-- Achieved annual guidance targets
-- Generated average daily production of 13,347 boe/d
-- Reduced costs by a combined $27.9 million or 36% from 2010
o Administrative costs decreased by 32% or $7.3 million
o Interest and finance charges decreased by 41% or $20.6 million
-- 100% success on the 13 wells drilled or participated in during
2011
-- Continued drilling success in the Rock Creek Formation in
Niton:
o Average production rates of wells drilled continued to improve
during 2011 with the most recent well drilled achieving an initial
test production rate of 4.0 mmcf/d of liquids-rich natural gas
o A second well had initial production rates of 1.4 mmcf/d of gas
plus 250 to 300 bbls/d of oil. The well is currently producing at
approximately 800 mcf/d of gas plus 65 bbls/d of oil
-- Advanced exploration of other prospective uphole zones in Niton
to further evaluate the area's potential.
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