Warren Resources (WRES) Inactive 10-Q6 Nov 132013 Q3 Quarterly reportFinancial data

Company Profile

Document_and_Entity_Informatio

Document and Entity Information	9 Months Ended
Document and Entity Information	Sep. 30, 2013	Nov. 06, 2013
Document and Entity Information	'	'
Entity Registrant Name	'WARREN RESOURCES INC	'
Entity Central Index Key	'0000892986	'
Document Type	'10-Q	'
Document Period End Date	30-Sep-13	'
Amendment Flag	'false	'
Current Fiscal Year End Date	'--12-31	'
Entity Current Reporting Status	'Yes	'
Entity Filer Category	'Accelerated Filer	'
Entity Common Stock, Shares Outstanding	'	72,839,320
Document Fiscal Year Focus	'2013	'
Document Fiscal Period Focus	'Q3	'

CONSOLIDATED_BALANCE_SHEETS

CONSOLIDATED BALANCE SHEETS (USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Current Assets	'	'
Cash and cash equivalents	$10,090	$8,475
Accounts receivable - trade	22,623	18,110
Restricted investments in U.S. Treasury Bonds-available for sale, at fair value	135	142
Other current assets	1,819	1,096
Total current assets	34,667	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 $17,751 and $20,507 as of September 30, 2013 and December 31, 2012)	330,427	301,599
Property and equipment-at cost, net	18,641	17,941
Restricted investments in U.S. Treasury Bonds-available for sale, at fair value	1,212	1,273
Other assets	3,967	4,108
Derivative financial instruments	52	'
Total other assets	354,299	324,921
Total assets	388,966	352,744
Current Liabilities	'	'
Current maturities of debentures and other long-term liabilities	1,386	1,790
Accounts payable and accruals	41,617	29,278
Derivative financial instruments	99	385
Total current liabilities	43,102	31,453
Long-Term Liabilities	'	'
Debentures, less current portion	1,472	1,472
Other long-term liabilities, less current portion	28,164	26,710
Derivative financial instruments	'	567
Line of credit	94,500	99,500
Total noncurrent liabilities	124,136	128,249
Commitments and Contingencies	'	'
Stockholders' Equity	'	'
8% convertible preferred stock, par value $.0001; 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 72,802,724 shares in 2013 and 72,440,898 shares in 2012	7	7
Additional paid-in-capital	469,760	468,406
Accumulated deficit	-248,386	-275,058
Accumulated other comprehensive income, net of applicable income taxes of $143 in 2013 and $188 in 2012	219	287
Total stockholders' equity including common stock in Treasury	221,728	193,770
Less common stock in Treasury-at cost; 632,250 shares in 2012	'	728
Total stockholders' equity	221,728	193,042
Total liabilities and stockholders' equity	$388,966	$352,744

CONSOLIDATED_BALANCE_SHEETS_Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	9 Months Ended	12 Months Ended
In Thousands, except Share data, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
CONSOLIDATED BALANCE SHEETS	'	'
Oil and gas properties, unproved properties excluded from amortization (in dollars)	$17,751	$20,507
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%	'
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	72,802,724	72,440,898
Accumulated other comprehensive income, applicable income taxes (in dollars)	$143	$188
Common stock in Treasury, shares	'	632,250

CONSOLIDATED_STATEMENTS_OF_OPE

CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)	3 Months Ended		9 Months Ended
In Thousands, except Share data, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Operating revenues	'	'	'	'
Oil and gas sales	$34,682	$31,361	$96,237	$89,893
Operating expenses	'	'	'	'
Lease operating expense and taxes	9,257	7,084	27,384	22,761
Depreciation, depletion and amortization	10,987	13,234	34,368	34,571
General and administrative	3,124	4,417	11,371	14,927
Total operating expenses	23,368	24,735	73,123	72,259
Income from operations	11,314	6,626	23,114	17,634
Other income (expense)	'	'	'	'
Interest and other income	5,315	15	5,346	59
Interest expense	-760	-853	-2,234	-2,458
Gain (loss) on derivative financial instruments	-1,205	-3,383	491	-3,772
Total other income (expense)	3,350	-4,221	3,603	-6,171
Income before taxes	14,664	2,405	26,717	11,463
Deferred income tax expense (benefit)	6	-3	45	-14
Net income	14,658	2,408	26,672	11,477
Less dividends and accretion on preferred shares	2	3	8	8
Net income applicable to common stockholders	$14,656	$2,405	$26,664	$11,469
Earnings per share - Basic (in dollars per share)	$0.20	$0.03	$0.37	$0.16
Earnings per share - Diluted (in dollars per share)	$0.20	$0.03	$0.37	$0.16
Weighted average common shares outstanding - Basic (in shares)	72,424,626	71,178,903	72,235,047	71,089,212
Weighted average common shares outstanding - Diluted (in shares)	72,618,733	72,040,393	72,425,850	72,027,145

CONSOLIDATED_STATEMENTS_OF_COM

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME	'	'	'	'
Net income	$14,658	$2,408	$26,672	$11,477
Other comprehensive income	'	'	'	'
Holding gain (loss) on available for sale investments	-8	1	-68	18
Comprehensive income	$14,650	$2,409	$26,604	$11,495

CONSOLIDATED_STATEMENTS_OF_CAS

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012
Cash flows from operating activities:	'	'
Net income	$26,672	$11,477
Adjustments to reconcile net income to net cash provided by operating activities:	'	'
Accretion of discount on available-for-sale debt securities	-45	-43
Amortization of deferred offering costs	160	153
Depreciation, depletion and amortization	34,368	34,571
Change in fair value of derivative financial instruments	-905	1,315
Gain on sale of US treasury bonds - available for sale	'	-4
Stock option expense	1,492	1,689
Deferred tax expense (benefit)	45	-14
Change in assets and liabilities:	'	'
Increase in accounts receivable-trade	-3,989	-2,947
(Increase) decrease in other assets	-723	255
Increase in accounts payable and accruals	2,680	7,237
Decrease in other long-term liabilities	-1,648	-1,052
Net cash provided by operating activities	58,107	52,637
Cash flows from investing activities:	'	'
Purchase, exploration and development of oil and gas properties	-50,053	-54,952
Funds held in escrow	'	-3,239
Purchase of property and equipment	-2,019	-1,587
Proceeds from US treasury bonds - available for sale	'	13
Net cash used in investing activities	-52,072	-59,765
Cash flows from financing activities:	'	'
Proceeds from line of credit	5,000	10,000
Payments on debt and debentures	-10,017	-118
Proceeds from the exercise of stock options	597	107
Net cash (used in) provided by financing activities	-4,420	9,989
Net increase in cash and cash equivalents	1,615	2,861
Cash and cash equivalents at beginning of period	8,475	10,614
Cash and cash equivalents at end of period	10,090	13,475
Supplemental disclosure of cash flow information	'	'
Cash paid for interest, net of amounts capitalized	2,122	2,339
Noncash investing and financing activities	'	'
Accrued preferred stock dividend	$8	$8

ORGANIZATION

ORGANIZATION	9 Months Ended
ORGANIZATION	Sep. 30, 2013
ORGANIZATION	'
ORGANIZATION	'
	NOTE A—ORGANIZATION

	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 primarily located in California and Wyoming.

	The accompanying unaudited financial statements and related notes present the Company’s consolidated financial position as of September 30, 2013 and December 31, 2012, the consolidated results of operations for the three and nine months ended September 30, 2013 and 2012, the consolidated statements of comprehensive income for the three and nine months ended September 30, 2013 and 2012 and consolidated cash flows for the nine months ended September 30, 2013 and 2012. The unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions of Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the nine months ended September 30, 2013 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2013. The accounting policies followed by the Company are set forth in Note A to the Company’s financial statements included in Form 10-K for the year ended December 31, 2012. These interim financial statements and notes thereto should be read in conjunction with the consolidated financial statements presented in the Company’s 2012 Annual Report on Form 10-K.

STOCK_BASED_COMPENSATION

STOCK BASED COMPENSATION	9 Months Ended
STOCK BASED COMPENSATION	Sep. 30, 2013
STOCK BASED COMPENSATION	'
STOCK BASED COMPENSATION	'
	NOTE B—STOCK BASED COMPENSATION

	Stock Options

	Compensation expense related to stock options and restricted stock awards recognized in operating results (general and administrative expenses) was approximately $0.5 million and $0.8 million for the three months ended September 30, 2013 and September 30, 2012, respectively, and approximately $1.5 million and $1.7 million for the nine months ending September 30, 2013 and September 30, 2012, respectively.

	The following assumptions were used to value stock options calculated using the Black-Scholes options pricing model:

		Nine months ended September 30,
		2013		2012
	Dividend yield	0	%	0	%
	Expected volatility	70.9	%	73.4	%
	Risk-free interest rate	0.5	%	0.5	%
	Expected life	3.5 years		3.5 years

				Weighted		Weighted
				Average		Average	Aggregate
		Number		Exercise		Remaining	Intrinsic Value
		of Options		Price		Term (in years)	(in thousands)
	Outstanding at June 30, 2013	2,140,293		$	2.22
	Granted	—		—
	Exercised	(462,166	)	0.51
	Forfeited or expired	(43,750	)	6.54
	Outstanding at September 30, 2013	1,634,377		$	2.59	2.94	$	654
	Exercisable at September 30, 2013	780,888		$	2.26	1.39	$	572

	The total intrinsic value of options exercised during the nine months ended September 30, 2013 and 2012 were approximately $1,566,000 and $358,000 respectively.

	As of September 30, 2013 total unrecognized stock-based compensation expense related to non-vested stock options was approximately $1.1 million, which we expect to recognize over a weighted average period of 2.1 years.

	Restricted Shares

	Restricted share activity for the nine months ended September 30, 2013 was as follows:

		Shares		Weighted
				Average
				Fair Value
	Outstanding at December 31, 2012	1,606,460		$	2.54
	Granted	886,331		1.87
	Vested	(376,331	)	3.52
	Forfeited	(170,208	)	3.1
	Outstanding at September 30, 2013	1,946,252		$	2

	Restricted stock awards for executive officers and employees vest ratably over three years. Fair value of our restricted shares is based on our closing stock price on the date of grant. As of September 30, 2013, total unrecognized stock-based compensation expense related to non-vested restricted shares was $3.1 million, which is expected to be recognized over a weighted average period of approximately 1.6 years.

STOCKHOLDERS_EQUITY

STOCKHOLDERS' EQUITY	9 Months Ended
STOCKHOLDERS' EQUITY	Sep. 30, 2013
STOCKHOLDERS' EQUITY	'
STOCKHOLDERS' EQUITY	'
	NOTE C—STOCKHOLDERS’ EQUITY

	The preferred stock pays an 8% cumulative dividend which is treated as a deduction of additional paid in capital, due to insufficient retained earnings. 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, at the election of the holder, into common stock of the Company based on a conversion rate of one share of preferred stock for 0.50 shares of common stock. The accrual of the dividend is deducted from earnings in the calculation of earnings attributable to common stockholders.

	Additionally, holders of the preferred stock can elect to require the Company to redeem their preferred stock at a redemption price equal to the liquidation value of $12.00 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 the holder shares of common stock in an amount equal to 125% of the redemption price and any accrued and unpaid dividends, based on the weighted average closing “bid” price of the Company’s common stock for the thirty trading days immediately preceding the date of the written redemption election by the holder up to a maximum of 1.5 shares of common stock for each one share of preferred stock redeemed. The Company has accreted the carrying value of its preferred stock to its redemption price using the effective interest method with changes recorded to additional paid in capital. The accretion of preferred stock results in a reduction of earnings applicable to common stockholders.

	Notwithstanding the forgoing, if the closing “bid” price of the Company’s publicly traded common stock as reported by the NASDAQ stock market, or any exchange on which the shares of common stock are traded, exceeds 133% of the conversion price then in effect for the convertible preferred shares for at least 10 days during any 30-day trading period, the Company has the right to redeem in whole or in part the convertible preferred stock at a redemption price of $12 per share (plus any accrued unpaid dividends) or convert the convertible preferred shares (plus any accrued unpaid dividends) into common stock at the then applicable conversion rate.

EARNINGS_PER_SHARE

EARNINGS PER SHARE	9 Months Ended
	Sep. 30, 2013
EARNINGS PER SHARE	'
EARNINGS PER SHARE	'
	NOTE D—EARNINGS PER SHARE

	Basic earnings per share is computed by dividing net earnings applicable to common stockholders by the weighted average number of shares of common stock outstanding during 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 bonds and preferred stock are converted using the if-converted method. Conversion is not assumed if the results are anti-dilutive. Potential common shares for the nine months ended September 30, 2013 and September 30, 2012 of 38,072 and 52,093 respectively, relating to convertible bonds and preferred stock, were excluded from the computation of diluted earnings per share because they are anti-dilutive. Potential common shares of 2,910,907 and 1,644,817 respectively, relating to stock options and restricted stock were excluded from the computation of diluted earnings per share for the nine months ended September 30, 2013 and 2012, respectively, because they are anti-dilutive. Stock options have a weighted average exercise price of $2.59 and $2.88 at September 30, 2013 and September 30, 2012, respectively. At September 30, 2013 the convertible bonds may be converted at 100% of principal into common stock of the Company at a price of $50. The preferred stock may be converted at the discretion of the holder or upon meeting certain conditions at the discretion of the Company (see Note C).

	Basic and diluted net earnings per share are computed based on the following information:

		Three Months		Three Months		Nine Months		Nine Months
		Ended		Ended		Ended		Ended
		September 30,		September 30,		September 30,		September 30,
		2013		2012		2013		2012
		(in thousands, except for per				(in thousands, except for per
		share data)				share data)

	Net earnings applicable to common shareholders	$	14,656	$	2,405	$	26,664	$	11,469

	Weighted average shares outstanding — basic	72,424,626		71,178,903		72,235,047		71,089,212
	Effect of dilutive securities — restricted stock	—		—		—		—
	Effect of dilutive securities — stock options	194,107		861,490		190,803		937,933

	Weighted average shares outstanding - diluted	72,618,733		72,040,393		72,425,850		72,027,145

	Basic net earnings per share	$	0.2	$	0.03	$	0.37	$	0.16
	Diluted net earnings per share	$	0.2	$	0.03	$	0.37	$	0.16

LONGTERM_LIABILITIES

LONG-TERM LIABILITIES	9 Months Ended
	Sep. 30, 2013
LONG-TERM LIABILITIES	'
LONG-TERM LIABILITIES	'
	NOTE E—LONG-TERM LIABILITIES

	Long-term liabilities, excluding derivative financial instruments (see Note I), consisted of the following for the balance sheets dated:

		September 30,		December 31,
		2013		2012
		(in thousands)

	Line of Credit	$	94,500	$	99,500
	Convertible debentures	1,636		1,636
	Asset retirement obligations	26,286		25,236
	Litigation allowance	3,100		3,100
		125,522		129,472
	Less current portion	1,386		1,790
	Long-term portion	$	124,136	$	127,682

	On December 15, 2011, the Company entered into a five-year $300 million Second Amended and Restated Credit Agreement with Bank of Montreal. 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. In May 2013, the borrowing base was increased to $145 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. Credit line interest of approximately $16,000 was accrued as of September 30, 2013. As of September 30, 2013, the Company has $94.5 million outstanding on its borrowing base.

	The Company is subject to certain covenants under the terms of the Credit Facility which include, but are not limited to, the maintenance of the following financial ratios (1) minimum current ratio of current assets (including unused borrowing base in current assets) to current liabilities of 1.0 to 1.0 and (2) a minimum annualized consolidated EBITDAX (as defined by the Credit Facility) to net interest expense of 2.5 to 1.0. The Company is in compliance with all covenants as of September 30, 2013.

	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%. The weighted average interest rate as of September 30, 2013, was 2.43%.

	The convertible bonds may be converted from the date of issuance until maturity at 100% of principal amount into common stock of the Company at a conversion price of $50. Each year the holders of the convertible bonds may tender to the Company up to 10% of the aggregate bonds issued and outstanding. During the nine months ended September 30, 2013, there were no bond redemptions.

ASSET_RETIREMENT_OBLIGATION

ASSET RETIREMENT OBLIGATION	9 Months Ended
	Sep. 30, 2013
ASSET RETIREMENT OBLIGATION	'
ASSET RETIREMENT OBLIGATION	'
	NOTE F—ASSET RETIREMENT OBLIGATION

	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:

		September 30,
		2013
		(in thousands)
	Balance at beginning of period	$	25,236
	Liabilities incurred in current period	1,037
	Liabilities settled in current period	(1,647		)
	Accretion expense	1,660
	Balance at end of period	$	26,286

CONTINGENCIES

CONTINGENCIES	9 Months Ended
CONTINGENCIES	Sep. 30, 2013
CONTINGENCIES	'
CONTINGENCIES	'
	NOTE G—CONTINGENCIES

	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.

FAIR_VALUE_OF_FINANCIAL_INSTRU

FAIR VALUE OF FINANCIAL INSTRUMENTS	9 Months Ended
	Sep. 30, 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 - Trading and 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.

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

	Other Long-Term Liabilities. The carrying amount approximates fair value due to 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 to the current rates offered to the Company for lines of credit.

	Derivatives. The fair values are based upon 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) and are reported on the Consolidated Balance Sheets at fair value.

			September 30, 2013						December 31, 2012
			Fair			Carrying			Fair			Carrying
			value			amount			value			amount
			(in thousands)

	Financial assets
	Collateral security account		$	3,165		$	3,165		$	3,164		$	3,164

	Financial liabilities
	Fixed rate debentures		$	2,056		$	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 and establishes a three level hierarchy for measuring fair value. The literature requires fair value measurements be 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 following tables present for each hierarchy level our assets and liabilities, including both current and non-current portions, measured at fair value on a recurring basis.

	September 30, 2013

			Level 1			Level 2			Level 3			Total
			(in thousands)
	Assets
	Restricted investments in US Treasury Bonds — available for sale, at fair value		$	1,347		$	—		$	—		$	1,347
	Commodity derivatives		$	—		$	52		$	—		$	52

			Level 1			Level 2			Level 3			Total
			(in thousands)

	Liabilities
	Commodity derivatives		$	—		$	99		$	—		$	99


	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	9 Months Ended
DERIVATIVE FINANCIAL INSTRUMENTS	Sep. 30, 2013
DERIVATIVE FINANCIAL INSTRUMENTS	'
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 derivatives are in the form of puts and a gas differential swap. However, we may use a variety of derivative instruments in the future to hedge. The Company has not designated these derivatives as hedges for accounting purposes.

	The Company routinely enters into derivative contracts with a variety of counterparties, typically resulting in individual derivative instruments with both fair value asset and liability positions. The Company nets the fair values of derivative instruments executed with the same counterparty pursuant to ISDA master agreements, which mitigate the credit risk of the Company’s derivative instruments by providing for net settlement over the term of the contract and in the event of default or termination of the contract.

	The following table summarizes the open financial derivative positions, as of September 30, 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
	Oil	Brent Swap		01/01/14 12/31/14		800 Bbl/d		$	102.12
	Oil	Brent Swap		10/01/13 09/30/14		700 Bbl/d		$	104.3
	Gas	Swap		07/01/13 12/31/13		7,000 MMBtu/d		$	3.39
	Gas	Swap		01/01/14 12/31/14		7,000 MMBtu/d		$	3.79
	Gas	Swap		07/01/13 12/31/14		2,000 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.

	Derivatives not designated as	For the Three Months						For the Nine Months
	Hedging Instrument under	Ended September 30,						Ended September 30,
	authoritative guidance	2013			2012			2013			2012
	(in thousands)

	Realized cash settlements on hedges	$	(181	)	$	(688	)	$	(857	)	$	(1,542	)
	Unrealized non-cash gain (loss) on hedges	(1,024		)	(2,695		)	1,348			(2,230		)

	Total	$	(1,205	)	$	(3,383	)	$	491		$	(3,772	)

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

	September 30, 2013

		Derivative Assets
		Balance Sheet
	(in thousands)	Location		Fair Value

	Commodity—Oil	Non-current		135
	Commodity—Natural Gas	Non-current		(83		)

	Total derivatives not designated as hedging instruments			$	52


	September 30, 2013

		Derivative Liabilities
		Balance Sheet
	(in thousands)	Location		Fair Value

	Commodity—Oil	current		$	(180	)
	Commodity—Natural Gas	current		81

	Total derivatives not designated as hedging instruments			$	(99	)

	December 31, 2012

		Derivative Liabilities
	(in thousands)	Balance Sheet		Fair Value
	(in thousands)	Location		Fair Value

	Commodity—Natural Gas	current		$	(457	)
	Commodity—Oil	current		72
	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 September 30, 2013, the counterparty to the Company’s commodity derivative contracts consisted of two financial institutions. The Company’s counterparty is also a lender under the Company’s Senior Credit Agreement. As a result, the counterparty to the Company’s derivative agreements shares 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.

INCOME_TAXES

INCOME TAXES	9 Months Ended
INCOME TAXES	Sep. 30, 2013
INCOME TAXES	'
INCOME TAXES	'
	NOTE J — INCOME TAXES

	The Company’s effective tax rate differs from the federal statutory tax rate due to changes in the valuation allowance on the Company’s net deferred tax asset.

INTEREST_AND_OTHER_INCOME

INTEREST AND OTHER INCOME	9 Months Ended
INTEREST AND OTHER INCOME	Sep. 30, 2013
INTEREST AND OTHER INCOME	'
INTEREST AND OTHER INCOME	'
	NOTE K — 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.

RECENTLY_ISSUED_ACCOUNTING_STA

RECENTLY ISSUED ACCOUNTING STANDARDS	9 Months Ended
RECENTLY ISSUED ACCOUNTING STANDARDS	Sep. 30, 2013
RECENTLY ISSUED ACCOUNTING STANDARDS	'
RECENTLY ISSUED ACCOUNTING STANDARDS	'
	NOTE L — RECENTLY ISSUED ACCOUNTING STANDARDS

	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. We adopted these new requirements in first quarter 2013 and they did not have a material effect on our consolidated financial statements.

STOCK_BASED_COMPENSATION_Table

STOCK BASED COMPENSATION (Tables)	9 Months Ended
STOCK BASED COMPENSATION (Tables)	Sep. 30, 2013
STOCK BASED COMPENSATION	'
Schedule of assumptions used to value stock options calculated using the Black-Scholes options pricing model	'

		Nine months ended September 30,
		2013		2012
	Dividend yield	0	%	0	%
	Expected volatility	70.9	%	73.4	%
	Risk-free interest rate	0.5	%	0.5	%
	Expected life	3.5 years		3.5 years
Schedule of outstanding stock options and changes during the fiscal year	'

				Weighted		Weighted
				Average		Average	Aggregate
		Number		Exercise		Remaining	Intrinsic Value
		of Options		Price		Term (in years)	(in thousands)
	Outstanding at June 30, 2013	2,140,293		$	2.22
	Granted	—		—
	Exercised	(462,166	)	0.51
	Forfeited or expired	(43,750	)	6.54
	Outstanding at September 30, 2013	1,634,377		$	2.59	2.94	$	654
	Exercisable at September 30, 2013	780,888		$	2.26	1.39	$	572
Schedule of restricted share activity	'

		Shares		Weighted
				Average
				Fair Value
	Outstanding at December 31, 2012	1,606,460		$	2.54
	Granted	886,331		1.87
	Vested	(376,331	)	3.52
	Forfeited	(170,208	)	3.1
	Outstanding at September 30, 2013	1,946,252		$	2

EARNINGS_PER_SHARE_Tables

EARNINGS PER SHARE (Tables)	9 Months Ended
	Sep. 30, 2013
EARNINGS PER SHARE	'
Schedule of computation of basic and diluted net earnings per share	'

		Three Months		Three Months		Nine Months		Nine Months
		Ended		Ended		Ended		Ended
		September 30,		September 30,		September 30,		September 30,
		2013		2012		2013		2012
		(in thousands, except for per				(in thousands, except for per
		share data)				share data)

	Net earnings applicable to common shareholders	$	14,656	$	2,405	$	26,664	$	11,469

	Weighted average shares outstanding — basic	72,424,626		71,178,903		72,235,047		71,089,212
	Effect of dilutive securities — restricted stock	—		—		—		—
	Effect of dilutive securities — stock options	194,107		861,490		190,803		937,933

	Weighted average shares outstanding - diluted	72,618,733		72,040,393		72,425,850		72,027,145

	Basic net earnings per share	$	0.2	$	0.03	$	0.37	$	0.16
	Diluted net earnings per share	$	0.2	$	0.03	$	0.37	$	0.16

LONGTERM_LIABILITIES_Tables

LONG-TERM LIABILITIES (Tables)	9 Months Ended
	Sep. 30, 2013
LONG-TERM LIABILITIES	'
Schedule of long-term liabilities, excluding derivative financial instruments	'

		September 30,		December 31,
		2013		2012
		(in thousands)

	Line of Credit	$	94,500	$	99,500
	Convertible debentures	1,636		1,636
	Asset retirement obligations	26,286		25,236
	Litigation allowance	3,100		3,100
		125,522		129,472
	Less current portion	1,386		1,790
	Long-term portion	$	124,136	$	127,682

ASSET_RETIREMENT_OBLIGATION_Ta

ASSET RETIREMENT OBLIGATION (Tables)	9 Months Ended
	Sep. 30, 2013
ASSET RETIREMENT OBLIGATION	'
Schedule of reconciliation of the Company's asset retirement obligations	'

		September 30,
		2013
		(in thousands)
	Balance at beginning of period	$	25,236
	Liabilities incurred in current period	1,037
	Liabilities settled in current period	(1,647		)
	Accretion expense	1,660
	Balance at end of period	$	26,286

FAIR_VALUE_OF_FINANCIAL_INSTRU1

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)	9 Months Ended
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)	Sep. 30, 2013
FAIR VALUE OF FINANCIAL INSTRUMENTS	'
Schedule of carrying amount and estimated fair value of financial instruments	'

		September 30, 2013				December 31, 2012
		Fair		Carrying		Fair		Carrying
		value		amount		value		amount
		(in thousands)

	Financial assets
	Collateral security account	$	3,165	$	3,165	$	3,164	$	3,164

	Financial liabilities
	Fixed rate debentures	$	2,056	$	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	'
	September 30, 2013

		Level 1		Level 2		Level 3		Total
		(in thousands)
	Assets
	Restricted investments in US Treasury Bonds — available for sale, at fair value	$	1,347	$	—	$	—	$	1,347
	Commodity derivatives	$	—	$	52	$	—	$	52

		Level 1		Level 2		Level 3		Total
		(in thousands)

	Liabilities
	Commodity derivatives	$	—	$	99	$	—	$	99


	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)	9 Months Ended
DERIVATIVE FINANCIAL INSTRUMENTS (Tables)	Sep. 30, 2013
DERIVATIVE FINANCIAL INSTRUMENTS	'
Summary of open financial derivative positions related to oil and gas production	'

	Product	Type		Contract Period		Volume		Price per
	Product	Type		Contract Period		Volume		Mcf or Bbl
	Oil	Brent Swap		01/01/14 12/31/14		800 Bbl/d		$	102.12
	Oil	Brent Swap		10/01/13 09/30/14		700 Bbl/d		$	104.3
	Gas	Swap		07/01/13 12/31/13		7,000 MMBtu/d		$	3.39
	Gas	Swap		01/01/14 12/31/14		7,000 MMBtu/d		$	3.79
	Gas	Swap		07/01/13 12/31/14		2,000 MMBtu/d		$	4.18

Summary of amount of gains (losses) recognized in income from derivative instruments not designated as hedging instruments	'

	Derivatives not designated as	For the Three Months						For the Nine Months
	Hedging Instrument under	Ended September 30,						Ended September 30,
	authoritative guidance	2013			2012			2013			2012
	(in thousands)

	Realized cash settlements on hedges	$	(181	)	$	(688	)	$	(857	)	$	(1,542	)
	Unrealized non-cash gain (loss) on hedges	(1,024		)	(2,695		)	1,348			(2,230		)

	Total	$	(1,205	)	$	(3,383	)	$	491		$	(3,772	)
Schedule of fair value and balance sheet location of net derivatives	'
	September 30, 2013

		Derivative Assets
		Balance Sheet
	(in thousands)	Location		Fair Value

	Commodity—Oil	Non-current		135
	Commodity—Natural Gas	Non-current		(83		)

	Total derivatives not designated as hedging instruments			$	52


	September 30, 2013

		Derivative Liabilities
		Balance Sheet
	(in thousands)	Location		Fair Value

	Commodity—Oil	current		$	(180	)
	Commodity—Natural Gas	current		81

	Total derivatives not designated as hedging instruments			$	(99	)

	December 31, 2012

		Derivative Liabilities
	(in thousands)	Balance Sheet		Fair Value
	(in thousands)	Location		Fair Value

	Commodity—Natural Gas	current		$	(457	)
	Commodity—Oil	current		72
	Commodity—Oil	Non-current		(567		)

	Total derivatives not designated as hedging instruments			$	(952	)

STOCK_BASED_COMPENSATION_Detai

STOCK BASED COMPENSATION (Details) (USD $)	3 Months Ended		9 Months Ended
STOCK BASED COMPENSATION (Details) (USD $)	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Stock based compensation	'	'	'	'
Compensation expense related to stock options and restricted stock awards	$500,000	$800,000	$1,500,000	$1,700,000
Stock options	'	'	'	'
Assumptions used to value stock options	'	'	'	'
Dividend yield (as a percent)	'	'	0.00%	0.00%
Expected volatility (as a percent)	'	'	70.90%	73.40%
Risk-free interest rate (as a percent)	'	'	0.50%	0.50%
Expected life	'	'	'3 years 6 months	'3 years 6 months
Number of Options	'	'	'	'
Outstanding at the beginning of the period (in shares)	2,140,293	'	'	'
Granted (in shares)	0	'	'	'
Exercised (in shares)	-462,166	'	'	'
Forfeited or expired (in shares)	-43,750	'	'	'
Outstanding at the end of the period (in shares)	1,634,377	'	1,634,377	'
Exercisable at the end of the period (in shares)	780,888	'	780,888	'
Weighted Average Exercise Price	'	'	'	'
Outstanding at the beginning of the period (in dollars per share)	$2.22	'	'	'
Granted (in dollars per share)	$0	'	'	'
Exercise price (in dollars per share)	$0.51	'	'	'
Forfeited or expired (in dollars per share)	$6.54	'	'	'
Outstanding at the end of the period (in dollars per share)	$2.59	'	$2.59	'
Exercisable at the end of the period (in dollars per share)	$2.26	'	$2.26	'
Weighted Average Remaining Term (in years)	'	'	'	'
Outstanding at the end of the period	'2 years 11 months 8 days	'	'	'
Exercisable at the end of the period	'1 year 4 months 20 days	'	'	'
Aggregate Intrinsic Value	'	'	'	'
Outstanding at the end of the period	654,000	'	654,000	'
Exercisable at the end of the period	572,000	'	572,000	'
Additional disclosures	'	'	'	'
Total intrinsic value of options exercised	'	'	1,566,000	358,000
Total unrecognized stock-based compensation expense	1,100,000	'	1,100,000	'
Weighted Average Fair Value	'	'	'	'
Weighted average period over which unrecognized compensation cost is expected to be recognized	'	'	'2 years 1 month 6 days	'
Restricted Shares	'	'	'	'
Shares	'	'	'	'
Outstanding at the beginning of the period (in shares)	'	'	1,606,460	'
Granted (in shares)	'	'	886,331	'
Vested (in shares)	'	'	-376,331	'
Forfeited (in shares)	'	'	-170,208	'
Outstanding at the end of the period (in shares)	1,946,252	'	1,946,252	'
Weighted Average Fair Value	'	'	'	'
Outstanding at the beginning of the period (in dollars per share)	'	'	$2.54	'
Granted (in dollars per share)	'	'	$1.87	'
Vested (in dollars per share)	'	'	$3.52	'
Forfeited (in dollars per share)	'	'	$3.10	'
Outstanding at the end of the period (in dollars per share)	$2	'	$2	'
Vesting period	'	'	'3 years	'
Total unrecognized stock-based compensation expense	$3,100,000	'	$3,100,000	'
Weighted average period over which unrecognized compensation cost is expected to be recognized	'	'	'1 year 7 months 6 days	'

STOCKHOLDERS_EQUITY_Details

STOCKHOLDERS' EQUITY (Details) (USD $)	9 Months Ended
STOCKHOLDERS' EQUITY (Details) (USD $)	Sep. 30, 2013
STOCKHOLDERS' EQUITY	'
Cumulative dividend on preferred stock (as a percent)	8.00%
Number of common shares into which one share of preferred stock is to be converted	0.5
Redemption price (in dollars per share)	$12
Shares to be issued as percentage of redemption price and any accrued and unpaid dividends	125.00%
Number of trading days considered for calculating the weighted average closing bid price at which preferred stock will be redeemed	'30 days
Maximum number of shares of common stock that the company, at its option, can issue for each one share of preferred stock redeemed	1.5
Percentage of conversion price that the entity's common stock must exceed to give the entity the right to redeem	133.00%
Minimum number of days within 30-day trading period in which the closing price of the entity's common stock must exceed the conversion price	'10 days
Number of trading days during which the closing bid price of the entity's common stock must exceed the conversion price	'30 days

EARNINGS_PER_SHARE_Details

EARNINGS PER SHARE (Details) (USD $)	3 Months Ended		9 Months Ended
In Thousands, except Share data, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Basic and diluted net earnings per share	'	'	'	'
Net earnings applicable to common shareholders	$14,656	$2,405	$26,664	$11,469
Weighted average shares outstanding - basic	72,424,626	71,178,903	72,235,047	71,089,212
Effect of dilutive securities - restricted stock	0	'	0	'
Effect of dilutive securities - stock options	194,107	861,490	190,803	937,933
Weighted average shares outstanding - diluted	72,618,733	72,040,393	72,425,850	72,027,145
Basic net earnings per share (in dollars per share)	$0.20	$0.03	$0.37	$0.16
Diluted net earnings per share (in dollars per share)	$0.20	$0.03	$0.37	$0.16
Convertible bonds and preferred stock	'	'	'	'
Earnings per share	'	'	'	'
Anti-dilutive securities (in shares)	'	'	38,072	52,093
Stock options and restricted stock	'	'	'	'
Earnings per share	'	'	'	'
Anti-dilutive securities (in shares)	'	'	2,910,907	1,644,817
Convertible debentures	'	'	'	'
Earnings per share	'	'	'	'
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	'	$50	'
Stock options	'	'	'	'
Earnings per share	'	'	'	'
Weighted average exercise price (in dollars per share)	$2.59	$2.88	$2.59	$2.88

LONGTERM_LIABILITIES_Details

LONG-TERM LIABILITIES (Details) (USD $)

9 Months Ended

0 Months Ended

9 Months Ended

Sep. 30, 2013

Dec. 31, 2012

Dec. 15, 2011

Sep. 30, 2013

31-May-13

Sep. 30, 2013

item

Line of Credit

Convertible debentures

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

Convertible debentures

1,636,000

Asset retirement obligations

26,286,000

25,236,000

Litigation allowance

3,100,000

Total long-term liabilities

125,522,000

129,472,000

Less current portion

1,386,000

1,790,000

Long-term portion

124,136,000

127,682,000

Long-term liabilities

Term of credit facility

'5 years

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

300,000,000

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

Initial borrowing base

145,000,000

Number of additional redetermination rights in each year

Credit line interest accrued, approximate

16,000

Borrowing base increased

94,500,000

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)

1.75%

2.75%

Additional margin (as a percent)

0.75%

1.75%

Weighted average interest rate (as a percent)

2.43%

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

Percentage of convertible bond issued and outstanding that the holders may tender each year

10.00%

Amount of bond redemptions

ASSET_RETIREMENT_OBLIGATION_De

ASSET RETIREMENT OBLIGATION (Details) (USD $)	9 Months Ended
ASSET RETIREMENT OBLIGATION (Details) (USD $)	Sep. 30, 2013
ASSET RETIREMENT OBLIGATION	'
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
Liabilities incurred in current year	1,037,000
Liabilities settled in current year	-1,647,000
Accretion expense	1,660,000
Balance at end of period	$26,286,000

CONTINGENCIES_Details

CONTINGENCIES (Details) (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	Sep. 30, 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

FAIR_VALUE_OF_FINANCIAL_INSTRU2

FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Fair value	'	'
Financial assets	'	'
Collateral security account	$3,165	$3,164
Financial liabilities	'	'
Fixed rate debentures	2,056	2,190
Line of credit	94,500	99,500
Carrying amount	'	'
Financial assets	'	'
Collateral security account	3,165	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) (Recurring, USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Level 1	'	'
Assets	'	'
Restricted investments in US Treasury Bonds - available for sale, at fair value	$1,347	$1,415
Level 2	'	'
Assets	'	'
Commodity derivatives	52	'
Liabilities	'	'
Commodity derivatives	99	952
Total	'	'
Assets	'	'
Restricted investments in US Treasury Bonds - available for sale, at fair value	1,347	1,415
Commodity derivatives	52	'
Liabilities	'	'
Commodity derivatives	$99	$952

DERIVATIVE_FINANCIAL_INSTRUMEN2

DERIVATIVE FINANCIAL INSTRUMENTS (Details) (Commodity derivatives)	Sep. 30, 2013
Oil \| Brent Swap \| 01/01/14 - 12/31/14	'
Derivative financial instruments	'
Volume in BBl or MMBtu per day	800
Price per Mcf or Bbl	102.12
Oil \| Brent Swap \| 10/01/13 - 09/30/14	'
Derivative financial instruments	'
Volume in BBl or MMBtu per day	700
Price per Mcf or Bbl	104.3
Natural Gas \| Swap \| 07/01/13 - 12/31/13	'
Derivative financial instruments	'
Volume in BBl or MMBtu per day	7,000
Price per Mcf or Bbl	3.39
Natural Gas \| Swap \| 01/01/14 - 12/31/14	'
Derivative financial instruments	'
Volume in BBl or MMBtu per day	7,000
Price per Mcf or Bbl	3.79
Natural Gas \| Swap \| 07/01/13 - 12/31/14	'
Derivative financial instruments	'
Volume in BBl or MMBtu per day	2,000
Price per Mcf or Bbl	4.18

DERIVATIVE_FINANCIAL_INSTRUMEN3

DERIVATIVE FINANCIAL INSTRUMENTS (Details 2) (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Amount of gains (losses) recognized in income from derivative instruments not designated as hedging instruments	'	'	'	'
Total	($1,205)	($3,383)	$491	($3,772)
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	-181	-688	-857	-1,542
Unrealized non-cash gain (loss) on hedges	-1,024	-2,695	1,348	-2,230
Total	($1,205)	($3,383)	$491	($3,772)

DERIVATIVE_FINANCIAL_INSTRUMEN4

DERIVATIVE FINANCIAL INSTRUMENTS (Details 3) (USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified	item	Dec. 31, 2012
Fair value of net derivatives	'	'
Derivative Assets, Non-current	$52	'
Derivative Liabilities, current	-99	-385
Derivative Liabilities, Non-current	'	-567
Derivative's Credit risk	'	'
Number of counterparties to the commodity derivative contracts	2	'
Commodity derivatives \| Not designated as hedging instruments	'	'
Fair value of net derivatives	'	'
Derivative Assets	52	'
Derivative Liabilities	-99	-952
Commodity derivatives \| Not designated as hedging instruments \| Oil	'	'
Fair value of net derivatives	'	'
Derivative Assets, Non-current	135	'
Derivative Liabilities, current	-180	72
Derivative Liabilities, Non-current	'	-567
Commodity derivatives \| Not designated as hedging instruments \| Natural Gas	'	'
Fair value of net derivatives	'	'
Derivative Assets, Non-current	-83	'
Derivative Liabilities, current	$81	($457)

INTEREST_AND_OTHER_INCOME_Deta

INTEREST 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