Quarterly report pursuant to Section 13 or 15(d)

CONDENSED STATEMENTS OF CASH FLOWS

 v2.3.0.11
CONDENSED STATEMENTS OF CASH FLOWS (USD $)
6 Months Ended
Jun. 30, 2011
Jun. 30, 2010
CASH FLOWS FROM OPERATING ACTIVITIES    
Net Income $ 13,375,058 $ 7,680,496
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:    
Depletion of Oil and Gas Properties 15,213,079 4,484,441
Depreciation and Amortization 138,608 50,897
Amortization of Debt Issuance Costs 180,341 280,768
Accretion of Discount on Asset Retirement Obligations 12,524 12,752
Deferred Income Taxes 8,550,000 4,810,000
Net (Gain) Loss on Sale of Available for Sale Securities (215,092) 197,556
Unrealized Loss (Gain) on Derivative Instruments 430,397 (3,260,383)
Amortization of Deferred Rent (9,287) (9,287)
Share - Based Compensation Expense 3,363,345 2,006,369
Changes in Working Capital and Other Items:    
Increase in Trade Receivables (13,552,651) (4,286,731)
Increase in Prepaid Expenses (173,146) (337,765)
Decrease (Increase) in Other Current Assets 264,952 (71,078)
Increase in Accounts Payable 7,916,402 3,567,953
Decrease (Increase) in Accrued Expenses 158 (138,281)
Net Cash Provided By Operating Activities 35,494,688 14,987,707
CASH FLOWS FROM INVESTING ACTIVITIES    
Purchases of Other Equipment and Furniture (73,692) (1,753,791)
Increase in Prepaid Drilling Costs (2,529,779) (4,977,412)
Proceeds from Sale of Oil and Gas Properties 5,027,162 237,877
Purchase of Available for Sale Securities (18,381,690) 0
Proceeds from Sale of Available for Sale Securities 58,606,328 25,890,901
Purchase of Oil and Gas Properties and Development Capital Expenditures (154,374,342) (51,636,851)
Net Cash Used For Investing Activities (111,726,013) (32,239,276)
CASH FLOWS FROM FINANCING ACTIVITIES    
Payments on Line of Credit 0 (834,492)
Advances on Revolving Credit Facility 0 5,300,000
Payments on Revolving Credit Facility 0 (5,300,000)
Repayment of Subordinated Notes 0 (100,000)
Debt Issuance Costs Paid 0 (379,400)
Proceeds from Exercise of Warrants 1,500,000 0
Proceeds from Issuance of Common Stock - Net of Issuance Costs 0 82,500,000
Net Cash Provided by Financing Activities 1,500,000 81,186,108
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS (74,731,325) 63,934,539
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD 152,110,701 6,233,372
CASH AND CASH EQUIVALENTS - END OF PERIOD 77,379,376 70,167,911
Supplemental Disclosure of Cash Flow Information    
Cash Paid During the Period for Interest 0 125,135
Cash Paid During the Period for Income Taxes 0 0
Non-Cash Financing and Investing Activities:    
Purchase of Oil and Gas Properties through Issuance of Common Stock 0 5,698,337
Payment of Compensation through Issuance of Common Stock 12,227,060 4,224,114
Capitalized Asset Retirement Obligations $ 199,996 $ 69,802