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Property Acquisition and Operating Leases
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3 Months Ended |
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Mar. 31, 2013
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| Property Acquisition and Operating Leases [Abstract] | |
| Property Acquisition and 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, which was delivered to the Company and began operations in April 2012. Lease cost recorded during the three months ended March 31, 2013 was $2,271. Lease payments will approximate $9,235 in 2013 (with $6,964 remaining at March 31, 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 $4,125 in 2013 and $1,350 in 2014.
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