| Proved Reserves: |
199.0 Bcfe (at 12/31/06) |
| Reserve Mix: |
99% natural gas |
| Reserve Life Index: |
25+ years |
| 2006 Production: |
8.0 Bcfe, or 74% of the Company’s total 2006 production |
| Drilling: |
During 2006, we invested approximately $43.1 million to drill 155 wells in the Appalachian Basin. In addition, in order to improve our drilling efficiency, we purchased two drilling rigs at a cost of approximately $2.2 million per rig in the latter part of 2006, and an additional rig in the first quarter of 2007. |
| Pipelines: |
We own certain pipelines which market and transport our gas as well as transport gas for third parties. In January 2007, we acquired additional reserves that we believe have significant development potential and also expanded our pipeline facilities. |
| 2007 Capital Program: |
During 2007, we anticipate spending 30% to 50% of our total budget for drilling, development and pipeline expansion activities in the Appalachian Basin. |
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