that the amount of our hedges will vary from time to time.

Our gas derivative transactions are generally settled based upon the average of the reporting settlement prices on the NYMEX for the last three trading days of a particular contract month. Our oil derivative transactions are generally settled based on the average reporting settlement prices on the NYMEX for each trading day of a particular calendar month. For the month of December 2003, a $0.10 change in the price per Mcf of gas sold would have changed revenue by $133,000. A $0.70 change in the price per barrel of oil would have changed revenue by $62,000.

The table below summarizes our total natural gas production volumes subject to derivative transactions during 2003 and the weighted average NYMEX reference price for those volumes.

The table below summarizes our total crude oil production volumes subject to derivative transactions during 2003 and the weighted average NYMEX reference price for those volumes.

At December 31, 2002 and 2003 we had the following outstanding hedge positions:

In addition to the hedge positions above, during the second quarter of 2003, we acquired options to sell 6,000 MMBtu of natural gas per day for the period July 2003 through August 2003 (552,000 MMBtu) at $8.00 per MMBtu for approximately $119,000. We

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