Quarterly report pursuant to Section 13 or 15(d)

FINANCIAL INSTRUMENTS

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FINANCIAL INSTRUMENTS
6 Months Ended
Jun. 30, 2014
FINANCIAL INSTRUMENTS [Abstract]  
FINANCIAL INSTRUMENTS
NOTE 11     FINANCIAL INSTRUMENTS

The Company’s non-derivative financial instruments include cash and cash equivalents and credit facility and are not measured at fair value on the balance sheets.  The carrying amount of these non-derivative financial instruments approximate their fair values (see Note 10).

The Company’s accounts receivable relate to crude oil and natural gas sold to various industry companies.  Credit terms, typical of industry standards, are of a short-term nature and the Company does not require collateral.  Management believes the Company’s accounts receivable at June 30, 2014 and December 31, 2013 do not represent significant credit risks as they are dispersed across many counterparties.  The Company has recorded an allowance for doubtful accounts of $2.1 million and $1.1 million at June 30, 2014 and December 31, 2013, respectively.  As of June 30, 2014, outstanding derivative contracts with commercial banks participating in the Company’s Revolving Credit Facility represent all of the Company’s crude oil volumes hedged.  These commercial banks have investment-grade ratings from Moody’s and Standard & Poor and are lenders under the Company’s Revolving Credit Facility and management believes this does not represent a significant credit risk.