Balanced Drilling Portfolio Treatment

We have built a multi-year inventory of drillable prospects that is economic using conservative natural gas price assumptions. During 2006, about 70 percent of our drilling capital will be spent on low-risk development prospects, which are expected to replace production. The remaining capital is focused on medium- to high-risk exploration and development drilling that provides additional growth potential.

Our ability to accurately evaluate risk is a key element of our success. On a monthly basis, we compare expected success rates against actual results as well as pre-drill and post-drill reserve estimates. This discipline allows us to ensure that our capital program is delivering value to shareholders.

*Cautionary Statement Regarding Forward-looking Statements