Year Ended December 31,

2004

2003

2002

Cash Flows from Operating Activities:

   Net income

$

68,450,917

$

29,893,812

$

11,923,227

   Adjustments to reconcile net income to net cash provided

      by operating activities-

   Cumulative effect of change in accounting principle

---

4,376,852

---

   Depreciation, depletion, and amortization

81,580,828

63,072,057

56,224,392

   Accretion of asset retirement obligation

673,654

857,356

---

   Deferred income taxes

32,513,325

16,332,492

6,482,724

   Debt retirement cost – cash and non-cash

9,536,268

---

---

   Gain on asset disposition

---

---

(7,332,668)

   Other

(435,439)

908,927

270,770

   Change in assets and liabilities-

      (Increase) decrease in accounts receivable

(11,040,543)

(7,163,304)

883,419

      Increase in accounts payable and accrued liabilities

843,341

2,432,111

206,163

      Increase in accrued interest

460,536

116,976

2,968,287

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

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

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

         Net Cash Provided by Operating Activities

182,582,887

110,827,279

71,626,314

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

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

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

Cash Flows from Investing Activities:

   Additions to property and equipment

(171,095,101)

(144,503,180)

(103,773,337)

   Proceeds from the sale of property and equipment

5,058,147

10,186,970

13,256,674

   Acquisition of TAWN fields

---

---

(51,460,586)

   Acquisition of Bay de Chene and Cote Blanche Island fields

(27,196,336)

---

---

   Net cash received as operator of oil and gas properties

3,921,673

3,073,718

4,152,645

   Net cash received (distributed) as operator of partnerships

884,093

260,726

(23,241,501)

   Other

(658,630)

(71,193)

(39,953)

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

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

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

         Net Cash Used in Investing Activities

(189,086,154)

(131,052,959)

(161,106,058)

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

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

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

Cash Flows from Financing Activities:

   Proceeds from long-term debt

150,000,000

---

200,000,000

   Payments of long-term debt

(125,000,000)

---

---

   Net proceeds from (payments of) bank borrowings

(8,400,000)

15,900,000

(134,000,000)

   Net proceeds from issuances of common stock

4,825,251

1,575,853

31,409,200

  Payments of debt retirement costs

(6,734,611)

---

---

  Payments of debt issuance costs

(4,333,535)

---

(6,262,435)

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

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

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

         Net Cash Provided by Financing Activities

10,357,105

17,475,853

91,146,765

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

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

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

Net Increase (Decrease) in Cash and Cash Equivalents

$

3,853,838

$

(2,749,827)

$

1,667,021

Cash and Cash Equivalents at Beginning of Year

1,066,280

3,816,107

2,149,086

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

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

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

Cash and Cash Equivalents at End of Year

$

4,920,118

$

1,066,280

$

3,816,107

=============

=============

=============

Supplemental Disclosures of Cash Flows Information:

Cash paid during year for interest, net of amounts capitalized

$

26,064,158

$

25,763,169

$

19,189,822

Cash paid during year for income taxes

$

476,000

$

129,738

$

2,500

Non-Cash Financing Activity:

Issuance of common stock in acquisitions

$

---

$

---

$

8,116,200