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Working Interest Acquisitions
 12 Months Ended
Dec. 31, 2012
Working Interest Acquisitions
2. Working Interest Acquisitions

In February 2011, we acquired 38% working interest in northwest Project Pangea from two non-operating partners for $70.8 million, after customary post-closing adjustments (the “38% Working Interest Acquisition”). We funded the 38% Working Interest Acquisition with cash on hand and borrowings under our revolving credit facility. Our 2011 oil, NGL and gas sales and net income included approximately $25.5 million and $8.4 million, respectively, related to this acquisition.

In October 2010, we acquired a 10% working interest in northwest Project Pangea from a non-operating partner for $21.2 million, after post-closing adjustments (the “10% Working Interest Acquisition”). Funding was provided through borrowings under our revolving credit facility. Our 2010 oil, NGL and gas sales and net income included approximately $1.3 million and $477,000, respectively, related to this acquisition.

 

The following table represents the allocation of the total purchase price of the 38% Working Interest Acquisition and the 10% Working Interest Acquisition (in thousands).

 

     38% Working
Interest
Acquisition		     10% Working
Interest
Acquisition		  

Purchase price:

     

Acquisition price

    $ 76,000      $ 21,500   

Asset retirement obligations assumed

      547        132   

Post-closing purchase price adjustments

      (5,720 )      (453 ) 
  

 

 

    

 

 

  

Total

    $ 70,827      $ 21,179   
  

 

 

    

 

 

  

Allocation:

     

Wells, equipment and related facilities

    $ 51,447      $ 15,613   

Mineral interests in oil and gas properties

      19,380        5,566   
  

 

 

    

 

 

  

Total

    $ 70,827      $ 21,179   
  

 

 

    

 

 

  

The following condensed unaudited pro forma information gives effect to these acquisitions as if they had occurred on January 1, 2010. The pro forma information has been included in the notes as required by U.S. generally accepted accounting principles and is provided for comparison purposes only. The pro forma financial information is not necessarily indicative of the financial results that would have occurred had these acquisitions been effective on the dates as indicated and should not be viewed as indicative of operations in the future.

 

     Unaudited
Pro Forma
Financial Data		  
     Years Ended
December 31,		  
      2011      2010  
      (dollars in thousands,
except per-share amounts)		  

Oil, NGL and gas sales

    $ 113,041       $ 86,114   

Total operating expenses

    $ 100,125       $ 63,384   

Net income (loss)

    $ 7,186       $ 15,714   

Earnings (loss) per share — basic

    $ 0.25       $ 0.71   

Earnings (loss) per share — diluted

    $ 0.25       $ 0.71