no dividend will be paid on the convertible preferred stock if it converts into common stock on or before may 31 , 2012. as a result of the recapitalization and the sale of the convertible preferred stock , we have substantial liquidity available to support our anticipated 2012 capital expenditures . 42 on december 8 , 2010 , we completed the sale to milagro producing , llc , a privately owned company located in houston , texas , of all of our oil and natural gas properties and related assets located in the boonsville and newark east fields of jack and wise counties , texas . the effective date of the sale was october 1 , 2010. the sale properties included all of our bend conglomerate shallow gas properties and all of our north texas barnett shale properties , including both producing properties and undeveloped leasehold . we received net cash proceeds at closing of $ 42.3 million subject to customary post-closing adjustments . as of december 31 , 2010 , net proceeds including post-closing adjustments were $ 41.0 million . proved reserves from these properties accounted for approximately 26.4 billion cubic feet equivalent ( bcfe ) of natural gas , natural gas liquids and oil , or an estimated 13 % of our year-end 2009 proved reserves of 204 bcfe . information as to our recent divestitures is set forth under note b to the consolidated financial statements . oil and natural gas prices have historically been volatile . in 2011 , our average realized prices ( before the impact of derivative financial instruments ) for oil and natural gas were $ 93.86 per bbl and $ 4.01 per mcf , respectively , compared to 2010 average realized prices of $ 76.95 per bbl and $ 4.21 per mcf , respectively . a significant decline in annual average prices for oil and natural gas began during the last half of 2008 and continued into the first quarter of 2009. it is difficult to predict the frequency , duration or outcome of crude oil and natural gas price movements or the long-term impact on drilling and operating costs and the impacts , whether favorable or unfavorable , to our results of operations and liquidity . we continue to monitor operations and planned capital budget expenditures as the economics of many projects may diminish as a result of prolonged price declines . critical accounting policies the preparation of our financial statements in conformity with generally accepted accounting principles requires our management to make estimates and assumptions that affect our reported assets , liabilities and contingencies as of the date of the financial statements and our reported revenues and expenses during the related reporting period . our actual results could differ from those estimates . see note a to our consolidated financial statements included in item 8 of this report for further discussions of our significant accounting policies and recently adopted accounting standards . we follow the full cost method of accounting for oil and natural gas operations . under this method all productive and nonproductive costs incurred in connection with the acquisition , exploration , and development of oil and natural gas reserves are capitalized . no gains or losses are recognized upon the sale or other disposition of oil and natural gas properties except in transactions that would significantly alter the relationship between capitalized costs and proved reserves . the costs of unevaluated oil and natural gas properties are excluded from the amortizable base until the time that either proven reserves are found or it has been determined that such properties are impaired . as properties become evaluated , the related costs transfer to proved oil and natural gas properties using full cost accounting . under the full cost method the net book value of oil and natural gas properties , less related deferred income taxes , may not exceed the estimated after-tax future net revenues from proved oil and natural gas properties , discounted at 10 % ( the ceiling limitation ) . in arriving at estimated future net revenues , estimated lease operating expenses , development costs , and certain production-related and ad valorem taxes are deducted . in calculating future net revenues , prices and costs are held constant indefinitely , except for changes that are fixed and determinable by existing contracts . the net book value is compared to the ceiling limitation on a quarterly and yearly basis . the excess , if any , of the net book value above the ceiling limitation is charged to expense in the period in which it occurs and is not subsequently reinstated . at march 31 , 2009 , the net book value of our oil and natural gas properties exceeded the ceiling limitation resulting in reduction in the carrying value of our oil and natural gas properties by $ 47.6 million , or $ 30.3 million net of tax . we incurred no impairment charge in 2010 or 2011. the ceiling calculation dictates that we use the unweighted arithmetic average price of oil and natural gas as of the first day of each month for the 12-month period ending at the balance sheet date . if this unweighted 43 average oil and natural gas price at december 31 , 2011 had been 10 % lower while all other factors remain constant , our ceiling amount related to our net book value of oil and natural gas properties would have been reduced approximately $ 44.5 million . this reduction would not have resulted in a full cost ceiling impairment . estimates of our crude oil and natural gas reserves are prepared by independent petroleum and geological engineers in accordance with guidelines established by the sec . proved reserves , estimated future net revenues and the present value of our reserves are estimated based upon a combination of historical data and estimates of future activity . story_separator_special_tag for the year ended december 31 , 2011 , our gain from derivatives was $ 4.2 million compared to $ 1.2 million for the year ended december 31 , 2010. our gains and losses for these periods were the net result of recording actual contract settlements , the amortization of premiums paid and received for our derivative contracts , and unrealized gains and losses attributable to mark-to-market values of our derivative contracts at the end of the periods . of the $ 1.1 million realized losses on derivatives for 2011 , we recognized $ 0.9 million in realized losses on the unwinding of the excess crude oil and natural gas derivatives and $ 0.5 million in fees paid to complete the novation of derivative contracts to counterparties that are lenders within our credit facilities , both of which are included with other settlements of $ 0.3 million in realized gains on derivatives and required under the terms of the credit facilities . the significant shift from 2010 to 2011 was primarily a result of higher crude oil and lower natural gas market prices in the 2011 period . during the third quarter of 2011 , we received $ 5.0 million in premiums in exchange for selling $ 70 put options on crude oil put/call collars with a $ 95 per barrel floor price and a $ 105 per barrel ceiling price . the 48 sold put options limit the effectiveness of purchased put options at the low end of the collar to market prices in excess of the strike price of the put option sold . the premiums received initially reduced our net derivative asset by $ 5.0 million . replace_table_token_23_th oil and natural gas production taxes . our oil and natural gas production taxes were $ 5.7 million for the year ended december 31 , 2011 , compared to $ 5.6 million , excluding asset sales , for the year ended december 31 , 2010. the increase is due primarily to higher commodity prices during the 2011 period . production taxes vary by state . most are based on realized prices at the wellhead , while louisiana production tax is based on volumes for natural gas and value for oil . as revenues or volumes from oil and natural gas sales increase or decrease , production taxes on these sales also increase or decrease directly . as a percentage of oil and natural gas sales , oil and natural gas production taxes were 6 % and 5 % for the years ended december 31 , 2011 and 2010 , respectively . oil and natural gas production expense . our oil and natural gas production expense was $ 33.3 million for the year ended december 31 , 2011 , an increase of $ 1.1 million , or 4 % , from the $ 32.2 million , excluding asset sales , for the year ended december 31 , 2010. for the year ended december 31 , 2011 , our oil and natural gas production expense was $ 22.16 per boe compared to $ 15.68 per boe for the year ended december 31 , 2010 , an increase of 41 % . the increase in boe is primarily due to the asset sales , as the sold assets in 2010 were predominantly shale gas producing assets which had relatively lower lease operating expenses per boe . depreciation and amortization expense . our depreciation and amortization expense decreased $ 5.9 million , or 22 % , for the year ended december 31 , 2011 , compared to the year ended december 31 , 2010. the decrease was a result of a decrease in production during 2011 , partially offset by a higher depletion rate per boe . on an equivalent basis , our amortization of the full-cost pool of $ 20.4 million was $ 13.55 per boe for the year ended december 31 , 2011 , an increase of 12 % per boe compared to $ 26.2 million , or $ 12.11 per boe for the year ended december 31 , 2010. accretion expense . topic 410 of the codification , accounting for asset retirement obligations , includes , among other things , the reporting of the fair value of asset retirement obligations . accretion expense is a function of changes in the discounted liability from period to period . we recorded $ 1.6 million for the year ended december 31 , 2011 , compared to $ 1.5 million for the year ended december 31 , 2010. share-based compensation . from time to time , our board of directors grants restricted stock awards and or stock appreciation rights , or sars , under our 2006 long-term incentive plan . each of the restricted stock grants vests in equal increments over the vesting period provided for the particular award , typically from one to four years . the share-based compensation on the restricted stock grants was calculated using the closing price per share on each of the grant dates , and the total share-based compensation on all restricted stock grants will be recognized over their respective vesting periods . share-based compensation expense attributable to sars is based on the fair value re-measured at each reporting period and recognized over the four-year vesting period . 49 the fair value calculation resulted in $ 0.8 million of compensation expense recognized for the year ended december 31 , 2011. for the year ended december 31 , 2011 , we recognized a total of $ 3.4 million share-based compensation related to restricted stock awards compared to $ 3.1 million for the year ended december 31 , 2010. the increase was due to accelerated vesting for retired employees pursuant to our restructuring , and a higher number of shares outstanding in the 2011 period . during the year ended december 31 , 2011 , $ 2.8 million of recognized compensation related to restricted stock awards was recorded as compensation expense , $ 0.1 million was recorded as restructuring costs

liquidity and capital resources on february 8 , 2012 , halcón resources , llc , a newly-formed company led by floyd c. wilson , former chairman and chief executive officer of petrohawk energy corporation , recapitalized us with a $ 550.0 million investment structured as the purchase of $ 275.0 million in new common stock , a $ 275.0 million five-year 8 % convertible note and warrants for the purchase of an additional 36,666,666 million shares of our common stock at an exercise price of $ 4.50 per share . in connection with the closing of the halcón transaction , we entered into a senior revolving credit agreement ( the credit agreement ) with jpmorgan chase bank , n.a. , as administrative agent , and the other lenders named therein on february 8 , 2012. the credit agreement provides for a $ 500.0 million facility with an initial borrowing base of $ 225.0 million . amounts borrowed under the credit agreement will initially mature on february 8 , 2017. the borrowing base will be redetermined semi-annually , with the company and the lenders each having the right to one interim unscheduled redetermination between any two consecutive semi-annual redeterminations . the borrowing base will be based on our oil and natural gas properties , proved reserves , total indebtedness , and other relevant factors consistent with customary oil and gas lending criteria . the borrowing base is subject to a reduction equal to the product of 0.25 multiplied by the stated principal amount ( without regard to any initial issue discount ) of any notes or other long-term debt securities that we may issue . 53 funds advanced under the credit agreement may be paid down and re-borrowed during the term of the credit agreement , and bear interest at libor plus a margin ranging from 1.5 % to 2.5 % based on a percentage of usage . advances under the credit agreement are secured by liens on substantially all of our and our subsidiaries assets .


 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.
     ```liquidity and capital resources on february 8 , 2012 , halcón resources , llc , a newly-formed company led by floyd c. wilson , former chairman and chief executive officer of petrohawk energy corporation , recapitalized us with a $ 550.0 million investment structured as the purchase of $ 275.0 million in new common stock , a $ 275.0 million five-year 8 % convertible note and warrants for the purchase of an additional 36,666,666 million shares of our common stock at an exercise price of $ 4.50 per share . in connection with the closing of the halcón transaction , we entered into a senior revolving credit agreement ( the credit agreement ) with jpmorgan chase bank , n.a. , as administrative agent , and the other lenders named therein on february 8 , 2012. the credit agreement provides for a $ 500.0 million facility with an initial borrowing base of $ 225.0 million . amounts borrowed under the credit agreement will initially mature on february 8 , 2017. the borrowing base will be redetermined semi-annually , with the company and the lenders each having the right to one interim unscheduled redetermination between any two consecutive semi-annual redeterminations . the borrowing base will be based on our oil and natural gas properties , proved reserves , total indebtedness , and other relevant factors consistent with customary oil and gas lending criteria . the borrowing base is subject to a reduction equal to the product of 0.25 multiplied by the stated principal amount ( without regard to any initial issue discount ) of any notes or other long-term debt securities that we may issue . 53 funds advanced under the credit agreement may be paid down and re-borrowed during the term of the credit agreement , and bear interest at libor plus a margin ranging from 1.5 % to 2.5 % based on a percentage of usage . advances under the credit agreement are secured by liens on substantially all of our and our subsidiaries assets .
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 Suspicious Activity Report : no dividend will be paid on the convertible preferred stock if it converts into common stock on or before may 31 , 2012. as a result of the recapitalization and the sale of the convertible preferred stock , we have substantial liquidity available to support our anticipated 2012 capital expenditures . 42 on december 8 , 2010 , we completed the sale to milagro producing , llc , a privately owned company located in houston , texas , of all of our oil and natural gas properties and related assets located in the boonsville and newark east fields of jack and wise counties , texas . the effective date of the sale was october 1 , 2010. the sale properties included all of our bend conglomerate shallow gas properties and all of our north texas barnett shale properties , including both producing properties and undeveloped leasehold . we received net cash proceeds at closing of $ 42.3 million subject to customary post-closing adjustments . as of december 31 , 2010 , net proceeds including post-closing adjustments were $ 41.0 million . proved reserves from these properties accounted for approximately 26.4 billion cubic feet equivalent ( bcfe ) of natural gas , natural gas liquids and oil , or an estimated 13 % of our year-end 2009 proved reserves of 204 bcfe . information as to our recent divestitures is set forth under note b to the consolidated financial statements . oil and natural gas prices have historically been volatile . in 2011 , our average realized prices ( before the impact of derivative financial instruments ) for oil and natural gas were $ 93.86 per bbl and $ 4.01 per mcf , respectively , compared to 2010 average realized prices of $ 76.95 per bbl and $ 4.21 per mcf , respectively . a significant decline in annual average prices for oil and natural gas began during the last half of 2008 and continued into the first quarter of 2009. it is difficult to predict the frequency , duration or outcome of crude oil and natural gas price movements or the long-term impact on drilling and operating costs and the impacts , whether favorable or unfavorable , to our results of operations and liquidity . we continue to monitor operations and planned capital budget expenditures as the economics of many projects may diminish as a result of prolonged price declines . critical accounting policies the preparation of our financial statements in conformity with generally accepted accounting principles requires our management to make estimates and assumptions that affect our reported assets , liabilities and contingencies as of the date of the financial statements and our reported revenues and expenses during the related reporting period . our actual results could differ from those estimates . see note a to our consolidated financial statements included in item 8 of this report for further discussions of our significant accounting policies and recently adopted accounting standards . we follow the full cost method of accounting for oil and natural gas operations . under this method all productive and nonproductive costs incurred in connection with the acquisition , exploration , and development of oil and natural gas reserves are capitalized . no gains or losses are recognized upon the sale or other disposition of oil and natural gas properties except in transactions that would significantly alter the relationship between capitalized costs and proved reserves . the costs of unevaluated oil and natural gas properties are excluded from the amortizable base until the time that either proven reserves are found or it has been determined that such properties are impaired . as properties become evaluated , the related costs transfer to proved oil and natural gas properties using full cost accounting . under the full cost method the net book value of oil and natural gas properties , less related deferred income taxes , may not exceed the estimated after-tax future net revenues from proved oil and natural gas properties , discounted at 10 % ( the ceiling limitation ) . in arriving at estimated future net revenues , estimated lease operating expenses , development costs , and certain production-related and ad valorem taxes are deducted . in calculating future net revenues , prices and costs are held constant indefinitely , except for changes that are fixed and determinable by existing contracts . the net book value is compared to the ceiling limitation on a quarterly and yearly basis . the excess , if any , of the net book value above the ceiling limitation is charged to expense in the period in which it occurs and is not subsequently reinstated . at march 31 , 2009 , the net book value of our oil and natural gas properties exceeded the ceiling limitation resulting in reduction in the carrying value of our oil and natural gas properties by $ 47.6 million , or $ 30.3 million net of tax . we incurred no impairment charge in 2010 or 2011. the ceiling calculation dictates that we use the unweighted arithmetic average price of oil and natural gas as of the first day of each month for the 12-month period ending at the balance sheet date . if this unweighted 43 average oil and natural gas price at december 31 , 2011 had been 10 % lower while all other factors remain constant , our ceiling amount related to our net book value of oil and natural gas properties would have been reduced approximately $ 44.5 million . this reduction would not have resulted in a full cost ceiling impairment . estimates of our crude oil and natural gas reserves are prepared by independent petroleum and geological engineers in accordance with guidelines established by the sec . proved reserves , estimated future net revenues and the present value of our reserves are estimated based upon a combination of historical data and estimates of future activity . story_separator_special_tag for the year ended december 31 , 2011 , our gain from derivatives was $ 4.2 million compared to $ 1.2 million for the year ended december 31 , 2010. our gains and losses for these periods were the net result of recording actual contract settlements , the amortization of premiums paid and received for our derivative contracts , and unrealized gains and losses attributable to mark-to-market values of our derivative contracts at the end of the periods . of the $ 1.1 million realized losses on derivatives for 2011 , we recognized $ 0.9 million in realized losses on the unwinding of the excess crude oil and natural gas derivatives and $ 0.5 million in fees paid to complete the novation of derivative contracts to counterparties that are lenders within our credit facilities , both of which are included with other settlements of $ 0.3 million in realized gains on derivatives and required under the terms of the credit facilities . the significant shift from 2010 to 2011 was primarily a result of higher crude oil and lower natural gas market prices in the 2011 period . during the third quarter of 2011 , we received $ 5.0 million in premiums in exchange for selling $ 70 put options on crude oil put/call collars with a $ 95 per barrel floor price and a $ 105 per barrel ceiling price . the 48 sold put options limit the effectiveness of purchased put options at the low end of the collar to market prices in excess of the strike price of the put option sold . the premiums received initially reduced our net derivative asset by $ 5.0 million . replace_table_token_23_th oil and natural gas production taxes . our oil and natural gas production taxes were $ 5.7 million for the year ended december 31 , 2011 , compared to $ 5.6 million , excluding asset sales , for the year ended december 31 , 2010. the increase is due primarily to higher commodity prices during the 2011 period . production taxes vary by state . most are based on realized prices at the wellhead , while louisiana production tax is based on volumes for natural gas and value for oil . as revenues or volumes from oil and natural gas sales increase or decrease , production taxes on these sales also increase or decrease directly . as a percentage of oil and natural gas sales , oil and natural gas production taxes were 6 % and 5 % for the years ended december 31 , 2011 and 2010 , respectively . oil and natural gas production expense . our oil and natural gas production expense was $ 33.3 million for the year ended december 31 , 2011 , an increase of $ 1.1 million , or 4 % , from the $ 32.2 million , excluding asset sales , for the year ended december 31 , 2010. for the year ended december 31 , 2011 , our oil and natural gas production expense was $ 22.16 per boe compared to $ 15.68 per boe for the year ended december 31 , 2010 , an increase of 41 % . the increase in boe is primarily due to the asset sales , as the sold assets in 2010 were predominantly shale gas producing assets which had relatively lower lease operating expenses per boe . depreciation and amortization expense . our depreciation and amortization expense decreased $ 5.9 million , or 22 % , for the year ended december 31 , 2011 , compared to the year ended december 31 , 2010. the decrease was a result of a decrease in production during 2011 , partially offset by a higher depletion rate per boe . on an equivalent basis , our amortization of the full-cost pool of $ 20.4 million was $ 13.55 per boe for the year ended december 31 , 2011 , an increase of 12 % per boe compared to $ 26.2 million , or $ 12.11 per boe for the year ended december 31 , 2010. accretion expense . topic 410 of the codification , accounting for asset retirement obligations , includes , among other things , the reporting of the fair value of asset retirement obligations . accretion expense is a function of changes in the discounted liability from period to period . we recorded $ 1.6 million for the year ended december 31 , 2011 , compared to $ 1.5 million for the year ended december 31 , 2010. share-based compensation . from time to time , our board of directors grants restricted stock awards and or stock appreciation rights , or sars , under our 2006 long-term incentive plan . each of the restricted stock grants vests in equal increments over the vesting period provided for the particular award , typically from one to four years . the share-based compensation on the restricted stock grants was calculated using the closing price per share on each of the grant dates , and the total share-based compensation on all restricted stock grants will be recognized over their respective vesting periods . share-based compensation expense attributable to sars is based on the fair value re-measured at each reporting period and recognized over the four-year vesting period . 49 the fair value calculation resulted in $ 0.8 million of compensation expense recognized for the year ended december 31 , 2011. for the year ended december 31 , 2011 , we recognized a total of $ 3.4 million share-based compensation related to restricted stock awards compared to $ 3.1 million for the year ended december 31 , 2010. the increase was due to accelerated vesting for retired employees pursuant to our restructuring , and a higher number of shares outstanding in the 2011 period . during the year ended december 31 , 2011 , $ 2.8 million of recognized compensation related to restricted stock awards was recorded as compensation expense , $ 0.1 million was recorded as restructuring costs

