Warren Resources (WRES) Inactive 10-Q11 Aug 142014 Q2 Quarterly reportFinancial data

Company Profile

Document_and_Entity_Informatio

Document and Entity Information	6 Months Ended
Document and Entity Information	Jun. 30, 2014	Aug. 08, 2014
Document and Entity Information	'	'
Entity Registrant Name	'WARREN RESOURCES INC	'
Entity Central Index Key	'0000892986	'
Document Type	'10-Q	'
Document Period End Date	30-Jun-14	'
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	'	73,893,826
Document Fiscal Year Focus	'2014	'
Document Fiscal Period Focus	'Q2	'

CONSOLIDATED_BALANCE_SHEETS

CONSOLIDATED BALANCE SHEETS (USD $)	Jun. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Current Assets	'	'
Cash and cash equivalents	$1,754	$11,620
Accounts receivable - trade	15,107	21,874
Restricted investments in U.S. Treasury Bonds-available for sale, at fair value	138	131
Other current assets	2,370	1,859
Total current assets	19,369	35,484
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 $18,179 and $18,015 as of June 30, 2014 and December 31, 2013)	357,119	335,354
Property and equipment-at cost, net	18,790	18,772
Restricted investments in U.S. Treasury Bonds-available for sale, at fair value	1,242	1,183
Other assets	3,879	3,969
Derivative financial instruments	14	43
Total other assets	381,044	359,321
Total assets	400,413	394,805
Current Liabilities	'	'
Current maturities of debentures and other long-term liabilities	1,663	1,936
Accounts payable and accruals	36,864	39,174
Derivative financial instruments	2,872	3,517
Total current liabilities	41,399	44,627
Long-Term Liabilities	'	'
Revolving Loan Credit Facility	81,500	94,500
Other long-term liabilities, less current portion	29,799	28,113
Debentures, less current portion	1,472	1,472
Total noncurrent liabilities	112,771	124,085
Commitments and Contingencies	'	'
Stockholders' Equity	'	'
8% convertible preferred stock, par value $.0001; authorized 10,000,000 shares, issued and outstanding, 10,703 shares in 2014 and 2013 (aggregate liquidation preference $128 in 2014 and 2013)	128	128
Common stock - $.0001 par value; authorized, 100,000,000 shares; issued 73,684,750 shares in 2014 and 72,887,650 shares in 2013	7	7
Additional paid-in-capital	471,606	470,441
Accumulated deficit	-225,708	-244,673
Accumulated other comprehensive income, net of applicable income taxes of $138 in 2014 and $124 in 2013	210	190
Total stockholders' equity	246,243	226,093
Total liabilities and stockholders' equity	$400,413	$394,805

CONSOLIDATED_BALANCE_SHEETS_Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	6 Months Ended	12 Months Ended
In Thousands, except Share data, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
CONSOLIDATED BALANCE SHEETS	'	'
Oil and gas properties, unproved properties excluded from amortization (in dollars)	$18,179	$18,015
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	73,684,750	72,887,650
Accumulated other comprehensive income, applicable income taxes (in dollars)	$138	$124

CONSOLIDATED_STATEMENTS_OF_OPE

CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)	3 Months Ended		6 Months Ended
In Thousands, except Share data, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Operating revenues	'	'	'	'
Oil and gas sales	$33,572	$30,735	$66,451	$61,554
Transportation revenue	1,422	'	2,745	'
Total revenues	34,994	30,735	69,196	61,554
Operating expenses	'	'	'	'
Lease operating expense and taxes	9,208	8,330	18,710	18,126
Depreciation, depletion and amortization	10,535	11,810	20,889	23,381
Transportation expense	551	'	1,116	'
General and administrative	3,867	3,930	7,833	8,247
Total operating expenses	24,161	24,070	48,548	49,754
Income from operations	10,833	6,665	20,648	11,800
Other income (expense)	'	'	'	'
Interest and other income	2,228	16	2,362	31
Interest expense	-645	-724	-1,399	-1,474
Gain (loss) on derivative financial instruments	-1,668	3,260	-2,661	1,695
Total other income (expense)	-85	2,552	-1,698	252
Income before taxes	10,748	9,217	18,950	12,052
Deferred income tax expense (benefit)	-6	32	-14	39
Net income	10,754	9,185	18,964	12,013
Less dividends and accretion on preferred shares	2	2	5	5
Net income applicable to common stockholders	$10,752	$9,183	$18,959	$12,008
Earnings per share - Basic (in dollars per share)	$0.15	$0.13	$0.26	$0.17
Earnings per share - Diluted (in dollars per share)	$0.15	$0.13	$0.26	$0.17
Weighted average common shares outstanding - Basic (in shares)	73,651,858	72,283,896	73,379,507	72,138,686
Weighted average common shares outstanding - Diluted (in shares)	73,904,104	72,852,877	73,558,350	72,723,453

CONSOLIDATED_STATEMENTS_OF_COM

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $)	3 Months Ended		6 Months Ended
In Thousands, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME	'	'	'	'
Net income	$10,754	$9,185	$18,964	$12,013
Other comprehensive income	'	'	'	'
Gain (loss) on investments held for sale	9	-49	20	-60
Comprehensive income	$10,763	$9,136	$18,984	$11,953

CONSOLIDATED_STATEMENTS_OF_CAS

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	6 Months Ended
In Thousands, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2013
Cash flows from operating activities:	'	'
Net income	$18,964	$12,013
Adjustments to reconcile net income to net cash provided by operating activities:	'	'
Accretion of discount on available-for-sale debt securities	-32	-30
Amortization of deferred offering costs	113	106
Depreciation, depletion and amortization	20,889	23,381
Change in fair value of derivative financial instruments	-617	-2,156
Stock option expense	1,069	945
Deferred tax (benefit) expense	-14	39
Change in assets and liabilities:	'	'
Decrease (increase) in accounts receivable-trade	6,767	-1,489
Increase in other assets	-510	-869
(Decrease) increase in accounts payable and accruals	-7,018	1,666
Decrease in other long-term liabilities	-260	-1,194
Net cash provided by operating activities	39,351	32,412
Cash flows from investing activities:	'	'
Purchase, exploration and development of oil and gas properties	-35,312	-22,113
Purchase of property and equipment	-982	-1,766
Net cash used in investing activities	-36,294	-23,879
Cash flows from financing activities:	'	'
Proceeds from line of credit	14,500	'
Payments on debt and debentures	-27,525	-10,017
Proceeds from the exercise of stock options	102	361
Net cash used in financing activities	-12,923	-9,656
Net decrease in cash and cash equivalents	-9,866	-1,123
Cash and cash equivalents at beginning of period	11,620	8,475
Cash and cash equivalents at end of period	1,754	7,352
Supplemental disclosure of cash flow information	'	'
Cash paid for interest, net of amounts capitalized	1,335	1,347
Noncash investing and financing activities	'	'
Accrued preferred stock dividend	$5	$5

ORGANIZATION

ORGANIZATION	6 Months Ended
ORGANIZATION	Jun. 30, 2014
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 June 30, 2014 and December 31, 2013, the consolidated results of operations for the three and six months ended June 30, 2014 and 2013, the consolidated statements of comprehensive income for the three and six months ended June 30, 2014 and 2013 and consolidated cash flows for the six months ended June 30, 2014 and 2013. 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 six months ended June 30, 2014 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2014. 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, 2013. These interim financial statements and notes thereto should be read in conjunction with the consolidated financial statements presented in the Company’s 2013 Annual Report on Form 10-K.

STOCK_BASED_COMPENSATION

STOCK BASED COMPENSATION	6 Months Ended
STOCK BASED COMPENSATION	Jun. 30, 2014
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 and $0.6 million for the three months ended June 30, 2014 and June 30, 2013, respectively, and approximately $1.1 and $0.9 million for the six months ending June 30, 2014 and June 30, 2013, respectively.

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

		Six months ended June 30,
		2014		2013
	Dividend yield	0	%	0	%
	Expected volatility	52.8	%	70.9	%
	Risk-free interest rate	1	%	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 March 31, 2014	1,485,321		$	3.35
	Granted	290,810		4.84
	Exercised	(59,949	)	2.66
	Forfeited or expired	(5,000	)	2.75
	Outstanding at June 30, 2014	1,711,182		$	3.63	3.63	$	4,398
	Exercisable at June 30, 2014	525,239		$	2.86	1.93	$	1,755

	The total intrinsic value of options exercised during the six months ended June 30, 2014 and 2013 were approximately $1.0 million and $461,000 respectively.

	As of June 30, 2014 total unrecognized stock-based compensation expense related to non-vested stock options was approximately $2.0 million, which we expect to recognize over a weighted average period of 1.9 years.

	Restricted Shares

	Restricted share activity for the six months ended June 30, 2014 was as follows:

		Shares		Weighted
				Average
				Fair Value

	Outstanding at December 31, 2013	1,898,133		$	1.97
	Granted	225,296		4.62
	Vested	(511,527	)	2.81
	Forfeited	(25,399	)	2.89
	Outstanding at June 30, 2014	1,586,503		$	2.06

	Restricted stock awards for executive officers and employees generally 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 June 30, 2014, total unrecognized stock-based compensation expense related to non-vested restricted shares was $2.8 million, which is expected to be recognized over a weighted average period of approximately 1.3 years.

STOCKHOLDERS_EQUITY

STOCKHOLDERS' EQUITY	6 Months Ended
STOCKHOLDERS' EQUITY	Jun. 30, 2014
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	6 Months Ended
	Jun. 30, 2014
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 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 six months ended June 30, 2014 and 2013 of 38,072 and 38,072, 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 2,392,313 and 2,794,021 relating to stock options and restricted stock were excluded from the computation of diluted earnings per share for the six months ended June 30, 2014 and 2013, respectively, because they are anti-dilutive. At June 30, 2014 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 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		Six Months		Six Months
		Ended		Ended		Ended		Ended
		June 30,		June 30,		June 30,		June 30,
		2014		2013		2014		2013
		(in thousands, except for per				(in thousands, except for per
		share data)				share data)

	Net earnings applicable to common shareholders	$	10,752	$	9,183	$	18,959	$	12,008

	Weighted average shares outstanding — basic	73,651,858		72,283,896		73,379,507		72,138,686
	Effect of dilutive securities — restricted stock	—		11,822		—		15,592
	Effect of dilutive securities — stock options	252,246		557,159		178,843		569,175

	Weighted average shares outstanding - diluted	73,904,104		72,852,877		73,558,350		72,723,453

	Basic net earnings per share	$	0.15	$	0.13	$	0.26	$	0.17
	Diluted net earnings per share	$	0.15	$	0.13	$	0.26	$	0.17

LONGTERM_LIABILITIES

LONG-TERM LIABILITIES	6 Months Ended
	Jun. 30, 2014
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:

		June 30,		December 31,
		2014		2013
		(in thousands)

	Line of Credit	$	81,500	$	94,500
	Convertible debentures	1,636		1,636
	Asset retirement obligations	28,198		26,785
	Litigation allowance	3,100		3,100
		114,434		126,021
	Less current portion	1,663		1,936
	Long-term portion	$	112,771	$	124,085

	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 2014, the borrowing base was increased to $175 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 $121,000 was accrued as of June 30, 2014. As of June 30, 2014 the Company has $81.5 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 June 30, 2014.

	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 June 30, 2014, was 2.41%.

	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 three months ended June 30, 2014, there were no bond redemptions.

ASSET_RETIREMENT_OBLIGATION

ASSET RETIREMENT OBLIGATION	6 Months Ended
	Jun. 30, 2014
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:

		June 30, 2014
		(in thousands)
	Balance at beginning of period	$	26,785
	Liabilities incurred in current period	431
	Liabilities settled in current period	(260		)
	Accretion expense	1,242
	Balance at end of period	$	28,198

CONTINGENCIES

CONTINGENCIES	6 Months Ended
CONTINGENCIES	Jun. 30, 2014
CONTINGENCIES	'
CONTINGENCIES	'
	NOTE G—CONTINGENCIES

	The following information should be read in conjunction with the discussion set forth under Part I, Item 3. “Legal Proceedings” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2013.

	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 (‘‘Gotham’’) 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 trial court awarded Gotham $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 and, on March 21, 2014, ordered that the case be remanded to the Court of Appeals for reconsideration on the merits of Gotham’s potential contractual claims for reimbursement. On April 7, 2014, Gotham filed a motion for rehearing asking the Court to reconsider its ruling. On June 20, 2014, the Court denied Gotham’s motion for rehearing and issued a mandate returning the case to the El Paso Court of Appeals. On July 15, 2014, the case was returned to the El Paso Court of Appeals.

	We are party to a variety of legal, administrative, regulatory and government proceedings, claims and inquiries arising in the normal course of business. While the results of these proceedings, claims and inquiries cannot be predicted with certainty, management believes that the ultimate outcome of such matters will not have a material effect on the Company’s financial condition or results of operations. See “Item 1. Business — Regulation and Environmental Matters” and “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2013.

FAIR_VALUE_OF_FINANCIAL_INSTRU

FAIR VALUE OF FINANCIAL INSTRUMENTS	6 Months Ended
	Jun. 30, 2014
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

			June 30, 2014						December 31, 2013
			Fair			Carrying			Fair			Carrying
			value			amount			value			amount
			(in thousands)
	Financial assets
	Collateral security account		$	3,164		$	3,164		$	3,166		$	3,166
	Financial liabilities
	Fixed rate debentures		$	2,885		$	1,636		$	2,035		$	1,636
	Line of credit		81,500			81,500			94,500			94,500

	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.

	June 30, 2014

			Level 1			Level 2			Level 3			Total
			(in thousands)
	Assets
	Restricted investments in US Treasury Bonds — available for sale, at fair value		$	1,380		$	—		$	—		$	1,380
	Commodity derivatives		—			14			—			14


			Level 1			Level 2			Level 3			Total
			(in thousands)
	Liabilities
	Commodity derivatives		$	—		$	2,872		$	—		$	2,872


	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		—			43			—			43


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

DERIVATIVE_FINANCIAL_INSTRUMEN

DERIVATIVE FINANCIAL INSTRUMENTS

6 Months Ended

Jun. 30, 2014

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. 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 June 30, 2014, 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 both BRENT and NYMEX (for oil production) index price, settled monthly.

Product

Type

Contract Period

Volume

Price per

Mcf or Bbl

BRENT Oil

Swap

07/01/14 - 12/31/14

800 Bbl/d

102.12

BRENT Oil

Swap

07/01/14 - 09/30/14

700 Bbl/d

104.3

NYMEX Oil

Swap

10/01/14 - 12/31/14

300 Bbl/d

101.67

NYMEX Gas

Swap

07/01/14 - 12/31/14

7,000 MMBtu/d

3.79

NYMEX Gas

Swap

07/01/14 - 12/31/14

2,000 MMBtu/d

4.18

NYMEX Gas

Swap

07/01/14 - 12/31/14

3,000 MMBtu/d

4.27

NYMEX Gas

Swap

01/01/15 - 12/31/15

3,000 MMBtu/d

4.18

NYMEX Gas

Swap

07/01/14 - 12/31/14

6,000 MMBtu/d

0.2

*This represents a differential spread between NYMEX and CIG pricing.

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 Six Months

Hedging Instrument under

Ended June 30,

authoritative guidance

2014

2013

2014

2013

(in thousands)

Realized cash settlements on hedges

(1,477

)

(509

)

(3,278

)

(677

)

Unrealized gain (loss) on hedges

(191

)

3,769

617

2,372

Total

(1,668

)

3,260

(2,661

)

1,695

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

June 30, 2014

Derivative Assets

(in thousands)

Balance Sheet

Fair Value

Location

Commodity—Natural Gas

Non-current

Total derivatives not designated as hedging instruments

June 30, 2014

Derivative Liabilities

(in thousands)

Balance Sheet

Fair Value

Location

Commodity—Oil

current

(1,829

)

Commodity—Natural Gas

current

(1,043

)

Total derivatives not designated as hedging instruments

(2,872

)

December 31, 2013

Derivative Assets

(in thousands)

Balance Sheet

Fair Value

Location

Commodity—Natural Gas

Non-current

Total derivatives not designated as hedging instruments

December 31, 2013

Derivative Liabilities

(in thousands)

Balance Sheet

Fair Value

Location

Commodity—Oil

current

(2,709

)

Commodity—Natural Gas

current

(808

)

Total derivatives not designated as hedging instruments

(3,517

)

Derivatives 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 June 30, 2014, the counterparties to the Company’s commodity derivative contracts consisted of two financial institutions which are also lenders under the Company’s Senior Credit Agreement and share in the collateral supporting the 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	6 Months Ended
INCOME TAXES	Jun. 30, 2014
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.

RECENTLY_ISSUED_ACCOUNTING_STA

RECENTLY ISSUED ACCOUNTING STANDARDS	6 Months Ended
RECENTLY ISSUED ACCOUNTING STANDARDS	Jun. 30, 2014
RECENTLY ISSUED ACCOUNTING STANDARDS	'
RECENTLY ISSUED ACCOUNTING STANDARDS	'
	NOTE K — RECENTLY ISSUED ACCOUNTING STANDARDS

	In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”). The objective of ASU 2014-09 is to clarify the principles for recognizing revenue and to develop a common revenue standard for U.S. GAAP and International Financial Reporting Standards. ASU 2014-09 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. The Company is currently evaluating the impact of adopting ASU 2014-09, but the standard is not expected to have a significant effect on its consolidated financial statements.

RECENT_DEVELOPMENTS

RECENT DEVELOPMENTS	6 Months Ended
RECENT DEVELOPMENTS	Jun. 30, 2014
RECENT DEVELOPMENTS	'
RECENT DEVELOPMENTS	'
	NOTE L — RECENT DEVELOPMENTS

	On July 7, 2014, we agreed to acquire essentially all of the Marcellus assets (the ‘‘Marcellus Assets’’) of Citrus Energy Corporation (‘‘Citrus’’) and two other working interest owners in exchange for approximately 6.7 million shares of our common stock valued at $40 million and cash consideration of $312.5 million, subject to certain post-closing adjustments and certain closing conditions (the ‘‘Citrus Acquisition’’). The Citrus Acquisition will provide us a new area of operations in the Marcellus Shale in Pennsylvania in addition to our existing California and Wyoming assets. We completed the Citrus Acquisition on August 11, 2014.

	In addition, we entered into a five-year, Third Amended and Restated Credit Agreement with Bank of Montreal, as Administrative Agent (the “Amended Credit Facility”) in connection with the Citrus Acquisition on August 11, 2014, which provides for a maximum credit amount of $750 million and an initial borrowing base of $225 million. Other than the maximum credit amount and the initial borrowing base, the terms of our Amended Credit Facility are substantially similar to the terms of our Existing Credit Facility.

STOCK_BASED_COMPENSATION_Table

STOCK BASED COMPENSATION (Tables)	6 Months Ended
STOCK BASED COMPENSATION (Tables)	Jun. 30, 2014
STOCK BASED COMPENSATION	'
Schedule of assumptions used to value stock options calculated using the Black-Scholes options pricing model	'

		Six months ended June 30,
		2014		2013
	Dividend yield	0	%	0	%
	Expected volatility	52.8	%	70.9	%
	Risk-free interest rate	1	%	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 March 31, 2014	1,485,321		$	3.35
	Granted	290,810		4.84
	Exercised	(59,949	)	2.66
	Forfeited or expired	(5,000	)	2.75
	Outstanding at June 30, 2014	1,711,182		$	3.63	3.63	$	4,398
	Exercisable at June 30, 2014	525,239		$	2.86	1.93	$	1,755
Schedule of restricted share activity	'

		Shares		Weighted
				Average
				Fair Value

	Outstanding at December 31, 2013	1,898,133		$	1.97
	Granted	225,296		4.62
	Vested	(511,527	)	2.81
	Forfeited	(25,399	)	2.89
	Outstanding at June 30, 2014	1,586,503		$	2.06

EARNINGS_PER_SHARE_Tables

EARNINGS PER SHARE (Tables)	6 Months Ended
	Jun. 30, 2014
EARNINGS PER SHARE	'
Schedule of computation of basic and diluted net earnings per share	'

		Three Months		Three Months		Six Months		Six Months
		Ended		Ended		Ended		Ended
		June 30,		June 30,		June 30,		June 30,
		2014		2013		2014		2013
		(in thousands, except for per				(in thousands, except for per
		share data)				share data)

	Net earnings applicable to common shareholders	$	10,752	$	9,183	$	18,959	$	12,008

	Weighted average shares outstanding — basic	73,651,858		72,283,896		73,379,507		72,138,686
	Effect of dilutive securities — restricted stock	—		11,822		—		15,592
	Effect of dilutive securities — stock options	252,246		557,159		178,843		569,175

	Weighted average shares outstanding - diluted	73,904,104		72,852,877		73,558,350		72,723,453

	Basic net earnings per share	$	0.15	$	0.13	$	0.26	$	0.17
	Diluted net earnings per share	$	0.15	$	0.13	$	0.26	$	0.17

LONGTERM_LIABILITIES_Tables

LONG-TERM LIABILITIES (Tables)	6 Months Ended
	Jun. 30, 2014
LONG-TERM LIABILITIES	'
Schedule of long-term liabilities, excluding derivative financial instruments	'

		June 30,		December 31,
		2014		2013
		(in thousands)

	Line of Credit	$	81,500	$	94,500
	Convertible debentures	1,636		1,636
	Asset retirement obligations	28,198		26,785
	Litigation allowance	3,100		3,100
		114,434		126,021
	Less current portion	1,663		1,936
	Long-term portion	$	112,771	$	124,085

ASSET_RETIREMENT_OBLIGATION_Ta

ASSET RETIREMENT OBLIGATION (Tables)	6 Months Ended
	Jun. 30, 2014
ASSET RETIREMENT OBLIGATION	'
Schedule of reconciliation of the Company's asset retirement obligations	'

		June 30, 2014
		(in thousands)
	Balance at beginning of period	$	26,785
	Liabilities incurred in current period	431
	Liabilities settled in current period	(260		)
	Accretion expense	1,242
	Balance at end of period	$	28,198

FAIR_VALUE_OF_FINANCIAL_INSTRU1

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)	6 Months Ended
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)	Jun. 30, 2014
FAIR VALUE OF FINANCIAL INSTRUMENTS	'
Schedule of carrying amount and estimated fair value of financial instruments	'

		June 30, 2014				December 31, 2013
		Fair		Carrying		Fair		Carrying
		value		amount		value		amount
		(in thousands)
	Financial assets
	Collateral security account	$	3,164	$	3,164	$	3,166	$	3,166
	Financial liabilities
	Fixed rate debentures	$	2,885	$	1,636	$	2,035	$	1,636
	Line of credit	81,500		81,500		94,500		94,500
Schedule of assets and liabilities, including both current and non-current portions, measured at fair value on a recurring basis	'
	June 30, 2014

		Level 1		Level 2		Level 3		Total
		(in thousands)
	Assets
	Restricted investments in US Treasury Bonds — available for sale, at fair value	$	1,380	$	—	$	—	$	1,380
	Commodity derivatives	—		14		—		14


		Level 1		Level 2		Level 3		Total
		(in thousands)
	Liabilities
	Commodity derivatives	$	—	$	2,872	$	—	$	2,872


	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	—		43		—		43


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

DERIVATIVE_FINANCIAL_INSTRUMEN1

DERIVATIVE FINANCIAL INSTRUMENTS (Tables)

6 Months Ended

Jun. 30, 2014

DERIVATIVE FINANCIAL INSTRUMENTS

Summary of open financial derivative positions related to oil and gas production

Product

Type

Contract Period

Volume

Price per

Mcf or Bbl

BRENT Oil

Swap

07/01/14 - 12/31/14

800 Bbl/d

102.12

BRENT Oil

Swap

07/01/14 - 09/30/14

700 Bbl/d

104.3

NYMEX Oil

Swap

10/01/14 - 12/31/14

300 Bbl/d

101.67

NYMEX Gas

Swap

07/01/14 - 12/31/14

7,000 MMBtu/d

3.79

NYMEX Gas

Swap

07/01/14 - 12/31/14

2,000 MMBtu/d

4.18

NYMEX Gas

Swap

07/01/14 - 12/31/14

3,000 MMBtu/d

4.27

NYMEX Gas

Swap

01/01/15 - 12/31/15

3,000 MMBtu/d

4.18

NYMEX Gas

Swap

07/01/14 - 12/31/14

6,000 MMBtu/d

0.2

*This represents a differential spread between NYMEX and CIG pricing.

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 Six Months

Hedging Instrument under

Ended June 30,

authoritative guidance

2014

2013

2014

2013

(in thousands)

Realized cash settlements on hedges

(1,477

)

(509

)

(3,278

)

(677

)

Unrealized gain (loss) on hedges

(191

)

3,769

617

2,372

Total

(1,668

)

3,260

(2,661

)

1,695

Schedule of fair value and balance sheet location of net derivatives

June 30, 2014

Derivative Assets

(in thousands)

Balance Sheet

Fair Value

Location

Commodity—Natural Gas

Non-current

Total derivatives not designated as hedging instruments

June 30, 2014

Derivative Liabilities

(in thousands)

Balance Sheet

Fair Value

Location

Commodity—Oil

current

(1,829

)

Commodity—Natural Gas

current

(1,043

)

Total derivatives not designated as hedging instruments

(2,872

)

December 31, 2013

Derivative Assets

(in thousands)

Balance Sheet

Fair Value

Location

Commodity—Natural Gas

Non-current

Total derivatives not designated as hedging instruments

December 31, 2013

Derivative Liabilities

(in thousands)

Balance Sheet

Fair Value

Location

Commodity—Oil

current

(2,709

)

Commodity—Natural Gas

current

(808

)

Total derivatives not designated as hedging instruments

(3,517

)

STOCK_BASED_COMPENSATION_Detai

STOCK BASED COMPENSATION (Details) (USD $)	3 Months Ended		6 Months Ended
STOCK BASED COMPENSATION (Details) (USD $)	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Stockholders' equity	'	'	'	'
Compensation expense related to stock options and restricted stock awards	$500,000	$600,000	$1,100,000	$900,000
Stock options	'	'	'	'
Weighted-average assumptions used to value stock options	'	'	'	'
Dividend yield (as a percent)	'	'	0.00%	0.00%
Expected volatility (as a percent)	'	'	52.80%	70.90%
Risk-free interest rate (as a percent)	'	'	1.00%	0.50%
Expected life	'	'	'3 years 6 months	'3 years 6 months
Number of Options	'	'	'	'
Outstanding at the beginning of the period (in shares)	1,485,321	'	'	'
Granted (in shares)	290,810	'	'	'
Exercised (in shares)	-59,949	'	'	'
Forfeited or expired (in shares)	-5,000	'	'	'
Outstanding at the end of the period (in shares)	1,711,182	'	1,711,182	'
Exercisable at the end of the period (in shares)	525,239	'	525,239	'
Weighted Average Exercise Price	'	'	'	'
Outstanding at the beginning of the period (in dollars per share)	$3.35	'	'	'
Granted (in dollars per share)	$4.84	'	'	'
Exercise price (in dollars per share)	$2.66	'	'	'
Forfeited or expired (in dollars per share)	$2.75	'	'	'
Outstanding at the end of the period (in dollars per share)	$3.63	'	$3.63	'
Exercisable at the end of the period (in dollars per share)	$2.86	'	$2.86	'
Weighted Average Remaining Term (in years)	'	'	'	'
Outstanding at the end of the period	'3 years 7 months 17 days	'	'	'
Exercisable at the end of the period	'1 year 11 months 5 days	'	'	'
Aggregate Intrinsic Value	'	'	'	'
Outstanding at the end of the period	4,398,000	'	4,398,000	'
Exercisable at the end of the period	1,755,000	'	1,755,000	'
Additional disclosures	'	'	'	'
Total intrinsic value of options exercised	'	'	1,000,000	461,000
Total unrecognized stock-based compensation expense	2,000,000	'	2,000,000	'
Weighted Average Fair Value	'	'	'	'
Weighted average period over which unrecognized compensation cost is expected to be recognized	'	'	'1 year 10 months 24 days	'
Restricted Shares	'	'	'	'
Shares	'	'	'	'
Outstanding at the beginning of the period (in shares)	'	'	1,898,133	'
Granted (in shares)	'	'	225,296	'
Vested (in shares)	'	'	-511,527	'
Forfeited (in shares)	'	'	-25,399	'
Outstanding at the end of the period (in shares)	1,586,503	'	1,586,503	'
Weighted Average Fair Value	'	'	'	'
Outstanding at the beginning of the period (in dollars per share)	'	'	$1.97	'
Granted (in dollars per share)	'	'	$4.62	'
Vested (in dollars per share)	'	'	$2.81	'
Forfeited (in dollars per share)	'	'	$2.89	'
Outstanding at the end of the period (in dollars per share)	$2.06	'	$2.06	'
Vesting period	'	'	'3 years	'
Total unrecognized stock-based compensation expense	$2,800,000	'	$2,800,000	'
Weighted average period over which unrecognized compensation cost is expected to be recognized	'	'	'1 year 3 months 18 days	'

STOCKHOLDERS_EQUITY_Details

STOCKHOLDERS' EQUITY (Details) (USD $)	6 Months Ended	12 Months Ended
STOCKHOLDERS' EQUITY (Details) (USD $)	Jun. 30, 2014	Dec. 31, 2013
STOCKHOLDERS' EQUITY	'	'
Cumulative dividend on preferred stock (as a percent)	8.00%	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		6 Months Ended
In Thousands, except Share data, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Basic and diluted net earnings per share	'	'	'	'
Net earnings applicable to common shareholders	$10,752	$9,183	$18,959	$12,008
Weighted average shares outstanding - basic	73,651,858	72,283,896	73,379,507	72,138,686
Effect of dilutive securities - restricted stock	'	11,822	'	15,592
Effect of dilutive securities - stock options	252,246	557,159	178,843	569,175
Weighted average shares outstanding - diluted	73,904,104	72,852,877	73,558,350	72,723,453
Basic net earnings per share (in dollars per share)	$0.15	$0.13	$0.26	$0.17
Diluted net earnings per share (in dollars per share)	$0.15	$0.13	$0.26	$0.17
Convertible bonds and preferred stock	'	'	'	'
Earnings per share	'	'	'	'
Anti-dilutive securities (in shares)	'	'	38,072	38,072
Stock options and restricted stock	'	'	'	'
Earnings per share	'	'	'	'
Anti-dilutive securities (in shares)	'	'	2,392,313	2,794,021
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	'

LONGTERM_LIABILITIES_Details

LONG-TERM LIABILITIES (Details) (USD $)

3 Months Ended

6 Months Ended

1 Months Ended

6 Months Ended

Jun. 30, 2014

Dec. 31, 2013

Dec. 31, 2011

Jun. 30, 2014

31-May-14

Dec. 15, 2011

Jun. 30, 2014

Line of Credit

Convertible debentures

item

LIBOR

Base Rate

Prime rate

Federal Funds rate

Minimum

Maximum

LIBOR

Federal Funds rate

LIBOR

Federal Funds rate

LONG-TERM LIABILITIES

Line of Credit

$81,500,000

$94,500,000

Convertible debentures

1,636,000

Asset retirement obligations

28,198,000

26,785,000

Litigation allowance

3,100,000

Total long-term liabilities

114,434,000

126,021,000

Less current portion

1,663,000

1,936,000

Long-term portion

112,771,000

124,085,000

Long-term liabilities

Term of credit facility

'5 years

Maximum borrowing capacity

300,000,000

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

Initial borrowing base

175,000,000

Number of additional redetermination rights in each year

Credit line interest accrued, approximate

121,000

Borrowing base increased

14,500,000

81,500,000

Current ratio

Annualized consolidated EBITDAX to net interest expense ratio

2.5

Variable rate basis

'LIBOR

'Base Rate

'Prime rate

'Federal Funds

Margin (as a percent)

0.50%

1.75%

2.75%

Additional margin (as a percent)

0.75%

1.75%

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

Weighted average interest rate (as a percent)

2.41%

ASSET_RETIREMENT_OBLIGATION_De

ASSET RETIREMENT OBLIGATION (Details) (USD $)	6 Months Ended
ASSET RETIREMENT OBLIGATION (Details) (USD $)	Jun. 30, 2014
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 period	26,785,000
Liabilities incurred in current period	431,000
Liabilities settled in current period	-260,000
Accretion expense	1,242,000
Balance at end of period	$28,198,000

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
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	'	'	'

FAIR_VALUE_OF_FINANCIAL_INSTRU2

FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) (USD $)	Jun. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Fair value	'	'
Financial assets	'	'
Collateral security account	$3,164	$3,166
Financial liabilities	'	'
Fixed rate debentures	2,885	2,035
Line of credit	81,500	94,500
Carrying amount	'	'
Financial assets	'	'
Collateral security account	3,164	3,166
Financial liabilities	'	'
Fixed rate debentures	1,636	1,636
Line of credit	$81,500	$94,500

FAIR_VALUE_OF_FINANCIAL_INSTRU3

FAIR VALUE OF FINANCIAL INSTRUMENTS (Details 2) (Recurring, USD $)	Jun. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Level 1	'	'
Assets	'	'
Restricted investments in US Treasury Bonds - available for sale, at fair value	$1,380	$1,314
Level 2	'	'
Assets	'	'
Commodity derivatives	14	43
Liabilities	'	'
Commodity derivatives	2,872	3,517
Total	'	'
Assets	'	'
Restricted investments in US Treasury Bonds - available for sale, at fair value	1,380	1,314
Commodity derivatives	14	43
Liabilities	'	'
Commodity derivatives	$2,872	$3,517

DERIVATIVE_FINANCIAL_INSTRUMEN2

DERIVATIVE FINANCIAL INSTRUMENTS (Details) (Commodity derivatives)	Jun. 30, 2014
Oil \| BRENT Swap \| 07/01/14 - 12/31/14	'
Derivative financial instruments	'
Volume in BBl or MMBtu per day	800
Price per Mcf or Bbl	102.12
Oil \| BRENT Swap \| 07/01/14 - 09/30/14	'
Derivative financial instruments	'
Volume in BBl or MMBtu per day	700
Price per Mcf or Bbl	104.3
Oil \| NYMEX swap \| 10/01/14 - 12/31/14	'
Derivative financial instruments	'
Volume in BBl or MMBtu per day	300
Price per Mcf or Bbl	101.67
Natural Gas \| NYMEX swap \| 07/01/14 - 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 \| 07/01/14 - 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 \| 07/01/14 - 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
Natural Gas \| NYMEX swap \| 07/01/14 - 12/31/14, period five	'
Derivative financial instruments	'
Volume in BBl or MMBtu per day	6,000
Price per Mcf or Bbl	0.2

DERIVATIVE_FINANCIAL_INSTRUMEN3

DERIVATIVE FINANCIAL INSTRUMENTS (Details 2) (USD $)	3 Months Ended		6 Months Ended
In Thousands, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Amount of gains (losses) recognized in income from derivative instruments not designated as hedging instruments	'	'	'	'
Total	($1,668)	$3,260	($2,661)	$1,695
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	-1,477	-509	-3,278	-677
Unrealized gain (loss) on hedges	-191	3,769	617	2,372
Total	($1,668)	$3,260	($2,661)	$1,695

DERIVATIVE_FINANCIAL_INSTRUMEN4

DERIVATIVE FINANCIAL INSTRUMENTS (Details 3) (USD $)	Jun. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified	item	Dec. 31, 2013
Fair value of net derivatives	'	'
Derivative Assets, Non-current	$14	$43
Derivative Liabilities, current	-2,872	-3,517
Derivatives 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	14	43
Derivative Liabilities	-2,872	-3,517
Commodity derivatives \| Not designated as hedging instruments \| Oil	'	'
Fair value of net derivatives	'	'
Derivative Liabilities, current	-1,829	-2,709
Commodity derivatives \| Not designated as hedging instruments \| Natural Gas	'	'
Fair value of net derivatives	'	'
Derivative Assets, Non-current	14	43
Derivative Liabilities, current	($1,043)	($808)

RECENT_DEVELOPMENTS_Details

RECENT DEVELOPMENTS (Details) (USD $)	1 Months Ended			0 Months Ended
In Millions, unless otherwise specified	Dec. 31, 2011	31-May-14	Dec. 15, 2011	Aug. 11, 2014	Jul. 07, 2014
	Line of Credit	Line of Credit	Line of Credit	Subsequent event	Subsequent event
				Line of Credit	Citrus Acquisition
					item
Recent developments	'	'	'	'	'
Number of other working interest owners acquired	'	'	'	'	2
Common stock issued for acquisition (in shares)	'	'	'	'	6.7
Common stock issued for acquisition	'	'	'	'	$40
Cash consideration	'	'	'	'	312.5
Term of credit facility	'5 years	'	'	'5 years	'
Maximum borrowing capacity	'	'	300	750	'
Initial borrowing base	'	$175	'	$225	'