our average daily production for the year ended december 31 , 2011 was 42.3 mmcfe per day , including 39.8 mmcf of natural gas per day and 422 bbl of oil per day , as compared to an average daily production of 23.6 mmcfe per day , including 23.0 mmcf of natural gas per day and 91 bbl of oil per day for the year ended december 31 , 2010. we have achieved this growth while lowering operating costs ( consisting of lease operating expenses and production taxes and marketing expenses ) from $ 1.16 per mcfe for the year ended december 31 , 2009 to $ 0.88 per mcfe for the year ended december 31 , 2011 , or a decrease of approximately 24 % . our business success and financial results are dependent on many factors beyond our control , such as economic , political and regulatory developments , as well as competition from other sources of energy . commodity price volatility , in particular , is a significant risk factor for us . commodity prices are affected by changes in market supply and demand , which is impacted by overall economic activity , weather , pipeline capacity constraints , inventory storage levels , natural gas price differentials and other factors . prices for oil 64 and natural gas will affect the cash flows available to us for capital expenditures and our ability to borrow and raise additional capital . declines in oil or natural gas prices would not only reduce our revenues , but could also reduce the amount of oil and or natural gas that we can produce economically , and as a result , could have an adverse effect on our financial condition , results of operations , cash flows and reserves . in response to the recent commodity price environment , and in particular , the general decline in natural gas prices since july 2008 in contrast with the rebound in oil prices since february 2009 , we have sought to balance our exploration and development plans by targeting more oil prone reservoirs , such as the eagle ford shale . while most of our historical and current production is natural gas , we believe that our future production profile will reflect a more balanced oil and natural gas commodity mix as a result of our strategic shift to target more oil development than we have historically . in recent months , natural gas prices have declined to their lowest levels in many years , and at march 30 , 2012 , the nymex henry hub natural gas futures contract for the earliest delivery date closed at $ 2.13 per mmbtu . we would not expect to drill any operated natural gas wells , except for natural gas wells in specific exploratory prospects like the meade peak shale , until natural gas prices improved substantially from these levels or unless the costs to drill and complete these wells were also to decline substantially from their recent levels . see risk factors  our identified drilling locations are scheduled out over several years , making them susceptible to uncertainties that could materially alter the occurrence or timing of their drilling. during 2012 , we intend to allocate 84 % of our 2012 capital expenditure budget of $ 313.0 million to the exploration , development and acquisition of additional interests in the eagle ford shale play . including these anticipated capital expenditures in the eagle ford shale , we plan to dedicate about 94 % of our 2012 anticipated capital expenditure budget to opportunities prospective for oil and liquids production . while we have budgeted $ 313.0 million for 2012 , the aggregate amount of capital we will expend may fluctuate materially based on market conditions and our drilling results . as we transition our operations from the haynesville shale and cotton valley in northwest louisiana to the eagle ford shale in south texas , we may face challenges associated with establishing operations and securing the necessary services to drill and complete wells and with securing the necessary pipeline and natural gas processing capabilities to transport , process and market the oil and natural gas that we produce . we may also incur higher than anticipated costs associated with establishing new operating infrastructure and facilities on our leases throughout the area . we believe we have successfully secured the necessary drilling and completion services for our current eagle ford operations , and at march 30 , 2012 , we had two contracted drilling rigs operating in south texas : one in lasalle county and one in karnes county . we are not currently experiencing difficulties in securing completion , and particularly hydraulic fracturing services , for our newly drilled wells , although we experienced these problems at various times during 2011 in south texas and may have such difficulties again in the future . we believe that maintaining reliable and timely drilling and completion services and reducing drilling and completion costs will be essential to the successful development and profitability of the eagle ford shale play . see risk factors  the unavailability or high cost of drilling rigs , completion equipment and services , supplies and personnel , including hydraulic fracturing equipment and personnel , could adversely affect our ability to establish and execute exploration and development plans within budget and on a timely basis , which could have a material adverse effect on our financial condition , results of operations and cash flows. we experienced temporary pipeline interruptions from time to time during 2011 associated with natural gas production from our eagle ford wells and have been required to either shut in wells for brief periods or to flare some of the natural gas we produce . story_separator_special_tag as a result , our lease operating expenses per unit of production decreased by 23 % to $ 0.47 per mcfe for the year ended december 31 , 2011 as compared to $ 0.61 per mcfe for the year ended december 31 , 2010. during the year ended december 31 , 2011 , both our total haynesville shale production , as well as the percentage of our haynesville production for which we were the operator increased , as compared to the year ended december 31 , 2010. the unit lease operating costs associated with the haynesville production are much less than those associated with our cotton valley natural gas production , primarily due to the greater salt water disposal costs associated with the cotton valley production and given the early stages of production associated with many of these haynesville wells . depletion , depreciation and amortization . our depletion , depreciation and amortization expenses increased by $ 16.2 million to $ 31.8 million , or an increase of about 104 % , for the year ended december 31 , 2011 as compared to the year ended december 31 , 2010. the increase in our depletion , depreciation and amortization expenses was due primarily to an increase of approximately 79 % in our oil and natural gas production from 8.6 bcfe to 15.4 bcfe during the respective time periods . our depletion , depreciation and amortization expenses on a unit-of-production basis increased to $ 2.06 for the year ended december 31 , 2011 , or an increase of about 14 % , from $ 1.81 per mcfe for the year ended december 31 , 2010. this per unit increase reflects increases in drilling and completion costs for wells drilled to the haynesville shale during 2011 , as well as higher drilling and completion costs on a per mcfe basis associated with oil reserves added in the eagle ford shale in south texas . accretion of asset retirement obligations . our accretion of asset retirement obligations expenses increased by approximately $ 54,000 to approximately $ 209,000 , or an increase of about 35 % , for the year ended december 31 , 2011 as compared to the year ended december 31 , 2010. the increase in our accretion of asset retirement obligations was due primarily to the addition of new wells through our drilling of operated wells and our participation in the drilling of non-operated wells , although , on the whole , this item is an insignificant component of our overall expenses . full-cost ceiling impairment . during the quarter ended march 31 , 2011 , the net capitalized costs of our oil and natural gas properties less related deferred income taxes exceeded the cost center ceiling by $ 23.0 million . as a result , we recorded an impairment charge of $ 35.7 million to the net capitalized costs of our oil and natural gas properties and a deferred income tax credit of $ 12.7 million , which is reflected in our expenses for the year ended december 31 , 2011. no impairment to the net carrying value of our oil and natural gas properties on the balance sheet resulting from the full-cost ceiling limitation was recorded at december 31 , 2010. general and administrative . our general and administrative expenses increased by $ 3.7 million to $ 13.4 million , or an increase of about 38 % , for the year ended december 31 , 2011 as compared to the year ended december 31 , 2010. the increase in our general and administrative expenses was due primarily to increased cash and non-cash compensation expenses and increased accounting expenses for the year ended december 31 , 2011 as compared to the year ended december 31 , 2010. we recorded approximately $ 2.4 million in non-cash compensation expense for the year ended december 31 , 2011 as compared to approximately $ 0.9 million recorded for the year ended december 31 , 2010. this increase was primarily 71 due to a change in accounting method for valuing our outstanding stock options . we awarded no new stock options during 2011. as a result of our increased oil and natural gas production , however , our general and administrative expenses decreased by 27 % on a unit-of-production basis to $ 0.87 per mcfe for the year ended december 31 , 2011 as compared to $ 1.13 per mcfe for the year ended december 31 , 2010. net gain ( loss ) on asset sales and inventory impairment . we incurred a loss on asset sales and inventory impairment of approximately $ 154,000 for the year ended december 31 , 2011 , as compared to a loss of approximately $ 224,000 for the year ended december 31 , 2010. during the year ended december 31 , 2011 , this loss was primarily related to the sale of pipe and other equipment and the impairment of certain equipment held in inventory , consisting primarily of drilling rig parts . during the year ended december 31 , 2010 , we wrote off the boise south pipeline asset in orange county , texas and recognized a net loss of approximately $ 174,000. we also recognized an impairment of approximately $ 50,000 to some of our equipment held in inventory following a determination that the market value of the equipment , consisting primarily of drilling rig parts , was less than the cost . interest expense . for the year ended december 31 , 2011 , we incurred total interest expense of approximately $ 2.0 million . we capitalized approximately $ 1.3 million of our interest expense on certain qualifying projects for the year ended december 31 , 2011 and expensed the remaining $ 683,000 to operations . during the year ended december 31 , 2011 , we incurred incremental net borrowings of $ 88.0 million under our credit agreement to finance a portion of our working capital requirements and capital expenditures . our total outstanding borrowings at

cash flows provided by operating activities net cash provided by operating activities increased by $ 34.6 million to $ 61.9 million for the year ended december 31 , 2011 as compared to net cash provided by operating activities of $ 27.3 million for the year ended december 31 , 2010. net cash provided by oil and natural gas operations increased significantly to $ 49.3 million for the year ended december 31 , 2011 from $ 25.0 million for the year ended december 31 , 2010. this increase reflects primarily the 79 % increase in our oil and natural gas production to 15.4 bcfe from 8.6 bcfe between the respective periods . a portion of the increase in net cash provided by operating activities also reflects the approximate five-fold increase in our oil production for the year ended december 31 , 2011 as compared to the year ended december 31 , 2010 , as well as a higher average oil price of $ 93.80 per bbl realized during 2011 as compared to an average oil price of $ 76.39 per bbl realized during 2010. some of this increase in net cash provided by operating activities is also due to changes in our operating assets and liabilities totaling approximately $ 10.3 million between december 31 , 2010 and december 31 , 2011. our accounts payable and accrued liabilities increased to approximately $ 44.3 million at december 31 , 2011 from approximately $ 27.0 million at december 31 , 2010 due to our increased operating activity in south texas . our accounts receivable increased to $ 13.2 million at december 31 , 2011 as compared to $ 11.6 million at december 31 , 2010 due primarily to the increase in our oil and natural gas production and associated revenues .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```cash flows provided by operating activities net cash provided by operating activities increased by $ 34.6 million to $ 61.9 million for the year ended december 31 , 2011 as compared to net cash provided by operating activities of $ 27.3 million for the year ended december 31 , 2010. net cash provided by oil and natural gas operations increased significantly to $ 49.3 million for the year ended december 31 , 2011 from $ 25.0 million for the year ended december 31 , 2010. this increase reflects primarily the 79 % increase in our oil and natural gas production to 15.4 bcfe from 8.6 bcfe between the respective periods . a portion of the increase in net cash provided by operating activities also reflects the approximate five-fold increase in our oil production for the year ended december 31 , 2011 as compared to the year ended december 31 , 2010 , as well as a higher average oil price of $ 93.80 per bbl realized during 2011 as compared to an average oil price of $ 76.39 per bbl realized during 2010. some of this increase in net cash provided by operating activities is also due to changes in our operating assets and liabilities totaling approximately $ 10.3 million between december 31 , 2010 and december 31 , 2011. our accounts payable and accrued liabilities increased to approximately $ 44.3 million at december 31 , 2011 from approximately $ 27.0 million at december 31 , 2010 due to our increased operating activity in south texas . our accounts receivable increased to $ 13.2 million at december 31 , 2011 as compared to $ 11.6 million at december 31 , 2010 due primarily to the increase in our oil and natural gas production and associated revenues .
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 Suspicious Activity Report : our average daily production for the year ended december 31 , 2011 was 42.3 mmcfe per day , including 39.8 mmcf of natural gas per day and 422 bbl of oil per day , as compared to an average daily production of 23.6 mmcfe per day , including 23.0 mmcf of natural gas per day and 91 bbl of oil per day for the year ended december 31 , 2010. we have achieved this growth while lowering operating costs ( consisting of lease operating expenses and production taxes and marketing expenses ) from $ 1.16 per mcfe for the year ended december 31 , 2009 to $ 0.88 per mcfe for the year ended december 31 , 2011 , or a decrease of approximately 24 % . our business success and financial results are dependent on many factors beyond our control , such as economic , political and regulatory developments , as well as competition from other sources of energy . commodity price volatility , in particular , is a significant risk factor for us . commodity prices are affected by changes in market supply and demand , which is impacted by overall economic activity , weather , pipeline capacity constraints , inventory storage levels , natural gas price differentials and other factors . prices for oil 64 and natural gas will affect the cash flows available to us for capital expenditures and our ability to borrow and raise additional capital . declines in oil or natural gas prices would not only reduce our revenues , but could also reduce the amount of oil and or natural gas that we can produce economically , and as a result , could have an adverse effect on our financial condition , results of operations , cash flows and reserves . in response to the recent commodity price environment , and in particular , the general decline in natural gas prices since july 2008 in contrast with the rebound in oil prices since february 2009 , we have sought to balance our exploration and development plans by targeting more oil prone reservoirs , such as the eagle ford shale . while most of our historical and current production is natural gas , we believe that our future production profile will reflect a more balanced oil and natural gas commodity mix as a result of our strategic shift to target more oil development than we have historically . in recent months , natural gas prices have declined to their lowest levels in many years , and at march 30 , 2012 , the nymex henry hub natural gas futures contract for the earliest delivery date closed at $ 2.13 per mmbtu . we would not expect to drill any operated natural gas wells , except for natural gas wells in specific exploratory prospects like the meade peak shale , until natural gas prices improved substantially from these levels or unless the costs to drill and complete these wells were also to decline substantially from their recent levels . see risk factors  our identified drilling locations are scheduled out over several years , making them susceptible to uncertainties that could materially alter the occurrence or timing of their drilling. during 2012 , we intend to allocate 84 % of our 2012 capital expenditure budget of $ 313.0 million to the exploration , development and acquisition of additional interests in the eagle ford shale play . including these anticipated capital expenditures in the eagle ford shale , we plan to dedicate about 94 % of our 2012 anticipated capital expenditure budget to opportunities prospective for oil and liquids production . while we have budgeted $ 313.0 million for 2012 , the aggregate amount of capital we will expend may fluctuate materially based on market conditions and our drilling results . as we transition our operations from the haynesville shale and cotton valley in northwest louisiana to the eagle ford shale in south texas , we may face challenges associated with establishing operations and securing the necessary services to drill and complete wells and with securing the necessary pipeline and natural gas processing capabilities to transport , process and market the oil and natural gas that we produce . we may also incur higher than anticipated costs associated with establishing new operating infrastructure and facilities on our leases throughout the area . we believe we have successfully secured the necessary drilling and completion services for our current eagle ford operations , and at march 30 , 2012 , we had two contracted drilling rigs operating in south texas : one in lasalle county and one in karnes county . we are not currently experiencing difficulties in securing completion , and particularly hydraulic fracturing services , for our newly drilled wells , although we experienced these problems at various times during 2011 in south texas and may have such difficulties again in the future . we believe that maintaining reliable and timely drilling and completion services and reducing drilling and completion costs will be essential to the successful development and profitability of the eagle ford shale play . see risk factors  the unavailability or high cost of drilling rigs , completion equipment and services , supplies and personnel , including hydraulic fracturing equipment and personnel , could adversely affect our ability to establish and execute exploration and development plans within budget and on a timely basis , which could have a material adverse effect on our financial condition , results of operations and cash flows. we experienced temporary pipeline interruptions from time to time during 2011 associated with natural gas production from our eagle ford wells and have been required to either shut in wells for brief periods or to flare some of the natural gas we produce . story_separator_special_tag as a result , our lease operating expenses per unit of production decreased by 23 % to $ 0.47 per mcfe for the year ended december 31 , 2011 as compared to $ 0.61 per mcfe for the year ended december 31 , 2010. during the year ended december 31 , 2011 , both our total haynesville shale production , as well as the percentage of our haynesville production for which we were the operator increased , as compared to the year ended december 31 , 2010. the unit lease operating costs associated with the haynesville production are much less than those associated with our cotton valley natural gas production , primarily due to the greater salt water disposal costs associated with the cotton valley production and given the early stages of production associated with many of these haynesville wells . depletion , depreciation and amortization . our depletion , depreciation and amortization expenses increased by $ 16.2 million to $ 31.8 million , or an increase of about 104 % , for the year ended december 31 , 2011 as compared to the year ended december 31 , 2010. the increase in our depletion , depreciation and amortization expenses was due primarily to an increase of approximately 79 % in our oil and natural gas production from 8.6 bcfe to 15.4 bcfe during the respective time periods . our depletion , depreciation and amortization expenses on a unit-of-production basis increased to $ 2.06 for the year ended december 31 , 2011 , or an increase of about 14 % , from $ 1.81 per mcfe for the year ended december 31 , 2010. this per unit increase reflects increases in drilling and completion costs for wells drilled to the haynesville shale during 2011 , as well as higher drilling and completion costs on a per mcfe basis associated with oil reserves added in the eagle ford shale in south texas . accretion of asset retirement obligations . our accretion of asset retirement obligations expenses increased by approximately $ 54,000 to approximately $ 209,000 , or an increase of about 35 % , for the year ended december 31 , 2011 as compared to the year ended december 31 , 2010. the increase in our accretion of asset retirement obligations was due primarily to the addition of new wells through our drilling of operated wells and our participation in the drilling of non-operated wells , although , on the whole , this item is an insignificant component of our overall expenses . full-cost ceiling impairment . during the quarter ended march 31 , 2011 , the net capitalized costs of our oil and natural gas properties less related deferred income taxes exceeded the cost center ceiling by $ 23.0 million . as a result , we recorded an impairment charge of $ 35.7 million to the net capitalized costs of our oil and natural gas properties and a deferred income tax credit of $ 12.7 million , which is reflected in our expenses for the year ended december 31 , 2011. no impairment to the net carrying value of our oil and natural gas properties on the balance sheet resulting from the full-cost ceiling limitation was recorded at december 31 , 2010. general and administrative . our general and administrative expenses increased by $ 3.7 million to $ 13.4 million , or an increase of about 38 % , for the year ended december 31 , 2011 as compared to the year ended december 31 , 2010. the increase in our general and administrative expenses was due primarily to increased cash and non-cash compensation expenses and increased accounting expenses for the year ended december 31 , 2011 as compared to the year ended december 31 , 2010. we recorded approximately $ 2.4 million in non-cash compensation expense for the year ended december 31 , 2011 as compared to approximately $ 0.9 million recorded for the year ended december 31 , 2010. this increase was primarily 71 due to a change in accounting method for valuing our outstanding stock options . we awarded no new stock options during 2011. as a result of our increased oil and natural gas production , however , our general and administrative expenses decreased by 27 % on a unit-of-production basis to $ 0.87 per mcfe for the year ended december 31 , 2011 as compared to $ 1.13 per mcfe for the year ended december 31 , 2010. net gain ( loss ) on asset sales and inventory impairment . we incurred a loss on asset sales and inventory impairment of approximately $ 154,000 for the year ended december 31 , 2011 , as compared to a loss of approximately $ 224,000 for the year ended december 31 , 2010. during the year ended december 31 , 2011 , this loss was primarily related to the sale of pipe and other equipment and the impairment of certain equipment held in inventory , consisting primarily of drilling rig parts . during the year ended december 31 , 2010 , we wrote off the boise south pipeline asset in orange county , texas and recognized a net loss of approximately $ 174,000. we also recognized an impairment of approximately $ 50,000 to some of our equipment held in inventory following a determination that the market value of the equipment , consisting primarily of drilling rig parts , was less than the cost . interest expense . for the year ended december 31 , 2011 , we incurred total interest expense of approximately $ 2.0 million . we capitalized approximately $ 1.3 million of our interest expense on certain qualifying projects for the year ended december 31 , 2011 and expensed the remaining $ 683,000 to operations . during the year ended december 31 , 2011 , we incurred incremental net borrowings of $ 88.0 million under our credit agreement to finance a portion of our working capital requirements and capital expenditures . our total outstanding borrowings at

