STOCKHOLDERS' EQUITY	3 Months Ended
Mar. 31, 2019
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY	11. STOCKHOLDERS’ EQUITY Common Stock On February 9, 2018, the Company sold 9.2 million shares of common stock, par value $0.0001 per share, in a public offering at a price of $6.90 per share. The net proceeds to the Company from the offering were approximately $60.4 million, after deducting the underwriters’ discounts and offering expenses. The Company used the net proceeds, together with the net proceeds from the issuance of the Additional 2025 Notes, to fund the cash consideration for the acquisition of the West Quito Draw Properties, and for general corporate purposes, including funding the Company’s 2018 drilling program. Warrants On September 9, 2016, the Company issued 4.7 million new warrants. The warrants can be exercised to purchase 4.7 million shares of the Company’s common stock at an exercise price of $14.04 per share. The holders are entitled to exercise the warrants in whole or in part at any time prior to expiration on September 9, 2020. Incentive Plans On September 9, 2016, the Company’s board of directors adopted the 2016 Long-Term Incentive Plan (the Plan). An aggregate of 10.0 million shares of the Company’s common stock were available for grant pursuant to awards under the Plan. On April 6, 2017, Amendment No. 1 to the Plan to increase, by 9.0 million shares, the maximum number of shares of common stock that may be issued thereunder, i.e., a maximum of 19.0 million shares, became effective, which was 20 calendar days following the date the Company mailed an information statement to all stockholders of record notifying them of approval of the amendment by written consent of holders of a majority of the Company’s outstanding stock. As of March 31, 2019 and December 31, 2018, a maximum of 1.1 million and 4.9 million shares, respectively of the Company’s common stock remained reserved for issuance under the Plan. The Company accounts for stock-based payment accruals under authoritative guidance on stock compensation. The guidance requires all stock-based payments to employees and directors, including grants of stock options and restricted stock, to be recognized in the financial statements based on their fair values. The Company has elected to not apply a forfeiture estimate and will recognize a credit in compensation expense to the extent awards are forfeited. For the three months ended March 31, 2019 and 2018 the Company recognized a credit of $6.8 million and expense of $3.6 million, respectively, related to stock-based compensation. Stock-based compensation expense is recorded as a component of “General and administrative” on the unaudited condensed consolidated statements of operations. During the three months ended March 31, 2019, four senior executives departed the Company. In accordance with the terms of these senior executives’ employment agreements, unvested stock options and unvested shares of restricted stock were modified to vest immediately upon termination. For the three months ended March 31, 2019, the Company recognized an incremental reduction to stock-based compensation expense of $8.4 million associated with these modifications. Stock Options From time to time, the Company grants stock options under the Plan covering shares of common stock to employees of the Company. Stock options, when exercised, are settled through the payment of the exercise price in exchange for new shares of stock underlying the option. These awards typically vest over a three year period at a rate of one-third on the annual anniversary date of the grant and expire ten years from the grant date. No stock options were granted during the three months ended March 31, 2019. At March 31, 2019, the Company had $1.5 million of unrecognized compensation expense related to non-vested stock options to be recognized over a weighted-average period of 0.8 years. During the three months ended March 31, 2018, the Company granted stock options under the Plan covering 1.2 million shares of common stock to employees of the Company. These stock options have an exercise price of $5.65 per share. During the three months ended March 31, 2018, the Company received $0.3 million from the exercise of stock options. At March 31, 2018, the Company had $13.1 million of unrecognized compensation expense related to non-vested stock options to be recognized over a weighted-average period of 1.2 years. Restricted Stock From time to time, the Company grants shares of restricted stock to employees and non-employee directors of the Company. Employee shares typically vest over a three year period at a rate of one-third on the annual anniversary date of the grant, and the non-employee directors’ shares vest six months from the date of grant. During the three months ended March 31, 2019, the Company granted 4.2 million shares of restricted stock under the Plan to employees of the Company. These restricted shares were granted at $1.29 per share. At March 31, 2019, the Company had $8.2 million of unrecognized compensation expense related to non-vested restricted stock awards to be recognized over a weighted-average period of 1.8 years. During the three months ended March 31, 2018, the Company granted 1.9 million shares of restricted stock under the Plan to employees of the Company. These restricted shares were granted at $5.65 per share. At March 31, 2018, the Company had $12.5 million of unrecognized compensation expense related to non-vested restricted stock awards to be recognized over a weighted-average period of 1.7 years.

11. STOCKHOLDERS’ EQUITY

Common Stock

On February 9, 2018, the Company sold 9.2 million shares of common stock, par value $0.0001 per share, in a public offering at a price of $6.90 per share. The net proceeds to the Company from the offering were approximately $60.4 million, after deducting the underwriters’ discounts and offering expenses. The Company used the net proceeds, together with the net proceeds from the issuance of the Additional 2025 Notes, to fund the cash consideration for the acquisition of the West Quito Draw Properties, and for general corporate purposes, including funding the Company’s 2018 drilling program.

Warrants

On September 9, 2016, the Company issued 4.7 million new warrants. The warrants can be exercised to purchase 4.7 million shares of the Company’s common stock at an exercise price of $14.04 per share. The holders are entitled to exercise the warrants in whole or in part at any time prior to expiration on September 9, 2020.

Incentive Plans

On September 9, 2016, the Company’s board of directors adopted the 2016 Long-Term Incentive Plan (the Plan). An aggregate of 10.0 million shares of the Company’s common stock were available for grant pursuant to awards under the Plan. On April 6, 2017, Amendment No. 1 to the Plan to increase, by 9.0 million shares, the maximum number of shares of common stock that may be issued thereunder, i.e., a maximum of 19.0 million shares, became effective, which was 20 calendar days following the date the Company mailed an information statement to all stockholders of record notifying them of approval of the amendment by written consent of holders of a majority of the Company’s outstanding stock. As of March 31, 2019 and December 31, 2018, a maximum of 1.1 million and 4.9 million shares, respectively of the Company’s common stock remained reserved for issuance under the Plan.

The Company accounts for stock-based payment accruals under authoritative guidance on stock compensation. The guidance requires all stock-based payments to employees and directors, including grants of stock options and restricted stock, to be recognized in the financial statements based on their fair values. The Company has elected to not apply a forfeiture estimate and will recognize a credit in compensation expense to the extent awards are forfeited.

For the three months ended March 31, 2019 and 2018 the Company recognized a credit of $6.8 million and expense of $3.6 million, respectively, related to stock-based compensation. Stock-based compensation expense is recorded as a component of “General and administrative” on the unaudited condensed consolidated statements of operations.

During the three months ended March 31, 2019, four senior executives departed the Company. In accordance with the terms of these senior executives’ employment agreements, unvested stock options and unvested shares of restricted stock were modified to vest immediately upon termination. For the three months ended March 31, 2019, the Company recognized an incremental reduction to stock-based compensation expense of $8.4 million associated with these modifications.

Stock Options

From time to time, the Company grants stock options under the Plan covering shares of common stock to employees of the Company. Stock options, when exercised, are settled through the payment of the exercise price in exchange for new shares of stock underlying the option. These awards typically vest over a three year period at a rate of one-third on the annual anniversary date of the grant and expire ten years from the grant date.

No stock options were granted during the three months ended March 31, 2019. At March 31, 2019, the Company had $1.5 million of unrecognized compensation expense related to non-vested stock options to be recognized over a weighted-average period of 0.8 years.

During the three months ended March 31, 2018, the Company granted stock options under the Plan covering 1.2 million shares of common stock to employees of the Company. These stock options have an exercise price of $5.65 per share. During the three months ended March 31, 2018, the Company received $0.3 million from the exercise of stock options. At March 31, 2018, the Company had $13.1 million of unrecognized compensation expense related to non-vested stock options to be recognized over a weighted-average period of 1.2 years.

Restricted Stock

From time to time, the Company grants shares of restricted stock to employees and non-employee directors of the Company. Employee shares typically vest over a three year period at a rate of one-third on the annual anniversary date of the grant, and the non-employee directors’ shares vest six months from the date of grant.

During the three months ended March 31, 2019, the Company granted 4.2 million shares of restricted stock under the Plan to employees of the Company. These restricted shares were granted at $1.29 per share. At March 31, 2019, the Company had $8.2 million of unrecognized compensation expense related to non-vested restricted stock awards to be recognized over a weighted-average period of 1.8 years.

During the three months ended March 31, 2018, the Company granted 1.9 million shares of restricted stock under the Plan to employees of the Company. These restricted shares were granted at $5.65 per share. At March 31, 2018, the Company had $12.5 million of unrecognized compensation expense related to non-vested restricted stock awards to be recognized over a weighted-average period of 1.7 years.