PICEANCE BASIN
Operated Producing Wells and Leasehold
White River Dome Field

• Field History
  • Located in north-central Rio Blanco County between the
    cities of Rangely and Meeker
  • Primary producing intervals are within the Upper Cretaceous
    Mesaverde Group
  • Drilling operations targeting the Mesaverde Group began
    in 1990 with 88 wells drilled by prior operators and CHK
  • Cumulative production of ~46 BCF (73 wells still producing)
  • Field being developed on 40-acre spacing
• Current Operations
  • 48 operated Mesaverde and Wasatch wells
    • 28 producing / 5 shut-in / 14 TA’d / 1 SWD
  • 89% average working interest
  • 70% average net revenue interest
  • Projected November 2008 production / cash flow
    • 3.58 gross MMCFEPD / 2.61 net MMCFEPD
    • $327,500 net monthly cash flow
• Upside Potential
  • 62 proved undeveloped Mesaverde and Wasatch locations
  • 108 BCFE gross / 78.9 BCFE net proven reserves
  • Other operators in area utilizing 20 and 10 acre spacing
    • Represents significant P2 and P3 reserve base
  • Newly discovered and highly productive Iles sands
  • Continued development of up-hole Wasatch reserves
• Land
• ~10,860 gross acres / ~9,520 net acres
• All leases are HBP
  

NOTE: a Confidentiality Agreement (“CA”) must be executed prior to receiving the data
Package. Upon receipt of this request, Meagher will furnish to you a CA for execution.