due and payable).

STOCKHOLDERS_EQUITY

STOCKHOLDERS' EQUITY	12 Months Ended
STOCKHOLDERS' EQUITY	Dec. 31, 2013
STOCKHOLDERS' EQUITY	'
STOCKHOLDERS' EQUITY	'

	NOTE D—STOCKHOLDERS' EQUITY

	During 2013, the Company issued 823,331 shares of common stock to individuals who exercised options at exercise prices ranging from $0.51 to $3.07 per share. During 2012, the Company issued 658,510 shares of common stock to individuals who exercised options at exercise prices ranging from $0.51 to $2.42 per share. During 2011, the Company issued 155,935 shares of common stock to individuals who exercised options at an exercise price of $0.51 to $2.42 per share.

	The preferred stock has an 8% cumulative dividend, payable quarterly. Preferred dividends of approximately $92 thousand ($8.64 per share) and $82 thousand ($7.68 per share) were accrued at December 31, 2013 and 2012, respectively. The holders of the preferred stock are not entitled to vote except as defined by the agreement or as provided by applicable law. The preferred stock may be voluntarily converted into common stock at the election of the holder based on the table below. The conversion rate is subject to adjustment as defined by the agreement.


			Preferred
			to common
	Period
	Prior to June 30, 2005		1 to 1
	July 1, 2005 through June 30, 2006		1 to .75
	July 1, 2006 through redemption		1 to .50

	Additionally, commencing December 31, 2012, holders of the preferred stock may elect to require the Company to redeem their preferred stock at a redemption price equal to the liquidation value of $12 per share, plus accrued but unpaid dividends, if any ("Redemption Price"). Upon the receipt of a redemption election, the Company, at its option, shall either: (1) pay the holder cash in the amount equal to the Redemption Price or (2) issue to holder shares of common stock as defined by the agreement. The Company is accreting the carrying value of its preferred stock to its redemption price using the effective interest method with accretion recorded to additional paid in capital. The accretion of preferred stock results in a reduction of earnings per share applicable to common stockholders. There are 10,703 preferred shares outstanding that the Company may be required to redeem at the aggregate Redemption Price of $0.1 million after December 31, 2013. As noted above, the Company could, at its option, settle the redemption requests in shares of common stock.

	Securities Authorized for Issuance Under Compensation Plans

	The table below includes information about our equity compensation plans as of December 31, 2013:


			Number of			Number of			Weighted-average		Number of
			Shares			securities to be			exercise price of		securities
			Authorized			issued upon			outstanding		remaining
			for Issuance			exercise of			options and		available for
			under plan			outstanding			restricted		future issuance
						options and			stock		under equity
						restricted stock					compensation
											plans
	2000 Equity Incentive Plan			1,975,000			363,848		$	2.42		0
	2001 Stock Incentive Plan			2,500,000			6,000		$	2.06		0
	2001 Key Employee Stock Incentive Plan			2,500,000			219,321		$	1.75		0
	2010 Stock Incentive Plan			6,950,000			2,799,538		$	2.29		3,907,296


	Total			13,925,000			3,388,707		$	2.27		3,907,296





	During 2013, the Board of Directors approved and the Company issued 652,322 stock options to officers and employees of the Company exercisable at prices ranging from $2.75 to $3.04 per share and 886,331 shares of restricted stock. During 2012, the Board of Directors approved and the Company issued 269,000 stock options to officers and employees of the Company exercisable at prices ranging from $2.74 to $3.21 per share and 1,405,965 shares of restricted stock. During 2011, the Board of Directors approved and the Company issued 143,000 stock options to officers and employees of the Company exercisable at prices ranging from $2.22 to $4.51 per share and 662,562 shares of restricted stock. The options are exercisable at a price not less than the fair market value of the stock at the date of grant, have an exercisable period of five years and generally vest over three years.

	A summary of the status of the Company's options issued to employees as of December 31, 2013, 2012 and 2011 and changes during the years ended on those dates is presented below:


			Incentive			Weighted Average
			options			Exercise Price
	Options outstanding—December 31, 2010			3,541,703		$	4.8




	Issued			143,000		$	3.92
	Exercised			(155,935	)	$	0.79
	Expired			(365,750	)	$	13.67
	Forfeited			(70,033	)	$	5.5


	Options outstanding—December 31, 2011			3,092,985		$	3.89




Issued			269,000		$	2.8
Exercised			(658,510	)	$	1.27
Expired			(405,666	)	$	11.08
Forfeited			(308,500	)	$	8.17


Options outstanding—December 31, 2012			1,989,309		$	2.48




Issued			652,322		$	2.88
Exercised			(823,331	)	$	0.86
Expired			(150,750	)	$	11.3
Forfeited			(176,976	)	$	3.03


Options outstanding—December 31, 2013			1,490,574		$	2.65









		Number of			Weighted			Weighted
		Options			Average			Average
					Exercise			Remaining
					Price			Term
								(in years)
Outstanding at December 31, 2013			1,490,574		$	2.65			2.76


Exercisable at December 31, 2013			752,002		$	2.4			1.41



The total intrinsic value of options exercised during the year ended December 31, 2013, 2012 and 2011 was $1.7 million, $1.0 million and $0.5 million respectively.

The total intrinsic value of options outstanding at December 31, 2013 was approximately $0.8 million.

As of December 31, 2013 there was $0.9 million of total unrecognized compensation cost related to non-vested stock options granted under the Plans. This cost is expected to be recognized over a weighted average period of 2.2 years.

Cash received from option exercises under all stock-based payment arrangements for the years ended December 31, 2013, 2012 and 2011 was $0.7 million, $0.8 million and $0.1 million respectively. We issue new shares of common stock to settle option exercises.

A summary of the status of the Company's restricted stock issued to employees as of December 31, 2013, 2012 and 2011 and changes during the years ended on those dates is presented below:


		Shares			Weighted
					Average
					Fair Value
Outstanding at December 31, 2010			28,373		$	11.15
Granted			662,562			4.22
Vested			(36,248	)		9.67
Forfeited			(38,956	)		4.22


Outstanding at December 31, 2011			615,731		$	4.22
Granted			1,405,965			2.19
Vested			(405,650	)		3.86
Forfeited			(9,586	)		3.2


Outstanding at December 31, 2012			1,606,460		$	2.54
Granted			886,331			1.87
Vested			(398,838	)		3.52
Forfeited			(195,820	)		3.07


Outstanding at December 31, 2013			1,898,133		$	1.97





Restricted stock awards for executive officers and employees generally vest ratably over three years, excluding shares granted in March 2010 which vest ratably over nine months. Fair value of our restricted shares is based on our closing stock price on the date of grant. As of December 31, 2013, total unrecognized stock-based compensation expense related to non-vested restricted shares was $2.6 million which is expected to be recognized over a weighted average period of approximately 1.6 years.

INCOME_TAXES

INCOME TAXES	12 Months Ended
INCOME TAXES	Dec. 31, 2013
INCOME TAXES	'
INCOME TAXES	'

	NOTE E—INCOME TAXES

	The Company and its subsidiaries file a consolidated federal income tax return.

	The Company's effective income tax rate differed from the federal statutory rate as follows:


		2013			2012			2011
		(in thousands)
	Income taxes at federal statutory rate(a)	$	10,353		$	5,274		$	7,331
	Change in valuation allowance		(11,768	)		(6,537	)		(9,675	)
	Nondeductible expenses		156			694			574
	State income taxes net of federal benefit		1,827			931			1,294
	Other		(504	)		(369	)		398


		$	64		$	(7	)	$	(78	)






	(a)
	34% for 2013, 2012 and 2011.

	Deferred tax assets and liabilities are as follows as of December 31:


		2013			2012
		(in thousands)
	Deferred tax assets relating to:
	Net operating loss carryforward	$	98,895		$	101,393
	Oil and gas properties and tangible equipment		15,043			25,111
	Stock option expense		3,585			3,682
	Unrealized loss on derivatives		1,390			558
	Other		324			324


			119,237			131,068
	Less valuation allowance		119,112			130,879


	Total deferred tax asset		125			189


	Deferred tax liabilities relating to:
	Net unrealized gain on investments		125			189


	Total deferred tax liability		125			189


	Net deferred tax asset (liability)	$	—		$	—





	A valuation allowance for deferred tax assets is required when it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of this deferred tax asset depends on the Company's ability to generate sufficient taxable income in the future. Management believes it is more likely than not that the net deferred tax asset will not be realized by future operating results. The valuation allowance decreased by approximately $12 million, $7 million and $10 million for the years ended December 31, 2013, 2012 and 2011, respectively.

	At December 31, 2013, the Company had net operating loss carryforwards for federal income tax purposes of approximately $245 million, which will expire in years 2019 through 2033.

Tax years beginning in 2010 are subject to examination by taxing authorities, although net operating loss and credit carryforwards from all years are subject to examination and adjustments for at least three years following the year in which the attributes are used.

The Company routinely assesses potential uncertain tax positions and, if required, establishes accruals for such amounts. Only tax positions that meet the more-likely-than-not recognition threshold are recorded.

COMMITMENTS_AND_CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Dec. 31, 2013
COMMITMENTS AND CONTINGENCIES.	'
COMMITMENTS AND CONTINGENCIES	'

	NOTE F—COMMITMENTS AND CONTINGENCIES

	General Commitments

	The Company has entered into various commitments and operating agreements related to development and production of certain oil and gas properties. It is management's belief that such commitments, as stated below, will be met without significant adverse impact to the Company's financial position or results of operations.

	Trust Indenture Agreements

	Under certain Trust Indenture Agreements, the Company has purchased zero coupon U.S. Treasury Bonds to secure repayment of the outstanding principal amount of debentures when due at maturity. At December 31, 2013 and 2012, the face amounts of U.S. Treasury Bonds securing the Company's obligation under the Trust Indenture Agreements were $1.6 million and $1.6 million, respectively, and the market values of these U.S. Treasury Bonds were approximately $1.3 million and $1.4 million, respectively (see Note B).

	Leases

	The Company leases corporate office space in New York City, which expires in May 2023. The Company's oil and gas administrative office in Casper, Wyoming occupies 1,174 square feet under a lease which expires in October 2014. The Company leases field office space in Rawlins, Wyoming, which expires in March 2015. The Company leases office space in Long Beach, California which expires in September 2020. The Company also leases office space in Roswell, New Mexico, on a month to month lease.

	Future minimum annual rental payments, which are subject to escalation and include utility charges as of December 31, 2013, are as follows:


		(in thousands)
	Year ending December 31:
	2014	$	771
	2015		758
	2016		773
	2017		790
	2018		802
	Thereafter		2,526


		$	6,420





	Rent expense under these leases was approximately $881 thousand, $698 thousand and $718 thousand for the years ended December 31, 2013, 2012 and 2011, respectively.

	Legal Proceedings

	In 2005, Warren recorded a provision for $1.8 million relating to a contingent liability that the Company may face as a result of a lawsuit originally filed in 1998 by Gotham Insurance Company in the 81st Judicial District Court of Frio County, Texas (Gotham Insurance Company v. Pedeco, Inc., et al.,) seeking a refund of approximately $1.8 million paid by Gotham and other insurers under an insurance policy issued for a well blow-out that occurred in 1997. After several appeals to the Texas Court of Appeals and the Texas Supreme Court, the case was remanded to the trial court for further proceedings. Both parties filed Motions for Summary Judgment in mid-2009, and on November 19, 2009, the trial court heard oral arguments on both Motions for Summary Judgment. On January 22, 2010, the court granted Gotham's Motion for Summary Judgment for restitution in the amount of $1,823,156 and also awarded prejudgment interest at the rate of 5% per annum in the amount of $976,011. As a result of the January 2010 Summary Judgment, Warren recorded an additional provision of $1.3 million in the fourth quarter of 2009 relating to this contingent liability. On July 7, 2010, Warren E&P posted a supersedeas bond with the court and commenced to appeal the order of the trial court to the Texas Court of Appeals. The San Antonio Court of Appeals assigned and transferred this appeal to the El Paso Court of Appeals. On March 14, 2011, Warren filed its appellate brief with the El Paso Court of Appeals. The El Paso Court of Appeals held oral arguments of the case on January 12, 2012. On April 18, 2012 the Texas Court of Appeals reversed the judgment of the trial court and rendered its appellate decision in favor of Warren ruling that Gotham Insurance take nothing against Warren. Additionally, the Texas Court of Appeals ordered that Warren can recover all costs of the appeal from Gotham Insurance. In response to the April 18, 2012 ruling, on June 4, 2012, Gotham filed a petition with the Texas Supreme Court seeking a review of the ruling. On September 26, 2012, Warren filed a reply brief in opposition to Gotham's petition. The Court asked for further briefing and on December 18, 2012 Gotham filed a brief on the merits of their appeal. On February 6, 2013, Warren filed its brief in response to Gotham's brief. On April 19, 2013, the Supreme Court granted Gotham's petition for a review of the Court of Appeals ruling. The Court held oral arguments on the merits of the appeal on October 8, 2013. We do not anticipate a decision or order from the Texas Supreme Court until mid-2014. In the event the Texas Supreme Court reverses the Texas Court of Appeals ruling and finds in Gotham's favor, Warren would be responsible for the final judgment in the amount of approximately $2,967,000, plus post-judgment interest, and potentially court costs and attorney's fees.

	The Company is a party to various other matters of litigation arising in the normal course of business. Management believes that the ultimate outcome of the matters will not have a material effect on the Company's financial condition or results of operations.

EMPLOYEE_BENEFIT_PLANS

EMPLOYEE BENEFIT PLANS	12 Months Ended
EMPLOYEE BENEFIT PLANS	Dec. 31, 2013
EMPLOYEE BENEFIT PLANS	'
EMPLOYEE BENEFIT PLANS	'

	NOTE G—EMPLOYEE BENEFIT PLANS

	The Company has a retirement plan covering substantially all qualified employees under section 401(k) of the Internal Revenue Code. The Company's 401(k) is a safe harbor matching plan where the Company contributes up to 100% of the participants' 401(k) contributions, up to a maximum of 3% of the participants' compensation plus 50% of the next 2% of the active participants' compensation. The Company's safe harbor match vests immediately. The Company may also make discretionary contributions. The Company's expenses under the plan were approximately $276 thousand, $222 thousand and $202 thousand for the years ended December 31, 2013, 2012 and 2011, respectively.

FAIR_VALUE_OF_FINANCIAL_INSTRU

FAIR VALUE OF FINANCIAL INSTRUMENTS	12 Months Ended
FAIR VALUE OF FINANCIAL INSTRUMENTS	Dec. 31, 2013
FAIR VALUE OF FINANCIAL INSTRUMENTS	'
FAIR VALUE OF FINANCIAL INSTRUMENTS	'

	NOTE H—FAIR VALUE OF FINANCIAL INSTRUMENTS

	The estimated fair values of financial instruments recognized in the Consolidated Balance Sheets or disclosed within these Notes to Consolidated Financial Statements have been determined using available market information, information from unrelated third party financial institutions and appropriate valuation methodologies, primarily discounted projected cash flows. However, considerable judgment is required when interpreting market information and other data to develop estimates of fair value.

	Short-term Assets and Liabilities. The fair values of cash and cash equivalents, accounts receivable, accounts payable and accrued expenses and other current liabilities approximate their carrying values because of their short-term nature.

	U.S Treasury Bonds—Available-For-Sale Securities. The fair values are based upon quoted market prices for those or similar investments and are reported on the Consolidated Balance Sheets at fair value.

	Collateral Security Agreement Account (included in other non-current assets). The balance sheet carrying amount approximates fair value, as it earns a market rate.

	Fixed Rate Debentures: Fair values of fixed rate convertible debentures were calculated using interest rates in effect as of year end for similar instruments with the other terms unchanged.

	Other Long-Term Liabilities. The carrying amount approximates fair value due the current rates offered to the Company for long-term liabilities of the same remaining maturities.

	Line of Credit. The carrying amount approximates fair value due the current rates offered to the Company for lines of credit.


			2013						2012
			Fair			Carrying			Fair			Carrying
			value			amount			value			amount
			(in thousands)
	Financial assets
	Collateral Security account		$	3,166		$	3,166		$	3,164		$	3,164
	Financial liabilities
	Fixed rate debentures		$	2,035		$	1,636		$	2,190		$	1,636
	Line of credit			94,500			94,500			99,500			99,500

	FAIR VALUE MEASUREMENTS:

	Fair value as defined by authoritative literature 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. Fair value measurements are classified and disclosed in one of the following categories:

	Level 1: Quoted prices (unadjusted) in active markets for identical assets and liabilities that we have the ability to access at the measurement date.

	Level 2: Inputs other than quoted prices included within Level 1 that are either directly or indirectly observable for the asset or liability, including quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in inactive markets, inputs other than quoted prices that are observable for the asset or liability, and inputs that are derived from observable market data by correlation or other means. Instruments categorized in Level 2 include non-exchange traded derivatives such as over-the-counter forwards and swaps.

	Level 3: Unobservable inputs for the asset or liability, including situations where there is little, if any, market activity for the asset or liability.

	The valuation assumptions utilized to measure the fair value of the Company's commodity derivatives were observable inputs based on market data obtained from independent sources and are considered Level 2 inputs (quoted prices for similar assets, liabilities (adjusted) and market-corroborated inputs).

	The following table presents for each hierarchy level our assets and liabilities, including both current and non-current portions, measured at fair value on a recurring basis.


	December 31, 2013		Level 1			Level 2			Level 3			Total
			(in thousands)
	Assets
	Restricted investments in US Treasury Bonds—available for sale, at fair value		$	1,314		$	—		$	—		$	1,314
	Commodity derivatives Commodity derivatives		$	—		$	43		$	—		$	43





			Level 1			Level 2			Level 3			Total
			(in thousands)
	Liabilities
	Commodity derivatives		$	—		$	3,517		$	—		$	3,517





	December 31, 2012		Level 1			Level 2			Level 3			Total
		(in thousands)
Assets
Restricted investments in US Treasury Bonds—available for sale, at fair value		$	1,415		$	—		$	—		$	1,415





		Level 1			Level 2			Level 3			Total
		(in thousands)
Liabilities
Commodity derivatives		$	—		$	952		$	—		$	952

DERIVATIVE_FINANCIAL_INSTRUMEN

DERIVATIVE FINANCIAL INSTRUMENTS

12 Months Ended

Dec. 31, 2013

DERIVATIVE FINANCIAL INSTRUMENTS

NOTE I—DERIVATIVE FINANCIAL INSTRUMENTS

To minimize the effect of a downturn in oil and gas prices and protect our profitability and the economics of our development plans, we enter into crude oil and natural gas hedge contracts. The terms of contracts depend on various factors, including management's view of future crude oil and natural gas prices. This price hedging program is designed to moderate the effects of a crude oil and natural gas price downturn while allowing us to participate in some commodity price increases. Management regularly monitors the crude oil and natural gas markets and our financial commitments to determine if, when, and at what level some form of crude oil and/or natural gas hedging and/or basis adjustments or other price protection is appropriate. Currently, our more commonly used derivatives are in the form of swaps and costless collars. However, we may use a variety of derivative instruments in the future to hedge. The Company has not designated these derivatives as hedges.

The following table summarizes the open financial derivative positions as of December 31, 2013 related to oil and gas production. The Company will receive prices as noted in the table below and will pay a counterparty market price based on the NYMEX (for natural gas production) or WTI (for oil production) index price, settled monthly.

Product

Type

Contract Period

Volume

Price per

Mcf or Bbl

BRENT Oil

Swap

01/01/14 - 12/31/14

800 Bbl/d

102.12

BRENT Oil

Swap

01/01/14 - 09/30/14

700 Bbl/d

104.3

NYMEX Gas

Swap

01/01/14 - 12/31/14

7,000 MMbtu/d

3.79

NYMEX Gas

Swap

01/01/14 - 12/31/14

2,000 MMbtu/d

4.18

NYMEX Gas

Swap

01/01/14 - 12/31/14

3,000 MMbtu/d

4.27

NYMEX Gas

Swap

01/01/15 - 12/31/15

3,000 MMbtu/d

4.18

The tables below summarize the amount of gains (losses) recognized in income from derivative instruments not designated as hedging instruments under authoritative guidance.

For the Years Ended December 31,

Derivatives not designated as Hedging Instrument

2013

2012

2011

under authoritative guidance

(in thousands)

Realized cash settlements on hedges

(1,397

)

(2,780

)

(12,216

)

Unrealized gain (loss) on hedges

(2,080

)

(195

)

9,490

Total

(3,477

)

(2,975

)

(2,726

)

The table below reflects the line item in our Consolidated Balance Sheet where the fair value of our net derivatives, are included.

Derivative Assets

December 31, 2013

Balance Sheet

Fair

Location

Value

(in thousands)

Commodity—Natural Gas

Non-current

Total derivatives not designated as hedging instruments

Derivative Liabilities

December 31, 2013

Balance Sheet

Fair

Location

Value

(in thousands)

Commodity—Natural Gas

current

(808

)

Commodity—Oil

current

(2,709

)

Total derivatives not designated as hedging instruments

(3,517

)

Derivative Liabilities

December 31, 2012

Balance Sheet

Fair

Location

Value

(in thousands)

Commodity—Natural Gas

current

(457

)

Commodity—Oil

current

Commodity—Oil

Non-current

(567

)

Total derivatives not designated as hedging instruments

(952

)

Derivative's Credit risk

The Company does not require collateral or other security from counterparties to support derivative instruments. However, the agreements with those counterparties typically contain netting provisions such that if a default occurs, the non-defaulting party can offset the amount payable to the defaulting party under the derivative contract with the amount due from the defaulting party. As a result of the netting provisions the Company's maximum amount of loss due to credit risk is limited to the net amounts due to and from the counterparties under the derivative contracts.

As of December 31, 2013, the counterparty to the Company's commodity derivative contracts consists of one financial institution. The Company's counterparty or their affiliates are also lenders under the Company's Senior Credit Agreement. As a result, the counterparty to the Company's derivative agreements share in the collateral supporting the Company's Senior Credit Agreement. The Company is not generally required to post additional collateral under derivative agreements.

The Company's derivative agreements contain provisions that require cross defaults and acceleration of those instruments to any material debt. If the Company were to default on any of its material debt agreements, it would be a violation of these provisions, and the counterparties to the derivative instruments could request immediate payment on derivative instruments that are in a net liability position at that time.

OIL_AND_GAS_INFORMATION

OIL AND GAS INFORMATION	12 Months Ended
OIL AND GAS INFORMATION	Dec. 31, 2013
OIL AND GAS INFORMATION	'
OIL AND GAS INFORMATION	'

	NOTE J—OIL AND GAS INFORMATION

	Costs related to the oil and gas activities of the Company were incurred as follows for the years ended December 31:


			2013			2012			2011
			(in thousands)
	Property acquisition—unproved		$	—		$	—		$	—
	Property acquisition—proved			1,635			5,413			509
	Exploration costs			227			52			8,147
	Development costs			72,991			65,676			63,675


			$	74,853		$	71,141		$	72,331





	Asset retirement cost included in oil and gas property costs increased by approximately $1.1 million in 2013, increased by $9.5 million in 2012 and increased by approximately $5.3 million in 2011.

	The Company had the following aggregate capitalized costs relating to the Company's oil and gas activities at December 31:


			2013			2012
			(in thousands)
	Unproved oil and gas properties		$	18,015		$	20,507
	Proved oil and gas properties			807,439			730,353


				825,454			750,860
	Less accumulated depreciation, depletion, amortization and impairment expense			490,100			449,261


			$	335,354		$	301,599





	The following table sets forth the Company's results of operations from oil and natural gas producing activities for the years ended December 31:


			2013			2012			2011
			(in thousands)
	Revenues		$	127,925		$	121,797		$	103,371
	Production costs			(36,779	)		(33,072	)		(30,637	)
	Accretion of asset retirement obligation			(2,256	)		(1,525	)		(995	)
	Depreciation, depletion, amortization			(39,431	)		(43,460	)		(27,914	)


	Income from oil and gas producing activities		$	49,459		$	43,740		$	43,825





	In the presentation above, no deduction has been made for indirect costs such as corporate overhead or interest expense. No income taxes are reflected above due to the Company's tax loss carryforwards.

	The following is a summary of Warren's oil and gas properties not subject to amortization as of December 31, 2013:


		Costs incurred in
		Fiscal year			Fiscal year			Fiscal year			Prior to		Total
		2013			2012			2011			2011		Total
		(in thousands)
Acquisition costs		$	—		$	—		$	—		$	834	$	834
Exploration costs			—			—			60			—		60
Development costs(1)			126			311			161			16,523		17,121


Total oil and gas properties not subject to amortization		$	126		$	311		$	221		$	17,357	$	18,015






-1
The Company's development costs primarily reflect investment in well cellars and facilities in its Wilmington oil field to facilitate the development of future oil wells. These costs will be allocated to future wells drilled, the majority of these wells are expected to be drilling during the next five to eight years.

OIL_AND_GAS_RESERVE_DATA_UNAUD

OIL AND GAS RESERVE DATA (UNAUDITED)	12 Months Ended
OIL AND GAS RESERVE DATA (UNAUDITED)	Dec. 31, 2013
OIL AND GAS RESERVE DATA (UNAUDITED)	'
OIL AND GAS RESERVE DATA (UNAUDITED)	'



	NOTE K—OIL AND GAS RESERVE DATA (UNAUDITED)

	The following estimates of proved reserve quantities and related standardized measure of discounted future net cash flows are estimates only, and do not purport to reflect realizable values or fair market values of the Company's reserves. The Company emphasizes that reserve estimates are inherently imprecise and that estimates of new discoveries are more imprecise than those of producing oil and gas properties. Accordingly, these estimates are expected to change as future information becomes available. All of the Company's reserves are located in the United States.

	Proved reserves are estimated reserves of crude oil (including condensate and natural gas liquids) and natural gas that geological and engineering data demonstrate with reasonable certainty to be recoverable in future years from known reservoirs under existing economic and operating conditions. Proved developed reserves are those expected to be recovered through existing wells, equipment and operating methods.

	The standardized measure of discounted future net cash flows for were computed by applying 12-month average prices for oil and gas (with consideration of price changes only to the extent provided by contractual arrangements) to the estimated future production of proved oil and gas reserves, less estimated future expenditures (based on year-end costs) to be incurred in developing and producing the proved reserves, less estimated future income tax expenses (based on year-end statutory tax rates, with consideration of future tax rates already legislated) to be incurred on pretax net cash flows less tax basis of the properties and available credits, and assuming continuation of existing economic conditions. The estimated future net cash flows are then discounted using a rate of 10%.

	The following summaries of changes in reserves and standardized measure of discounted future net cash flows were prepared from estimates of proved reserves provided by Netherland, Sewell & Associates, Inc. for 2013, 2012 and 2011

	Summary of Changes in Proved Reserves


			Year ended December 31,
			2013						2012						2011
			Mbbls			Mmcf			Mbbls			Mmcf			Mbbls			Mmcf
	Proved reserves
	Beginning of year			16,380			51,236			14,963			43,860			10,250			68,200
	Purchase of reserves in place			128			—			—			20,649			—			—
	Discoveries and extensions			500			46,532			3,337			2,054			3,744			—
	Revisions of previous estimates			171			14,492			(811	)		(9,813	)		1,880			(19,320	)
	Production			(1,105	)		(6,232	)		(1,109	)		(5,514	)		(911	)		(5,020	)


	End of year			16,074			106,028			16,380			51,236			14,963			43,860




	Proved developed reserves
	Beginning of year			8,064			51,236			8,348			28,515			7,518			49,300
	End of year			8,512			78,038			8,064			51,236			8,348			28,515
	Proved undeveloped reserves
	Beginning of year			8,316			—			6,615			15,345			2,732			18,900
	End of year			7,562			27,990			8,316			—			6,615			15,345


	(a)
	Undeveloped reserves transferred to developed reserves were 1.1 MMBoe for the year ended December 31, 2013. Capital costs incurred to convert these proved undeveloped reserves to proved developed reserves were $32.8 million.

	(b)
	Positive revisions increased 2013 proved natural gas reserves by a net amount of 61.0 Bcf, of which 9.0 Bcf was due to pricing, 5.5 Bcf due to performance, and the remainder due to extensions and discoveries.

	(c)
	The Company revised its 2013 year-end proved oil reserves upward by 0.8 MMbbls. In 2013, total extensions and discoveries of 0.5 MMbbls resulted from the Company's drilling and completion activities in the Wilmington Townlot and North Wilmington Units in California. Positive revisions of 0.2 MMbbls were made based on production performance and an additional 0.1 MMbbls was relating to the acquisition of the Leroy Pine Project in California.

	Standardized Measure of Discounted Future Net Cash Flows
	Relating to Proved Oil and Gas Reserves


			December 31,
			2013			2012			2011
			(Amounts in thousands)
	Future cash inflows		$	1,928,019		$	1,836,212		$	1,708,079
	Future production costs and taxes			(688,056	)		(574,959	)		(514,968	)
	Future development costs(1)			(314,091	)		(303,062	)		(254,982	)
	Future income tax expenses			(82,576	)		(105,078	)		(108,977	)


	Net future cash flows			843,296			853,113			829,152
Discounted at 10% for estimated timing of cash flows			(368,295	)		(393,233	)		(343,146	)


Standardized measure of discounted future net cash flows		$	475,001		$	459,880		$	486,006






-1
Includes future estimated asset retirement obligations of $64.4 million in 2013, $79.9 million in 2012 and $66.3 million in 2011.

Changes in Standardized Measure of Discounted Future Net Cash Flows
Related to Proved Oil and Gas Reserves


		Year ended December 31,
		2013			2012			2011
		(Amounts in thousands)
Sales, net of production costs and taxes		$	(91,146	)	$	(88,725	)	$	(72,734	)
Discoveries and extensions			52,189			108,438			152,973
Purchases of reserves in place			2,823			4,966			—
Changes in prices and production costs			(109	)		(17,286	)		196,010
Revisions of quantity estimates			22,911			(39,172	)		56,710
Development costs incurred			(39,233	)		36,539			30,892
Net changes in development costs			(10,502	)		(90,392	)		(149,662	)
Interest factor—accretion of discount			49,491			48,601			28,763
Net change in income taxes			6,328			5,037			(40,070	)
Changes in production rates (timing) and other			22,369			5,868			(4,504	)


Net (decrease) increase			15,121			(26,126	)		198,378
Balance at beginning of year			459,880			486,006			287,628


Balance at end of year		$	475,001		$	459,880		$	486,006





Estimated future net cash flows represent an estimate of future net revenues from the production of proved reserves using average prices for 2013, 2012 and 2011 along with estimates of the operating costs, production taxes and future development and abandonment costs (less salvage value) necessary to produce such reserves. The prices used at December 31, 2013, 2012 and 2011 were $97.33, $104.27 and $104.75 per Bbl and $3.43, $2.51 and $3.21 per Mcf, respectively. No deduction has been made for depreciation, depletion or any indirect costs such as general corporate overhead or interest expense.

Operating costs and production taxes are estimated based on current costs with respect to producing oil and natural gas properties. Future development costs including abandonment costs are based on the best estimate of such costs assuming current economic and operating conditions. The future cash flows estimated to be spent to develop the Company's portion of proved undeveloped properties through December 31, 2017 is $249.7 million.

Income tax expense is computed based on applying the appropriate statutory tax rate to the excess of future cash inflows less future production and development costs over the current tax basis of the properties involved, less applicable carryforwards, for both regular and alternative minimum tax.

The future net revenue information assumes no escalation of costs or prices, except for oil and natural gas sales made under terms of contracts which include fixed and determinable escalation. Future costs and prices could significantly vary from current amounts and, accordingly, revisions in the future could be significant.

QUARTERLY_INFORMATION_UNAUDITE

QUARTERLY INFORMATION (UNAUDITED)	12 Months Ended
QUARTERLY INFORMATION (UNAUDITED)	Dec. 31, 2013
QUARTERLY INFORMATION (UNAUDITED)	'
QUARTERLY INFORMATION (UNAUDITED)	'

	NOTE L—QUARTERLY INFORMATION (UNAUDITED)

	Summarized quarterly financial data for the years ended December 31, 2013 and 2012 are as follows:


		2013
		Quarter
		First		Second		Third		Fourth		Year
		(in thousands, except per share amounts)
	Revenues	$	30,819	$	30,735	$	34,682	$	32,608	$	128,844
	Gross profit		21,023		22,405		25,425		22,901		91,754
	Net income		2,829		9,185		14,658		3,713		30,385
	Net income applicable to common stockholders		2,826		9,183		14,656		3,710		30,375
	Earnings per share
	Basic	$	0.04	$	0.13	$	0.2	$	0.05	$	0.42
	Diluted	$	0.04	$	0.13	$	0.2	$	0.05	$	0.42





		2012
		Quarter
		First		Second		Third		Fourth		Year
		(in thousands, except per share amounts)
	Revenues	$	28,354	$	30,178	$	31,361	$	31,904	$	121,797
	Gross profit		19,854		23,001		24,277		21,593		88,725
	Net income		3,811		5,259		2,408		4,042		15,520
	Net income applicable to common stockholders		3,808		5,257		2,405		4,040		15,510
	Earnings per share
	Basic	$	0.05	$	0.07	$	0.03	$	0.06	$	0.22
	Diluted	$	0.05	$	0.07	$	0.03	$	0.06	$	0.22

	Quarterly and year-to-date computations of per share amounts are made independently. Therefore, the sum of quarterly per share amounts may not agree with per share amounts for the year. Gross profit represents total revenues less applicable direct operating expenses.

INCOME_AND_OTHER_INCOME

INCOME AND OTHER INCOME	12 Months Ended
INCOME AND OTHER INCOME	Dec. 31, 2013
INTEREST AND OTHER INCOME	'
INTEREST AND OTHER INCOME	'

	NOTE M—INTEREST AND OTHER INCOME

	During the third quarter of 2013, the Company reviewed its practice regarding the amounts of post-production costs that could be charged to royalty owners in the Wilmington Townlot Unit. The Company evaluated these post-production costs and the applicable amounts that could be charged to royalty owners under the terms of the lease agreements. The analysis resulted in a decision by management to charge additional amounts as compared to past practices and, additionally, to recapture amounts applicable to prior periods. This decision resulted in a non-recurring adjustment of $5.3 million during the quarter, which was recorded in Interest and Other Income.

ORGANIZATION_AND_ACCOUNTING_PO1

ORGANIZATION AND ACCOUNTING POLICIES (Policies)	12 Months Ended
ORGANIZATION AND ACCOUNTING POLICIES (Policies)	Dec. 31, 2013
ORGANIZATION AND ACCOUNTING POLICIES	'
Principles of Consolidation	'

	Principles of Consolidation

	The consolidated financial statements include accounts of the Company, its wholly-owned subsidiaries, Warren Development Corp., Warren Drilling Corp., Warren Management Corp., Warren Resources of California, Inc., Warren Energy Services LLC and Warren E&P, Inc. All significant intercompany accounts and transactions have been eliminated in consolidation.

Oil and Gas Properties	'

	Oil and Gas Properties

	The Company accounts for its oil and gas activities using the full cost method. As prescribed by full cost accounting rules, all costs associated with property acquisition, exploration and development activities are capitalized. Exploration and development costs include dry hole costs, geological and geophysical costs, direct overhead related to exploration and development activities and other costs incurred for the purpose of finding oil and gas reserves. Salaries and benefits paid to employees directly involved in the exploration and development of oil and gas properties as well as other internal costs that can be specifically identified with acquisition, exploration and development activities are also capitalized. Proceeds received from disposals are credited against accumulated cost except when the sale represents a significant disposal of reserves, in which case a gain or loss is recognized. The sum of net capitalized costs and estimated future development and dismantlement costs are depleted on the equivalent unit-of-production method, based on proved oil and gas reserves as determined by independent petroleum engineers.

	In accordance with full cost accounting rules, the Company is subject to a limitation on capitalized costs. The capitalized cost of oil and gas properties, net of accumulated depreciation, depletion and amortization, may not exceed the estimated future net cash flows from proved oil and gas reserves discounted at 10 percent, plus the cost of unproved properties excluded from amortization, as adjusted for related tax effects. If capitalized costs exceed this limit (the "ceiling limitation"), the excess must be charged to expense. There was no impairment charge in 2013, 2012 or 2011.

	The costs of certain unevaluated oil and gas properties and exploratory wells being drilled are not included in the costs subject to amortization. The Company assesses costs not being amortized for possible impairments or reductions in value and if impairments or a reduction in value has occurred, the portion of the carrying cost in excess of the current value is transferred to costs subject to amortization.

Revenue Recognition	'

	Revenue Recognition

	Oil and gas sales result from undivided interests held by the Company in various oil and gas properties. Sales of natural gas and oil produced are recognized when delivered to, or picked up by, the purchaser. For 2013, the largest purchasers and marketers for the Company's production primarily included Phillips 66 and Devlar Energy, which accounted for 52% and 40%, respectively, of total oil and natural gas sold in 2013. For 2012, the largest purchasers and marketers for the Company's production primarily included Phillips 66 and Anadarko Energy Services, which accounted for 55% and 38%, respectively, of total oil and natural gas sold in 2012. For 2011, the largest purchasers and marketers for the Company's production primarily included ConocoPhillips and Anadarko Energy Services, which accounted for 52% and 38%, respectively, of total oil and natural gas sold in 2011.

Cash and Cash Equivalents	'

	Cash and Cash Equivalents

	The Company considers all highly liquid investments with maturities of three months or less when acquired to be cash equivalents. The Company maintains its cash and cash equivalents in bank deposit accounts that may exceed federally insured limits. At December 31, 2013, the Company had the majority of its cash and cash equivalents with one financial institution. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk on cash and cash equivalents.

Accounts Receivable	'

	Accounts Receivable

	Accounts receivable include trade receivables from joint interest owners and oil and gas purchasers. Credit is extended based on evaluation of a customer's financial condition and, generally, collateral is not required. Accounts receivable under joint operating agreements generally have a right of offset against future oil and gas revenues if a producing well is completed. Accounts receivable are due within 30 days and are stated at amounts due from customers net of an allowance for doubtful accounts when the Company believes collection is doubtful. Accounts outstanding longer than the contractual payment terms are considered past due. The Company determines its allowance by considering a number of factors, including the length of time trade accounts receivable are past due, the Company's previous loss history, the customer's current ability to pay its obligation to the Company, and the condition of the general economy and the industry as a whole. The Company writes off specific accounts receivable when they become uncollectible, and payments subsequently received on such receivables are credited to the allowance for doubtful accounts. As of December 31, 2013 and 2012, the Company has an allowance of $16,000 and $13,000 respectively, for doubtful accounts.

Investments	'

	Investments

	The Company classifies its investment in debt securities into two categories: trading securities and available-for-sale securities. Trading securities, classified as current assets, are recorded at fair value with net unrealized gains or losses included in the determination of net earnings. Available-for-sale securities are recorded at fair value, with net unrealized gains and losses excluded from net earnings and reported as other comprehensive income (loss). Available-for-sale securities represent the market value of zero coupon Treasury Bonds collateralizing convertible debentures and are classified as current or non-current based on the classification of the related debentures. Realized gains and losses are determined on the basis of specific identification of the securities.

Offering Costs	'

	Offering Costs

	Costs incurred in connection with the issuance of debt are capitalized and amortized over the term of the related debt using the effective interest rate method. The Company has $1.6 million and $1.5 million, net of accumulated amortization of $802 thousand and $584 thousand, included in other assets at December 31, 2013 and 2012, respectively. Costs associated with the issuance of preferred and common stock are reflected as a reduction of proceeds.

Income Taxes	'

	Income Taxes

	Deferred income taxes are recognized for the tax consequences in future years of differences between the tax basis of assets and liabilities and their financial reporting amounts based on enacted tax laws and statutory rates applicable to the period in which the differences are expected to affect taxable income. Valuation allowances are established when, in management's opinion, it is more likely than not that a portion or all of the deferred tax assets will not be realized. The Company's policy is to classify accrued penalties and interest related to unrecognized tax benefits in the Company's income tax provision. The Company routinely assesses potential uncertain tax positions and, if required, establishes accruals for such amounts. Only tax positions that meet the more-likely-than-not recognition threshold are recorded.

Use of Estimates	'

	Use of Estimates

	In preparing financial statements, accounting principles generally accepted in the United States of America require management to make estimates and assumptions in determining the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. In addition, significant estimates are used in determining year end proved oil and gas reserves. Actual results could differ from those estimates. The estimate of the Company's oil and natural gas reserves, which is used to compute depreciation, depletion, amortization and impairment of oil and gas properties, is the most significant of the estimates and assumptions that affect reported results.

Gas Imbalances	'

	Gas Imbalances

	The Company follows the sales method of accounting for gas imbalances. A liability is recorded when the Company's excess takes of natural gas volumes exceed its estimated remaining recoverable reserves. No receivables are recorded for those wells where the Company has taken less than its ownership share of gas production. The Company has no significant gas imbalances at December 31, 2013 or December 31, 2012.

Stock Based Compensation	'

	Stock Based Compensation

	The Company uses the Black-Scholes option-pricing formula and the Monte Carlo Simulation method to estimate the fair value of stock based compensation expense at the grant date related to stock options and restricted stock issued. This expense is then recognized using the straight-line method over the vesting period. For the years ended December 31, 2013, 2012 and 2011, the Company recognized approximately $2.1 million, $2.6 million and $1.5 million in compensation expense, respectively, related to stock option plans and restricted stock. Both the Black-Scholes and the Monte Carlo Simulation method require numerous assumptions, including volatility, service periods and cancellations in their calculations.

	The fair value of each stock option grant is estimated on the date of grant using the Black-Scholes options-pricing model with the following weighted-average assumptions used for grants in 2013, 2012 and 2011, respectively: No expected dividends, weighted average volatility of 71%, 72%, and 75%, risk-free interest rates of 0.53%, 0.43%, and 1.26% and expected lives of 3.5 years for incentive options issued in 2013, 2012 and 2011. The volatility assumptions were calculated based on the performance of our stock prices for the year. The weighted average fair values of the options issued in 2013, 2012 and 2011 were $1.43, $1.41, and $2.04, respectively.

Accounting for Long-Lived Assets	'

	Accounting for Long-Lived Assets

	The Company reviews property and equipment for impairment whenever indicators of impairment are present to determine if the carrying amounts exceed the estimated future net cash flows to be realized. Impairment losses are recognized based on the estimated fair value of the asset.

Derivative financial instruments	'

	Derivative financial instruments

	The Company has entered into several crude oil and natural gas hedges in order to minimize any effect of a downturn in oil and gas prices and protect profitability. These derivative financial instruments are carried on the balance sheet at fair value. If a derivative is designated as a fair value hedge, the changes in the fair value of the derivative and of the hedged item attributable to the hedged risk are recognized in earnings. If a derivative is designated as a cash flow hedge, the effective portions of changes in the fair value of the derivative are recorded in other comprehensive income ("OCI") and are recognized in the statement of operations when the hedged item affects earnings. Ineffective portions of changes in the fair value of cash flow hedges are recognized in earnings. The Company has elected not to designate its derivatives as fair value or cash flow hedges (Note I). Gains and losses resulting from changes in the fair value of the non-designated hedges are recognized in earnings.

Property and Equipment	'

	Property and Equipment

	Property and equipment are stated at cost and are depreciated using the straight-line method over the estimated useful lives of the assets, ranging from three through 25 years, except for land which is not depreciated. Property and equipment consisted of the following at December 31:


		2013			2012
		(in thousands)
	Drilling rig	$	20,666		$	18,318
	Equipment		1,543			1,542
	Automobiles and trucks		979			876
	Furniture and fixtures		461			461
	Land and buildings		906			905
	Office equipment		1,874			1,786


			26,429			23,888
	Less accumulated depreciation and amortization		7,657			5,947


		$	18,772		$	17,941




Earnings (Loss) Per Common Share	'

	Earnings (Loss) Per Common Share

	Basic earnings (loss) per common share is computed by dividing the net earnings (loss) applicable to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share is based on the assumption that stock options and warrants are converted into common shares using the treasury stock method and convertible debentures and preferred stock are converted using the if-converted method. Conversion or exercise is not assumed if the results are antidilutive.


		Year ended December 31,
		2013			2012			2011
	Weighted average shares outstanding—basic		72,390,584			71,376,046			70,830,855
	Incremental shares issuable from dilutive stock options		155,625			720,626			1,216,633


	Weighted average shares outstanding—diluted		72,546,209			72,096,672			72,047,488





	Potential common shares relating to options, warrants, preferred stock, restricted stock and convertible debentures excluded from the computations of diluted earnings (loss) per share because they are antidilutive are as follows:


		Year ended December 31,
		2013			2012			2011
	Employee stock options		891,405			575,750			918,416
	Convertible debentures		32,720			32,720			47,170
	Preferred stock		5,352			5,352			5,352
	Restricted Stock		1,898,133			1,606,460			615,731

	Preferred stock is convertible from the date of issuance until redemption at 100% of the redemption price amount into common stock of the Company at a conversion rate between 1 to 1 and 1 to 0.5 (Note D).

	At December 31, 2013, the Convertible Debentures may be converted until maturity at 100% of principal amount into common stock of the Company at a price of $50.00. At December 31, 2012 and 2011, the Convertible Debentures may have been converted until maturity at 100% of principal amount into common stock of the Company at prices ranging from $35.00 to $50.00 (Note C).

Asset Retirement Obligations	'

	Asset Retirement Obligations

	The estimated fair value of the future costs associated with dismantlement, abandonment and restoration of oil and gas properties is recorded generally upon acquisition or completion of a well. The net estimated costs are discounted to present values using a risk adjusted rate over the estimated economic life of the oil and gas properties. Such costs are capitalized as part of the related asset. The asset is depleted on the units-of-production method. The associated liability is classified in other long-term liabilities, net of current portion, in the accompanying Consolidated Balance Sheets. The liability is periodically adjusted to reflect (1) new liabilities incurred, (2) liabilities settled during the period, (3) accretion expense, and (4) revisions to estimated future cash flow requirements. The accretion expense is recorded as a component of depreciation, depletion and amortization. The Company has cash held in escrow with a fair market value of $3.2 million that is legally restricted for potential plugging and abandonment liability in the Wilmington field which is recorded in other assets in the Consolidated Balance Sheets. A reconciliation of the Company's asset retirement obligations is as follows:


		December 31,
		2013			2012
		(in thousands)
	Balance at beginning of year	$	25,236		$	15,507
	Liabilities incurred in current year		1,139			261
	Obligations on properties acquired		—			3,499
	Liabilities settled in current year		(1,846	)		(1,287	)
	Accretion expense		2,256			1,525
	Revisions in estimated cash flows		—			5,731


	Carrying amount	$	26,785		$	25,236




Recent Accounting Pronouncements	'

	Recent Accounting Pronouncements

	In December 2011, the FASB issued ASU No. 2011-11, "Disclosures about Offsetting Assets and Liabilities" requiring additional disclosures about offsetting and related arrangements. ASU 2011-11 is effective retrospectively for annual reporting periods beginning on or after January 1, 2013. Also, in January 2013, the FASB issued ASU No. 2013-01, "Balance Sheet (Topic 210). Clarifying the Scope of Disclosures about offsetting Assets and Liabilities." ASU 2013-01 limited the disclosures required by ASU No. 2011-11. The adoption of these requirements in the first quarter 2013 did not have a material effect on our consolidated financial statements.

ORGANIZATION_AND_ACCOUNTING_PO2

ORGANIZATION AND ACCOUNTING POLICIES (Tables)	12 Months Ended
ORGANIZATION AND ACCOUNTING POLICIES (Tables)	Dec. 31, 2013
ORGANIZATION AND ACCOUNTING POLICIES	'
Schedule of components of property and equipment	'

	Property and equipment consisted of the following at December 31:


		2013			2012
		(in thousands)
	Drilling rig	$	20,666		$	18,318
	Equipment		1,543			1,542
	Automobiles and trucks		979			876
	Furniture and fixtures		461			461
	Land and buildings		906			905
	Office equipment		1,874			1,786


			26,429			23,888
	Less accumulated depreciation and amortization		7,657			5,947


		$	18,772		$	17,941




Schedule of diluted weighted average common shares	'






		Year ended December 31,
		2013			2012			2011
	Weighted average shares outstanding—basic		72,390,584			71,376,046			70,830,855
	Incremental shares issuable from dilutive stock options		155,625			720,626			1,216,633


	Weighted average shares outstanding—diluted		72,546,209			72,096,672			72,047,488




Schedule of potential common shares excluded from the computations of diluted earnings (loss) per share	'






		Year ended December 31,
		2013			2012			2011
	Employee stock options		891,405			575,750			918,416
	Convertible debentures		32,720			32,720			47,170
	Preferred stock		5,352			5,352			5,352
	Restricted Stock		1,898,133			1,606,460			615,731
Schedule of reconciliation of the Company's asset retirement obligations	'






		December 31,
		2013			2012
		(in thousands)
	Balance at beginning of year	$	25,236		$	15,507
	Liabilities incurred in current year		1,139			261
	Obligations on properties acquired		—			3,499
	Liabilities settled in current year		(1,846	)		(1,287	)
	Accretion expense		2,256			1,525
	Revisions in estimated cash flows		—			5,731


	Carrying amount	$	26,785		$	25,236

INVESTMENTS_Tables

INVESTMENTS (Tables)	12 Months Ended
INVESTMENTS (Tables)	Dec. 31, 2013
INVESTMENTS	'
Summary of amortized cost, unrealized gains and estimated fair values of available-for-sale securities	'






		December 31,
		2013		2012
		(in thousands)
	U.S. Treasury Bonds, stripped of interest, maturing 2020 and 2022, aggregate par value of $1.6 million and $1.6 million, respectively
	Amortized cost	$	1,004	$	943
	Gross unrealized gains		310		472


	Estimated fair value	$	1,314	$	1,415




Schedule of amortized cost and estimated fair values of available-for-sale securities, by contractual maturity	'






		Amortized		Estimated
		cost		fair value
		(in thousands)
	Due within one year	$	100	$	131
	Due after one year through five years		—		—
	Due after five years through ten years		904		1,183
	Due after ten years		—		—


	Total	$	1,004	$	1,314

LONGTERM_LIABILITIES_Tables

LONG-TERM LIABILITIES (Tables)	12 Months Ended
LONG-TERM LIABILITIES (Tables)	Dec. 31, 2013
LONG-TERM LIABILITIES	'
Schedule of long-term debt	'






		2013			2012
		(in thousands)
	Debentures consist of the following at December 31:
	Secured Convertible Debentures, due December 31, 2020, bearing interest at 12%, due in monthly payments. As of December 31, 2013 and 2012, principal collateralized by $835 thousand and $835 thousand, respectively, principal amount of zero coupon U.S. Treasury Bonds due November 15, 2020.(1)	$	835		$	835
	Secured Convertible Debentures, due December 31, 2022, bearing interest at 12%, due in monthly payments. As of December 31, 2013 and 2012, principal collateralized by $801 thousand and $801 thousand respectively, principal amount of zero coupon U.S. Treasury Bonds due November 15, 2022.(1)		801			801


			1,636			1,636
	Less current maturities		164			164


	Long-term portion	$	1,472		$	1,472






	-1
	Debentures can be called at par if the Company's stock trades at or above 133% of the conversion price for a period of ninety consecutive trading days.

Schedule of conversion of debentures that would increase the number of shares outstanding	'

	The Convertible Debentures may be converted from the date of issuance until maturity at 100% of principal amount into common stock of the Company at a price of $50.00 each. Conversion of the Debentures would increase the number of shares outstanding at December 31 as follows:


	2013	Maturity date		Outstanding			Per share		Common
				principal			conversion		shares if
				amount			price		converted
		(in thousands, except share and per share amounts)
	Secured Convertible 12% Debentures	December 31, 2020		$	835		$	50		16,700
	Secured Convertible 12% Debentures	December 31, 2022			801			50		16,020


				$	1,636					32,720




Schedule of estimated principal tendered by the secured holders	'






		(in thousands)
	Fiscal year ending December 31:
	2014	$	164
	2015		147
	2016		133
	2017		119
	2018		107
	Thereafter		966


		$	1,636




Schedule of long-term liabilities, excluding derivative financial instruments	'

	Long-term liabilities, excluding derivative financial instruments consist of the following at December 31:


		2013			2012
		(in thousands)
	Line of Credit	$	94,500		$	99,500
	Debentures		1,636			1,636
	Asset retirement obligations		26,785			25,236
	Litigation allowance		3,100			3,100


			126,021			129,472
	Less current maturities		1,936			1,790


	Long-term portion	$	124,085		$	127,682

STOCKHOLDERS_EQUITY_Tables

STOCKHOLDERS' EQUITY (Tables)	12 Months Ended
STOCKHOLDERS' EQUITY (Tables)	Dec. 31, 2013
STOCKHOLDERS' EQUITY	'
Schedule of preferred stock conversion rate	'






		Preferred
		to common
	Period
	Prior to June 30, 2005	1 to 1
	July 1, 2005 through June 30, 2006	1 to .75
	July 1, 2006 through redemption	1 to .50
Schedule of information about equity compensation plans	'

	The table below includes information about our equity compensation plans as of December 31, 2013:


		Number of			Number of		Weighted-average		Number of
		Shares			securities to be		exercise price of		securities
		Authorized			issued upon		outstanding		remaining
		for Issuance			exercise of		options and		available for
		under plan			outstanding		restricted		future issuance
					options and		stock		under equity
					restricted stock				compensation
									plans
	2000 Equity Incentive Plan		1,975,000			363,848	$	2.42		0
	2001 Stock Incentive Plan		2,500,000			6,000	$	2.06		0
	2001 Key Employee Stock Incentive Plan		2,500,000			219,321	$	1.75		0
	2010 Stock Incentive Plan		6,950,000			2,799,538	$	2.29		3,907,296


	Total		13,925,000			3,388,707	$	2.27		3,907,296




Schedule of options issued to employees and changes during the years	'

	A summary of the status of the Company's options issued to employees as of December 31, 2013, 2012 and 2011 and changes during the years ended on those dates is presented below:


		Incentive			Weighted Average
		options			Exercise Price
	Options outstanding—December 31, 2010		3,541,703		$	4.8




	Issued		143,000		$	3.92
	Exercised		(155,935	)	$	0.79
	Expired		(365,750	)	$	13.67
	Forfeited		(70,033	)	$	5.5


	Options outstanding—December 31, 2011		3,092,985		$	3.89




	Issued		269,000		$	2.8
	Exercised		(658,510	)	$	1.27
	Expired		(405,666	)	$	11.08
	Forfeited		(308,500	)	$	8.17


	Options outstanding—December 31, 2012		1,989,309		$	2.48




	Issued		652,322		$	2.88
	Exercised		(823,331	)	$	0.86
	Expired		(150,750	)	$	11.3
	Forfeited		(176,976	)	$	3.03


	Options outstanding—December 31, 2013		1,490,574		$	2.65




Summary of information about the Company's stock options outstanding	'




		Number of			Weighted		Weighted
		Options			Average		Average
					Exercise		Remaining
					Price		Term
							(in years)
	Outstanding at December 31, 2013		1,490,574		$	2.65		2.76


	Exercisable at December 31, 2013		752,002		$	2.4		1.41


Schedule of restricted stock issued to employees and changes during the years	'

	A summary of the status of the Company's restricted stock issued to employees as of December 31, 2013, 2012 and 2011 and changes during the years ended on those dates is presented below:


		Shares			Weighted
					Average
					Fair Value
	Outstanding at December 31, 2010		28,373		$	11.15
	Granted		662,562			4.22
	Vested		(36,248	)		9.67
	Forfeited		(38,956	)		4.22


	Outstanding at December 31, 2011		615,731		$	4.22
	Granted		1,405,965			2.19
	Vested		(405,650	)		3.86
	Forfeited		(9,586	)		3.2


	Outstanding at December 31, 2012		1,606,460		$	2.54
	Granted		886,331			1.87
	Vested		(398,838	)		3.52
	Forfeited		(195,820	)		3.07


	Outstanding at December 31, 2013		1,898,133		$	1.97

INCOME_TAXES_Tables

INCOME TAXES (Tables)	12 Months Ended
INCOME TAXES (Tables)	Dec. 31, 2013
INCOME TAXES	'
Schedule of difference between the Company's effective income tax rate and federal statutory rate	'






		2013			2012			2011
		(in thousands)
	Income taxes at federal statutory rate(a)	$	10,353		$	5,274		$	7,331
	Change in valuation allowance		(11,768	)		(6,537	)		(9,675	)
	Nondeductible expenses		156			694			574
	State income taxes net of federal benefit		1,827			931			1,294
	Other		(504	)		(369	)		398


		$	64		$	(7	)	$	(78	)






	(a)
	34% for 2013, 2012 and 2011.

Schedule of deferred tax assets and liabilities	'

	Deferred tax assets and liabilities are as follows as of December 31:


		2013			2012
		(in thousands)
	Deferred tax assets relating to:
	Net operating loss carryforward	$	98,895		$	101,393
	Oil and gas properties and tangible equipment		15,043			25,111
	Stock option expense		3,585			3,682
	Unrealized loss on derivatives		1,390			558
	Other		324			324


			119,237			131,068
	Less valuation allowance		119,112			130,879


	Total deferred tax asset		125			189


	Deferred tax liabilities relating to:
	Net unrealized gain on investments		125			189


	Total deferred tax liability		125			189


	Net deferred tax asset (liability)	$	—		$	—

COMMITMENTS_AND_CONTINGENCIES_

COMMITMENTS AND CONTINGENCIES (Tables)	12 Months Ended
COMMITMENTS AND CONTINGENCIES (Tables)	Dec. 31, 2013
COMMITMENTS AND CONTINGENCIES.	'
Schedule of future minimum annual rental payments, which are subject to escalation and include utility charges	'

	Future minimum annual rental payments, which are subject to escalation and include utility charges as of December 31, 2013, are as follows:


		(in thousands)
	Year ending December 31:
	2014	$	771
	2015		758
	2016		773
	2017		790
	2018		802
	Thereafter		2,526


		$	6,420

FAIR_VALUE_OF_FINANCIAL_INSTRU1

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)	12 Months Ended
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)	Dec. 31, 2013
FAIR VALUE OF FINANCIAL INSTRUMENTS	'
Schedule of carrying amount and estimated fair value of financial instruments	'






		2013				2012
		Fair		Carrying		Fair		Carrying
		value		amount		value		amount
		(in thousands)
	Financial assets
	Collateral Security account	$	3,166	$	3,166	$	3,164	$	3,164
	Financial liabilities
	Fixed rate debentures	$	2,035	$	1,636	$	2,190	$	1,636
	Line of credit		94,500		94,500		99,500		99,500
Schedule of assets and liabilities, including both current and non-current portions, measured at fair value on a recurring basis	'






	December 31, 2013	Level 1		Level 2		Level 3		Total
		(in thousands)
	Assets
	Restricted investments in US Treasury Bonds—available for sale, at fair value	$	1,314	$	—	$	—	$	1,314
	Commodity derivatives Commodity derivatives	$	—	$	43	$	—	$	43





		Level 1		Level 2		Level 3		Total
		(in thousands)
	Liabilities
	Commodity derivatives	$	—	$	3,517	$	—	$	3,517





	December 31, 2012	Level 1		Level 2		Level 3		Total
		(in thousands)
	Assets
	Restricted investments in US Treasury Bonds—available for sale, at fair value	$	1,415	$	—	$	—	$	1,415





		Level 1		Level 2		Level 3		Total
		(in thousands)
	Liabilities
	Commodity derivatives	$	—	$	952	$	—	$	952

DERIVATIVE_FINANCIAL_INSTRUMEN1

DERIVATIVE FINANCIAL INSTRUMENTS (Tables)	12 Months Ended
DERIVATIVE FINANCIAL INSTRUMENTS (Tables)	Dec. 31, 2013
DERIVATIVE FINANCIAL INSTRUMENTS	'
Summary of open financial derivative positions related to oil and gas production	'

	The following table summarizes the open financial derivative positions as of December 31, 2013 related to oil and gas production. The Company will receive prices as noted in the table below and will pay a counterparty market price based on the NYMEX (for natural gas production) or WTI (for oil production) index price, settled monthly.


	Product	Type		Contract Period		Volume			Price per
	Product	Type		Contract Period		Volume			Mcf or Bbl
	BRENT Oil	Swap		01/01/14 - 12/31/14			800 Bbl/d		$	102.12
	BRENT Oil	Swap		01/01/14 - 09/30/14			700 Bbl/d		$	104.3
	NYMEX Gas	Swap		01/01/14 - 12/31/14			7,000 MMbtu/d		$	3.79
	NYMEX Gas	Swap		01/01/14 - 12/31/14			2,000 MMbtu/d		$	4.18
	NYMEX Gas	Swap		01/01/14 - 12/31/14			3,000 MMbtu/d		$	4.27
	NYMEX Gas	Swap		01/01/15 - 12/31/15			3,000 MMbtu/d		$	4.18
Summary of amount of gains (losses) recognized in income from derivative instruments not designated as hedging instruments	'






		For the Years Ended December 31,
	Derivatives not designated as Hedging Instrument	2013			2012			2011
	under authoritative guidance	2013			2012			2011
		(in thousands)
	Realized cash settlements on hedges	$	(1,397	)	$	(2,780	)	$	(12,216	)
	Unrealized gain (loss) on hedges		(2,080	)		(195	)		9,490


	Total	$	(3,477	)	$	(2,975	)	$	(2,726	)




Schedule of fair value and balance sheet location of net derivatives	'






		Derivative Assets
	December 31, 2013	Balance Sheet		Fair
	December 31, 2013	Location		Value
		(in thousands)
	Commodity—Natural Gas	Non-current		$	43


	Total derivatives not designated as hedging instruments			$	43









		Derivative Liabilities
	December 31, 2013	Balance Sheet		Fair
	December 31, 2013	Location		Value
		(in thousands)
	Commodity—Natural Gas	current		$	(808	)
	Commodity—Oil	current			(2,709	)


	Total derivatives not designated as hedging instruments			$	(3,517	)









		Derivative Liabilities
	December 31, 2012	Balance Sheet		Fair
	December 31, 2012	Location		Value
		(in thousands)
	Commodity—Natural Gas	current		$	(457	)
	Commodity—Oil	current			72
	Commodity—Oil	Non-current			(567	)


	Total derivatives not designated as hedging instruments			$	(952	)

OIL_AND_GAS_INFORMATION_Tables

OIL AND GAS INFORMATION (Tables)	12 Months Ended
OIL AND GAS INFORMATION (Tables)	Dec. 31, 2013
OIL AND GAS INFORMATION	'
Schedule of costs related to the oil and gas activities incurred	'




		2013			2012			2011
		(in thousands)
	Property acquisition—unproved	$	—		$	—		$	—
	Property acquisition—proved		1,635			5,413			509
	Exploration costs		227			52			8,147
	Development costs		72,991			65,676			63,675


		$	74,853		$	71,141		$	72,331




Schedule of aggregate capitalized costs relating to the Company's oil and gas activities	'




		2013			2012
		(in thousands)
	Unproved oil and gas properties	$	18,015		$	20,507
	Proved oil and gas properties		807,439			730,353


			825,454			750,860
	Less accumulated depreciation, depletion, amortization and impairment expense		490,100			449,261


		$	335,354		$	301,599




Schedule of the Company's results of operations from oil and natural gas producing activities	'




		2013			2012			2011
		(in thousands)
	Revenues	$	127,925		$	121,797		$	103,371
	Production costs		(36,779	)		(33,072	)		(30,637	)
	Accretion of asset retirement obligation		(2,256	)		(1,525	)		(995	)
	Depreciation, depletion, amortization		(39,431	)		(43,460	)		(27,914	)


	Income from oil and gas producing activities	$	49,459		$	43,740		$	43,825




Summary of Warren's oil and gas properties not subject to amortization	'

	The following is a summary of Warren's oil and gas properties not subject to amortization as of December 31, 2013:


		Costs incurred in
		Fiscal year			Fiscal year			Fiscal year			Prior to		Total
		2013			2012			2011			2011		Total
		(in thousands)
	Acquisition costs	$	—		$	—		$	—		$	834	$	834
	Exploration costs		—			—			60			—		60
	Development costs(1)		126			311			161			16,523		17,121


	Total oil and gas properties not subject to amortization	$	126		$	311		$	221		$	17,357	$	18,015






	-1
	The Company's development costs primarily reflect investment in well cellars and facilities in its Wilmington oil field to facilitate the development of future oil wells. These costs will be allocated to future wells drilled, the majority of these wells are expected to be drilling during the next five to eight years.

OIL_AND_GAS_RESERVE_DATA_UNAUD1

OIL AND GAS RESERVE DATA (UNAUDITED) (Tables)	12 Months Ended
OIL AND GAS RESERVE DATA (UNAUDITED) (Tables)	Dec. 31, 2013
OIL AND GAS RESERVE DATA (UNAUDITED)	'
Schedule of Summary of Changes in Proved Reserves	'






		Year ended December 31,
		2013						2012						2011
		Mbbls			Mmcf			Mbbls			Mmcf			Mbbls			Mmcf
	Proved reserves
	Beginning of year		16,380			51,236			14,963			43,860			10,250			68,200
	Purchase of reserves in place		128			—			—			20,649			—			—
	Discoveries and extensions		500			46,532			3,337			2,054			3,744			—
	Revisions of previous estimates		171			14,492			(811	)		(9,813	)		1,880			(19,320	)
	Production		(1,105	)		(6,232	)		(1,109	)		(5,514	)		(911	)		(5,020	)


	End of year		16,074			106,028			16,380			51,236			14,963			43,860




	Proved developed reserves
	Beginning of year		8,064			51,236			8,348			28,515			7,518			49,300
	End of year		8,512			78,038			8,064			51,236			8,348			28,515
	Proved undeveloped reserves
	Beginning of year		8,316			—			6,615			15,345			2,732			18,900
	End of year		7,562			27,990			8,316			—			6,615			15,345


	(a)
	Undeveloped reserves transferred to developed reserves were 1.1 MMBoe for the year ended December 31, 2013. Capital costs incurred to convert these proved undeveloped reserves to proved developed reserves were $32.8 million.

	(b)
	Positive revisions increased 2013 proved natural gas reserves by a net amount of 61.0 Bcf, of which 9.0 Bcf was due to pricing, 5.5 Bcf due to performance, and the remainder due to extensions and discoveries.

	(c)
	The Company revised its 2013 year-end proved oil reserves upward by 0.8 MMbbls. In 2013, total extensions and discoveries of 0.5 MMbbls resulted from the Company's drilling and completion activities in the Wilmington Townlot and North Wilmington Units in California. Positive revisions of 0.2 MMbbls were made based on production performance and an additional 0.1 MMbbls was relating to the acquisition of the Leroy Pine Project in California.

Schedule of standardized measure of discounted future net cash flows related to proved oil and gas reserves	'




		December 31,
		2013			2012			2011
		(Amounts in thousands)
	Future cash inflows	$	1,928,019		$	1,836,212		$	1,708,079
	Future production costs and taxes		(688,056	)		(574,959	)		(514,968	)
	Future development costs(1)		(314,091	)		(303,062	)		(254,982	)
	Future income tax expenses		(82,576	)		(105,078	)		(108,977	)


	Net future cash flows		843,296			853,113			829,152
	Discounted at 10% for estimated timing of cash flows		(368,295	)		(393,233	)		(343,146	)


	Standardized measure of discounted future net cash flows	$	475,001		$	459,880		$	486,006






	-1
	Includes future estimated asset retirement obligations of $64.4 million in 2013, $79.9 million in 2012 and $66.3 million in 2011.

Schedule of changes in standardized measure of discounted future net cash flows related to proved oil and gas reserves	'




		Year ended December 31,
		2013			2012			2011
		(Amounts in thousands)
	Sales, net of production costs and taxes	$	(91,146	)	$	(88,725	)	$	(72,734	)
	Discoveries and extensions		52,189			108,438			152,973
	Purchases of reserves in place		2,823			4,966			—
	Changes in prices and production costs		(109	)		(17,286	)		196,010
	Revisions of quantity estimates		22,911			(39,172	)		56,710
	Development costs incurred		(39,233	)		36,539			30,892
	Net changes in development costs		(10,502	)		(90,392	)		(149,662	)
	Interest factor—accretion of discount		49,491			48,601			28,763
	Net change in income taxes		6,328			5,037			(40,070	)
	Changes in production rates (timing) and other		22,369			5,868			(4,504	)


	Net (decrease) increase		15,121			(26,126	)		198,378
	Balance at beginning of year		459,880			486,006			287,628


	Balance at end of year	$	475,001		$	459,880		$	486,006

QUARTERLY_INFORMATION_UNAUDITE1

QUARTERLY INFORMATION (UNAUDITED) (Tables)	12 Months Ended
QUARTERLY INFORMATION (UNAUDITED) (Tables)	Dec. 31, 2013
QUARTERLY INFORMATION (UNAUDITED)	'
Summary of quarterly financial data	'

	Summarized quarterly financial data for the years ended December 31, 2013 and 2012 are as follows:


		2013
		Quarter
		First		Second		Third		Fourth		Year
		(in thousands, except per share amounts)
	Revenues	$	30,819	$	30,735	$	34,682	$	32,608	$	128,844
	Gross profit		21,023		22,405		25,425		22,901		91,754
	Net income		2,829		9,185		14,658		3,713		30,385
	Net income applicable to common stockholders		2,826		9,183		14,656		3,710		30,375
	Earnings per share
	Basic	$	0.04	$	0.13	$	0.2	$	0.05	$	0.42
	Diluted	$	0.04	$	0.13	$	0.2	$	0.05	$	0.42





		2012
		Quarter
		First		Second		Third		Fourth		Year
		(in thousands, except per share amounts)
	Revenues	$	28,354	$	30,178	$	31,361	$	31,904	$	121,797
	Gross profit		19,854		23,001		24,277		21,593		88,725
	Net income		3,811		5,259		2,408		4,042		15,520
	Net income applicable to common stockholders		3,808		5,257		2,405		4,040		15,510
	Earnings per share
	Basic	$	0.05	$	0.07	$	0.03	$	0.06	$	0.22
	Diluted	$	0.05	$	0.07	$	0.03	$	0.06	$	0.22

ORGANIZATION_AND_ACCOUNTING_PO3

ORGANIZATION AND ACCOUNTING POLICIES (Details) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
	item	Dec. 31, 2012	Dec. 31, 2011
Oil and Gas Properties	'	'	'
Discount rate applied to estimated future net revenues from proved oil and gas reserves (as a percent)	10.00%	'	'
Impairment charge	$0	$0	$0
Cash and Cash Equivalents	'	'	'
Number of financial institutions holding majority of the entity's cash and cash equivalents	1	'	'
Anadarko Energy Services	'	'	'
Revenue Recognition	'	'	'
Percentage of total oil and natural gas sold accounted for by the largest purchasers and marketers for the company's production	'	38.00%	38.00%
Devlar Energy	'	'	'
Revenue Recognition	'	'	'
Percentage of total oil and natural gas sold accounted for by the largest purchasers and marketers for the company's production	40.00%	'	'
Phillips 66	'	'	'
Revenue Recognition	'	'	'
Percentage of total oil and natural gas sold accounted for by the largest purchasers and marketers for the company's production	52.00%	55.00%	52.00%

ORGANIZATION_AND_ACCOUNTING_PO4

ORGANIZATION AND ACCOUNTING POLICIES (Details 2) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
	item	Dec. 31, 2012	Dec. 31, 2011
Accounts Receivable	'	'	'
Credit period	'30 days	'	'
Allowance of for doubtful accounts	$16,000	$13,000	'
Investments	'	'	'
Number of categories of investment in debt securities	2	'	'
Offering Costs	'	'	'
Deferred finance costs, net of accumulated amortization	1,600,000	1,500,000	'
Accumulated amortization of debt issuance costs	802,000	584,000	'
Stockholders' equity	'	'	'
Compensation expense related to stock options and restricted stock awards	$2,100,000	$2,600,000	$1,500,000
Stock options	'	'	'
Stockholders' equity	'	'	'
Expected dividends rate (as a percent)	0.00%	0.00%	0.00%
Weighted-average assumptions used to value stock options	'	'	'
Weighted average volatility (as a percent)	71.00%	72.00%	75.00%
Risk-free interest rate (as a percent)	0.53%	0.43%	1.26%
Expected life	'3 years 6 months	'3 years 6 months	'3 years 6 months
Weighted average fair value (in dollars per share)	$1.43	$1.41	$2.04

ORGANIZATION_AND_ACCOUNTING_PO5

ORGANIZATION AND ACCOUNTING POLICIES (Details 3) (USD $)

Dec. 31, 2013

Dec. 31, 2012

Dec. 31, 2013

Dec. 31, 2012

Dec. 31, 2013

Dec. 31, 2012

Dec. 31, 2013

Dec. 31, 2012

Dec. 31, 2013

Dec. 31, 2012

Dec. 31, 2013

Dec. 31, 2012

Dec. 31, 2013

Dec. 31, 2012

Dec. 31, 2013

In Thousands, unless otherwise specified

Drilling rig

Equipment

Automobiles and trucks

Furniture and fixtures

Land and buildings

Office equipment

Minimum

Maximum

Property and Equipment

Estimated useful lives of assets except land

'3 years

'25 years

Cost

$26,429

$23,888

$20,666

$18,318

$1,543

$1,542

$979

$876

$461

$906

$905

$1,874

$1,786

Less accumulated depreciation and amortization

7,657

5,947

Property and equipment, net

$18,772

$17,941

ORGANIZATION_AND_ACCOUNTING_PO6

ORGANIZATION AND ACCOUNTING POLICIES (Details 4) (USD $)	12 Months Ended
ORGANIZATION AND ACCOUNTING POLICIES (Details 4) (USD $)	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
ORGANIZATION AND ACCOUNTING POLICIES	'	'	'
Weighted average shares outstanding - basic	72,390,584	71,376,046	70,830,855
Incremental shares issuable from dilutive stock options	155,625	720,626	1,216,633
Weighted average shares outstanding - diluted	72,546,209	72,096,672	72,047,488
Employee stock options	'	'	'
Antidilutive securities	'	'	'
Anti-dilutive securities (in shares)	891,405	575,750	918,416
Convertible debentures	'	'	'
Antidilutive securities	'	'	'
Anti-dilutive securities (in shares)	32,720	32,720	47,170
Percentage of principal amount at which debentures may be converted from the date of issuance until maturity into common stock	100.00%	100.00%	100.00%
Conversion price (in dollars per share)	50	50	'
Convertible debentures \| Minimum	'	'	'
Antidilutive securities	'	'	'
Conversion price (in dollars per share)	'	35	35
Convertible debentures \| Maximum	'	'	'
Antidilutive securities	'	'	'
Conversion price (in dollars per share)	'	50	50
Preferred stock	'	'	'
Antidilutive securities	'	'	'
Anti-dilutive securities (in shares)	5,352	5,352	5,352
Percentage of redemption price amount from the date of issuance until redemption that may be converted	100.00%	'	'
Preferred stock \| Minimum	'	'	'
Antidilutive securities	'	'	'
Conversion rate (in shares)	0.5	'	'
Preferred stock \| Maximum	'	'	'
Antidilutive securities	'	'	'
Conversion rate (in shares)	1	'	'
Restricted Stock	'	'	'
Antidilutive securities	'	'	'
Anti-dilutive securities (in shares)	1,898,133	1,606,460	615,731

ORGANIZATION_AND_ACCOUNTING_PO7

ORGANIZATION AND ACCOUNTING POLICIES (Details 5) (USD $)	12 Months Ended
ORGANIZATION AND ACCOUNTING POLICIES (Details 5) (USD $)	Dec. 31, 2013	Dec. 31, 2012
Asset Retirement Obligations	'	'
Fair market value of cash held in escrow that is legally restricted for potential plugging and abandonment liability	$3,200,000	'
Reconciliation of asset retirement obligations	'	'
Balance at beginning of year	25,236,000	15,507,000
Liabilities incurred in current year	1,139,000	261,000
Obligations on properties acquired	'	3,499,000
Liabilities settled in current year	-1,846,000	-1,287,000
Accretion expense	2,256,000	1,525,000
Revisions in estimated cash flows	'	5,731,000
Carrying amount	$26,785,000	$25,236,000

INVESTMENTS_Details

INVESTMENTS (Details) (USD $)	12 Months Ended
INVESTMENTS (Details) (USD $)	Dec. 31, 2012	Dec. 31, 2013
Available-for-sale securities	'	'
Aggregate par value	$1,600,000	$1,600,000
Amortized cost	'	1,004,000
Total	1,415,000	1,314,000
Realized gains from investments in available-for-sale securities	4,000	'
Amortized cost	'	'
Due within one year	'	100,000
Due after five years through ten years	'	904,000
Total	'	1,004,000
Estimated fair value	'	'
Due within one year	'	131,000
Due after five years through ten years	'	1,183,000
Total	1,415,000	1,314,000
U.S. Treasury Bonds	'	'
Available-for-sale securities	'	'
Amortized cost	943,000	1,004,000
Gross unrealized gains	472,000	310,000
Total	1,415,000	1,314,000
Amortized cost	'	'
Total	943,000	1,004,000
Estimated fair value	'	'
Total	1,415,000	1,314,000
U.S. Treasury Bonds, maturing 2020	'	'
Available-for-sale securities	'	'
Aggregate par value	'	1,600,000
U.S. Treasury Bonds, maturing 2022	'	'
Available-for-sale securities	'	'
Aggregate par value	'	$1,600,000

LONGTERM_LIABILITIES_Details

LONG-TERM LIABILITIES (Details) (USD $)	12 Months Ended
In Thousands, except Share data, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Long-term liabilities	'	'
Total long-term debt	$1,636	'
Conversion of Debentures	'	'
Outstanding principal amount	1,636	'
Common shares if converted	32,720	'
Estimated principal that can be tendered by the holders	'	'
Total long-term debt	1,636	'
Secured Convertible Debentures	'	'
Long-term liabilities	'	'
Total long-term debt	1,636	1,636
Less current maturities	164	164
Long-term portion	1,472	1,472
Number of consecutive trading days over which the company's stock trades at or above a specified percentage of conversion price for debenture to be called at par	'90 days	'
Percentage of principal amount at which debentures may be converted from the date of issuance until maturity into common stock	100.00%	'
Conversion price (in dollars per share)	$50	'
Conversion of Debentures	'	'
Outstanding principal amount	1,636	1,636
Conversion price (in dollars per share)	$50	'
Estimated principal that can be tendered by the holders	'	'
2014	164	'
2015	147	'
2016	133	'
2017	119	'
2018	107	'
Thereafter	966	'
Total long-term debt	1,636	1,636
Secured Convertible Debentures \| Minimum	'	'
Long-term liabilities	'	'
Percentage of conversion price at which common stock must trade for 90 consecutive days for debenture to be called at par	133.00%	'
Secured Convertible Debentures \| Maximum	'	'
Conversion of Debentures	'	'
Percentage of aggregate amount outstanding that the holders may tender each year	10.00%	'
Secured Convertible Debentures, due December 31, 2020	'	'
Long-term liabilities	'	'
Interest rate (as a percent)	12.00%	12.00%
Principal collateralized	835	835
Total long-term debt	835	835
Conversion price (in dollars per share)	$50	'
Conversion of Debentures	'	'
Interest rate (as a percent)	12.00%	12.00%
Outstanding principal amount	835	835
Conversion price (in dollars per share)	$50	'
Common shares if converted	16,700	'
Estimated principal that can be tendered by the holders	'	'
Total long-term debt	835	835
Secured Convertible Debentures, due December 31, 2022	'	'
Long-term liabilities	'	'
Interest rate (as a percent)	12.00%	12.00%
Principal collateralized	801	801
Total long-term debt	801	801
Conversion price (in dollars per share)	$50	'
Conversion of Debentures	'	'
Interest rate (as a percent)	12.00%	12.00%
Outstanding principal amount	801	801
Conversion price (in dollars per share)	$50	'
Common shares if converted	16,020	'
Estimated principal that can be tendered by the holders	'	'
Total long-term debt	$801	$801

LONGTERM_LIABILITIES_Details_2

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

12 Months Ended

1 Months Ended

12 Months Ended

1 Months Ended

12 Months Ended

Dec. 31, 2013

Dec. 31, 2012

Dec. 31, 2011

Dec. 31, 2002

Sep. 30, 2010

Dec. 31, 2010

Dec. 31, 2011

Dec. 31, 2013

Dec. 15, 2011

Dec. 31, 2013

item

Drilling rig

Line of Credit

item

Base Rate

Prime rate

Federal Funds rate

LIBOR

Minimum

Maximum

Federal Funds rate

LIBOR

Federal Funds rate

LIBOR

LONG-TERM LIABILITIES

Line of Credit

$94,500,000

$99,500,000

Debentures

1,636,000

Asset retirement obligations

26,785,000

25,236,000

15,507,000

Litigation allowance

3,100,000

Total long-term liabilities

126,021,000

129,472,000

Less current maturities

1,936,000

1,790,000

Long-term portion

124,085,000

127,682,000

Long-term liabilities

Number of shares agreed to be purchased from a shareholder through the issuance of a noninterest-bearing note

702,500

Discounted rate of noninterest-bearing note (as a percent)

10.00%

Monthly principal payments of noninterest-bearing note

13,000

Purchase price of drilling rig acquired during the year

7,000,000

Part payment made to acquire drilling rig

69,162,000

61,397,000

56,598,000

3,500,000

Amount of non-interest bearing secured note issued against settlement of cost of drilling rig

3,500,000

Number of equal monthly payments

Term of credit facility

'5 years

Maximum borrowing capacity under prior agreement

300,000,000

Option one per the terms of the debt agreement used in the calculation of the maximum borrowing capacity

250,000,000

Number of wholly-owned subsidiaries that guarantee Line of Credit Facility

Initial borrowing base

165,000,000

Number of additional redetermination rights in each year

Current ratio

Annualized consolidated EBITDAX to net interest expense ratio

2.5

Variable rate basis

'Base Rate

'Prime rate

'Federal Funds

'LIBOR

Margin (as a percent)

0.50%

1.75%

2.75%

Additional margin (as a percent)

0.75%

1.75%

Borrowing base increased

$5,000,000

$20,000,000

$98,657,000

$94,500,000

Weighted average interest rate (as a percent)

2.40%

STOCKHOLDERS_EQUITY_Details

STOCKHOLDERS' EQUITY (Details) (Stock options, USD $)	12 Months Ended
STOCKHOLDERS' EQUITY (Details) (Stock options, USD $)	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Stockholders' equity	'	'	'
Shares issued from exercise of options	823,331	658,510	155,935
Exercise price (in dollars per share)	$0.86	$1.27	$0.79
Minimum	'	'	'
Stockholders' equity	'	'	'
Exercise price (in dollars per share)	$0.51	$0.51	$0.51
Maximum	'	'	'
Stockholders' equity	'	'	'
Exercise price (in dollars per share)	$3.07	$2.42	$2.42

STOCKHOLDERS_EQUITY_Details_2

STOCKHOLDERS' EQUITY (Details 2) (USD $)	12 Months Ended
STOCKHOLDERS' EQUITY (Details 2) (USD $)	Dec. 31, 2013	Dec. 31, 2012
Preferred stock	'	'
Cumulative dividend (as a percent)	8.00%	8.00%
Number of outstanding redeemable preferred shares	10,703	10,703
Aggregate redemption price	$100,000	'
8% convertible preferred stock	'	'
Preferred stock	'	'
Cumulative dividend (as a percent)	8.00%	'
Accrued preferred dividends	$92,000	82,000
Accrued preferred dividends (in dollars per share)	$8.64	7.68
Redemption price (in dollars per share)	$12	'
8% convertible preferred stock \| Prior to June 30, 2005	'	'
Preferred stock	'	'
Preferred to common (in shares)	1	'
8% convertible preferred stock \| July 1, 2005 through June 30, 2006	'	'
Preferred stock	'	'
Preferred to common (in shares)	0.75	'
8% convertible preferred stock \| July 1, 2006 through redemption	'	'
Preferred stock	'	'
Preferred to common (in shares)	0.5	'

STOCKHOLDERS_EQUITY_Details_3

STOCKHOLDERS' EQUITY (Details 3) (USD $)	12 Months Ended
STOCKHOLDERS' EQUITY (Details 3) (USD $)	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Securities authorized for issuance under compensation plans	'	'	'
Number of Shares Authorized for Issuance under plan	13,925,000	'	'
Number of securities to be issued upon exercise of outstanding options and restricted stock (in shares)	3,388,707	'	'
Weighted-average exercise price of outstanding options and restricted stock (in dollars per share)	$2.65	'	'
Weighted-average exercise price of outstanding options and restricted stock (in dollars per share)	$2.27	'	'
Number of securities remaining available for future issuance under equity compensation plans (in shares)	3,907,296	'	'
Incentive options	'	'	'
Outstanding at the end of the period (in shares)	1,490,574	'	'
Weighted Average Exercise Price	'	'	'
Outstanding at the end of the period (in dollars per share)	$2.65	'	'
Weighted-average exercise price of outstanding options and restricted stock (in dollars per share)	$2.27	'	'
Exercise Price $2.75	'	'	'
Compensation plan	'	'	'
Exercise Price (in dollars per share)	$2.75	'	'
Exercise price $3.04	'	'	'
Compensation plan	'	'	'
Exercise Price (in dollars per share)	$3.04	'	'
Exercise price $2.74	'	'	'
Compensation plan	'	'	'
Exercise Price (in dollars per share)	'	$2.74	'
Exercise price $3.21	'	'	'
Compensation plan	'	'	'
Exercise Price (in dollars per share)	'	$3.21	'
Exercise price $2.22	'	'	'
Compensation plan	'	'	'
Exercise Price (in dollars per share)	'	'	$2.22
Exercise Price $4.51	'	'	'
Compensation plan	'	'	'
Exercise Price (in dollars per share)	'	'	$4.51
Stock options	'	'	'
Securities authorized for issuance under compensation plans	'	'	'
Weighted-average exercise price of outstanding options and restricted stock (in dollars per share)	$2.65	$2.48	$3.89
Compensation plan	'	'	'
Exercisable period	'5 years	'	'
Vesting period	'3 years	'	'
Incentive options	'	'	'
Outstanding at the beginning of the period (in shares)	1,989,309	3,092,985	3,541,703
Issued (in shares)	652,322	269,000	143,000
Exercised (in shares)	-823,331	-658,510	-155,935
Expired (in shares)	-150,750	-405,666	-365,750
Forfeited (in shares)	-176,976	-308,500	-70,033
Outstanding at the end of the period (in shares)	1,490,574	1,989,309	3,092,985
Weighted Average Exercise Price	'	'	'
Outstanding at the beginning of the period (in dollars per share)	$2.48	$3.89	$4.80
Issued (in dollars per share)	$2.88	$2.80	$3.92
Exercise price (in dollars per share)	$0.86	$1.27	$0.79
Expired (in dollars per share)	$11.30	$11.08	$13.67
Forfeited (in dollars per share)	$3.03	$8.17	$5.50
Outstanding at the end of the period (in dollars per share)	$2.65	$2.48	$3.89
Stock options \| Minimum	'	'	'
Weighted Average Exercise Price	'	'	'
Exercise price (in dollars per share)	$0.51	$0.51	$0.51
Stock options \| Maximum	'	'	'
Weighted Average Exercise Price	'	'	'
Exercise price (in dollars per share)	$3.07	$2.42	$2.42
Restricted Shares	'	'	'
Compensation plan	'	'	'
Granted (in shares)	886,331	1,405,965	662,562
2000 Equity Incentive Plan	'	'	'
Securities authorized for issuance under compensation plans	'	'	'
Number of Shares Authorized for Issuance under plan	1,975,000	'	'
Number of securities to be issued upon exercise of outstanding options and restricted stock (in shares)	363,848	'	'
Weighted-average exercise price of outstanding options and restricted stock (in dollars per share)	$2.42	'	'
Number of securities remaining available for future issuance under equity compensation plans (in shares)	0	'	'
Weighted Average Exercise Price	'	'	'
Weighted-average exercise price of outstanding options and restricted stock (in dollars per share)	$2.42	'	'
2001 Stock Incentive Plan	'	'	'
Securities authorized for issuance under compensation plans	'	'	'
Number of Shares Authorized for Issuance under plan	2,500,000	'	'
Number of securities to be issued upon exercise of outstanding options and restricted stock (in shares)	6,000	'	'
Weighted-average exercise price of outstanding options and restricted stock (in dollars per share)	$2.06	'	'
Number of securities remaining available for future issuance under equity compensation plans (in shares)	0	'	'
Weighted Average Exercise Price	'	'	'
Weighted-average exercise price of outstanding options and restricted stock (in dollars per share)	$2.06	'	'
2001 Key Employee Stock Incentive Plan	'	'	'
Securities authorized for issuance under compensation plans	'	'	'
Number of Shares Authorized for Issuance under plan	2,500,000	'	'
Number of securities to be issued upon exercise of outstanding options and restricted stock (in shares)	219,321	'	'
Weighted-average exercise price of outstanding options and restricted stock (in dollars per share)	$1.75	'	'
Number of securities remaining available for future issuance under equity compensation plans (in shares)	0	'	'
Weighted Average Exercise Price	'	'	'
Weighted-average exercise price of outstanding options and restricted stock (in dollars per share)	$1.75	'	'
2010 Stock Incentive Plan	'	'	'
Securities authorized for issuance under compensation plans	'	'	'
Number of Shares Authorized for Issuance under plan	6,950,000	'	'
Number of securities to be issued upon exercise of outstanding options and restricted stock (in shares)	2,799,538	'	'
Weighted-average exercise price of outstanding options and restricted stock (in dollars per share)	$2.29	'	'
Number of securities remaining available for future issuance under equity compensation plans (in shares)	3,907,296	'	'
Weighted Average Exercise Price	'	'	'
Weighted-average exercise price of outstanding options and restricted stock (in dollars per share)	$2.29	'	'

STOCKHOLDERS_EQUITY_Details_4

STOCKHOLDERS' EQUITY (Details 4) (USD $)	12 Months Ended
STOCKHOLDERS' EQUITY (Details 4) (USD $)	Dec. 31, 2013
Outstanding at the end of the period	'
Number of Options (in shares)	1,490,574
Weighted average exercise price (in dollars per share)	$2.65
Weighted Average Remaining Term	'2 years 9 months 4 days
Exercisable at the end of the period	'
Number of Options (in shares)	752,002
Weighted Average Exercise Price (in dollars per share)	$2.40
Weighted Average Remaining Term	'1 year 4 months 28 days

STOCKHOLDERS_EQUITY_Details_5

STOCKHOLDERS' EQUITY (Details 5) (USD $)	12 Months Ended
In Millions, except Share data, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Stock options	'	'	'
Stock based compensation	'	'	'
Total intrinsic value of options exercised	$1.70	$1	$0.50
Intrinsic value of options outstanding	0.8	'	'
Total unrecognized compensation cost	0.9	'	'
Weighted average period over which unrecognized compensation cost is expected to be recognized	'2 years 2 months 12 days	'	'
Cash received from exercise of options	0.7	0.8	0.1
Restricted Shares	'	'	'
Stock based compensation	'	'	'
Total unrecognized compensation cost	$2.60	'	'
Weighted average period over which unrecognized compensation cost is expected to be recognized	'1 year 7 months 6 days	'	'
Shares	'	'	'
Outstanding at the beginning of the period (in shares)	1,606,460	615,731	28,373
Granted (in shares)	886,331	1,405,965	662,562
Vested (in shares)	-398,838	-405,650	-36,248
Forfeited (in shares)	-195,820	-9,586	-38,956
Outstanding at the end of the period (in shares)	1,898,133	1,606,460	615,731
Weighted Average Fair Value	'	'	'
Outstanding at the beginning of the period (in dollars per share)	$2.54	$4.22	$11.15
Granted (in dollars per share)	$1.87	$2.19	$4.22
Vested (in dollars per share)	$3.52	$3.86	$9.67
Forfeited (in dollars per share)	$3.07	$3.20	$4.22
Outstanding at the end of the period (in dollars per share)	$1.97	$2.54	$4.22
Vesting period (excluding shares granted in March 2010)	'3 years	'	'
Vesting period for shares granted in March 2010	'9 months	'	'

INCOME_TAXES_Details

INCOME TAXES (Details) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
INCOME TAXES	'	'	'
Income taxes at federal statutory rate(a)	$10,353	$5,274	$7,331
Change in valuation allowance	-11,768	-6,537	-9,675
Nondeductible expenses	156	694	574
State income taxes net of federal benefit	1,827	931	1,294
Other	-504	-369	398
Total	64	-7	-78
Federal income tax rate (as a percent)	34.00%	34.00%	34.00%
Deferred tax assets relating to:	'	'	'
Net operating loss carryforward	98,895	101,393	'
Oil and gas properties and tangible equipment	15,043	25,111	'
Stock option expense	3,585	3,682	'
Unrealized loss on derivatives	1,390	558	'
Other	324	324	'
Total gross deferred tax assets	119,237	131,068	'
Less valuation allowance	119,112	130,879	'
Total deferred tax asset	125	189	'
Deferred tax liabilities relating to:	'	'	'
Net unrealized gain on investments	125	189	'
Total deferred tax liability	$125	$189	'

INCOME_TAXES_Details_2

INCOME TAXES (Details 2) (USD $)	12 Months Ended
In Millions, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
INCOME TAXES	'	'	'
Decrease in valuation allowance	($12)	($7)	($10)
Operating loss carryforwards	'	'	'
Operating loss and credit carryforwards period subject to examination and adjustments	'3 years	'	'
Federal income tax	'	'	'
Operating loss carryforwards	'	'	'
Operating loss carryforwards, amount	$245	'	'

COMMITMENTS_AND_CONTINGENCIES_1

COMMITMENTS AND CONTINGENCIES (Details) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
	sqft	Dec. 31, 2012	Dec. 31, 2011
COMMITMENTS AND CONTINGENCIES.	'	'	'
Face amount of U.S. Treasury Bonds	$1,600,000	$1,600,000	'
Market value of U.S. Treasury Bonds	1,314,000	1,415,000	'
Leases	'	'	'
Area of oil and gas administrative office in Casper, Wyoming (in square feet)	1,174	'	'
Future minimum annual rental payments, which are subject to escalation and include utility charges	'	'	'
2014	771,000	'	'
2015	758,000	'	'
2016	773,000	'	'
2017	790,000	'	'
2018	802,000	'	'
Thereafter	2,526,000	'	'
Total	6,420,000	'	'
Rent expense	$881,000	$698,000	$718,000

COMMITMENTS_AND_CONTINGENCIES_2

COMMITMENTS AND CONTINGENCIES (Details 2) (Gotham Insurance Company v. Pedeco, Inc., et al.,, USD $)	1 Months Ended	3 Months Ended	12 Months Ended
	Jan. 31, 2010	Dec. 31, 2009	Dec. 31, 2005	Dec. 31, 1998	Dec. 31, 2013
Gotham Insurance Company v. Pedeco, Inc., et al.,	'	'	'	'	'
Contingencies	'	'	'	'	'
Provision recorded relating to a contingent liability as a result of lawsuit	'	$1,300,000	$1,800,000	'	'
Amount of refund sought by Gotham and other insurers for amount paid under an insurance policy	'	'	'	1,800,000	'
Summary Judgment restitution	1,823,156	'	'	'	'
Rate of prejudgment interest awarded (as a percent)	5.00%	'	'	'	'
Amount of prejudgment interest awarded	976,011	'	'	'	'
Amount payable in the event Texas Supreme Court rules in favor of Gotham	'	'	'	'	$2,967,000

EMPLOYEE_BENEFIT_PLANS_Details

EMPLOYEE BENEFIT PLANS (Details) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Employee benefit plan	'	'	'
Employer match of participants' contributions of next 2% of eligible compensation (as a percent)	2.00%	'	'
Percentage of eligible compensation, matched 50% by employer	50.00%	'	'
Expenses under the plan	$276	$222	$202
Maximum	'	'	'
Employee benefit plan	'	'	'
Employer match of participants' contributions not exceeding 3 percent of compensation (as a percent)	3.00%	'	'
Percentage of eligible compensation, matched 100% by employer	100.00%	'	'

FAIR_VALUE_OF_FINANCIAL_INSTRU2

FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) (USD $)	Dec. 31, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Fair value	'	'
Financial assets	'	'
Collateral security account	$3,166	$3,164
Financial liabilities	'	'
Fixed rate debentures	2,035	2,190
Line of credit	94,500	99,500
Carrying amount	'	'
Financial assets	'	'
Collateral security account	3,166	3,164
Financial liabilities	'	'
Fixed rate debentures	1,636	1,636
Line of credit	$94,500	$99,500

FAIR_VALUE_OF_FINANCIAL_INSTRU3

FAIR VALUE OF FINANCIAL INSTRUMENTS (Details 2) (USD $)	Dec. 31, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Assets	'	'
Restricted investments in US Treasury Bonds - available for sale, at fair value	$1,314	$1,415
Recurring \| Level 1	'	'
Assets	'	'
Restricted investments in US Treasury Bonds - available for sale, at fair value	1,314	1,415
Recurring \| Level 2	'	'
Assets	'	'
Commodity derivatives	43	'
Liabilities	'	'
Commodity derivatives	3,517	952
Recurring \| Total	'	'
Assets	'	'
Restricted investments in US Treasury Bonds - available for sale, at fair value	1,314	1,415
Commodity derivatives	43	'
Liabilities	'	'
Commodity derivatives	$3,517	$952

DERIVATIVE_FINANCIAL_INSTRUMEN2

DERIVATIVE FINANCIAL INSTRUMENTS (Details) (Commodity derivatives)	Dec. 31, 2013
Natural Gas \| NYMEX swap \| 01/01/14 - 12/31/14, period two	'
Derivative financial instruments	'
Volume in BBl or MMBtu per day	7,000
Price per Mcf or Bbl	3.79
Natural Gas \| NYMEX swap \| 01/01/14 - 12/31/14, period three	'
Derivative financial instruments	'
Volume in BBl or MMBtu per day	2,000
Price per Mcf or Bbl	4.18
Natural Gas \| NYMEX swap \| 01/01/14 - 12/31/14, period four	'
Derivative financial instruments	'
Volume in BBl or MMBtu per day	3,000
Price per Mcf or Bbl	4.27
Natural Gas \| NYMEX swap \| 01/01/15 - 12/31/15	'
Derivative financial instruments	'
Volume in BBl or MMBtu per day	3,000
Price per Mcf or Bbl	4.18
Oil \| BRENT Swap \| 01/01/14 - 12/31/14, period one	'
Derivative financial instruments	'
Volume in BBl or MMBtu per day	800
Price per Mcf or Bbl	102.12
Oil \| BRENT Swap \| 01/01/14 - 09/30/14	'
Derivative financial instruments	'
Volume in BBl or MMBtu per day	700
Price per Mcf or Bbl	104.3

DERIVATIVE_FINANCIAL_INSTRUMEN3

DERIVATIVE FINANCIAL INSTRUMENTS (Details 2) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Amount of gains (losses) recognized in income from derivative instruments not designated as hedging instruments	'	'	'
Total	($3,477)	($2,975)	($2,726)
Commodity derivatives \| Not designated as hedging instruments	'	'	'
Amount of gains (losses) recognized in income from derivative instruments not designated as hedging instruments	'	'	'
Realized cash settlements on hedges	-1,397	-2,780	-12,216
Unrealized gain (loss) on hedges	-2,080	-195	9,490
Total	($3,477)	($2,975)	($2,726)

DERIVATIVE_FINANCIAL_INSTRUMEN4

DERIVATIVE FINANCIAL INSTRUMENTS (Details 3) (USD $)	Dec. 31, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified	item	Dec. 31, 2012
Fair value of net derivatives	'	'
Derivative Assets, Non-current	$43	'
Derivative Liabilities, current	-3,517	-385
Derivative Liabilities, Non-current	'	-567
Derivative's Credit risk	'	'
Number of counterparties to the commodity derivative contracts	1	'
Commodity derivatives \| Not designated as hedging instruments	'	'
Fair value of net derivatives	'	'
Derivative Assets	43	'
Derivative Liabilities	-3,517	-952
Commodity derivatives \| Not designated as hedging instruments \| Natural Gas	'	'
Fair value of net derivatives	'	'
Derivative Assets, Non-current	43	'
Derivative Liabilities, current	-808	-457
Commodity derivatives \| Not designated as hedging instruments \| Oil	'	'
Fair value of net derivatives	'	'
Derivative Liabilities, current	-2,709	72
Derivative Liabilities, Non-current	'	($567)

OIL_AND_GAS_INFORMATION_Detail

OIL AND GAS INFORMATION (Details) (USD $)	12 Months Ended			60 Months Ended	96 Months Ended
OIL AND GAS INFORMATION (Details) (USD $)	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2013
OIL AND GAS INFORMATION	'	'	'	'	'
Property acquisition-proved	$1,635,000	$5,413,000	$509,000	'	'
Exploration costs	227,000	52,000	8,147,000	'	'
Development costs	72,991,000	65,676,000	63,675,000	'	'
Total Costs related to oil and gas activities	74,853,000	71,141,000	72,331,000	'	'
Increase in asset retirement cost	1,100,000	9,500,000	5,300,000	'	'
Aggregate capitalized costs	'	'	'	'	'
Unproved oil and gas properties	18,015,000	20,507,000	'	'	18,015,000
Proved oil and gas properties	807,439,000	730,353,000	'	'	807,439,000
Gross capitalized costs	825,454,000	750,860,000	'	'	825,454,000
Less accumulated depreciation, depletion, amortization and impairment expense	490,100,000	449,261,000	'	'	490,100,000
Total aggregate capitalized costs relating to oil and gas activities	335,354,000	301,599,000	'	'	335,354,000
Results of operations from oil and natural gas producing activities	'	'	'	'	'
Revenues	127,925,000	121,797,000	103,371,000	'	'
Production costs	-36,779,000	-33,072,000	-30,637,000	'	'
Accretion of asset retirement obligation	-2,256,000	-1,525,000	-995,000	'	'
Depreciation, depletion, amortization	-39,431,000	-43,460,000	-27,914,000	'	'
Income from oil and gas producing activities	49,459,000	43,740,000	43,825,000	'	'
Oil and gas properties not subject to amortization	'	'	'	'	'
Acquisition costs	'	'	'	834,000	834,000
Exploration costs	'	'	60,000	'	60,000
Development costs	126,000	311,000	161,000	16,523,000	17,121,000
Total oil and gas properties not subject to amortization	$126,000	$311,000	$221,000	$17,357,000	$18,015,000
Minimum	'	'	'	'	'
Development costs	'	'	'	'	'
Expected drilling period of wells	'5 years	'	'	'	'
Maximum	'	'	'	'	'
Development costs	'	'	'	'	'
Expected drilling period of wells	'8 years	'	'	'	'

OIL_AND_GAS_RESERVE_DATA_UNAUD2

OIL AND GAS RESERVE DATA (UNAUDITED) (Details) (USD $)	12 Months Ended
In Millions, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
	MBbls	MBbls	MBbls
	MMBoe
Proved reserves	'	'	'
Capital costs of conversion of proved undeveloped reserves to proved developed reserves	32.8	'	'
Mbbls	'	'	'
Proved reserves	'	'	'
Beginning of year	16,380	14,963	10,250
Purchase of reserves in place	128	'	'
Discoveries and extensions	500	3,337	3,744
Revisions of previous estimates	171	-811	1,880
Production	-1,105	-1,109	-911
End of year	16,074	16,380	14,963
Proved developed reserves- Beginning of year	8,064	8,348	7,518
Proved developed reserves- End of year	8,512	8,064	8,348
Proved undeveloped reserves- Beginning of year	8,316	6,615	2,732
Proved undeveloped reserves- End of year	7,562	8,316	6,615
Undeveloped reserves transferred to developed reserves	1.1	'	'
Year-end upward revision	800	'	'
Year-end upward revision due to performance	200	'	'
Year-end upward revision due to discoveries and extensions	500	'	'
Year-end upward revision due to purchase of additional interest	100	'	'
Mmcf	'	'	'
Proved reserves	'	'	'
Beginning of year	51,236	43,860	68,200
Purchase of reserves in place	'	20,649	'
Discoveries and extensions	46,532	2,054	'
Revisions of previous estimates	14,492	-9,813	-19,320
Production	-6,232	-5,514	-5,020
End of year	106,028	51,236	43,860
Proved developed reserves- Beginning of year	51,236	28,515	49,300
Proved developed reserves- End of year	78,038	51,236	28,515
Proved undeveloped reserves- Beginning of year	'	15,345	18,900
Proved undeveloped reserves- End of year	27,990	'	15,345
Year-end upward revision	61,000	'	'
Year-end upward revision due to pricing	9,000	'	'
Year-end upward revision due to performance	5,500	'	'

OIL_AND_GAS_RESERVE_DATA_UNAUD3

OIL AND GAS RESERVE DATA (UNAUDITED) (Details 2) (USD $)	12 Months Ended
OIL AND GAS RESERVE DATA (UNAUDITED) (Details 2) (USD $)	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Standardized Measure of Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves	'	'	'
Future cash inflows	$1,928,019,000	$1,836,212,000	$1,708,079,000
Future production costs and taxes	-688,056,000	-574,959,000	-514,968,000
Future development costs	-314,091,000	-303,062,000	-254,982,000
Future income tax expenses	-82,576,000	-105,078,000	-108,977,000
Net future cash flows	843,296,000	853,113,000	829,152,000
Discounted at 10% for estimated timing of cash flows	-368,295,000	-393,233,000	-343,146,000
Standardized measure of discounted future net cash flows	475,001,000	459,880,000	486,006,000
Asset retirement obligations	64,400,000	79,900,000	66,300,000
Changes in Standardized Measure of Discounted Future Net Cash Flows Related to Proved Oil and Gas Reserves	'	'	'
Sales, net of production costs and taxes	-91,146,000	-88,725,000	-72,734,000
Discoveries and extensions	52,189,000	108,438,000	152,973,000
Purchases of reserves in place	2,823,000	4,966,000	'
Changes in prices and production costs	-109,000	-17,286,000	196,010,000
Revisions of quantity estimates	22,911,000	-39,172,000	56,710,000
Development costs incurred	-39,233,000	36,539,000	30,892,000
Net changes in development costs	-10,502,000	-90,392,000	-149,662,000
Interest factor-accretion of discount	49,491,000	48,601,000	28,763,000
Net change in income taxes	6,328,000	5,037,000	-40,070,000
Changes in production rates (timing) and other	22,369,000	5,868,000	-4,504,000
Net (decrease) increase	15,121,000	-26,126,000	198,378,000
Balance at beginning of year	459,880,000	486,006,000	287,628,000
Balance at end of year	475,001,000	459,880,000	486,006,000
Oil prices weighted by production over lives of proved reserves	97.33	104.27	104.75
Gas prices weighted by production over lives of proved reserves	3.43	2.51	3.21
Future cash flows estimated to be spent to develop proved undeveloped properties	$249,700,000	'	'

QUARTERLY_INFORMATION_UNAUDITE2

QUARTERLY INFORMATION (UNAUDITED) (Details) (USD $)	3 Months Ended								12 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
QUARTERLY INFORMATION (UNAUDITED)	'	'	'	'	'	'	'	'	'	'	'
Revenues	'	'	'	'	'	'	'	'	$128,844	$121,797	$103,371
Gross profit	22,901	25,425	22,405	21,023	21,593	24,277	23,001	19,854	91,754	88,725	'
Net income	3,713	14,658	9,185	2,829	4,042	2,408	5,259	3,811	30,385	15,520	21,639
Net income applicable to common stockholders	$3,710	$14,656	$9,183	$2,826	$4,040	$2,405	$5,257	$3,808	$30,375	$15,510	$21,629
Earnings per share	'	'	'	'	'	'	'	'	'	'	'
Basic (in dollars per share)	$0.05	$0.20	$0.13	$0.04	$0.06	$0.03	$0.07	$0.05	$0.42	$0.22	$0.31
Diluted (in dollars per share)	$0.05	$0.20	$0.13	$0.04	$0.06	$0.03	$0.07	$0.05	$0.42	$0.22	$0.30

INCOME_AND_OTHER_INCOME_Detail

INCOME AND OTHER INCOME (Details) (USD $)	3 Months Ended
In Millions, unless otherwise specified	Sep. 30, 2013
INTEREST AND OTHER INCOME	'
Gain on change of practice regarding recognition of post-production costs	$5.30