The decrease in revenues was primarily due to unrealized gains on oil commodity contracts during the third quarter of 2011 substantially offset in net income with decreased depreciation and depletion expense during 2012. Further, the increase in net income for the nine months ended September 30, 2012 was principally due to the decreased depreciation and depletion expense partially offset by increased lease operating expenses and income tax provisions.

Oil and gas production and the average prices received (excluding gains and losses from derivatives) for the three and nine months ended September 30, 2012 and 2011 were as follows:
  Three Months Ended September 30,   Nine Months Ended September 30,
2012   2011   Increase / (Decrease) 2012   2011   Increase / (Decrease)
Barrels of Oil Produced 185,000 155,000 30,000 541,000 458,000 83,000
Average Price Received $ 88.26 $ 83.86 $ 4.40 $ 91.84 $ 90.19 $ 1.65
Oil Revenue (In 000’s) $ 16,288 $ 13,001 $ 3,287 $ 49,717 $ 41,283 $ 8,434
MMcf of Gas Produced 1,191 1,294 (103 ) 3,493 3,703 (210 )
Average Price Received $ 4.64 $ 6.77 $ (2.13 ) $ 4.57 $ 6.47 $ (1.90 )
Gas Revenue (In 000’s) $ 5,525 $ 8,756 $ (3,231 ) $ 15,961 $ 23,953 $ (7,992 )
Total Oil & Gas

Revenues (In 000’s)

$

21,813

$

21,757

$

56
 

$

65,678

$

65,236

$

442
 

In addition today PrimeEnergy announced that its Board of Directors authorized an increase in shares to its stock buy-back plan. The Board authorized the Company to repurchase up to an additional 500,000 shares of its Common Stock, or 19.4% of the shares of Common Stock currently outstanding. This authorization coupled with the remaining balance of the last authorization allows the Company to repurchase up to 534,753 shares. The shares may be repurchased from time to time in open market transactions or privately negotiated transactions at the Company’s discretion, including the quantity, timing and price thereof.

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