We have a geographically diverse asset base with core areas of operation in Appalachia , Mississippi , east Texas , the Mid-Continent and the Gulf Coast regions of the United States . As of December 31, 2006, we had proved oil and natural gas reserves of approximately 487 Bcfe, of which 71% were proved developed and 94% were natural gas, with an SEC pre-tax PV-10 value of $787 million.

For the quarter ended March 31, 2007, we had average daily production of 97.0 MMcfe. Our properties generally have long reserve lives and reasonably stable and predictable well production characteristics with a ratio of proved reserves to production (based on production for the quarter ended March 31, 2007) of approximately 13.8 years. At December 31, 2006, we owned 1,067,000 net acres of leasehold, approximately 52% of which were undeveloped. We have identified 418 proved undeveloped locations and over 1,900 additional potential drilling locations, which we believe represent over five years of drilling opportunities based on our current drilling rate.