Sales of oil and natural gas, net of oil and natural gas operating expenses, are based on historical pretax results. Sales of oil and natural gas properties, extentions and discoveries, purchases of minerals in place and the changes due to revisions in standardized variables are reported on a pretax discounted basis, while the accretion of discount is presented on an after-tax basis.

14.        SUPPLEMENTAL QUARTERLY FINANCIAL DATA (UNAUDITED) (RESTATED)

Due to the restatements, as described in Note 3 of Notes to the Consolidated Financial Statements, the Company's previously filed quarterly financial statements on Form 10-Q for the periods ended March 31, 2004, June 30, 2004, September 30, 2004, March 31, 2005, June 30, 2005 and September 30, 2005 should no longer be relied upon.