2. Working Interest Acquisition

In February 2011, we acquired an additional 38% working interest in our Cinco Terry operating area from two non-operating partners for $76 million, subject to customary post-closing adjustments (the “Working Interest Acquisition”). We funded the Working Interest Acquisition with cash on hand and borrowings under our revolving credit facility.

The following table summarizes the preliminary purchase price paid and its allocation at June 30, 2011(in thousands).


Purchase price:
Acquisition price	$	76,000
Asset retirement obligations assumed		547
Post-closing purchase price adjustments		(6,366	)

Total	$	70,181

Allocation:
Wells, equipment and related facilities	$	50,979
Mineral interests in oil and gas properties		19,202

Total	$	70,181