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Commodity Price Risk Management
 3 Months Ended
Mar. 31, 2013
Commodity Price Risk Management [Abstract]  
Commodity Price Risk Management
5)       Commodity Price Risk Management

Through our wholly-owned subsidiary Energy One, we have entered into commodity derivative contracts ("economic hedges") with BNP Paribas ("BNP") and Wells Fargo, as described below. The derivative contracts are priced using West Texas Intermediate ("WTI") quoted prices. The Company is a guarantor of Energy One's obligations under the economic hedges. The objective of utilizing the economic hedges is to reduce the effect of price changes on a portion of our future oil production, achieve more predictable cash flows in an environment of volatile oil and gas prices and to manage our exposure to commodity price risk. The use of these derivative instruments limits the downside risk of adverse price movements. However, there is a risk that such use may limit our ability to benefit from favorable price movements. Energy One may, from time to time, add incremental derivatives to hedge additional production, restructure existing derivative contracts or enter into new transactions to modify the terms of current contracts in order to realize the current value of its existing positions. The Company does not engage in speculative derivative activities or derivative trading activities, nor does it use derivatives with leveraged features.

Energy One's commodity derivative contracts as of March 31, 2013 are summarized below:

Quantity
Settlement Period
Counterparty
Basis
(Bbls/day)
Strike Price
Crude Oil Costless Collar
10/01/12 - 03/31/13
Wells Fargo
WTI
200
Put:
$85.00
Call:
$101.00
Crude Oil Costless Collar
01/01/13 - 06/30/13
Wells Fargo
WTI
200
Put:
$90.00
Call:
$105.75
Crude Oil Costless Collar
04/01/13 - 06/30/13
Wells Fargo
WTI
200
Put:
$90.00
Call:
$97.50
Crude Oil Costless Collar
10/01/12 - 09/30/13
BNP Paribas
WTI
200
Put:
$95.00
Call:
$116.60
Crude Oil Costless Collar
07/01/13 - 09/30/13
Wells Fargo
WTI
400
Put:
$90.00
Call:
$97.50
Crude Oil Costless Collar
10/01/13 - 12/31/13
Wells Fargo
WTI
600
Put:
$90.00
Call:
$97.50
Crude Oil Costless Collar
01/01/14 - 06/30/14
Wells Fargo
WTI
300
Put:
$90.00
Call:
$95.00
  The following table details the fair value of the derivatives recorded in the applicable condensed consolidated balance sheet, by category:
As of March 31, 2013
(in thousands)
Derivative Assets
Derivative Liabilities
Balance Sheet
Fair
Balance Sheet
Fair
Classification
Value
Classification
Value
Crude oil costless collars
Current Asset
$-
Current Liability
$145

Unrealized gains and losses resulting from derivatives are recorded at fair value on the condensed consolidated balance sheet and changes in fair value are recognized in the unrealized gain (loss) on risk management activities line on the condensed consolidated statement of operations. Realized gains and losses resulting from the contract settlement of derivatives are recorded in the commodity price risk management activities line on the condensed consolidated statement of income.