|
Other
|
12 Months Ended |
|---|---|
|
Dec. 31, 2012
|
|
| Commitments and Contingencies Disclosure [Abstract] | |
| Other |
Other
Commitments and Contingencies: The Company is involved in various claims and lawsuits incidental to its business. In the opinion of management, the ultimate liability hereunder, if any, will not have a material adverse effect on the financial position or results of operations of the Company.
The Company’s activities are subject to federal, state and local laws and regulations governing environmental quality and pollution control. Although no assurances can be made, the Company believes that, absent the occurrence of an extraordinary event, compliance with existing federal, state and local laws, rules and regulations governing the release of materials into the environment or otherwise relating to the protection of the environment are not expected to have a material effect upon the capital expenditures, earnings or the competitive position of the Company with respect to its existing assets and operations. The Company cannot predict what effect additional regulation or legislation, enforcement polices hereunder, and claims for damages to property, employees, other persons and the environment resulting from the Company’s operations could have on its activities.
Operating Leases: In February 2012, we contracted a drilling rig for a term of two years to support our horizontal drilling program in the Permian basin. The drilling rig was delivered in April 2012, and lease costs recorded during 2012 was $6,609. Lease payments will approximate $9,235 in 2013 and $2,277 in 2014. The agreement includes early termination provisions that would reduce the minimum rentals under the agreement, assuming the lessor is unable to re-charter the rig and staffing personnel to another lessee, to $5,784 in 2013 and $1,350 in 2014. Should the lessor be able to re-charter the rig, these minimum rentals would be further reduced by the re-chartered lease payments.
|