Uinta

Utah property map

In 2003, we established our initial acreage position in the Uinta, targeting the Green River formation that produces both light oil and natural gas. We acquired the Brundage Canyon leasehold in Duchesne County in Northeastern Utah, which consists of working interests in federal, tribal and private leases. We also acquired working interests and exploratory rights in Lake Canyon, which is located immediately west of Brundage Canyon. In 2012, we acquired an additional 28,000 net acres in the Uinta, with the majority of the acreage being in or adjacent to Brundage Canyon and Lake Canyon. We currently have working interests in approximately 61,000 net acres in Brundage Canyon and Ashley National Forest, 36,500 net acres and exploratory rights in 49,000 net acres in Lake Canyon, and 9,000 net acres adjacent to Lake Canyon. In 2012, we drilled 102 gross (87 net) wells in the Uinta, including 27 gross (27 net) in Brundage Canyon, 27 gross (27 net) in Ashley National Forest and 48 gross (33 net) in Lake Canyon. Of the 102 gross wells drilled in 2012, 95 tested the Wasatch formation, with encouraging results. In addition to the 102 operated wells in the Uinta, we also participated in four non-operated Green River/Wasatch commingled wells with our partner in Lake Canyon. In June 2012, we received final US Forest Service approval on our Ashley National Forest Environmental Impact Study. As of December 31, 2012, we have 100% working interest in approximately 25,000 net acres in Ashley National Forest. Average daily production from our Uinta properties was approximately 7,500 BOE/D in the fourth quarter of 2012, a 26% increase from the third quarter of 2012.