Peak Energy Resources, Inc. (Peak I)

Peak I was formed in November 2002, and subsequently acquired properties in Wyoming, Texas, and New Mexico. Peak I was funded with a total of $55 MM from Yorktown Energy Partners.

Texas Panhandle

The Texas Panhandle properties, initially acquired from Merchant Resources in April of 2003, were located primarily in the Buffalo Wallow field in Hemphill and Wheeler Counties, Texas and produced out of the Granite Wash formation. Peak purchased approximately 19,800 gross and 10,700 net acres from Merchant Resources and then proceeded to acquire an additional 13,331 gross and 10,747 net acres in the Granite Wash play. Peak aggressively developed these properties with as many as six rigs drilling at a time. Peak drilled a total of 55 wells in the Granite Wash play prior to divesting of the Texas Panhandle properties to Forest Oil in April of 2005 for $230 million.

San Juan Basin

The San Juan Basin properties consisted of a non-operated position in 495 producing wells. Peak had an average of 9.73% gross working interest and 8.31% net revenue interest in these properties. The San Juan Basin properties, which were primarily operated by Burlington Resources, were acquired from Merchant Resources in April of 2003. Peak sold its San Juan Basin properties to Burlington Resources for $30 million in May of 2005.

Wind River Basin/Ft. Worth Basin

In order to facilitate the sale of the Texas Panhandle properties in a corporate sale, the Wind River Basin and the Ft. Worth Basin assets were sold in August 2004 to Peak Oil & Gas, Inc. (Peak II) based on a fairness opinion prepared by Randall & Dewey. The Wyoming assets (Riverton Dome East) have been retained in each of Peak's iterations and exist as one of Peak's current projects.

Peak Oil and Gas, Inc. (Peak II)

Barnett Shale

In April 2003, Peak acquired approximately 10,000 acres held by production from shallow Strawn and Big Saline wells in Hood and Somervell counties from Merchant Resources. This acreage became prospective as the Barnett Shale Newark East Field expanded into these counties.

In 2004, Peak II began acquiring additional leasehold acreage in Hood, Somervell, Erath and Parker counties, bringing Peak’s total Barnett Shale acreage to approximately 30,000 net acres. Peak began an active development program by shooting approximately 50 square miles of 3D seismic.

Peak created two affiliates, Pinnacle Drilling and Momentum Energy Group, to help facilitate Peak’s development of the Barnett Shale. Pinnacle Drilling owned and operated three drilling rigs and Momentum Energy Group is a gas gathering and pipeline company that is active in the Barnett Shale and numerous other basins.

With the assistance of both Pinnacle and Momentum, Peak drilled a total of 8 Barnett Shale wells and 1 salt water disposal well prior to divesting of the Barnett Shale assets in June 2006. Peak had a total investment of approximately $75 million in both the Barnett Shale assets and Pinnacle Drilling. Peak sold all of the assets for proceeds of approximately $163 million for a rate of return of approximately 80% per year.

Peak Energy Resources, LLC (Peak III)

Horizontal Bakken-Williston Basin, North Dakota

In the fall of 2007 Peak Energy formed Peak North Dakota, LLC and began leasing acreage on the Fort Berthold Indian reservation (“FBIR”), which is located in the heart of the Devonian aged Bakken and Three Forks horizontal oil play in North Dakota. Peak North Dakota leased approximately 49,400 gross, 46,500 net acres and drilled and/or participated in sixteen (16) wells on the reservation before the entity was sold to Enerplus Resources (USA) Corporation for slightly more than $456 million in October of 2010.

Peak Energy formed Peak Grasslands, LLC in the fall of 2009 and acquired approximately 7,000 net acres from Penn Virginia Oil and Gas, LP et al in McKenzie County, ND. Peak Grasslands drilled three (3) wells and owned leases on approximately 23,100 gross, 14,500 net acres in McKenzie, Williams and Divide counties, ND when the assets were sold to Kodiak Oil and Gas (USA), Inc. for $110 million in November of 2010. In total, Peak III was funded with approximately $180 million is direct investments and generated a gross return of approximately $566 million.

Peak employed a variety of drilling and completion techniques on its Bakken and Three Forks wells in order to determine the most effective methodologies. By continually improving these techniques, Peak was able to improve the well performance of its horizontal Bakken wells on the FBIR by approximately 50% (e.g. EUR increased from ~300 MBO on wells drilled early in the program to ~450 MBO on wells drilled toward the end of the program).

In 2011, Peak III also divested of its Riverton Dome East properties in the Wyoming and its properties in Nebraska.