Rocky Mountains

As of December 31, 2008, we owned approximately 173,000 net acres in the Rockies. Our production is concentrated in three basins: the DJ Basin, San Juan Basin and Greater Green River Basin. Our average net daily production for the year ended December 31, 2008 was 12.5 MMcfe/d. In 2008, we drilled 90 gross wells of which 84 were successful.

DJ Basin, Colorado.  As of December 31, 2008, we had a majority working interest in 111,290 net acres with 154 square miles of 3D seismic data. In 2008, we drilled 76 locations, of which 70 were successful, and identified 500 additional drillable, 3D seismic supported locations on these lands. In addition, one salt water disposal well was drilled in 2008 and put into operation in the first quarter of 2009. For the year ended December 31, 2008, our average net daily production from the DJ Basin was 7.6 MMcfe/d. Successful delineation wells were drilled with newly acquired 3D seismic in Duke North, Duke, and Duke South that will add to the production already established in the Republican River, Vernon, SW Wray, and Sandy Bluffs areas

San Juan Basin, New Mexico.   The San Juan Basin is the second most prolific gas basin in North America with significant contribution coming from the Fruitland Coal Bed Methane (“CBM”) trend. There is CBM production from depths of 1,600 feet surrounding our leasehold. As of December 31, 2008, we had a 100% working interest position in approximately 12,000 net acres. In May 2008, we purchased a 50% working interest position in approximately 12,000 gross acres from North American Petroleum Corporation USA, a subsidiary of Petroflow Energy Ltd. In 2008, we drilled 14 CBM wells, all of which were successful. For the year ended December 31, 2008, our average net daily production from the San Juan Basin was 4.3 MMcfe/d. We have identified 17 potential drillable locations on our acreage.

Pinedale, Wyoming. On December 11, 2008, we purchased a 90% working interest in 1,280 acres of the Pinedale field from Pinedale Energy LLC, a subsidiary of Constellation Energy Group, Inc. We purchased 28 productive natural gas wells and 1 salt water disposal well. We will study the field in 2009 for recompletion and downspacing potential. At year end, our average net daily production from Pinedale was 7.4 MMcfe/d.

Alberta Basin, Montana. The Alberta Basin play is a westward analog of the industry’s Bakken and Three Forks of the Williston Basin of Montana and North Dakota. On December 24, 2008, Rosetta received approval from the Bureau of Indian Affairs to option approximately 200,000 net acres located on the Blackfeet Indian Reservation in Western Montana. Our plans for 2009 include detailed technical assessment, land consolidation, and drilling test wells.

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