We have not paid any dividends on our common stock in the past and do not intend to pay such dividends in the foreseeable future. We currently intend to retain any earnings for the future operation and development of our business, including exploration, development and acquisition activities. Our credit facility and the terms of our senior subordinated notes and senior subordinated secured notes restrict our ability to pay dividends. See "Management's Discussion and Analysis of Financial Condition and Results of Operations--Liquidity and Capital Resources."

On March 22, 2005, Steven A. Webster exercised in full his warrant (the "Warrant") to purchase 84,211 shares of our common stock at a price of $5.94 per share. As a result of the cashless exercise of the Warrant, Mr. Webster received 54,669 shares of common stock upon exercise. The Warrant was initially issued by the Company in February 2002. In issuing the shares of common stock underlying the Warrant, the Company relied on the exemption from registration provided by Section 4(2) of the Securities Act of 1933, as amended, for transactions not involving a public offering.

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