Valuation Date:	 12/31/2002	 	
	Jun-03	 Jun-04	 Jun-05	 Jun-06	 Jun-07	 Jun-08	 Jun-09	 Jun-10	 Jun-11	  	  	  	  	 	
Withdrawal Capability	 40%	                90,000 	               54,000 	               32,400 	               19,440 	               11,664 	                 6,998 	                 4,199 	                 2,519 	                 1,512 			
Days	 	365	 365	 365	 365	 365	 365	 365	 365	 365	 	
Withdrawn MMBtu	 	        32,850,000 	        19,710,000 	        11,826,000 	          7,095,600 	          4,257,360 	          2,554,416 	          1,532,650 	             919,590 	             254,385 			
			
Beginning MMBtu	 	        81,000,000 	        48,150,000 	        28,440,000 	        16,614,000 	          9,518,400 	          5,261,040 	          2,706,624 	          1,173,974 	             254,385 			
Ending MMBtu	 	        48,150,000 	        28,440,000 	        16,614,000 	          9,518,400 	          5,261,040 	          2,706,624 	          1,173,974 	             254,385 	                      -   			
	
Price (CIG)	 	                   2.67 	                   2.81 	                   2.91 	                   3.00 	                   3.09 	                   3.18 	                   3.27 	                   3.38 	                   3.48 	 	  	  	  	 	
Revenue	 	        87,639,694 	        55,363,748 	        34,400,849 	        21,273,200 	        13,143,535 	          8,116,018 	          5,016,490 	          3,111,049 	             884,771 			
Opex	 15%	       (13,145,954)	         (8,304,562)	         (5,160,127)	         (3,190,980)	         (1,971,530)	         (1,217,403)	            (752,473)	            (466,657)	            (132,716)	  	  	  	  	 	
		        74,493,740 	        47,059,185 	        29,240,721 	        18,082,220 	        11,172,004 	          6,898,616 	          4,264,016 	          2,644,391 	             752,055 			
			
Discounting	 10%	                   0.954 	                  0.867 	                  0.788 	                  0.717 	                  0.651 	                  0.592 	                  0.538 	                  0.489 	                  0.445 			
	$191,939,467 		
	($28,790,920)	 	
Value	 $163,148,547 		
Basis @ $.25/M	                     30,000,000 		
	$133,148,547 		
	
less: Capex	                    (68,000,000)	 	
Net Value	 $65,148,547 		
 	  	  Sensitivities 	 	 
					
		 	
	
	
	105,000	                90,000 	               70,000 	
Year One Avg Rate	 $70,130,533 	$65,148,547 	$38,283,088 	
			
	
	20%	 30%	 40%	 
Extraction Decline Rate	 $69,975,046 	$68,568,401 	$65,148,547 	
	
	
	10%	 20%	 30%	 
Opex (as  % of revenue)	 $74,745,520 	$55,551,574 	$36,357,627 	
	
	
	                           54,400 	               68,000 	               81,600 	
Capex	 $78,748,547 	$65,148,547 	$51,548,547