In Colorado’s DJ and North Park Basins, we hold over 62,000 net acres. As of December 31, 2010, our estimated proved reserves in this region were 9.1 million barrels of oil equivalent, 67% of which is oil and liquids. In the DJ Basin, we control over 29,000 net acres within the Greater Wattenberg Field, all of which is prospective for the Niobrara oil shale.

Industry has discovered that the sweet spot of the play is in the Wattenberg Field, where results to date have been consistently positive. We are exploiting our resources by drilling to approximately 6,800 to 7,200 feet in depth, then laterally to over 4,000 feet, and then fracture stimulating with 16 stages.

In the third and fourth quarters of 2011, we completed four horizontal Niobrara wells in the Greater Wattenberg Field. These wells averaged 24-hour production rates of approximately 788 Boe/d and 30-day rates of 458 Boe/d, with an average of 72% oil and liquids content. We plan an aggressive 24 well program in this area in 2012.

Our plans for the Greater Wattenberg include full horizontal development of the Niobrara oil shale on 80 acre spacing using an optimal mix of 4,000 foot laterals and 9,000 foot laterals, leaving us with a robust inventory of future drilling locations. Additional opportunities include the horizontal development of the Codell formation and the continued horizontal testing of the Niobrara formation in our North Park Basin position.

In southern Arkansas, we hold over 13,000 net acres in the Dorcheat-Macedonia and McKamie Patton fields. These fields target primarily the oil-bearing Cotton Valley sands and contain proved reserves, as of December 31, 2010, of 22.9 million barrels of oil equivalent, 67% of which is oil and liquids. We also own and operate two gas processing facilities in the area and approximately 150 miles of associated gathering pipelines that service our acreage position. These facilities have a combined processing capacity of nearly 28 MMcf/d of natural gas and over 50,000 gallons per day of natural gas liquids.

In the Dorcheat-Macedonia field, we drill to depths ranging from 4,500 to 9,000 feet targeting reservoirs that include primarily the Cotton Valley, but also the Deep Smackover and the Pettet. The Dorcheat-Macedonia field was originally developed for the Smackover in the 1940’s on 80-acre units. The Cotton Valley and shallower reservoirs were developed in the late 1970’s and 1980’s. New technology using pin-point fracture stimulation from coil tubing has improved initial rates and ultimate recoveries throughout the field.

In California, we own acreage in the Kern River, Midway Sunset and Greeley fields in the San Joaquin Basin, and the Sargent field in the Salinas Basin. Our estimated proved reserves in California, as of December 31, 2010, were 0.9 million barrels of oil equivalent, 99% of which is oil and liquids. We believe the opportunity for additional growth exists on the two thermal properties, Kern River and Midway Sunset. Combined, these two properties have up to 16.5 million barrels of oil equivalent of original oil in place with very small production to date. We believe that reservoir parameters are good for thermal operations in both areas. Proved reserves for these two areas are only 573 MBoe, which we believe demonstrates an opportunity for future growth in reserves once thermal operations take effect.

Both Greeley and Sargent produce lighter crude and do not require thermal stimulation. Potential upside exists in the Sargent field by implementing fracture stimulation of the Purisima sands.