Quarterly report pursuant to Section 13 or 15(d)

BALANCE SHEETS (UNAUDITED)

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BALANCE SHEETS (UNAUDITED) (USD $)
Sep. 30, 2014
Dec. 31, 2013
CURRENT ASSETS    
Cash and Cash Equivalents $ 8,049,167 $ 5,687,166
Trade Receivables 88,575,478 86,816,981
Advances to Operators 869,485 618,786
Prepaid and Other Expenses 1,792,569 770,740
Derivative Instruments 3,849,629 62,890
Deferred Tax Asset 3,312,000 10,431,000
Total Current Assets 106,448,328 104,387,563
Oil and Natural Gas Properties, Full Cost Method of Accounting    
Proved 2,005,625,094 1,611,073,747
Unproved 71,275,756 70,148,348
Other Property and Equipment 1,781,645 1,701,366
Total Property and Equipment 2,078,682,495 1,682,923,461
Less - Accumulated Depreciation and Depletion (409,239,931) (285,616,752)
Total Property and Equipment, Net 1,669,442,564 1,397,306,709
DERIVATIVE INSTRUMENTS 6,142,424 1,745,405
DEBT ISSUANCE COSTS NET 14,541,339 16,160,283
TOTAL ASSETS 1,796,574,655 1,519,599,960
CURRENT LIABILITIES    
Accounts Payable 220,127,572 168,936,785
Accrued Expenses 4,933,500 2,645,178
Accrued Interest 13,491,862 3,386,409
Derivative Instruments 531,246 19,119,646
Total Current Liabilities 239,084,180 194,088,018
LONG-TERM LIABILITIES    
Revolving Credit Facility 228,000,000 75,000,000
8% Senior Notes 508,424,779 509,539,823
Derivative Instruments 1,975,681 637,208
Other Noncurrent Liabilities 4,824,408 3,832,550
Deferred Tax Liability 145,955,000 116,674,000
Total Long-Term Liabilities 889,179,868 705,683,581
TOTAL LIABILITIES 1,128,264,048 899,771,599
COMMITMENTS AND CONTINGENCIES (NOTE 8)      
STOCKHOLDERS' EQUITY    
Preferred Stock, Par Value $.001; 5,000,000 Authorized, No Shares Outstanding 0 0
Common Stock, Par Value $.001; 95,000,000 Authorized, 9/30/2014 - 61,026,673 Shares Outstanding and 12/31/2013 - 61,858,199 Shares Outstanding 61,027 61,858
Additional Paid-In Capital 434,364,613 446,044,159
Retained Earnings 233,884,967 173,722,344
Total Stockholders' Equity 668,310,607 619,828,361
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 1,796,574,655 $ 1,519,599,960