ROCKY MOUNTAINS

A / Bear Paw

Profile

  • 814,000 net acres in north central Montana.
  • 90% average working interest in federal units.
  • 75% average working interest outside federal units.
  • Produces gas from the Eagle formation at 800' to 2,000'.
  • 18.6 million barrels of oil-equivalent reserves at 12/31/07.

2007 Activity

  • Drilled and completed 55 wells.
  • Recompleted 41 wells.
  • Acquired 52 square miles of 3-D seismic.
  • Expanded gas gathering system capacity.

2008 Plans

  • Drill 50 wells.
  • Continue workover and recompletion program.
  • Add compression and perform other gas gathering system improvements.
  • Acquire additional 3-D seismic.

B / Powder River Coalbed Natural Gas

Profile

  • 75% average working interest in 346,000 acres in northeastern Wyoming.
  • Produces coalbed natural gas from the Fort Union Coal formations at 300' to 2,000'.
  • 27.5 million barrels of oil-equivalent reserves at 12/31/07.

2007 Activity

  • Drilled 193 coalbed natural gas wells.
  • Initiated full scale development at West Pine Tree Unit.
  • Continued development drilling at Juniper Draw.

2008 Plans

  • Drill 118 coalbed natural gas wells.
  • Continue development and initiate first gas sales at West Pine Tree.
  • Complete development drilling at Juniper Draw.

C / Wind River Basin

Profile

  • 96% working interest in 24,600 acres in central Wyoming.
  • Key fields include Beaver Creek and Riverton Dome.
  • Produces oil and gas from multiple formations at 3,000' to 12,000'.
  • 24.8 million barrels of oil-equivalent reserves at 12/31/07.

2007 Activity

  • Initiated construction on Madison CO2 enhanced oil recovery project at Beaver Creek.
  • Drilled 6 Madison formation wells.
  • Recompleted 7 injection wells.
  • Installed CO2 pipeline, flowlines and injection lines.
  • Completed final wells for 12-well coalbed natural gas pilot at Riverton Dome.

2008 Plans

  • Drill final 6 wells for Madison CO2 project.
  • Initiate CO2 injection in Madison enhanced oil recovery project at Beaver Creek.
  • Drill 5 well coalbed natural gas pilot at Beaver Creek.

D / Washakie

Profile

  • 76% average working interest in 210,000 acres in southern Wyoming.
  • Produces gas from multiple formations at 6,800' to 10,300'.
  • 111.1 million barrels of oil-equivalent reserves at 12/31/07.

2007 Activity

  • Drilled and completed 161 wells.
  • Improved drilling efficiencies with new generation rigs.
  • Installed 63 plunger lifts.
  • Installed compression and performed other gas gathering system improvements.
  • Continued implementation of automated production control system.

2008 Plans

  • Drill 112 total wells, including first operated horizontal well.
  • Install 100 plunger lifts.
  • Add compression and perform other gas gathering system upgrades.
  • Continue implementation of automated production control system.

E / NEBU/32-9 units

Profile

  • 25% average working interest in 54,000 acres in the San Juan Basin of northwestern New Mexico.
  • Coalbed natural gas development began in the late 1980s and early 1990s.
  • Includes 304 coalbed gas wells, 302 conventional wells, gas and water gathering systems and an automated production control system.
  • Produces primarily coalbed natural gas from the Fruitland Coal formation at 3,500'.
  • 16.5 million barrels of oil-equivalent reserves at 12/31/07.

2007 Activity

  • Drilled and completed 4 coalbed gas wells.
  • Drilled and completed 20 conventional gas wells.
  • Recompleted 5 conventional wells.
  • Completed 271-well workover program.

2008 Plans

  • Drill 4 coalbed gas wells.
  • Drill 17 conventional gas wells.
  • Recomplete 8 conventional wells.
  • Perform 270-well workover program.

GULF COAST

A / Groesbeck Area

Profile

  • 72% average working interest in 285,000 acres in eastcentral Texas.
  • Key fields include Personville, Nan-Su-Gail, Dew, Oaks and Bald Prairie.
  • Produces primarily gas from the Travis Peak, Cotton Valley Sand, Bossier and Cotton Valley Lime formations at 6,000' to 13,000'.
  • Includes 680 producing wells.
  • 48.8 million barrels of oil-equivalent reserves at 12/31/07.

2007 Activity

  • Drilled and completed 17 vertical wells.
  • Drilled and completed 4 horizontal wells.
  • Recompleted 6 wells.
  • Acquired 3-D seismic.

2008 Plans

  • Drill 6 vertical wells.
  • Drill 11 horizontal wells.
  • Recomplete 15 wells.
  • Acquire 3-D seismic.
  • Expand gas gathering system capacity.

B / Carthage Area

Profile

  • 85% average working interest in 213,000 acres in east Texas.
  • Key fields include Carthage, Bethany, Waskom, Stockman and Appleby.
  • Produces primarily gas from the Pettit, Travis Peak and Cotton Valley formations at 5,700' to 9,600'.
  • Includes 1,666 producing wells.
  • 193.1 million barrels of oil-equivalent reserves at 12/31/07.

2007 Activity

  • Drilled and completed 138 vertical wells, including 31 infill wells.
  • Drilled and completed 13 horizontal wells.
  • Recompleted 50 wells.
  • Acquired additional acreage.

2008 Plans

  • Drill 99 vertical wells, including 30 infill wells.
  • Drill 27 horizontal wells.
  • Recomplete 32 wells.
  • Acquire additional seismic and acreage.
  • Expand gas gathering system capacity.

C / North Louisiana Area

Profile

  • 50% average working interest in 667,000 acres in north Louisiana.
  • Own mineral interests in 139,000 net acres on trend with lower Cotton Valley/Bossier play.
  • Produces from the Hosston, lower Cotton Valley and Bossier formations at 7,000' to 17,000'.
  • 16.7 million barrels of oil-equivalent reserves at 12/31/07.

2007 Activity

  • Drilled and completed 5 infill wells at Ruston.
  • Initiated 3 field studies to evaluate future potential.

2008 Plans

  • Drill 17 wells.
  • Complete 3 field studies and identify additional drilling locations.

D / South Texas/South Louisiana

Profile

  • 66% average working interest in 575,000 acres.
  • Key areas include Matagorda, Zapata, Agua Dulce/ N. Brayton, Duval/Hagist, Houston, Central Texas, Coastal Frio and the Patterson Field in Louisiana.
  • Produces oil and gas from the Frio/Vicksburg, Yegua, Wilcox and Woodbine trends at 1,500' to 15,000'.
  • 34.4 million barrels of oil-equivalent reserves at 12/31/07.

2007 Activity

  • Drilled and completed 41 wells.
  • Drilled 1 successful exploratory well in Matagorda area.
  • Recompleted 65 wells.
  • Initiated 3-D seismic acquisition in Brazoria area.

2008 Plans

  • Drill 48 wells.
  • Drill 2 exploratory wells in south Louisiana.
  • Recomplete 40 wells.
  • Continue 3-D seismic acquisition in Brazoria area.
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