December 31,

ASSETS

2004

2003

Current Assets:

   Cash and cash equivalents

$

4,920,118

$

1,066,280

   Accounts receivable-

      Oil and gas sales

38,029,409

26,082,650

      Joint interest owners

1,013,938

1,350,707

   Other current assets

10,422,531

4,961,320

----------------------

----------------------

         Total Current Assets

54,385,996

33,460,957

----------------------

----------------------

Property and Equipment:

   Oil and gas, using full-cost accounting

      Proved properties

1,479,681,903

1,305,110,582

      Unproved properties

80,121,509

67,557,969

----------------------

----------------------

1,559,803,412

1,372,668,551

   Furniture, fixtures, and other equipment

12,820,622

10,602,786

----------------------

----------------------

1,572,624,034

1,383,271,337

   Less – Accumulated depreciation, depletion, and amortization

(649,185,874)

(567,464,334)

----------------------

----------------------

923,438,160

815,807,003

Other Assets:

----------------------

----------------------

   Deferred income taxes

1,666,058

1,905,909

   Debt issuance costs

9,148,977

8,015,575

   Restricted assets

1,933,956

649,100

----------------------

----------------------

12,748,991

10,570,584

----------------------

----------------------

$

990,573,147

$

859,838,544

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===========

LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities:

   Accounts payable and accrued liabilities

$

29,406,877

$

26,247,477

   Accrued capital costs

22,489,467

29,417,542

   Accrued interest

9,209,192

8,748,656

   Undistributed oil and gas revenues

7,512,755

4,939,667

----------------------

----------------------

         Total Current Liabilities

68,618,291

69,353,342

----------------------

----------------------

Long-Term Debt

357,500,000

340,254,783

Deferred Income Taxes

73,106,580

43,498,682

Asset Retirement Obligation

17,176,136

9,340,473

Commitments and Contingencies

Stockholders' Equity:

   Preferred stock, $.01 par value, 5,000,000 shares authorized, none outstanding

---

---

   Common stock, $.01 par value, 85,000,000 shares authorized, 28,570,632 and

28,011,109 shares issued, and 28,089,764 and 27,484,091 shares

outstanding, respectively

285,706

280,111

   Additional paid-in capital

343,536,298

334,865,204

   Treasury stock held, at cost, 480,868 and 527,018 shares, respectively

(6,896,245)

(7,558,093)

   Unearned compensation

(1,728,585)

---

   Retained earnings

138,524,301

70,073,384

   Accumulated other comprehensive income (loss), net of income tax

450,665

(269,342)

----------------------

----------------------

474,172,140

397,391,264

----------------------

----------------------

$

990,573,147

$

859,838,544

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