The firm has hedged nearly 68 MMBtu per day next year with a floor in excess of $6 of Rockies pricing. Strip pricing for the Rockies in 2007 is 6.25 and the firm plans to hedge additional volumes at opportunistic times.

Performance Highlights of Development Areas

West Tavaputs in the Uinta Basin

Here the firm remains on track to have a published draft of its environmental impact statement (EIS) during early-to-mid 2007. The firm then goes through the public comment space and expects a record of decision by the end of 2007. The EIS is, of course, very important to reaching optimal activity levels at West Tavaputs. During the pre-EIS period, work with the regulators in the area continues to go well. The firm has received indications that it will be able to drill and perform completions through the winter months of 2006 and early 2007.

Currently, the company has one shallow rig and one deep rig drilling in the field and the firm expects to drill 30 shallow and two deep wells this year. The firm has spud 26 shallow and one deep well to date. Bill Barrett has produced net 33 million cubic feet equivalent at West Tavaputs during the third quarter and is currently producing 57 million cubic feet.

The company added two compressors, which began service on October 1st. With this, the company’s field compression capacity now totals 68 million cubic feet gross per day. The firm has well production capacity in excess of this amount and hence is still has compression facility constraint. This results from the strong oil performance that the company has. The company expects to add additional compression during the first quarter 2007, raising its facility compression capacity to 87 million cubic feet per day.

The management continues to be encouraged by EURs in the shallow program, with typical EURs ranging from 2 to 2.6 Bcfe in this year''s program. The firm has had several wells that are much higher than this. With extensive location in inventory, the firm sees continuing growth with very strong returns.

The company announced the completion of operations on the 412 deep well, a delineation to the 6, 7 deep discovery well of late 2005. The well has been completed in the Navajo land with plans to add the Entrada sand at a later date. Today, the well is producing in a following tubing pressure of over 890 pounds on a 1-inch choke. The well is still producing 24% CO2 from the completion operations and the CO2 content is declining.

Piceance

The company currently has three rigs operating in its Gibson Gulch area. The firm produced over 44 million cubic feet a day net in the third quarter, a 17% increase over the second quarter. The firm is currently producing nearly 47 million cubic feet equivalent net. The well performance has increased significantly as a result of improvements in completion techniques. The last 12 wells completed at the EURs averaged 1.2 Bcfe with several that are north of 1.5 Bcfe. This is compared to earlier year results of less than 1 Bcfe per well.

As an additional tool, to enhance EURs, the management plans to use its three-component 3D survey during the fourth quarter in select development areas. The firm’s drilling complete costs are averaging $2 million and the management expects to reduce this figure by a combination of completion, optimization, and service contracting. The Piceance provides the firm with significant reserve and production growth and year around drilling opportunities, with a typical well of 1.2 bcfe and $2 million to drill. The firm has rates of return in the high 20% range. The firm can return 10% even when Rockies prices are in low $4 range well below the current strip, and in fact, only in one month in the last three years as the Rockies bid week priced in below $4. With these results in hand, the company is planning to run a three rig program through the remainder of this year and throughout 2007.

CBM Operations in the Powder River Basin

The firm is largely with the acquisition of CH4 and has been actively enhancing its position and focusing its efforts on the giant Big George play. In 2006, the firm plans to drill 156 wells with a total capital budget of about $21 million, excluding the acquisition cost for CH4. Over the next several years, the management is planning allocation of $30 million of capital budget towards CBM and planning to drill between 200 and 250 wells per year.

The firm currently has over 100 wells there in the process of dewatering, and expects to see significant production growth in late 2007 and into 2008. The management views the CBM development play as a third low risk part of its core development portfolio. CBM provides the best rates of returns on incremental drilling dollars. The firm has incremental drilling F&D that is in the 70 cents range and rates of return well north of 40%. The company has a 4 to 5 year drilling inventory and scale economics and economies that make it a major producer and operator in this area.

Cave Gulch/Bullfrog Area in the Wind River Basin and the Williston Basin

Production from the Cave Gulch/Bullfrog area averaged 31 million cubic feet equivalent during the quarter and key deep wells - 129, 14, 18, 33, 19 - continued to produce along forecasted declined curves. The Williston produced 6 million cubic feet equivalent. There is currently no development drilling activity in either of these two areas.

Lake Canyon Area

The company and its partners are 100% successful on the first seven wells drilled. Recall that the firm’s industry partner is operating a shallow Green River program with averages up 4,000 to 5,000 feet. The last four wells recently completed by the firm’s partner, each had average IPs of 140 barrels of oil equivalent per day and continues to validate the company’s original concept of extending the Green River Trend westwards across the eastern portion of Lake Canyon. As a reminder, the firm has an 18% to 25% working interest in the Green River play.

The company''s number #1 DLB Wasatch discovery has produced a total of 20,100 barrels of oil over 205 days, and it is currently producing close to 80 barrels of oil per day. Also this well is geologically significant and that''s the nearest Wasatch production and at the same Wasatch zone occurs almost nine miles to the North in the giant Altamont-Bluebell complex.

The firm’s Lake Canyon position covers almost 434 miles and with the firm’s discovery, it believes that Wasatch potential could cover a significant portion of its acreage position. The firm will commence the drilling of three new Wasatch delineation tests between its discovery well and the Altamont-Bluebell complex over the coming weeks. Depending on the results of these wells, the firm could significantly ramp up activity in 2007 as an emerging development program. The firm operates with a 56% to 75% working interest in the Wasatch program, with average depths ranging from 7,000 to 9,000 feet.