$0.7 million for the year ended December 31, 2003.

DRILLING ACTIVITY

The following table sets forth our drilling activity for the years ended December 31, 2001, 2002 and 2003. In the table, "gross" refers to the total wells in which we have a working interest and "net" refers to gross wells multiplied by our working interest therein. Our drilling activity from January 1, 1996 to December 31, 2003 has resulted in a commercial success rate of approximately 71%.

At December 31, 2002 and 2003, we had ownership in 11 and 12 gross (2.7 and 3.2 net) wells, respectively, with dual completion in single bore holes. The above table excludes 77 gross (29 net) wells drilled or acquired by CCBM through 2003, a majority of which were contributed to Pinnacle during 2003. The wells contributed to Pinnacle are in various stages of development and/or stages of production. See "Wyoming/Montana Coalbed Methane Project Area" below.

PRODUCTIVE WELLS

The following table sets forth the number of productive oil and natural gas wells in which we owned an interest as of December 31, 2003. This table excludes all wells drilled or acquired by CCBM through 2003, a majority of which were contributed to Pinnacle in that year.

ACREAGE DATA

The following table sets forth certain information regarding our developed and undeveloped lease acreage as of December 31, 2003. Developed acres refers to acreage within producing units and undeveloped acres refers to acreage that has not been placed in producing units. Leases covering substantially all of the undeveloped acreage in the following table will expire within the next three years. In general, our leases will continue past their primary terms if oil or natural gas in commercial quantities is being produced from a well on such leases.

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