this capital investment is expected to produce 2013 average sales volumes of 14,500 to 16,000 boe/d , while maintaining a strong oil and liquids profile . 60 results of operations the following discussion and analysis should be read in conjunction with our consolidated financial statements and the notes thereto contained in item 8 of part ii of this annual report on form 10-k. comparative results of operations for the period indicated are discussed below . year ended december 31 , 2012 compared to year ended december 31 , 2011 revenues replace_table_token_25_th ( 1 ) determined using the ratio of 6 mcf of natural gas to 1 bbl of crude oil . excludes co 2 sales . ( 2 ) although we do not designate our derivatives as cash flow hedges for financial statement purposes , the derivatives do economically hedge the price we receive for crude oil and natural gas . revenues increased by 119 % , to $ 231.2 million for the year ended december 31 , 2012 compared to $ 105.7 million for the year ended december 31 , 2011. oil , natural gas , and natural gas liquids production increased 147 % , 97 % , and 55 % , respectively , during the year ended december 31 , 2012 , as compared to the year ended december 31 , 2011. during the period from january 1 , 2012 through december 31 , 2012 , we drilled 108 gross ( 104.7 net ) wells in the rockies and 42 gross 37.2 wells in southern arkansas . the increased volumes are a direct result of the $ 165.5 million expended for drilling and completion and gas plant capital expenditures during the year ended december 31 , 2011 , and the $ 340.8 million expended during the year ended december 31 , 2012. oil prices were commensurate period over period and increased oil volumes accounted for nearly all of the $ 115.6 million of the total $ 125.5 million increase in revenues for the company for the year ended december 31 , 2012 compared to the same period in 2011. natural gas volumes increased by 97 % in 61 2012 , but were partially offset by a sales price decline of 25 % from $ 4.85 per mcf to $ 3.62 per mcf for these one year periods and accounted for $ 6.4 million of the total $ 125.5 million increase in revenues for the year ended december 31 , 2012. natural gas liquid volumes increased by 55 % in 2012 , but were partially offset by a sales prices decline of 17 % from $ 67.23 per bbl to $ 55.54 per bbl for these one year periods and accounted for $ 3.5 million of the total $ 125.5 million increase in revenues for the year ended december 31 , 2012. our wattenberg field natural gas is sold without processing and sells at a premium due to its very high btu content . our production of oil , natural gas , and natural gas liquids for year ended december 31 , 2012 was approximately 65 % , 27 % and 8 % , respectively , of total production . operating expenses replace_table_token_26_th lease operating expense . our lease operating expenses increased $ 12.4 million , or 68 % , to $ 30.7 million for the year ended december 31 , 2012 from $ 18.3 million for the year ended december 31 , 2011 and decreased on an equivalent basis from $ 11.90 per boe to $ 9.06 per boe . the increase in lease operating expense was related to increased production volumes attributable to our drilling program and the operation of an additional gas plant that was constructed during 2011 that came on line during september of 2011. gas plant operating expense , which is a component of lease operating expense , increased $ 1.1 million , or 15 % , to $ 8.4 million for the year ended december 31 , 2012 from $ 7.3 million for the year ended december 31 , 2011. a portion of the increase in gas plant operating expense was related to the replacement of a heat exchanger which cost approximately $ 0.6 million to procure and install . during the year ended december 31 , 2012 , well servicing , rental equipment , pumping and gauging , and insurance expenses were $ 8.3 million , $ 1.7 million , $ 0.4 million and $ 0.6 million higher , respectively , than the year ended december 31 , 2011. the decrease in lease operating expense on an equivalent basis was primarily related to our transition from vertical wells to horizontal wells in the wattenberg field during 2012. severance and ad valorem taxes . our severance and ad valorem taxes increased $ 7.8 million , or 131 % , to $ 13.7 million for the year ended december 31 , 2012 from $ 5.9 million for the year ended december 31 , 2011. the increase was primarily related to a 121 % increase in production volumes and 62 higher ad valorem tax assessments . the increase in severance and ad valorem taxes on a boe basis for the year ended december 31 , 2012 as compared to the year ended december 31 , 2011 was related to oil severance taxes and ad valorem taxes that were $ 4.2 million and $ 3.2 million , respectively , higher than the comparable period in the previous year . general and administrative . story_separator_special_tag the fair value of the warrant put option decreased $ 34.3 million , or 100 % , to $ 0 for the year ended december 31 , 2011 from a gain of $ 34.3 million for the period ended december 23 , 2010. the decrease resulted from the exercise of the warrants on december 23 , 2010 in connection with our corporate restructuring . accretion of debt discount . our expense for accretion of debt discount decreased $ 8.9 million , or 100 % , to $ 0 for the year ended december 31 , 2011 from $ 8.9 million for the period ended december 23 , 2010. the decrease resulted from the retirement of bcec 's senior subordinated notes on december 23 , 2010 in connection with our corporate restructuring . results for discontinued operations during june of 2012 , the company began marketing , with an intent to sell , all of our oil and gas properties in california . assets are classified as held for sale when the company commits to a plan to sell the assets and there is reasonable certainty that the sale will take place within one year . the company determined that our intent to sell these properties qualifies for discontinued operations accounting and these assets are presented as discontinued operations in the company 's statements of operations . the operating results before income taxes for our california properties for the year ended december 31 , 2012 were net revenues , operating expenses , and loss from discontinued operations of $ 5.4 million , $ 6.3 million , and $ 0.9 million , respectively , as compared to net revenues , operating expenses , and loss from discontinued operations of $ 6.7 million , $ 10.3 million , $ 3.6 million , for the year ended december 31 , 2011. operating expenses for the year ended december 31 , 2012 included impairments in the amount of $ 1.6 million . sales volumes for the years ended december 31 , 2012 and 2011 were 53.7 mbbls and 66.1 mbbls , respectively . the operating results before income taxes for our california properties for the year ended december 31 , 2011 were net revenues , operating expenses , and loss from discontinued operations of $ 6.7 million , $ 10.3 million , and $ 3.6 million , respectively , as compared to net revenues , gain on the sale of the jasmin property , operating expenses , and gain from discontinued operations of $ 4.8 million , $ 4.1 million , $ 4.7 million , and $ 0.1 million for the period ended december 23 , 2010. operating expenses for the year ended december 31 , 2011 included impairments in the amount of $ 3.4 million . sales volumes for the year ended december 31 , 2011 and period ended december 23 , 2010 were 66.1 mbbls and 67.6 mbbls , respectively . 68 see note 4 to our consolidated financial statements included in item 8 of part ii of this annual report on form 10-k. liquidity and capital resources our primary sources of liquidity to date have been proceeds from our initial public offering , corporate restructuring , capital contributions from investors , borrowings under our credit facility and cash flows from operations and proceeds from the sale of non-core properties . our primary use of capital has been for the acquisition and development of oil and natural gas properties . in the second quarter 2012 , we began the divestiture process of our non-core properties in california . the california properties were treated as assets held for sale , and production , revenue and expenses associated with these properties were removed from continuing operations and reported as discontinued operations . during 2012 , we sold a majority of our properties in california , for approximately $ 9.3 million in aggregate . on july 31 , 2012 , we acquired leases in the wattenberg field from the state of colorado , state board of land commissioners . we paid approximately $ 12 million at closing and will pay approximately $ 12 million on july 31 st of each of the next four years . these future payments are secured by a letter of credit which reduced our availability under the borrowing base by $ 48 million as of december 31 , 2012. on april 6 , 2012 , the administrative agent under our credit facility was changed to keybank , national association . on may 8 , 2012 , we entered into an amendment with the lenders under our credit facility to , among other things , and ( i ) increase our credit facility to $ 600 million , and ( ii ) make changes in the covenant applicable to hedging to allow greater flexibility for management to implement comprehensive hedging plans to adequately protect our operations and capital budgets . on october 30 , 2012 our borrowing base was increased to $ 325 million , and as of december 31 , 2012 , we had $ 158.0 million outstanding , $ 48.0 million of letters of credit issued , and $ 119.0 million of borrowing capacity available under our credit facility . our weighted-average interest rate on borrowings from our credit facility was 4.06 % during the year ended december 31 , 2012. on december 15 , 2011 the company sold 10,000,000 shares of our common stock in our ipo at $ 17.00 per share , less $ 1.105 per share for underwriting discounts and commissions . other expenses related to the issuance and distribution of these shares were approximately $ 3 million . we expect that in the future our commodity derivative positions will help us stabilize a portion of our expected cash flows from operations despite potential declines in the price of oil and natural gas . please see `` item 7a.quantitative and qualitative disclosures on market risks . `` we believe that the combination of our cash flow from

cash flows provided by operating activities net cash provided by operating activities was $ 156.9 million for the year ended december 31 , 2012 , compared to $ 57.6 million provided by operating activities for the year ended december 31 , 2011. the increase in cash flows from operating activities resulted primarily from an increase in revenues from increased production . cash provided by changes in working capital for the year ended december 31 , 2012 was $ 0.7 million as compared to cash utilized by changes in working capital in the amount of $ 7.0 million for the comparable period during 2011. the increase in working capital of $ 0.7 million for the year ended december 31 , 2012 is comprised primarily of increases in accounts receivable and prepaid expenses and other assets in the amount of $ 21.9 million offset by an increase in accounts payables and accrued liabilities ( exclusive of capital accruals ) of $ 22.8 million due primarily to timing of accounts payable check distributions . net cash provided by operating activities was $ 57.6 million for the year ended december 31 , 2011 , compared to $ 22.8 million provided by operating activities for the period ended december 23 , 2010. the increase in operating activities resulted primarily from an increase in revenues , increased production , and increased commodity prices offset by cash utilized in connection with changes in working capital when comparing the periods . cash utilized by changes in working capital for the year ended december 31 , 2011 was $ 7.0 million as compared to $ 5.8 million that was provided by changes in working capital for the comparable period during 2010. decreases in working capital of $ 7.0 million for the year ended december 31 , 2011 is comprised primarily of increases in accounts receivable of $ 11.7 million offset by an increase in accounts payables and accrued liabilities ( exclusive of capital accruals ) of $ 6.0 million due primarily to timing of accounts payable check distributions .


 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 was $ 156.9 million for the year ended december 31 , 2012 , compared to $ 57.6 million provided by operating activities for the year ended december 31 , 2011. the increase in cash flows from operating activities resulted primarily from an increase in revenues from increased production . cash provided by changes in working capital for the year ended december 31 , 2012 was $ 0.7 million as compared to cash utilized by changes in working capital in the amount of $ 7.0 million for the comparable period during 2011. the increase in working capital of $ 0.7 million for the year ended december 31 , 2012 is comprised primarily of increases in accounts receivable and prepaid expenses and other assets in the amount of $ 21.9 million offset by an increase in accounts payables and accrued liabilities ( exclusive of capital accruals ) of $ 22.8 million due primarily to timing of accounts payable check distributions . net cash provided by operating activities was $ 57.6 million for the year ended december 31 , 2011 , compared to $ 22.8 million provided by operating activities for the period ended december 23 , 2010. the increase in operating activities resulted primarily from an increase in revenues , increased production , and increased commodity prices offset by cash utilized in connection with changes in working capital when comparing the periods . cash utilized by changes in working capital for the year ended december 31 , 2011 was $ 7.0 million as compared to $ 5.8 million that was provided by changes in working capital for the comparable period during 2010. decreases in working capital of $ 7.0 million for the year ended december 31 , 2011 is comprised primarily of increases in accounts receivable of $ 11.7 million offset by an increase in accounts payables and accrued liabilities ( exclusive of capital accruals ) of $ 6.0 million due primarily to timing of accounts payable check distributions .
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 Suspicious Activity Report : this capital investment is expected to produce 2013 average sales volumes of 14,500 to 16,000 boe/d , while maintaining a strong oil and liquids profile . 60 results of operations the following discussion and analysis should be read in conjunction with our consolidated financial statements and the notes thereto contained in item 8 of part ii of this annual report on form 10-k. comparative results of operations for the period indicated are discussed below . year ended december 31 , 2012 compared to year ended december 31 , 2011 revenues replace_table_token_25_th ( 1 ) determined using the ratio of 6 mcf of natural gas to 1 bbl of crude oil . excludes co 2 sales . ( 2 ) although we do not designate our derivatives as cash flow hedges for financial statement purposes , the derivatives do economically hedge the price we receive for crude oil and natural gas . revenues increased by 119 % , to $ 231.2 million for the year ended december 31 , 2012 compared to $ 105.7 million for the year ended december 31 , 2011. oil , natural gas , and natural gas liquids production increased 147 % , 97 % , and 55 % , respectively , during the year ended december 31 , 2012 , as compared to the year ended december 31 , 2011. during the period from january 1 , 2012 through december 31 , 2012 , we drilled 108 gross ( 104.7 net ) wells in the rockies and 42 gross 37.2 wells in southern arkansas . the increased volumes are a direct result of the $ 165.5 million expended for drilling and completion and gas plant capital expenditures during the year ended december 31 , 2011 , and the $ 340.8 million expended during the year ended december 31 , 2012. oil prices were commensurate period over period and increased oil volumes accounted for nearly all of the $ 115.6 million of the total $ 125.5 million increase in revenues for the company for the year ended december 31 , 2012 compared to the same period in 2011. natural gas volumes increased by 97 % in 61 2012 , but were partially offset by a sales price decline of 25 % from $ 4.85 per mcf to $ 3.62 per mcf for these one year periods and accounted for $ 6.4 million of the total $ 125.5 million increase in revenues for the year ended december 31 , 2012. natural gas liquid volumes increased by 55 % in 2012 , but were partially offset by a sales prices decline of 17 % from $ 67.23 per bbl to $ 55.54 per bbl for these one year periods and accounted for $ 3.5 million of the total $ 125.5 million increase in revenues for the year ended december 31 , 2012. our wattenberg field natural gas is sold without processing and sells at a premium due to its very high btu content . our production of oil , natural gas , and natural gas liquids for year ended december 31 , 2012 was approximately 65 % , 27 % and 8 % , respectively , of total production . operating expenses replace_table_token_26_th lease operating expense . our lease operating expenses increased $ 12.4 million , or 68 % , to $ 30.7 million for the year ended december 31 , 2012 from $ 18.3 million for the year ended december 31 , 2011 and decreased on an equivalent basis from $ 11.90 per boe to $ 9.06 per boe . the increase in lease operating expense was related to increased production volumes attributable to our drilling program and the operation of an additional gas plant that was constructed during 2011 that came on line during september of 2011. gas plant operating expense , which is a component of lease operating expense , increased $ 1.1 million , or 15 % , to $ 8.4 million for the year ended december 31 , 2012 from $ 7.3 million for the year ended december 31 , 2011. a portion of the increase in gas plant operating expense was related to the replacement of a heat exchanger which cost approximately $ 0.6 million to procure and install . during the year ended december 31 , 2012 , well servicing , rental equipment , pumping and gauging , and insurance expenses were $ 8.3 million , $ 1.7 million , $ 0.4 million and $ 0.6 million higher , respectively , than the year ended december 31 , 2011. the decrease in lease operating expense on an equivalent basis was primarily related to our transition from vertical wells to horizontal wells in the wattenberg field during 2012. severance and ad valorem taxes . our severance and ad valorem taxes increased $ 7.8 million , or 131 % , to $ 13.7 million for the year ended december 31 , 2012 from $ 5.9 million for the year ended december 31 , 2011. the increase was primarily related to a 121 % increase in production volumes and 62 higher ad valorem tax assessments . the increase in severance and ad valorem taxes on a boe basis for the year ended december 31 , 2012 as compared to the year ended december 31 , 2011 was related to oil severance taxes and ad valorem taxes that were $ 4.2 million and $ 3.2 million , respectively , higher than the comparable period in the previous year . general and administrative . story_separator_special_tag the fair value of the warrant put option decreased $ 34.3 million , or 100 % , to $ 0 for the year ended december 31 , 2011 from a gain of $ 34.3 million for the period ended december 23 , 2010. the decrease resulted from the exercise of the warrants on december 23 , 2010 in connection with our corporate restructuring . accretion of debt discount . our expense for accretion of debt discount decreased $ 8.9 million , or 100 % , to $ 0 for the year ended december 31 , 2011 from $ 8.9 million for the period ended december 23 , 2010. the decrease resulted from the retirement of bcec 's senior subordinated notes on december 23 , 2010 in connection with our corporate restructuring . results for discontinued operations during june of 2012 , the company began marketing , with an intent to sell , all of our oil and gas properties in california . assets are classified as held for sale when the company commits to a plan to sell the assets and there is reasonable certainty that the sale will take place within one year . the company determined that our intent to sell these properties qualifies for discontinued operations accounting and these assets are presented as discontinued operations in the company 's statements of operations . the operating results before income taxes for our california properties for the year ended december 31 , 2012 were net revenues , operating expenses , and loss from discontinued operations of $ 5.4 million , $ 6.3 million , and $ 0.9 million , respectively , as compared to net revenues , operating expenses , and loss from discontinued operations of $ 6.7 million , $ 10.3 million , $ 3.6 million , for the year ended december 31 , 2011. operating expenses for the year ended december 31 , 2012 included impairments in the amount of $ 1.6 million . sales volumes for the years ended december 31 , 2012 and 2011 were 53.7 mbbls and 66.1 mbbls , respectively . the operating results before income taxes for our california properties for the year ended december 31 , 2011 were net revenues , operating expenses , and loss from discontinued operations of $ 6.7 million , $ 10.3 million , and $ 3.6 million , respectively , as compared to net revenues , gain on the sale of the jasmin property , operating expenses , and gain from discontinued operations of $ 4.8 million , $ 4.1 million , $ 4.7 million , and $ 0.1 million for the period ended december 23 , 2010. operating expenses for the year ended december 31 , 2011 included impairments in the amount of $ 3.4 million . sales volumes for the year ended december 31 , 2011 and period ended december 23 , 2010 were 66.1 mbbls and 67.6 mbbls , respectively . 68 see note 4 to our consolidated financial statements included in item 8 of part ii of this annual report on form 10-k. liquidity and capital resources our primary sources of liquidity to date have been proceeds from our initial public offering , corporate restructuring , capital contributions from investors , borrowings under our credit facility and cash flows from operations and proceeds from the sale of non-core properties . our primary use of capital has been for the acquisition and development of oil and natural gas properties . in the second quarter 2012 , we began the divestiture process of our non-core properties in california . the california properties were treated as assets held for sale , and production , revenue and expenses associated with these properties were removed from continuing operations and reported as discontinued operations . during 2012 , we sold a majority of our properties in california , for approximately $ 9.3 million in aggregate . on july 31 , 2012 , we acquired leases in the wattenberg field from the state of colorado , state board of land commissioners . we paid approximately $ 12 million at closing and will pay approximately $ 12 million on july 31 st of each of the next four years . these future payments are secured by a letter of credit which reduced our availability under the borrowing base by $ 48 million as of december 31 , 2012. on april 6 , 2012 , the administrative agent under our credit facility was changed to keybank , national association . on may 8 , 2012 , we entered into an amendment with the lenders under our credit facility to , among other things , and ( i ) increase our credit facility to $ 600 million , and ( ii ) make changes in the covenant applicable to hedging to allow greater flexibility for management to implement comprehensive hedging plans to adequately protect our operations and capital budgets . on october 30 , 2012 our borrowing base was increased to $ 325 million , and as of december 31 , 2012 , we had $ 158.0 million outstanding , $ 48.0 million of letters of credit issued , and $ 119.0 million of borrowing capacity available under our credit facility . our weighted-average interest rate on borrowings from our credit facility was 4.06 % during the year ended december 31 , 2012. on december 15 , 2011 the company sold 10,000,000 shares of our common stock in our ipo at $ 17.00 per share , less $ 1.105 per share for underwriting discounts and commissions . other expenses related to the issuance and distribution of these shares were approximately $ 3 million . we expect that in the future our commodity derivative positions will help us stabilize a portion of our expected cash flows from operations despite potential declines in the price of oil and natural gas . please see `` item 7a.quantitative and qualitative disclosures on market risks . `` we believe that the combination of our cash flow from

