________
⁽¹⁾ Excludes capitalized interest on unproved properties of $11.7 million, $10.0 million and $5.8 million for the years ended December 31, 2007, 2006 and 2005, respectively, and includes capitalized overhead of $4.5 million, $3.5 million, and $2.1 million for the years ended December 31, 2007, 2006 and 2005, respectively. The table also includes non-cash asset retirement obligations of $2.0 million, $0.3 million and $1.8 million, respectively, for the years ended December 31, 2007, 2006 and 2005, respectively.

Drilling Activity

The following table sets forth our drilling activity for the years ended December 31, 2007, 2006 and 2005. 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 workinginterest therein. Our drilling activity from January 1, 1996 to December 31, 2007 has resulted in an apparent commercial success rate of approximately 81%.

The table excludes six gross wells (1.1 net) drilled by CCBM during 2005. The wells are in various stages of development and/or stages of production.

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, 2007. This table excludes all wells drilled or acquired by CCBM through 2003, a majority of which were contributed to Pinnacle in that year.