Glossary of Terms

The following are abbreviations and definitions of terms commonly used in the oil and gas
industry and this website.

Asset intensity

The amount of capital a company requires to maintain production at constant levels;

computed by multiplying current year production by the 3-year average F&D cost/Mcfe
and dividing the product by current year cash flow from operations.

Bbl

Barrel(s) of oil. One barrel of oil is the energy equivalent of six Mcf of natural gas.

Bcf

Billion cubic feet of natural gas.

Bcfe

Billion cubic feet of natural gas equivalent.

Boe

Barrels of oil equivalent.

CAPEX

Capital expenditures.

Capital efficiency

Computed by dividing current year EBITDA, adjusted to exclude unrealized gains and
losses on derivatives, by current year production and diving the quotient by the 3-year
average F&D cost/Mcfe.

CIG

Colorado Interstate Gas.

Completion

The installation of permanent equipment for the production of oil or gas.

Development well

A well drilled within the proved area of an oil or gas reservoir to the depth of a stratigraphic
horizon known to be productive.

Dry hole

A well found to be incapable of producing hydrocarbons in sufficient quantities to justify

completion as an oil or gas well.

EBITDA

Earners before interest, income taxes, depreciation, depletion and amortization.

Exit rate

Natural gas equivalent produced as of the date specified.

Exploratory well

A well drilled to find a new field or to find a new reservoir in a field previously found to be
productive of oil or gas in another reservoir.

Extensions and discoveries

As to any period, the increases to proved reserves from all sources other than the
acquisition of proved properties or revisions of previous estimates.

Farm-out

Transfer of all or part of the operating rights from a working interest owner to an assignee,
who assumes all or some of the burden of development in return for an interest in the
property. The assignor usually retains an overriding royalty but may retain any type of
interest.

Gross acres or wells

Refers to the total acres or wells in which we have a working interest.

Horizontal drilling

A drilling technique that permits the operator to contact and intersect a larger portion of the
producing horizon than conventional vertical drilling techniques and may, depending on the
horizon, result in increased production rates and greater ultimate recoveries of
hydrocarbons.
Joint Interest Billing or JIB

Process of distributing the costs related to well completions and operations among working
interest partners.

MBbl

Thousand barrels of oil.

MBoe

Thousand barrels of oil equivalent.

Mcf

Thousand cubic feet of natural gas.

Mcfe

Thousand cubic feet equivalent of natural gas.

MMBbl

Million barrels of oil.

MMBoe

Million barrels of oil equivalent.

MMcf

Million cubic feet of natural gas.

MMcfe

Million cubic feet equivalent of natural gas.

Natural Gas Liquids or NGLs

Hydrocarbons which can be extracted from wet natural gas and become liquid under
various combinations of increasing pressure and lower temperature. NGLs consist primarily
of ethane, propane, butane, and natural gasolines.

Net acres or wells

Refers to gross acres or wells multiplied, in each case, by the percentage working interest
we own.

Net production

Natural gas and oil production that we own, less royalties and production due others.

NYMEX

New York Mercantile Exchange.

Operator

The individual or company responsible for the exploration, development and/or production
of an oil or gas well or lease.

Peer group

Consists of Bill Barrett Corporation (NYSE: BBG), Carrizo Oil & Gas (NASDAQ:
CRZO), Goodrich Petroleum Corporation (NYSE: GDP), Magnum Hunter Resources Corp.
(NYSE: MHR), PetroQuest Energy Inc. (NYSE: PQ), PetroQuest Energy Inc. (NYSE: PQ),
Penn Virginia Corporation (NYSE: PVA), Rex Energy Corporation (NASDAQ: REXX),
and Rosetta Resources Inc. (NASDAQ: ROSE).

PEPL

Panhandle Eastern Pipeline.

Present value of proved reserves

The present value of estimated future revenues, discounted at 10% annually, to be

generated from the production of proved reserves determined in accordance with Securities
and Exchange Commission guidelines, net of estimated production and future development
costs, using prices and costs as of the date of estimation without future escalation, without
giving effect to (i) estimated future abandonment costs, net of the estimated salvage value
of related equipment, (ii) non-property related expenses such as general and administrative
expenses, debt service and future income tax expense, or (iii) DD&A expense.

Proved developed non-producing reserves

Reserves that consist of (i) proved reserves from wells which have been completed and
tested but are not producing due to lack of market or minor completion problems which are
expected to be corrected and (ii) proved reserves currently behind the pipe in existing wells
and which are expected to be productive due to both the well log characteristics and
analogous production in the immediate vicinity of the wells.
Proved developed producing reserves

Proved reserves that can be expected to be recovered from currently producing zones under
the continuation of present operating methods.

Proved developed reserves

The combination of proved developed producing and proved developed non-producing

reserves.

Proved reserves

Those quantities of oil and gas, which, by analysis of geoscience and engineering data, can
be estimated with reasonable certainty to be economically producible - from a given date
forward, from known reservoirs, and under existing conditions, operating methods, and
government regulations prior to the time at which contracts providing the right to operate
expire, unless evidence indicates that renewal is reasonable certain, regardless of whether
deterministic or probabilistic methods are used for the estimation.

Proved undeveloped reserves or PUD

Proved reserves that are expected to be recovered from new wells on undrilled acreage, or
from existing wells where a relatively major expenditure is required for recompletion.

Recompletion

A recompletion occurs when we reenter a well to complete (i.e., perforate) a new formation
different from that in which a well has previously been completed.

Refrac or refracture

A refrac is when we stimulate the present producing zone of a well to increase production,
using hydraulic, acid, gravel, etc. fracture techniques.

Reserve replacement

Calculated by dividing the sum of reserve additions from all sources (revisions, extensions,
discoveries and other additions and acquisitions) by the actual production for the
corresponding period. We use the reserve replacement ratio as an indicator of our ability to
replenish annual production volumes and grow our reserves, thereby providing some
information on the sources of future production. It should be noted that the reserve
replacement ratio is a statistical indicator that has limitations. As an annual measure, the
ratio is limited because it typically varies widely based on the extent and timing of new
discoveries and property acquisitions. Its predictive and comparative value is also limited
for the same reasons. In addition, since the ratio does not imbed the cost or timing of future
production of new reserves, it cannot be used as a measure of value creation.
Reserves

Estimated remaining quantities of oil and gas and related substances anticipated to be
economically producible, as of a given date, by application of development projects to
known accumulations. In addition, there must exist, or there must be a reasonable
expectation that there will exist, the legal right to produce or a revenue interest in the
production, installed means of delivering oil and gas or related substance to market, and all
permits and financing required to implement the project.

Royalty

An interest in an natural gas and oil lease that gives the owner of the interest the right to
receive a portion of the production from the leased acreage (or of the proceeds of the sale
thereof), but generally does not require the owner to pay any portion of the costs of drilling
or operating the wells on the leased acreage. Royalties may be either landowners royalties,
which are reserved by the owner of the leased acreage at the time the lease is granted, or
overriding royalties, which are usually reserved by an owner of the leasehold in connection
with a transfer to a subsequent owner.

SEC PV-10

The present value of proved reserves based on 12-month average commodity prices,
discounted at a rate of 10% per annum.

Standardized measure of discounted future net cash flows

Present value of proved reserves, as adjusted to give effect to (i) estimated

future abandonment costs, net of the estimated salvage value of related equipment, and (ii)
estimated future income taxes.

Trunk Line

A pipeline for the transportation of oil or natural gas from producing areas to refineries or
terminals.

Undeveloped acreage

Leased acreage on which wells have not been drilled or completed to a point that would
permit the production of commercial quantities of natural gas and oil, regardless of whether
such acreage contains proved reserves.

Wellbore

A physical hole that makes up the well, and can be cased, open or a combination of both.

Working interest
An interest in an natural gas and oil lease that gives the owner of the interest the right to
drill for and produce natural gas and oil on the leased acreage and requires the owner to pay
a share of the costs of drilling and production operations. The share of production to which
a working interest is entitled will be smaller than the share of costs that the working interest
owner is required to bear to the extent of any royalty burden.

Workover

Operations on a producing well to restore or increase production.