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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>As filed with the Securities and Exchange Commission on April 16, 2010</B>
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>File No.&nbsp;333-</B>
</DIV>


<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 1pt solid black; font-size: 1pt">&nbsp;</DIV>




<DIV align="center" style="font-size: 14pt; margin-top: 12pt"><B>UNITED STATES SECURITIES AND<BR>
EXCHANGE COMMISSION</B>
</DIV>

<DIV align="center" style="font-size: 12pt"><B>Washington, D.C. 20549</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><DIV align="center"><DIV style="FONT-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>
</DIV>
<DIV align="center" style="font-size: 18pt; margin-top: 12pt"><B>Form&nbsp;S-1</B>
</DIV>


<DIV align="center" style="font-size: 12pt; margin-top: 12pt"><B>REGISTRATION STATEMENT<BR>
UNDER<BR>
THE SECURITIES ACT OF 1933</B>
</DIV>

<DIV align="center" style="font-size: 24pt; margin-top: 12pt"><B>RESOLUTE ENERGY CORPORATION</B>
</DIV>

<DIV align="center" style="font-size: 10pt">(Exact name of registrant as specified in its charter)</DIV>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
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    <TD width="31%">&nbsp;</TD>
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    <TD width="3%">&nbsp;</TD>
    <TD width="31%">&nbsp;</TD>
</TR>
<TR></TR>
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<TR valign="bottom">
    <TD align="center" valign="top"><B>Delaware</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>1311</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>27-0659371</B></TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">(State or other jurisdiction of
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(Primary Standard Industrial
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"> (I.R.S. Employer</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">incorporation or organization)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Classification Code Number)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Identification Number)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><DIV align="center"><DIV style="FONT-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
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<TR valign="bottom">
    <TD width="48%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="48%">&nbsp;</TD>
</TR>
<TR></TR>
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<TR valign="bottom">
    <TD align="center" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>James M. Piccone</B></TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><B>1675 Broadway, Suite&nbsp;1950</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>1675 Broadway, Suite&nbsp;1950</B></TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><B>Denver, Colorado 80202</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>Denver, Colorado 80202</B></TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><B>303-534-4600 (Phone)</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>303-534-4600 (Phone)</B></TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">(Address, including zip code, and telephone number, including
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(Address, including zip code, and telephone number,</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">area code, of registrant&#146;s principal executive offices)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">including area code, of agent for service)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B><I>Copies to</I></B><B>:<BR>
Ronald R. Levine, II</B><BR>
<B>Davis Graham &#038; Stubbs LLP<BR>
1550 Seventeenth Street, Suite&nbsp;500<BR>
Denver, Colorado 80202<BR>
303-892-9400 (Phone)<BR>
303-892-7400 (Fax)</B><BR>
<DIV align="center"><DIV style="FONT-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV></DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Approximate date of commencement of proposed sale to the public: As soon as
practicable after the effective date of this registration statement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If any of the securities being registered on this Form are to be offered on a delayed
or continuous basis pursuant to Rule&nbsp;415 under the Securities Act of 1933 check the
following box. <FONT style="font-family: Wingdings">&#254;</FONT>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If this Form is filed to register additional securities for an offering pursuant to
Rule 462(b) under the Securities Act, please check the following box and list the Securities
Act registration statement number of the earlier effective registration statement for the
same offering. <FONT style="font-family: Wingdings">&#111;</FONT>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If this Form is a post-effective amendment filed pursuant to Rule 462(c) under the
Securities Act, check the following box and list the Securities Act registration statement
number of the earlier effective registration statement for the same offering. <FONT style="font-family: Wingdings">&#111;</FONT>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If this Form is a post-effective amendment filed pursuant to Rule 462(d) under the
Securities Act, check the following box and list the Securities Act registration statement
number of the earlier effective registration statement for the same offering. <FONT style="font-family: Wingdings">&#111;</FONT>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 2%">Indicate by check mark whether the registrant is a large accelerated filer, an accelerated
filer, a non-accelerated filer, or a smaller reporting company. See the definitions of &#147;large
accelerated filer,&#148; &#147;accelerated filer&#148; and &#147;smaller reporting company&#148; in Rule&nbsp;12b-2 of the
Exchange Act. (Check one):
</DIV>



<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
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<TR valign="bottom">
    <TD width="22%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="22%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="22%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="22%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top">Large accelerated filer <FONT face="Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Accelerated filer <FONT face="Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Non-accelerated filer <FONT face="Wingdings">&#254;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" nowrap>Smaller reporting company <FONT face="Wingdings">&#111;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" nowrap>(Do not check if a smaller reporting company)</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>CALCULATION OF REGISTRATION FEE</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="1%">&nbsp;</TD>
    <TD width="45%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD><!-- VRule -->
    <TD width="1%">&nbsp;</TD>
    <TD width="23%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD><!-- VRule -->
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD><!-- VRule -->
    <TD width="1%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD><!-- VRule -->
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>

    <TD width="1%">&nbsp;</TD>
</TR><TR style="font-size: 1px" valign="bottom">
    <TD nowrap align="left" colspan="15" style="border-bottom: 3px double #000000">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">    <TD width="1%">&nbsp;</TD>

    <TD>&nbsp;</TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Proposed Maximum</B></TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Proposed Maximum</B></TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">    <TD width="1%">&nbsp;</TD>

    <TD nowrap align="center"><B>Title of Each Class of Securities to be</B></TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Amount to be</B></TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Offering Price per</B></TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Aggregate</B></TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Amount of</B></TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">    <TD width="1%">&nbsp;</TD>

    <TD nowrap align="center"><B>Registered</B></TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Registered</B></TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Security(1)</B></TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Offering Price</B></TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Registration Fee</B></TD>
    <TD width="1%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD width="1%" style="border-top: 2px solid #000000">&nbsp;</TD>
                    <TD style="border-top: 2px solid #000000"><DIV style="margin-left:15px; text-indent:-15px"><B>Common Stock, par value $0.0001 per share</B></DIV></TD>
    <TD style="border-right: 2px solid #000000; border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD align="center" valign="bottom" style="border-top: 2px solid #000000"><B>27,600,000 shares(1)(3)</B></TD>
    <TD style="border-right: 2px solid #000000; border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD align="center" valign="bottom" style="border-top: 2px solid #000000"><B>$13.00</B></TD>
    <TD style="border-right: 2px solid #000000; border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD align="center" valign="bottom" style="border-top: 2px solid #000000"><B>$358,800,000</B>(4)</TD>
    <TD style="border-right: 2px solid #000000; border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD align="center" valign="bottom" style="border-top: 2px solid #000000"><B>$&#151;</B>(4)</TD>
    <TD width="1%" style="border-top: 2px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD width="1%" style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-top: 2px solid #000000"><DIV style="margin-left:15px; text-indent:-15px"><B>Common Stock, par value $0.0001 per share</B></DIV></TD>
    <TD style="border-right: 2px solid #000000; border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD align="center" valign="bottom" style="border-top: 2px solid #000000"><B>20,800,000 shares(2)(3)</B></TD>
    <TD style="border-right: 2px solid #000000; border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD align="center" valign="bottom" style="border-top: 2px solid #000000"><B>$13.00</B></TD>
    <TD style="border-right: 2px solid #000000; border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD align="center" valign="bottom" style="border-top: 2px solid #000000"><B>$270,400,000</B>(4)</TD>
    <TD style="border-right: 2px solid #000000; border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD align="center" valign="bottom" style="border-top: 2px solid #000000"><B>$&#151;</B>(4)</TD>
    <TD width="1%" style="border-top: 2px solid #000000">&nbsp;</TD>
</TR>
<TR style="font-size: 1px" valign="bottom">
    <TD nowrap align="left" colspan="15" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 1pt; width: 18%; border-top: 0px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Issuable upon exercise of 27,600,000 outstanding Public Warrants.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>Issuable upon exercise of the 7,000,000 outstanding Sponsor&#146;s Warrants and
13,800,000 outstanding Founder&#146;s Warrants.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(3)</TD>
    <TD>&nbsp;</TD>
    <TD>In accordance with Rule&nbsp;416 under the Securities Act of 1933, as amended
(the &#147;Securities Act&#148;), there shall be deemed to be registered hereunder such
additional securities as may be issued to prevent dilution or as resulting from
stock splits, stock dividends and similar transactions.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(4)</TD>
    <TD>&nbsp;</TD>
    <TD>These shares were originally registered in Registration Statement
No.&nbsp;333-161076 on Form S-4, declared effective by the Securities and Exchange
Commission on September&nbsp;14, 2009. All filing fees payable in connection with the
registration of the shares of common stock issuable on exercise of the Warrants
were previously paid in connection with the filing of Registration Statement
No.&nbsp;333-161076.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>The Registrant hereby amends this Registration Statement on such date or
dates as may be necessary to delay its effective date until the Registrant shall
file a further amendment which specifically states that this Registration Statement
shall thereafter become effective in accordance with Section 8(a) of the Securities
Act, or until the Registration Statement shall become effective on such date as the
Commission, acting pursuant to said Section&nbsp;8(a), may determine.</B>
</DIV>


<DIV style="width: 100%; border-bottom: 1pt solid black; margin-top: 10pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>





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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Explanatory Note</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This registration statement supersedes and replaces in its entirety the proxy
statement/prospectus dated September&nbsp;14, 2009, as supplemented on September&nbsp;23, 2009, November&nbsp;24,
2009, March&nbsp;15, 2010 and April&nbsp;12, 2010, that were filed with the Securities and Exchange Commission
pursuant to Rule&nbsp;424(b)(3) on such dates under Registration Statement No.&nbsp;333-161076 (the &#147;Original
Registration Statement&#148;). This Registration Statement on Form S-1 contains an updated prospectus
relating to shares of common stock issuable upon exercise of the Public Warrants,
Sponsor&#146;s Warrants and Founder&#146;s Warrants (collectively,
the &#147;Warrants&#148;) registered in the
Original Registration Statement. All filing fees payable in connection with the registration of
the shares of common stock issuable on exercise of Warrants were previously paid in connection with
the filing of the Original Registration Statement.
</DIV>







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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV style="padding: 5px; border: 3px double #000000; font-size: 11pt; color: #FF0000">The information in this preliminary prospectus is not complete and may be changed. We may not
sell these securities until the registration statement filed with the Securities and Exchange
Commission is effective. This preliminary prospectus is not an offer to sell securities and is not
soliciting an offer to buy these securities.
</DIV>


<DIV align="center" style="font-size: 11pt; margin-top: 18pt; color: #FF0000">Subject to Completion, Dated April 16, 2010
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>PROSPECTUS</B>
</DIV>


<DIV align="center" style="font-size: 14pt; margin-top: 18pt"><B>RESOLUTE ENERGY CORPORATION</B>
</DIV>


<DIV align="left" style="font-size: 9pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This prospectus relates to the issuance by us of 48,400,000 shares of our common stock,
par value $0.0001 per share, of Resolute Energy Corporation, a Delaware corporation (the
&#147;Company&#148;), of which:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 9pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>27,600,000 shares (the &#147;Public Warrant Shares&#148;) are issuable upon the
exercise of outstanding Warrants issued to the public (the &#147;Public Warrants&#148;);</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 9pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>7,000,000 shares (the &#147;Sponsor Warrant Shares&#148;) are issuable upon the
exercise of outstanding Warrants held by certain persons (the &#147;Sponsor&#146;s Warrants&#148;);
and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 9pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>13,800,000 shares (the &#147;Founder Warrant Shares&#148;) are issuable upon the
exercise of 13,800,000 outstanding Warrants held by certain persons (the &#147;Founder&#146;s
Warrants&#148; and, together with the Public Warrants and the Sponsor&#146;s Warrants, the
&#147;Warrants&#148;).</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 9pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Warrants were all issued on September 25, 2009
pursuant to a prospectus dated September&nbsp;14, 2009.
Each Warrant entitles the holder to purchase one share of our common stock. In order to obtain
the shares, the holders of the Warrants must pay an exercise price of $13.00 per share, subject to
adjustment. Warrants expire on September&nbsp;25, 2014. Founder&#146;s Warrants are not currently
exercisable, and will become exercisable only if the trading price of our common stock exceeds
certain specified thresholds.
</DIV>


<DIV align="left" style="font-size: 9pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our common stock and Public Warrants began trading on the New York Stock Exchange on
September&nbsp;28, 2009, and are listed on the NYSE under the symbols &#147;REN&#148; and &#147;RENWS&#148;. On April&nbsp;12,
2010, the closing price of the Public Warrants was $2.90 per Warrant and the closing price of the
common stock was $13.19 per share.
</DIV>


<DIV align="left" style="font-size: 9pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Investing in our securities involves a high degree of risk. See &#147;Risk Factors&#148; beginning on
page 10 of this prospectus and on Page A-34 of the Form 10-K attached as Appendix&nbsp;A hereto for a
discussion of information that should be considered in connection with an investment in our
securities.</B>
</DIV>


<DIV align="left" style="font-size: 9pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Neither the Securities and Exchange Commission nor any state securities commission has
approved or disapproved of these securities or determined if this prospectus is truthful or
complete. Any representation to the contrary is a criminal offense.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The date of this prospectus is &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; , 2010.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>TABLE OF CONTENTS</B>
</DIV>

<DIV align="left">
<!-- TOC -->
</DIV>
<DIV align="left">
<A name="tocpage"></A>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Page</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#123">PROSPECTUS SUMMARY</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR><TD>&nbsp;</TD></TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#124">CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR><TD>&nbsp;</TD></TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#125">RISK FACTORS</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
</TR>
<TR><TD>&nbsp;</TD></TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#126">CAPITALIZATION</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11</TD>
    <TD>&nbsp;</TD>
</TR>
<TR><TD>&nbsp;</TD></TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#127">MARKET PRICE FOR OUR COMMON STOCK AND RELATED STOCKHOLDER MATTERS</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12</TD>
    <TD>&nbsp;</TD>
</TR>
<TR><TD>&nbsp;</TD></TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#128">USE OF PROCEEDS</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13</TD>
    <TD>&nbsp;</TD>
</TR>
<TR><TD>&nbsp;</TD></TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#129">PLAN OF DISTRIBUTION</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14</TD>
    <TD>&nbsp;</TD>
</TR>
<TR><TD>&nbsp;</TD></TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#130">DESCRIPTION OF SECURITIES</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15</TD>
    <TD>&nbsp;</TD>
</TR>
<TR><TD>&nbsp;</TD></TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#131">MATERIAL U.S. FEDERAL INCOME TAX CONSEQUENCES</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21</TD>
    <TD>&nbsp;</TD>
</TR>
<TR><TD>&nbsp;</TD></TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#132">LEGAL MATTERS</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25</TD>
    <TD>&nbsp;</TD>
</TR>
<TR><TD>&nbsp;</TD></TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#133">EXPERTS</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25</TD>
    <TD>&nbsp;</TD>
</TR>
<TR><TD>&nbsp;</TD></TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#134">WHERE YOU CAN FIND MORE INFORMATION</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26</TD>
    <TD>&nbsp;</TD>
</TR>
<TR><TD>&nbsp;</TD></TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#135">APPENDIX A: FORM 10-K FOR YEAR ENDED DECEMBER 31, 2009</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">A-1</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="d72194exv5w1.htm">EX-5.1</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="d72194exv23w1.htm">EX-23.1</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="d72194exv23w2.htm">EX-23.2</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="d72194exv23w3.htm">EX-23.3</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="d72194exv23w4.htm">EX-23.4</A></FONT></TD></TR>
</TABLE>
</DIV>

<DIV align="left">
<!-- /TOC -->
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">&nbsp;i
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left">
<A name="123"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>PROSPECTUS SUMMARY</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>This summary highlights information contained in this prospectus, including in our Form&nbsp;10-K
for the year ended December&nbsp;31, 2009 (the &#147;Form 10-K&#148;), which is Appendix&nbsp;A to this prospectus and
forms a part hereof. This summary does not contain all of the information important to you. You
should read this entire prospectus carefully, including the Form 10-K. See &#147;Risk Factors&#148;
beginning on page 10 hereof and on Page 29 in our Form 10-K.</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Company Overview</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are an independent oil and gas company engaged in the exploration, exploitation and
development of oil and gas properties located in Utah, Wyoming, North Dakota and, to a lesser
extent, properties in Alabama and Oklahoma. Approximately 90% of our revenue is generated from the
sale of oil production. Our main focus is on increasing reserves and production from our properties
located in Utah (&#147;Aneth Field Properties&#148;) and from Hilight Field and related properties in
Wyoming, (&#147;Wyoming Properties&#148;), while improving efficiency and controlling costs in our
operations. We have completed a number of exploitation projects that have increased our proved
developed reserve base, and have plans for additional expansion and enhancement projects. We plan
to further expand our reserve base through a focused acquisition strategy by looking to acquire
properties that have upside potential through development drilling and exploitation projects and
through the acquisition, exploration and exploitation of acreage that appears to contain relatively
low risk and repeatable drilling opportunities. Also, we seek to reduce the effect of short-term
commodity price fluctuations on our cash flow through the use of various derivative instruments.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our largest asset, constituting 93% of our proved reserves, is our ownership of working
interests in Greater Aneth Field (&#147;Aneth Field&#148;), a mature, long-lived oil producing field located
in the Paradox Basin on the Navajo Reservation in southeast Utah. We own a majority of the working
interests in, and are the operator of, three federal production units covering approximately
43,000 gross acres. These are the Aneth Unit, in which we own a 62% working interest, the McElmo
Creek Unit, in which we own a 75% working interest, and the Ratherford Unit, in which we own a 59%
working interest. As of December&nbsp;31, 2009, we had interests in, and operated 399 gross (262 net)
active producing wells and 334 gross (218 net) active water and CO<SUB style="FONT-size: 85%; vertical-align: text-bottom">2</SUB> injection wells on
our Aneth Field Properties. The crude oil produced from the Aneth Field Properties is generally
characterized as light, sweet crude oil that is highly desired as a refinery blending feedstock.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We were incorporated on July&nbsp;28, 2009, to consummate a business combination with Hicks
Acquisition Company I, Inc. (&#147;HACI&#148;), a Delaware corporation incorporated on February&nbsp;26, 2007.
HACI was formed to acquire through a merger, capital stock exchange, asset acquisition, stock
purchase, reorganization or similar business combination, one or more businesses or assets. HACI&#146;s
initial public offering was consummated on October&nbsp;3, 2007. HACI had neither engaged in any
operations nor generated any operating revenue prior to the business combination with us.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On September&nbsp;25, 2009 (the &#147;Acquisition Date&#148;), we consummated a business combination with
HACI (the &#147;Resolute Transaction&#148;) under the terms of a Purchase and IPO Reorganization Agreement,
dated as of August&nbsp;2, 2009 (&#147;Acquisition Agreement&#148;) among the Company, HACI, Resolute Holdings
Sub, LLC, Resolute Subsidiary Corporation, Resolute Aneth, LLC, Resolute Holdings, LLC and HH HACI,
L.P., as amended. As a result of the Resolute Transaction, HACI became a wholly owned subsidiary
of the Company. In addition, the Company owned, directly or indirectly, prior to the Resolute
Transaction, and continues to own after the Resolute Transaction, 100% of the equity interests of
Resolute Natural Resources Company, LLC (&#147;Resources&#148;), WYNR, LLC (&#147;WYNR&#148;), BWNR, LLC
(&#147;BWNR&#148;), RNRC Holdings, Inc. (&#147;RNRC&#148;), and Resolute Wyoming, Inc. (&#147;RWI&#148;) (formerly known as
Primary Natural Resources, Inc. (&#147;PNR&#148;)), and a 99.996% equity interest in Resolute Aneth, LLC
(&#147;Aneth&#148;), (collectively, Resources, WYNR, BWNR, RNRC, Aneth and RWI are referred to as
&#147;Predecessor Resolute&#148;). The entities comprising Predecessor Resolute prior to the Resolute
Transaction were wholly-owned by Resolute Holdings Sub, LLC (except for Aneth, which was 99.996%
owned by Resolute Holdings Sub, LLC), which in turn is a wholly-owned subsidiary of Resolute
Holdings, LLC (&#147;Holdings&#148;). Under generally accepted accounting principles, HACI was the
accounting acquirer in the Resolute Transaction.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As used in this prospectus, unless otherwise indicated, references to &#147;we,&#148; &#147;us,&#148; &#147;our,&#148;
&#147;Resolute&#148; and the &#147;Company&#148; refer to Resolute Energy Corporation for periods prior to and
following the consummation of the Resolute Transaction. The terms HACI and Predecessor Resolute
are used to refer to the respective entities for periods prior to the consummation of the Resolute
Transaction.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our principal executive offices are located at 1675 Broadway, Suite&nbsp;1950, Denver, Colorado
80202 and our telephone number is 303-534-4600.
</DIV>






<P align="center" style="font-size: 10pt"><!-- Folio -->2<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>THE OFFERING</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="28%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="70%">&nbsp;</TD>
</TR>
<TR></TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Shares Offered by the Company</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">48,400,000 shares of common stock, of which:</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="30%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>27,600,000 shares of common stock
are issuable upon exercise of 27,600,000
outstanding Public Warrants;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="30%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>7,000,000 shares of common stock
are issuable upon the exercise of 7,000,000
outstanding Sponsor&#146;s Warrants; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="30%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>13,800,000 shares of common stock
are issuable upon the exercise of
13,800,000 outstanding Founder&#146;s Warrants.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="28%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="70%">&nbsp;</TD>
</TR>
<TR></TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Warrants:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Warrant Exercise Price</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">$13.00 per share. Founder&#146;s Warrants and
Sponsor&#146;s Warrants may be exercised on a
&#147;cashless exercise&#148; basis.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Warrant Expiration Date</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">September&nbsp;25, 2014</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Warrant Exercise Period</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The Public Warrants and Sponsor&#146;s Warrants
became exercisable on issuance on September
25, 2009. Founder&#146;s Warrants will not be
exercisable until the trading price of the
common stock exceeds $13.75 for any 20&nbsp;days
within a 30 trading day period.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Limitations on Exercise</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The Warrants will only be exercisable if a
registration statement relating to the
common stock issuable upon exercise is
effective and current.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Redemption</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">We may redeem the outstanding Warrants
(excluding any Founder&#146;s Warrants or
Sponsor&#146;s Warrants held by certain
affiliates of the Company or HACI):</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="30%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#151;&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>in whole and not in part,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="30%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#151;&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>at a price of $.01 per Warrant at any
time while the Warrants are exercisable,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="30%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#151;&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>upon a minimum of 30&nbsp;days&#146; prior written
notice of redemption, and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="30%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#151;&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if, and only if, the last reported sales
price of our common stock equals or exceeds
$18.00 per share for any 20 trading days
within a 30 trading day period ending three
business days before we send the notice of
redemption.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="28%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="70%">&nbsp;</TD>
</TR>
<TR></TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">If the foregoing conditions are satisfied
and we issue a notice of redemption, each
Warrant holder can exercise his, her or its
Warrant prior to the scheduled redemption
date.</TD>
</TR>
</TABLE>
</div>


<P align="center" style="font-size: 10pt"><!-- Folio -->3<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="28%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="70%">&nbsp;</TD>
</TR>
<TR></TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Common Stock Outstanding as
of April&nbsp;12, 2010</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">53,160,375 shares<SUP style="FONT-size: 85%; vertical-align: text-top">(1) </SUP></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Common Stock to be
Outstanding Assuming
Exercise of All of the
Warrants</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">101,560,375 shares<SUP style="FONT-size: 85%; vertical-align: text-top">(1)(2)</SUP></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>




<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Use of Proceeds</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Resolute will receive up to an aggregate of
approximately $629.2&nbsp;million from the
exercise of the Warrants, if they are
exercised in full.<SUP style="FONT-size: 85%; vertical-align: text-top">2</SUP> Resolute
expects that any net proceeds from the
exercise of the Warrants will be used for
general corporate purposes and to fund
working capital.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>NYSE Trading Symbols:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR><TD style="font-size: 6pt">&nbsp;</TD></TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Common Stock</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">REN</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Public Warrants</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">REN WS</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The Sponsor&#146;s Warrants and Founder&#146;s
Warrants contain terms that are different
from the Public Warrants and bear legends
to distinguish them from the Public
Warrants. Accordingly, they do not trade
on the New York Stock Exchange.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Risk Factors</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Investing in our common stock involves a
high degree of risk. You should carefully
read and consider the information set forth
under the heading &#147;Risk Factors&#148; beginning
on page 10 of this prospectus and on
page 29 of the Form&nbsp;10-K and all other
information in this prospectus before
investing in our common stock.</TD>
</TR>
<!-- End Table Body -->
</TABLE>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left"><SUP style="FONT-size: 85%; vertical-align: text-top">1</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>Includes 3,250,000 shares (the &#147;Earnout
Shares&#148;) that are subject to forfeiture in the event that the price of our
common stock does not reach $15.00 per share for 20&nbsp;days in any 30 trading day
period prior to September&nbsp;25, 2014.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left"><SUP style="FONT-size: 85%; vertical-align: text-top">2</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>Assumes no holders of Founder&#146;s Warrants
or Sponsor&#146;s Warrants elected to exercise their Warrants on a &#147;cashless
exercise&#148; basis. If all such holders elected cashless exercise, based on the stock
price of $13.19 on April&nbsp;12, 2010, the number of outstanding shares of common
stock would be 81,059, 996 and the proceeds to Resolute
 would be $358.8
million.</TD>
</TR>
</table>


<P align="center" style="font-size: 10pt"><!-- Folio -->4<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SELECTED FINANCIAL DATA</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Resolute</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table presents Resolute&#146;s selected pro forma statement of operations for the year ended December  31, 2009, and selected historical financial data for the years ended
December&nbsp;31, 2009 and 2008 and for the period from inception in 2007 to December&nbsp;31, 2007. The selected   pro forma statement of operations for the year ended December  31, 2009, are derived from the Unaudited Pro Forma Financial Information included herein. The
historical consolidated balance sheet and statement of operations information are derived from Resolute&#146;s audited
consolidated financial statements included in the Form 10-K, which is Appendix&nbsp;A to this prospectus. HACI was
the accounting acquirer and, accordingly, the historical financial data below reflects HACI since
its inception in 2007. Results of oil and gas operations are reflected from the date of the
Resolute Transaction in September&nbsp;2009. Future results may differ substantially from historical
results because of changes in oil and gas prices, production increases or declines and other
factors. This information should be read in conjunction with the consolidated financial statements
and notes thereto and <I>&#147;Item&nbsp;7 Management&#146;s Discussion and Analysis of Financial Condition and
Results of Operations&#148; </I>presented in the Form 10-K. The discussion in Item&nbsp;7 of the Form 10-K
regarding the Resolute Transaction affects the comparability of the information provided in this
Selected Financial Data.
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 0px solid #000000"></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 0px solid #000000"><B>Year Ended</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 0px solid #000000"><B>For the period from<BR>February 26, 2007 to </B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 0px solid #000000"><B>Pro Forma</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 1px solid #000000"><B>December 31,</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 0px solid #000000"><B>December 31,</B></TD>
</TR>

<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>

<TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2007</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
<TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="15">(in thousands, except per share data)</TD>

</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Statement of Operation Data:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Revenue</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">127,760</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">42,416</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Operating expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(154,318</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(57,361</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(1,560</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(1,036</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Loss from operations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(26,558</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(14,945</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(1,560</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(1,036</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Other (expense)&nbsp;income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">(77,166</TD>
    <TD>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(50,185</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,601</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,154</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">(Loss) income before taxes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">(103,724</TD>
    <TD>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(65,130</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,041</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,118</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Income tax benefit (expense)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">38,897</TD>
    <TD nowrap></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,887</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(2,054</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(1,401</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net (loss)&nbsp;income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">(64,827</TD>
    <TD>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(45,243</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,987</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,717</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Basic and diluted (loss)&nbsp;earnings per share:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Common stock, subject to redemption</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">$</TD>
    <TD align="right">(0.16</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">0.09</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">0.06</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Common stock</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">(1.30</TD>
    <TD>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">$</TD>
    <TD align="right">(0.93</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">0.06</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">0.09</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Weighted average shares outstanding:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Common stock, subject to redemption</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,114</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,560</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,560</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Common stock</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">49,905</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">46,394</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">45,105</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,587</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Selected Cash Flow Data:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net cash (used in) provided by operating activities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">$</TD>
    <TD align="right">(12,164</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">3,031</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">5,164</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net cash provided by (used in) investing activities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD nowrap></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">209,987</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(2,264</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(541,302</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net cash (used in) provided by financing activities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(198,187</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">536,190</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 1px solid #000000"><B>As of December 31,</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7">(In thousands)</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Balance Sheet Data:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">693,440</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">544,797</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Long term debt</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">109,575</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">299,903</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,291</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Shareholders&#146; equity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">393,537</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">362,199</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Predecessor Resolute</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table presents Predecessor Resolute&#146;s selected financial data for the 267
day period ended September&nbsp;24, 2009, and for the years ended December&nbsp;31, 2008, 2007, 2006, and
2005. The combined historical financial data for the 2009 period and for the years ended December
31, 2008, 2007, and 2006, have been derived from the audited combined financial statements of
Predecessor Resolute. The historical financial data of Predecessor Resolute for the year ended
December&nbsp;31, 2005, has been derived by combining the audited consolidated and combined financial
statements of the predecessor entities.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>For the 267 Day</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="14">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Period Ended</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="14">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>September 24,</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="14" style="border-bottom: 1px solid #000000"><B>December 31,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2007</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
    <TD>&nbsp;</TD>
</TR>

<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="18" align="center">(in thousands)</TD>
</TR>



<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Revenue</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">85,344</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">229,172</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">173,343</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">130,478</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">53,466</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Operating expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">46,771</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">85,990</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">66,731</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">54,640</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,320</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">(Loss) income from operations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(4,723</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(172,391</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">38,549</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">53,051</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,977</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other (expense)&nbsp;income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(41,888</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">63,725</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(141,221</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(7,009</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(34,113</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">(Loss) Income before income taxes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(46,611</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(108,666</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(102,672</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">46,042</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(12,136</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Income tax benefit (expense)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,019</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,247</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,740</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(3,312</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(4,084</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net (loss) Income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(41,592</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(90,419</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(104,412</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">42,730</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(16,220</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net loss (Income)
attributable to the
noncontrolling interest</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">177</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(409</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(715</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(55</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net (loss) Income attributable to
Predecessor Resolute</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(41,592</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(90,242</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(104,821</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">42,015</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(16,275</TD>
    <TD nowrap>)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>





<P align="center" style="font-size: 10pt"><!-- Folio -->5<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>UNAUDITED PRO FORMA FINANCIAL INFORMATION</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following unaudited pro forma condensed
consolidated statement of operations for the year ended December 31, 2009 has been derived by the
application of pro forma adjustments to the historical consolidated and combined financial
statements of Resolute and Predecessor Resolute to reflect the Resolute Transaction
as if the Resolute Transaction had been completed on January 1, 2009. The column labeled &#147;Pro
Forma&#148; provides data that is compiled according to the requirements for pro forma presentation
contained in Regulation&nbsp;S-X. The adjustments are annotated in the information below.
</DIV>




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The unaudited pro forma
condensed consolidated statement of operations for the year ended December 31, 2009 does not include any adjustments for cost
savings that are anticipated to be realized from the elimination of historical operating expenses
of HACI. Since its inception, HACI&#146;s efforts were limited to organizational activities, activities
relating to its initial public offering, activities relating to identifying and evaluating
prospective acquisition candidates, and activities relating to general corporate matters.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The unaudited pro forma
condensed consolidated statement of operations for the year ended December 31, 2009 should not necessarily be considered indicative
of actual results that would have been achieved had the Resolute Transaction been consummated on the date
 indicated and does not purport to indicate results of operations as of any future
date or for any future period. The unaudited pro forma condensed
consolidated statement of operations for the year ended December 31, 2009 should be read
together with the historical financial statements of Resolute and Predecessor Resolute and
&#147;<I>Management&#146;s Discussion and Analysis of Financial Condition and Results of Operations of Resolute</I>&#148;
and &#147;<I>Management&#146;s Discussion and Analysis of Financial Condition and Results of Operations of
Predecessor Resolute</I>&#148; included in the Form 10-K, which is attached hereto as Appendix&nbsp;A.
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="14"><B>Unaudited Pro Forma Condensed Consolidated Statement of Operations </B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="14" style="border-bottom: 1px solid #000000"><B>For the Year Ended December 31, 2009</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Predecessor</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>&nbsp;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Pro</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Resolute</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Resolute</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Adjustments</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Forma</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="14"><B>(in thousands except per share data)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total revenue</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">42,416</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">85,344</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">127,760</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Operating expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,992</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">46,771</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">68,763</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Depletion, depreciation, amortization and
asset retirement obligation accretion</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,541</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,925</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">6,890 </TD>
    <TD nowrap>&nbsp;a</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">40,356</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Impairment of proved properties</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,295</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,295</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Write off of deferred acquisition costs</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">General and administrative expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,328</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,076</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28,404</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total operating expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">57,361</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">90,067</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,890</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">154,318</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Income (loss)&nbsp;from operations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(14,945</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(4,723</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(6,890</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(26,558</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other income (expense):</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest income (expense)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(762</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(18,416</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">14,907 </TD>
    <TD nowrap>&nbsp;b</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(4,271</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">(Loss) gain on derivative instruments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(49,514</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(23,519</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(73,033</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other income (expense)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">91</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">138</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total other income (expense)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(50,185</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(41,888</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,907</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(77,166</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Income (loss)&nbsp;before taxes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(65,130</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(46,611</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,017</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(103,724</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Income tax (expense)&nbsp;benefit</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,887</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,019</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">13,991 </TD>
    <TD nowrap>&nbsp;c</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">38,897</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net income (loss)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(45,243</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(41,592</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">22,008</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(64,827</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Basic and
diluted earnings (loss)&nbsp;per share:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD nowrap>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Common stock, subject to redemption</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(0.16</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&nbsp; </TD>
    <TD nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Common stock</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(0.93</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(1.30</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Weighted
average shares outstanding:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Common stock, subject to redemption</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">12,114</TD>
    <TD nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&nbsp; </TD>
    <TD nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Common stock</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">46,394</TD>
    <TD nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">49,905</TD>
    <TD nowrap>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->6<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Adjustments to Unaudited Pro Forma<BR>
Condensed Consolidated Statement of Operations<BR>
for the Year Ended December&nbsp;31, 2009</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.&nbsp;Represents the increase in depletion, depreciation, amortization and accretion computed on
a unit of production basis following the allocation of the excess of the aggregate purchase price
consideration over the historical book value of Predecessor Resolute to proved oil and gas
properties, as if the Resolute Transaction had been consummated on January&nbsp;1, 2009.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.&nbsp;Represents reduced interest income and interest expense resulting from the repayment of
Predecessor Resolute&#146;s $225.0&nbsp;million second lien term loan and a $99.5&nbsp;million partial repayment
of Resolute&#146;s revolving credit facility as if the repayments occurred on January 1, 2009.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.&nbsp;Assumes an effective tax rate of 37.5% on income (loss)&nbsp;before income taxes.
This reflects both the federal and state statutory income taxes rates
that were in effect during the periods presented.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->7<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="124"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This prospectus contains &#147;forward-looking statements&#148; as that term is defined in the Private
Securities Litigation Reform Act of 1995. The use of any statements containing the words
&#147;anticipate,&#148; &#147;intend,&#148; &#147;believe,&#148; &#147;estimate,&#148; &#147;project,&#148; &#147;expect,&#148; &#147;plan,&#148; &#147;should&#148; or similar
expressions are intended to identify such statements. Forward-looking statements included in this
report relate to, among other things, expected future production, expenses and cash flows in 2010,
the nature, timing and results of capital expenditure projects, amounts of future capital
expenditures, our future debt levels and liquidity and future compliance with covenants under our
revolving credit facility, whether conditions to exercise of Founder&#146;s Warrants will be satisfied
and the extent to which Warrants will be exercised. Although we believe that the expectations
reflected in such forward-looking statements are reasonable, those expectations may prove to be
incorrect. All forward-looking statements speak only as of the date made. All subsequent written
and oral forward-looking statements attributable to us, or persons acting on our behalf, are
expressly qualified in their entirety by the cautionary statements. Except as required by law, we
undertake no obligation to update any forward-looking statement. Factors that could cause actual
results to differ materially from our expectations include, among others, those factors referenced
in the &#147;Part&nbsp;I&#151; Item&nbsp;1A. Risk Factors&#148; section of our Form 10-K for the year ended December&nbsp;31,
2009, and such things as:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>volatility of oil and gas prices, including reductions in prices that would adversely
affect our revenue, income, cash flow from operations, liquidity and reserves;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a continuation of, or further deterioration in, currently adverse conditions in global
credit markets and in economic conditions generally;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>discovery, estimation, development and our ability to replace oil and gas reserves;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our future cash flow, liquidity and financial position of the Company;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the success of our business and financial strategy, hedging strategies and plans of the
Company;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the amount, nature and timing of our capital expenditures, including future development
costs;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a lack of available capital and financing;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the effectiveness and results of our CO<SUB style="FONT-size: 85%; vertical-align: text-bottom">2</SUB> flood program;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the success of the development plan and production from our Aneth Field Properties;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the timing and amount of future production of oil and gas;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>exploratory drilling in the Bakken trend of the Williston Basin;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>volatility of stock prices generally and in the oil and gas industry, and in the price
of our common stock;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>availability of drilling and production equipment;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>success of refracs scheduled in the Muddy formation;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>commencement of activities in the Big Horn Basin;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>inaccuracy in reserve estimates and expected production rates;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our operating costs and other expenses;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the success in marketing oil and gas;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>competition in the oil and gas industry;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>uninsured or underinsured losses in, or operational problems affecting, our operations;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the impact and costs related to compliance with or changes in laws or regulations
governing our oil and natural gas operations;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our relationship with the Navajo Nation and Navajo Nation Oil and Gas, as well as the
timing of when certain purchase rights held by Navajo Nation Oil and Gas become
exercisable;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the impact of weather and the occurrence of disasters, such as fires, floods and other
events and natural disasters;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>environmental liabilities;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>expected increase in capacity due to additional pumps in the McElmo Creek pipeline;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>anticipated CO<SUB style="FONT-size: 85%; vertical-align: text-bottom">2 </SUB>supply to be sourced from Kinder Morgan;</TD>
</TR>


</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->8<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>risks related to our level of indebtedness;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>developments in oil-producing and gas-producing countries;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the success of strategic plans, expectations and objectives of our future operations;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>loss of senior management or technical personnel;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>acquisitions and other business opportunities (or the lack thereof) that may be
presented to and pursued by us;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>risk factors discussed or referenced in this prospectus; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>other factors, many of which are beyond our control.</TD>
</TR>

</TABLE>
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->9<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="125"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>RISK FACTORS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;An investment in our securities involves a high degree of risk. You should carefully consider
and evaluate all of the information contained in this prospectus and in the Form 10-K before you
decide to purchase our common stock. In particular, you should carefully consider and evaluate the
risks and uncertainties described in &#147;Part&nbsp;I&#151; Item&nbsp;1A. Risk Factors&#148; on Page 29 of our Form 10-K,
which appears as Appendix&nbsp;A in this prospectus. Any of the risks and uncertainties set forth
therein and below could materially and adversely affect our business, results of operations and
financial condition, which in turn could materially and adversely affect the trading price of our
common stock. As a result, you could lose all or part of your investment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Offers or availability for resale of a substantial number of shares of our common stock may
cause the price of our common stock to decline.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If after the effectiveness of the registration statement of which this prospectus forms a
part, our warrant holders exercise outstanding Warrants and sell substantial amounts of our common
stock in the public market, or if our stockholders resell substantial amounts of our common stock
pursuant to a registration statement or upon the expiration of any statutory holding period under
Rule&nbsp;144 or Rule&nbsp;145 under the Securities Act of 1933, as amended (the &#147;Securities Act&#148;), such resales could
create a circumstance commonly referred to as an &#147;overhang&#148; and in anticipation of which the market
price of our common stock could fall. The existence of an overhang, whether or not sales have
occurred or are occurring, also could make it more difficult for us to raise additional financing
through the sale of equity or equity-related securities in the future at a time and price that we
deem reasonable or appropriate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Registration rights held by certain of our stockholders may have an adverse effect on the
market price of our common stock.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under a Registration Rights Agreement entered into in connection with the Resolute
Transaction, holders of registrable securities have the right to demand registration under the
Securities Act of all or a portion of their registrable securities subject to amount and time
limitations. Holders of the registrable securities may demand four registrations. Additionally,
whenever (i)&nbsp;we propose to register any of our securities under the Securities Act and (ii)&nbsp;the
method we select would permit the registration of registrable securities, holders of registrable
securities have the right to request the inclusion of their registrable securities in such
registration. The resale of these shares in the public market upon exercise of the registration
rights described above could adversely affect the market price of our common stock or impact our
ability to raise additional equity capital. Parties to the Registration Rights Agreement have
right to request registration of (i)&nbsp;shares representing approximately 25% of our outstanding common stock at
March&nbsp;31, 2010, and (ii)&nbsp;an additional 20,800,000 shares purchasable on exercise of outstanding
warrants.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>We may choose to redeem our outstanding Public Warrants at a time that is
disadvantageous to the Warrant holders.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We may redeem the Public Warrants at any time in whole and not in part,
at a price of $0.01 per warrant, upon a minimum of 30 days&#146; prior written notice of redemption, if and only if the last sales price of our
common stock equals or exceeds $18.00 per share (the &#147;Trigger Price&#148;) for any 20-trading days within a 30-trading day period ending three
business days before we send the notice of redemption.  If the Trigger Price is exceeded and the redemption notice given, the redemption
may proceed even if the stock price falls below the $18.00 Trigger Price during the period prior to redemption.  Redemption of the Public
Warrants could force the Warrant holders (1) to exercise the Warrants and pay the exercise price therefor at a time when it may be
disadvantageous for the holders to do so, (2) to sell the Warrants at the then current market price when they might otherwise wish to
hold the Warrants or (3) to accept the nominal redemption price which is likely to be substantially less than the market value of the
Warrants.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I><B>Exercise of outstanding Warrants would result in dilution to our stockholders
and might have an adverse effect on the market price of our common stock.</B></I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;An aggregate of 27,600,000 Public Warrants and 13,800,000 Sponsor&#146;s Warrants
are currently exercisable at an exercise price of $13.00 per share.  These warrants would only be exercised if the market price of our
common stock exceeds the $13.00 per share exercise price.  Exercise of these warrants at such time will result in dilution to our
stockholders, which could cause the market price of our common stock to decline.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Delaware law and our amended and restated charter documents may impede or
discourage a takeover that our stockholders may consider favorable.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our amended and restated charter and bylaws have provisions that may deter, delay or prevent a
third party from acquiring us. These provisions include:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>limitations on the ability of stockholders to amend our charter documents,
including stockholder supermajority voting requirements;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the inability of stockholders to act by written consent or to call special
meetings;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a classified board of directors with staggered three-year terms;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the authority of our board of directors to issue, without stockholder
approval, up to 1,000,000 shares of preferred stock with such terms as the board of
directors may determine and to issue additional shares of our common stock; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>advance notice procedures with respect to stockholder proposals and the
nomination of candidates for election as directors.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;These provisions could have the effect of delaying, deferring or preventing a change in
control, discourage others from making tender offers for our shares, lower the market price of our
stock or impede the ability of our stockholders to change our management, even if such a change
would be beneficial to our stockholders.
</DIV>





<P align="center" style="font-size: 10pt"><!-- Folio -->10<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left">
<A name="126"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>CAPITALIZATION</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth our cash and cash equivalents and capitalization as of
December&nbsp;31, 2009.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You should read this table in conjunction with the &#147;<I>Management&#146;s Discussion and Analysis of
Financial Condition and Results of Operations</I>&#148; and the consolidated financial statements and the related notes
thereto contained in our Form 10-K for the year ended December&nbsp;31, 2009, which is attached as
Appendix&nbsp;A hereto:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>December 31,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2009</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>(In thousands,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>except share data)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash and cash equivalents</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">455</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Long-term debt:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total long-term debt</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">109,575</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Stockholders&#146; equity:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Common stock, $0.0001 par value: 225,000,000 shares
authorized; 53,154,883 shares issued and outstanding</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Preferred stock, $0.0001 par value, 1,000,000 shares
authorized; no shares issued and outstanding</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Additional paid-in capital</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">432,650</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Retained earnings accumulated (deficit)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(39,118</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total stockholders&#146; equity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">393,537</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Total capitalization</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">503,112</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->11<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="127"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>MARKET PRICE FOR OUR COMMON STOCK AND RELATED STOCKHOLDER MATTERS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our common stock and Public Warrants began trading on the NYSE on September&nbsp;28, 2009, and are
listed on the NYSE under the symbols &#147;REN&#148; and &#147;RENWS&#148;. The closing prices of our common stock and
Public Warrants on the NYSE on April&nbsp;12, 2010 were $13.19 per share and $2.90 per Warrant.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following sets forth the high and low closing sales price of our
common stock and Warrants, as reported on the NYSE for the periods shown:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 1px solid #000000"><B>Common Stock</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 1px solid #000000"><B>Warrants</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>High</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Low</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>High</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Low</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2010</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Second Quarter (through April&nbsp;12, 2010)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">13.19</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">12.33</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">2.92</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">2.59</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">First Quarter</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">12.38</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">10.56</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">2.53</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">1.87</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Fourth Quarter</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11.79</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10.12</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.38</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.40</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Third Quarter (September&nbsp;28 &#150; September&nbsp;30)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10.60</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9.72</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.65</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.00</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="128"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>USE OF PROCEEDS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We will receive up to an aggregate of approximately $629.2&nbsp;million from the exercise of the
Warrants, if they are exercised in full, assuming no holders of Founder&#146;s Warrants or Sponsor&#146;s
Warrants elected to exercise their Warrants on a  &#147;cashless exercise&#148; basis. If all such holders elected
cashless exercise, based on the stock price of $13.19 on April&nbsp;12, 2010, we would receive proceeds
of $358.8&nbsp;million.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We expect that any net proceeds from the exercise of the Warrants will be used for general
corporate purposes, including possible acquisitions, and to fund working capital. There can be no
assurance that the holders of Warrants will exercise any or all of them.
</DIV>





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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left">
<A name="129"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>PLAN OF DISTRIBUTION</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are registering the shares of common stock underlying the Warrants originally issued in the
Resolute Transaction that are issuable upon the exercise of such Warrants by the holders thereof.
The Warrants may be exercised at the offices of the Warrant Agent, Continental Stock Transfer &#038;
Trust Company, with the exercise form on the reverse of the Warrant certificate completed and
executed as indicated, accompanied by full payment of the exercise price, by certified check
payable to us, for the number of Warrants being exercised.
Alternatively, if &#147;cashless exercise&#148; is available, the
exercise form would indicate that such method of exercise was being
elected.
 Promptly upon receipt of the notice of
exercise together with full payment of the Warrant price, the Warrant Agent will deliver to the
holder the shares of common stock being purchased. We do not know if or when the Warrants will be
exercised. We also do not know whether any of the shares acquired upon exercise will be sold.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the shares of
common stock issuable on exercise of the Founder&#146;s Warrants or Sponsor&#146;s Warrants are considered as having been acquired &#147;in
connection with&#148; the Resolute Transaction for purposes of Rule 145 of the Securities Act, the resale of such shares by affiliates would be
restricted under that rule until September 25, 2010, unless the resale were registered under the Securities Act.  We do not believe
the shares were so acquired because the acquisition of common stock upon the exercise of the Founder&#146;s Warrants and Sponsor&#146;s Warrants
requires an investment decision that is separate and distinct from the investment decision made to receive the Warrants in the Resolute
Transaction.  However, the SEC could take a different position, and
each holder of Founder&#146;s Warrants or Sponsor&#146;s Warrants
that is an  affiliate should seek
the advice of its counsel regarding the ability to resell the stock received on exercise of such Warrants prior to September 25, 2010.
</DIV>




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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left">
<A name="130"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>DESCRIPTION OF SECURITIES</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Common Stock</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Authorized and Outstanding</I>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are authorized to issue up to 225,000,000 shares of common stock, par value $0.0001 per
share, of which 53,160,375 shares are outstanding as of April&nbsp;12, 2010.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Voting</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Holders of our common stock (including earnout shares) each have one vote per share. Our
directors are elected by the vote of a plurality of the common stock represented in person or by
proxy at such meeting and entitled to vote on the election of directors. A majority of the
outstanding shares of common stock constitute a quorum. There is no cumulative voting with respect
to the election of directors, with the result that the holders of more than 50% of the shares voted
for the election of directors can elect all of the directors.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon our dissolution, our stockholders will be entitled to receive pro rata all assets
remaining available for distribution to stockholders after payment of all liabilities and provision
for the liquidation of any shares of preferred stock with preferential liquidation rights, if any,
at the time outstanding. Our common stockholders have no conversion, preemptive or other
subscription rights and there are no sinking fund or redemption provisions applicable to the common
stock.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Earnout Shares</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Earnout shares are common stock subject to forfeiture in the event that the earnout trigger
price of $15.00 per share for any 20 trading days in any 30 trading day period is not met by
September&nbsp;25, 2014. The earnout shares have voting rights and are transferable; however, they are
not registered for resale and have no economic rights until the trigger price is met.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Earnout shares bear a restrictive legend that states that such shares are subject to
forfeiture in the event that the trigger price earnout target of $15.00 per share is not met by
September&nbsp;25, 2014, and other restrictions as set forth in the Purchase and IPO Reorganization
Agreement dated as of August&nbsp;2, 2009 among HACI Resolute, Resolute
Subsidiary Corporation, Resolute Aneth, LLC, Resolute Holdings, LLC, Resolute Holdings Sub, LLC,
and HH-HACI, L.P.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Dividends</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Delaware General Corporation Law permits a corporation to declare and pay dividends out of
&#147;surplus&#148; or, if there is no &#147;surplus,&#148; out of its net profits for the fiscal year in which the
dividend is declared and/or the preceding fiscal year. &#147;Surplus&#148; is defined as the excess of the
net assets of the corporation over the amount determined to be the capital of the corporation by
the board of directors. The capital of the corporation is typically calculated to be (and cannot be
less than) the aggregate par value of all issued shares of capital stock. Net assets equals the
fair value of the total assets minus total liabilities. The DGCL also provides that dividends may
not be paid out of net profits if, after the payment of the dividend, capital is less than the
capital represented by the outstanding stock of all classes having a preference upon the
distribution of assets.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Declaration and payment of any dividend are subject to the discretion of the our board of
directors, except in the case of the Earnout Shares, which are subject to forfeiture and will not
have
dividend participation rights unless the common stock trading price target of $15.00 is exceeded for any 20
trading days in any 30&nbsp;day period prior to September&nbsp;25, 2014. The time and amount of
dividends will be dependent upon the our financial condition, operations, cash requirements and
availability, debt repayment obligations, capital expenditure needs and restrictions in our debt
instruments, industry trends, the provisions of Delaware law affecting the payment of
distributions to stockholders and other factors.
</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There
 are no restrictions in our certificate of incorporation or bylaws that prevent us from
declaring dividends on our common stock; however, we are currently prohibited from declaring
dividends under our amended revolving credit facility. We have not declared any dividends and do
not plan to declare any dividends in the foreseeable future.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Preferred Stock</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are authorized to issue up to 1,000,000 shares of preferred stock, par value $0.0001 per
share. No shares of preferred stock are outstanding as of the date of this prospectus.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Warrants</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There are currently three types of Warrants outstanding: (1)&nbsp;Public Warrants, (2)&nbsp;Founder&#146;s
Warrants, and (3)&nbsp;Sponsor&#146;s Warrants. The terms of the Founder&#146;s Warrants and Sponsor&#146;s Warrants
are identical to the terms of the Public Warrants except as described below.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of April&nbsp;12, 2010, there were 27,600,000 Public Warrants, 13,800,000 Founder&#146;s Warrants and
7,000,000 Sponsor&#146;s Warrants outstanding.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each type of Warrant entitles the holder to purchase one share of our common stock at a price
of $13.00 per share, subject to adjustment and the limitations discussed below, at any time until September&nbsp;25,
2014. However, the Warrants will be exercisable only if a registration statement  relating to the
common stock issuable upon exercise of the Warrants is effective and current.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At any time while the Warrants are exercisable and there is an effective registration
statement covering the shares of common stock issuable upon exercise of the Warrants available and
current throughout the 30-day redemption period, we may call the outstanding Warrants (except as
described below with respect to the Founder&#146;s Warrants and the Sponsor&#146;s Warrants) for redemption:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>in whole and not in part;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>at a price of $0.01 per Warrant;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>upon a minimum of 30&nbsp;days&#146; prior written notice of redemption (the 30-day
redemption period) to each Warrantholder; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if, and only if, the closing sale price of our common stock equals or
exceeds $18.00 per share for any 20 trading days within a 30 trading day period ending
on the third business day prior to the notice of redemption to Warrantholders.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the foregoing conditions are satisfied and we issue a notice of redemption of the Warrants,
each Warrantholder will be entitled to exercise its Warrant prior to the scheduled redemption date.
However, the price of our common stock may fall below the $18.00 redemption trigger price as well
as the $13.00 Warrant exercise price after the redemption notice is issued.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The exercise price and number of shares of common stock issuable on exercise of the Warrants
may be adjusted in certain circumstances, including in the event of a stock dividend, stock split,
extraordinary dividend, or our recapitalization, reorganization, merger or consolidation. However,
the exercise price and number of shares of our common stock issuable upon exercise of the Warrants
will not be adjusted for issuances of common stock at a price below the Warrant exercise price.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Warrants were issued in registered form under a Warrant agreement dated September&nbsp;25,
2009, between Continental Stock Transfer &#038; Trust Company, as Warrant agent, and the Company. You
should review a copy of the Warrant Agreement, included as Exhibit&nbsp;4.1 to our Form 10-K and to the
registration statement of which this prospectus is a part (the &#147;Warrant Agreement&#148;), for a complete
description of the terms and conditions applicable to the Warrants.
</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Warrants may be exercised upon surrender of the Warrant certificate on or prior to the
expiration date at the offices of the Warrant agent, with the exercise form on the reverse side of
the Warrant certificate completed and executed as indicated, accompanied by full payment of the
exercise price (or on a cashless basis, if applicable), by certified or official bank check payable
to Resolute Energy Corporation, for the number of Warrants being exercised. The Warrant holders do
not have any rights or privileges as holders of common stock and any voting rights until they
exercise their Warrants and receive shares of common stock. After the issuance of shares of common
stock upon exercise of the Warrants, each holder will be entitled to one vote for each share held
of record on all matters to be voted on by stockholders.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No Warrants will be exercisable unless at the time of exercise a prospectus relating to our
common stock issuable upon exercise of the Warrants is current and the common stock has been
registered or qualified or deemed to be exempt under the securities laws of the state of residence
of the holder of the Warrants. The terms of the Warrant agreement require us to use our best
efforts to effectuate and maintain the effectiveness of a registration statement covering such
shares and maintain a current prospectus relating to common stock issuable upon exercise of the
Warrants until the expiration of the Warrants. However, no assurances can be provided that we will
be able to do so, and if the condition is not met, holders will be unable to exercise their
Warrants and we would not be required to settle any such Warrant exercise. If the prospectus
relating to the common stock issuable upon the exercise of the Warrants is not current or if the
common stock is not qualified or exempt from qualification in the jurisdictions in which the
holders of the Warrants reside, we will not be required to net cash settle or cash settle the
Warrant exercise, the Warrants may have no value, the market for the Warrants may be limited and
the Warrants may expire worthless.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No fractional shares will be issued upon exercise of the Warrants. If, upon exercise of the
Warrants, a holder would be entitled to receive a fractional interest in a share, we would, upon
exercise, round up to the nearest whole number the number of shares of common stock to be issued to
the Warrant holder.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Founder&#146;s Warrants and Sponsor&#146;s Warrants</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U>Founder&#146;s Warrants</U>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The terms of the Founder&#146;s Warrants are identical to the terms of the Public Warrants except
that the Founder&#146;s Warrants:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>are not redeemable so long as they are held by the Initial Stockholders
(as defined below), Resolute Holdings, LLC or their Permitted Transferees (as defined
below);</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>may not be exercised unless and until the last sale price of our common
stock exceeds $13.75 for any 20&nbsp;days within any 30 trading day period prior to
September&nbsp;25, 2014; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>may be exercised at the option of the holder on a cashless basis.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the Founder&#146;s Warrants are held by holders other than William H. Cunningham, William A.
Montgomery, Brian Mulroney and William F. Quinn (the &#147;Initial Stockholders&#148;), HH-HACI, L.P.,
Resolute Holdings, LLC, or their Permitted Transferees, the Founder&#146;s Warrants will be redeemable
by Resolute and exercisable by the holders on the same basis as the Public Warrants.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Permitted Transferees&#148; are (A) (i)&nbsp;the Company&#146;s
officers or directors or any affiliates or
family members of any of the Company&#146;s officers or directors, or (ii)&nbsp;any affiliates or partners of
HH-HACI, L.P. or their partners, affiliates or family members, or (iii)&nbsp;Resolute Holdings, LLC or
its members, directors and officers or their partners, affiliates or family members; (B)&nbsp;in the
case of an Initial Stockholder, a member of the Initial Stockholder&#146;s immediate family or a trust,
the beneficiary of which is a member of the Initial Stockholder&#146;s immediate family, an affiliate of
the Initial Stockholder or a charitable organization; (C)&nbsp;any transferee receiving Founder&#146;s
Warrants or Sponsor&#146;s Warrants upon the death of an Initial Stockholder by virtue of the laws of
descent and distribution; (D)&nbsp;any transferee receiving Founder&#146;s Warrants or Sponsor&#146;s Warrants
upon dissolution of HH-HACI, L.P. by virtue of the laws of the state of Delaware or
</DIV>



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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">HH-HACI, L.P.&#146;s
limited partnership agreement; or (E)&nbsp;in the case of an Initial Stockholder, any transferee
receiving Founder&#146;s Warrants or Sponsor&#146;s Warrants pursuant to a qualified domestic relations
order.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;While the Founder&#146;s Warrants were registered under the Securities Act, they will continue to
bear a restrictive legend that states that such Warrants are subject to restrictions including that
they are not exercisable until the closing price of our common stock exceeds $13.75 for any 20&nbsp;days
within any 30&nbsp;day trading period, and that the Founder&#146;s Warrants are subject to certain other
terms that apply so long as the Founder&#146;s Warrants are held by the Initial Stockholders or
Permitted Transferees. The Founder&#146;s Warrants were issued pursuant to the Warrant Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U>Sponsor&#146;s Warrants</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The terms of the Sponsor&#146;s Warrants will be identical to the terms of the Public Warrants
except that the Sponsor&#146;s Warrants:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>will not be redeemable so long as they are held by HH-HACI, L.P., Resolute
Holdings, LLC or their Permitted Transferees (as defined above); and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>may be exercised at the option of the holder on a cashless basis.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the Sponsor&#146;s Warrants are held by holders other than HH-HACI, L.P., Resolute Holdings, LLC
or their Permitted Transferees (the &#147;Sponsor Warrant Holders&#148;), the Sponsor&#146;s Warrants will be
redeemable by us and exercisable by the holders on the same basis as the Public Warrants.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;While the Sponsor&#146;s Warrants were registered under the Securities Act, they will continue to
bear a restrictive legend that states that such Warrants are subject to certain other terms that
apply so long as they are held by the Sponsor Warrant Holders. The Sponsor&#146;s Warrants were issued
pursuant to the Warrant Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Transfer Agent</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our transfer agent and registrar for our common stock and Warrants Agent for our Warrants is
Continental Stock Transfer &#038; Trust Company.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Registration Rights Agreement</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On September&nbsp;25, 2009, in connection with the closing of the Resolute Transaction, the Company
entered into a registration rights agreement (the &#147;Registration Rights Agreement&#148;) with HH-HACI,
L.P., Thomas O. Hicks, Resolute Holdings, LLC, Natural Gas Partners VII, L.P., NGP-VII Income
Co-Investment Opportunities, L.P. Nicholas Sutton, James Piccone, Richard Betz, Dale Cantwell,
Theodore Gazulis, Janet Pasque, Kenneth Hersh, Richard Covington, William Quinn, William
Cunningham, Thomas Hicks, Jr. and Robert Swartz (the &#147;Holders&#148;). Pursuant to the Registration
Rights Agreement, the Holders are entitled to registration rights, subject to certain limitations,
with respect to shares of the Company&#146;s Common Stock, Earnout Shares, Founder&#146;s Warrants (including
the shares of Common Stock issuable upon the exercise of such Founder&#146;s Warrants ), and Sponsor&#146;s
Warrants (including the shares of Common Stock issuable upon the exercise of such Sponsor&#146;s
Warrants) (collectively, the &#147;Registrable Securities&#148;) received in the Resolute Transaction and
pursuant to distributions made to respective members or partners by HH-HACI, L.P. and Resolute
Holdings, LLC . Each of two groups of Holders (the Hicks Registration Rights Holders and the REC
Registration Rights Holders) is entitled to require the Company, on two occasions, to register
under the Securities Act of 1933, as amended (the &#147;Securities Act&#148;) the Registrable Securities
(&#147;Demand Registration Rights&#148;). The Company shall not be required to (y)&nbsp;effect a Demand
Registration unless the aggregate offering price to the public in the offering is expected to be at
least $10.0&nbsp;million or (z)&nbsp;file a Registration Statement with respect to a Demand Registration
within one hundred and eighty (180)&nbsp;days of the completion of any underwritten offering of the
Company&#146;s securities. The Holders may elect to exercise Demand Registration Rights at any time
after March&nbsp;25, 2010, 180&nbsp;days following the consummation of the Resolute Transaction.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, the Holders may request registration on a Shelf Registration Statement, provided
that the Company is not obligated to effect such a request (i)&nbsp;through an underwritten offering,
(ii)&nbsp;where it is not eligible to use Form S-3 or
</DIV>



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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(iii)&nbsp;where the aggregate price to the public is
less than $5.0&nbsp;million. Registrations on Shelf Registration Statements shall not be counted as a
Demand Registration subject to the limitations set forth above except in the case of an
underwritten offering. The Holders also have certain &#147;piggyback&#148; registration rights on
registration statements filed by the Company. The demand and piggyback registration rights are
subject to certain customary conditions and limitations, including the right of the underwriters to
limit the number of securities included in any underwritten offering.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Rights under the Registration Rights Agreement are assignable by holders of Registrable
Securities in conjunction with permitted transfers of Registrable Securities.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company will bear the expenses incurred in connection with the filing of any such
registration statements, including all reasonable expenses incurred in performing its obligations
under the Registration Rights Agreement. The Holders will pay the underwriting commissions and fees
associated with the sale of their respective securities in any underwritten offering. The preceding
summary of the Registration Rights Agreement is qualified in its entirety by reference to the
complete text of the agreement, which is filed as an exhibit to the Registration Statement of which
this prospectus forms a part.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Anti-takeover Effects of Certain Provisions of the Resolute&#146;s Charter and Bylaws</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Some provisions of our charter and our bylaws contain provisions that could make it more
difficult to acquire the Company by means of a merger, tender offer, proxy contest or otherwise, or
to remove our incumbent officers and directors. These provisions, summarized below, are expected
to discourage coercive takeover practices and inadequate takeover bids. These provisions are also
designed to encourage persons seeking to acquire control of the Company to first negotiate with our
board of directors. We believe that the benefits of increasing our potential ability
to negotiate with the proponent of an unfriendly or unsolicited proposal to acquire or restructure
the Company outweigh the disadvantages of discouraging such proposals because negotiation of such
proposals could result in an improvement of their terms.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Undesignated preferred stock</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The ability to authorize and issue undesignated preferred stock may enable our board of
directors to render more difficult or discourage an attempt to change control of the Company by
means of a merger, tender offer, proxy contest or otherwise. For example, if in the due exercise of
its fiduciary obligations, the board of directors were to determine that a takeover proposal is not
in our best interest, the board of directors could cause shares of preferred stock to be issued
without stockholder approval in one or more private offerings or other transactions that might
dilute the voting or other rights of the proposed acquirer or insurgent stockholder or stockholder
group.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Classified board of directors</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our charter provides for a board of directors divided into three classes and serving
staggered, three-year terms. Approximately one-third of our board of directors are elected each
year. This classified board of directors provision could discourage a third party from making a
tender offer for our shares of capital stock or attempting to obtain control of the Company. It
could also delay stockholders who do not agree with the policies of the board of directors from
removing a majority of the board of directors for two years.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Removal of director</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our charter provides that members of our board of directors may only be removed by the
affirmative vote of holders of at least a majority of the voting power of all then outstanding
shares of capital stock entitled to vote generally in the election of directors, voting together as
a single class.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Stockholder meetings</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our charter and bylaws provide that a special meeting of stockholders may be called only by
the chairman of the board, the chief executive officer, the president or by a resolution adopted by
a majority of the whole board of directors of the Company.
</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Requirements for advance notification of stockholder nominations and proposals</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our bylaws establish advance notice procedures with respect to stockholder proposals and the
nomination of candidates for election as directors, other than nominations made by or at the
direction of the board of directors.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Stockholder action by written consent</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our charter and bylaws provide that, except as may otherwise be provided with respect to the
rights of the holders of preferred stock, no action that is required or permitted to be taken by
the Company&#146;s stockholders at any annual or special meeting may be effected by written consent of
stockholders in lieu of a meeting of stockholders. This provision, which may not be amended except
by the affirmative vote of at least 66<SUP style="font-size: 85%; vertical-align: text-top">2</sup>/<SUB style="font-size: 85%; vertical-align: text-bottom">3</sub>% of the voting power of all then outstanding shares of
capital stock entitled to vote generally in the election of directors, voting together as a single
class, makes it difficult for stockholders to initiate or effect an action by written consent that
is opposed by our board of directors.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Amendment of the bylaws</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under Delaware law, the power to adopt, amend or repeal bylaws is conferred upon the
stockholders. A corporation may, however, in its certificate of incorporation also confer upon the
board of directors the power to adopt, amend or repeal its bylaws. Our charter and bylaws grant our
board the power to adopt, amend and repeal our bylaws at any regular or special meeting of the
board on the affirmative vote of a majority of the directors then in office. The Company&#146;s
stockholders may adopt, amend or repeal the Company&#146;s bylaws but only at any regular or special
meeting of stockholders by an affirmative vote of holders of at least 66<SUP style="font-size: 85%; vertical-align: text-top">2</sup>/<SUB style="font-size: 85%; vertical-align: text-bottom">3</sub>% of the voting power of
all then outstanding shares of capital stock of the Company entitled to vote generally in the
election of directors, voting together as a single class.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Amendment of the certificate of incorporation</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our charter provides that, in addition to any other vote that may be required by law or any
preferred stock designation, the affirmative vote of the holders of at least 66<SUP style="font-size: 85%; vertical-align: text-top">2</sup>/<SUB style="font-size: 85%; vertical-align: text-bottom">3</sub>% of the voting
power of all then outstanding shares of capital stock of the Company entitled to vote generally in
the election of directors, voting together as a single class, is required to amend, alter or
repeal, or adopt any provision as part of the Company&#146;s charter inconsistent with the current provisions of
the Company&#146;s charter dealing with the board of directors, bylaws, meetings of the Company&#146;s
stockholders or amendment of the Company&#146;s charter.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The provisions of our certificate of incorporation and bylaws could have the effect of
discouraging others from attempting hostile takeovers and, as a consequence, they may also inhibit
temporary fluctuations in the market price of our common stock that often result from actual or
rumored hostile takeover attempts. These provisions may also have the effect of preventing changes
in our management. It is possible that these provisions could make it more difficult to
accomplish transactions which stockholders may otherwise deem to be in their best interests.
</DIV>





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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left">
<A name="131"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>MATERIAL U.S. FEDERAL INCOME TAX CONSEQUENCES</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following is a summary of the material U.S. Federal income tax consequences to
U.S. holders and non-U.S. holders (each defined below) regarding (1) the exercise of Warrants for shares
of our common stock, and (2) the acquisition, ownership and disposition of shares of our common stock obtained upon the exercise of a Warrant.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For purposes of this discussion, a U.S. holder is a beneficial owner of  shares of our
common stock or Warrants exercisable for shares of our common stock who is:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>an individual who is a citizen or resident of the United States;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a corporation (or other entity taxed as a corporation for U.S. Federal
income tax purposes) created or organized in or under the laws of the United States,
any state thereof or the District of Columbia;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>an estate the income of which is subject to U.S. Federal income taxation
regardless of its source; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a trust if (i)&nbsp;a court within the United States is able to exercise
primary supervision over the administration of the trust and one or more U.S. persons
have the authority to control all substantial decisions of the trust, or (ii)&nbsp;it has in
effect a valid election to be treated as a U.S. person.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For purposes of this discussion, a non-U.S. holder is a beneficial owner of shares of our
common stock or Warrants exercisable for shares of our common stock that is not a U.S. holder.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This section is based on current provisions of the Code, current and proposed Treasury
regulations promulgated thereunder, and administrative and judicial decisions as of the date
hereof, all of which are subject to change, possibly on a retroactive basis.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in these authorities may cause the tax consequences to vary substantially from the
consequences described below. This summary is not binding on the IRS, and the IRS is not precluded
from adopting a contrary position.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This section does not purport to be a comprehensive description of all of the tax
considerations that may be relevant to each holder of shares of our common stock or Warrants
exercisable for shares of our common stock. This section does not address all aspects of
U.S. Federal income taxation that may be relevant to any particular investor based on such
investor&#146;s individual circumstances. In particular, this section considers only U.S. holders and
non-U.S. holders that hold shares of our common stock or Warrants exercisable for shares of our
common stock as capital assets and does not address the potential application of the alternative
minimum tax or the U.S. Federal income tax consequences to investors that are subject to special
treatment, including:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>broker-dealers;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>insurance companies;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>taxpayers who have elected mark-to-market accounting;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>tax-exempt organizations;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>regulated investment companies;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>real estate investment trusts;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>financial institutions or &#147;financial services entities;&#148;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>taxpayers who hold shares of our common stock or Warrants exercisable for
shares of our common stock as part of a straddle, hedge, conversion transaction or
other integrated transaction;</TD>
</TR>


</TABLE>
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>controlled foreign corporations;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>passive foreign investment companies;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>certain expatriates or former long-term residents of the United States;
and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>U.S. holders whose functional currency is not the U.S. dollar.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following does not address any aspect of U.S. Federal gift or estate tax laws, or state,
local or non-U.S. tax laws. In addition, the section does not consider the tax treatment of
entities taxable as partnerships for U.S. Federal income tax purposes or other pass-through
entities or persons who hold shares of our common stock or Warrants exercisable for shares of our
common stock through such entities. Prospective investors are urged to consult their tax advisors
regarding the specific tax consequences to them of the acquisition, ownership or disposition of
shares of our common stock or Warrants exercisable for shares of our common stock in light of their
particular circumstances.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Tax Consequences of Owning Shares of Our Common Stock and Warrants Exercisable for Shares
of Common Stock</B> <br><BR>
<B><I>U.S. Holders</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Exercise or Lapse of a Warrant</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A U.S. holder generally will not recognize gain or loss upon the exercise of a Warrant
exercisable for shares of our common stock, other than cashless exercise addressed below. Shares
of our common stock acquired pursuant to the exercise of such a Warrant will have a tax basis equal
to the U.S. holder&#146;s adjusted tax basis in the Warrant increased by the exercise price paid to
exercise the Warrant. The holding period of such shares of our common stock will begin on the date
following the date of exercise of the Warrant (or possibly the date of exercise).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The tax consequences of a cashless exercise of a Warrant are not clear under current tax law.
A cashless exercise may be tax-free, either because the exercise is not a gain realization event or
because the exercise is treated as a recapitalization for U.S. federal income tax purposes. In
either tax-free situation, the basis in the shares of our common stock received would equal the
basis in the Warrant. If the cashless exercise were treated as a recapitalization, the holding
period of the shares of our common stock would include the holding period of the Warrant. If the
cashless exercise were otherwise treated as not being a gain realization event, the holding period
in the shares of our common stock would likely be treated as commencing on the date following the
date of exercise (or possibly on the date of exercise) of the Warrant.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Alternatively,
it is also possible that a cashless exercise could be treated as a taxable exchange in which
gain or loss would be recognized. In such event, a U.S. holder could
be deemed to have exchanged for cash equal to their fair market
value, a number of
Warrants equal to the number of shares of our common stock having a value equal to the exercise
price for the total number of Warrants to be exercised. U.S. holders would recognize capital gain
or loss in an amount equal to the difference between the fair market value of the shares of our
common stock represented by the Warrants deemed surrendered and its tax basis in the Warrants
deemed surrendered. In this case, the tax basis in the shares of our common stock received would
equal the sum of the fair market value of the shares of our common stock represented by the
Warrants deemed surrendered and the tax basis in the Warrants exercised. The holding period for the
shares of our common stock would commence on the date following the date of exercise (or possibly
on the date of exercise) of the Warrant.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Due to the absence of authority on the U.S. federal income tax treatment of a cashless
exercise, there can be no assurance which, if any, of the alternative tax consequences and holding
periods described above would be adopted by the IRS or a court of law. Accordingly, U.S. Holders
should consult their tax advisors regarding the tax consequences of a cashless exercise.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If a Warrant is allowed to lapse unexercised, a U.S. holder will have a capital loss equal to
such holder&#146;s tax basis in the Warrant. Such loss will be long term if the Warrant has been held
for more than one year.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Dividends and Other Distributions on Shares of Common Stock</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Distributions on shares of our common stock
received upon exercise of a Warrant will constitute dividends for U.S. Federal
income tax purposes to the extent paid from the Company&#146;s current or accumulated earnings and
profits, as determined under U.S. Federal income tax principles. If a distribution exceeds the
Company&#146;s current or accumulated earnings and profits, the excess will be treated first as a
tax-free return of capital and will reduce (but not below zero) the U.S. holder&#146;s adjusted tax
basis in the common stock, and any remaining excess will be treated as capital gain from a sale or
exchange of the shares of common stock, subject to the tax treatment described below in
&#147;<I>Disposition of Shares of our Common Stock or Warrants</I>.&#148;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends received by a corporate U.S. holder generally will qualify for the dividends
received deduction if the requisite holding period is satisfied. With certain exceptions, and
provided certain holding period requirements are met, dividends received by a non-corporate
U.S. holder generally will constitute &#147;qualified dividends&#148; that will be subject to tax at the
maximum tax rate accorded to long-term capital gains for tax years beginning on or before December&nbsp;31, 2010,
after which the rate applicable to dividends is currently scheduled to change to the tax rate
generally then applicable to ordinary income.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Surtax on Unearned Income</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For tax years
beginning after December 31, 2012, a 3.8% surtax called the Unearned Income Medicare Contribution, would be placed on net investment
income of a taxpayer earning over $200,000 ($250,000 for a joint
return). Net investment income would be interest, dividends, royalties,
rents, gross income from a trade or business involving passive
activities, and net gain from a disposition of property
(other than property held in a trade or business). Net investment income would be reduced by properly allocable deductions to such income.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Disposition of Shares of Our Common Stock or Warrants</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon the sale, exchange, redemption or other disposition of Warrants or shares of our common
stock received upon exercise of a Warrant, a U.S. holder will recognize gain or loss in an amount equal to the difference between the
amount realized on the sale, exchange or other disposition of the Warrants or shares of our common
stock and the U.S. holder&#146;s adjusted tax basis in such Warrants or stock. Generally, such gain or
loss will be capital gain or loss. Any such capital gain or loss will be long-term capital gain or loss if
the U.S. holder&#146;s holding period for the shares or Warrants exceeds one year, and will otherwise be short-term
capital gain or loss.
</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Tax Rates Applicable to Ordinary Income and Capital Gains</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ordinary income and short-term capital gains of non-corporate U.S. holders
is generally taxable, for tax years beginning on or before December 31, 2010, at rates of up to 35%. For tax years beginning after
December 31, 2010, the maximum rate for non-corporate U.S. holders on ordinary income and short-term capital gains is scheduled to
increase to 39.6%. Long-term capital gains of non-corporate U.S.
holders are currently subject to a reduced maximum rate of 15% for tax
years beginning on or before December 31, 2010. After December 31, 2010, the maximum long-term capital gains rate is scheduled to increase
to 20%. The deductibility of capital losses is subject to limitations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Adjustment to Exercise Price</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under Section&nbsp;305 of the Code, if certain adjustments are made (or not made) to the number of
shares to be issued upon the exercise of a Warrant or to the Warrant&#146;s exercise price, a
U.S. holder may be deemed to have received a constructive distribution, which could result in the
inclusion of dividend income.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B><I>Non-U.S. Holders</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Exercise or Lapse of a Warrant</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The U.S. Federal income tax treatment of a non-U.S. holder&#146;s exercise or lapse of a Warrant
generally will correspond to the U.S. Federal income tax treatment of the exercise or lapse of a
Warrant by a U.S. holder, as described under &#147;<I>U.S. Holders &#151; Exercise or Lapse of a Warrant</I>&#148; above.
However, capital loss recognized by a non-U.S. Holder on lapse of a warrant will generally be taken
into account for U.S. income tax purposes only in the circumstances described under &#147;<I>&#151; Disposition
of Our Common Stock or Warrants.</I>&#148;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Dividends and Other Distributions on Shares of our Common Stock</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In general, any distributions made to a non-U.S. holder of shares of our common stock
received upon exercise of a Warrant (and any
constructive distributions a non-U.S. holder may be deemed to receive, see &#147;<I>U.S. Holders &#151;
Adjustment to Exercise Price</I>&#148;), to the extent paid out of current or accumulated earnings and
profits of the Company (as determined under U.S. Federal income tax principles), will constitute
dividends for U.S. Federal income tax purposes. Provided such dividends are not effectively
connected with the non-U.S. holder&#146;s conduct of a trade or business within the United States, such
dividends generally will be subject to withholding of U.S. Federal income tax at a 30% rate or such
lower rate as may be specified by an applicable income tax treaty.
</DIV>


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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any distribution not constituting a dividend will be treated first as a tax-free return of
capital and will reduce (but not below zero) the non-U.S. holder&#146;s adjusted tax basis in its shares
of our common stock and any remaining excess will be treated as gain realized from the sale or
other disposition of the common stock, as described under
&#147;<I>&#151; Disposition of our Common Stock or
Warrants</I>&#148; below.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends paid to a non-U.S. holder that are effectively connected with such non-U.S. holder&#146;s
conduct of a trade or business within the United States generally will not be subject to
U.S. withholding tax, provided such non-U.S. holder complies with certain certification and
disclosure requirements (usually by providing an IRS Form W-8ECI). Instead, such dividends
generally will be subject to U.S. Federal income tax at the same graduated individual or corporate
rates applicable to U.S. holders. If the non-U.S. holder is a corporation, dividends that are
effectively connected income may also be subject to a &#147;branch profits tax&#148; at a rate of 30% or such
lower rate as may be specified by an applicable income tax treaty.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A non-U.S. holder who wishes to claim the benefit of an applicable treaty rate for dividends
will be required (a)&nbsp;to complete IRS Form W-8BEN (or other applicable form) and certify under
penalty of perjury that such holder is not a United States person as defined under the Code and is
eligible for treaty benefits or (b)&nbsp;if the Company Common Stock is held through certain foreign
intermediaries, to satisfy the relevant certification requirements of applicable U.S. Treasury
regulations.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A non-U.S. holder eligible for a reduced rate of U.S. Federal withholding tax pursuant to an
income tax treaty may obtain a refund of any excess amounts withheld by filing an appropriate claim
for refund with the IRS.
</DIV>




<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Disposition of our Common Stock or Warrants</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A non-U.S. holder generally will not be subject to U.S. Federal income or withholding tax in
respect of gain recognized on a sale, exchange or other disposition of shares of our common stock received upon exercise of a Warrant
or Warrants exercisable for shares of our common stock (including redemption of such warrants)
unless:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the gain is effectively connected with the conduct of a trade or business
by the non-U.S. holder within the United States;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the non-U.S. holder is an individual who is present in the United States
for 183&nbsp;days or more in the taxable year of disposition and certain other conditions
are met; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Company is or has been a &#147;United States real property holding
corporation&#148; for U.S. Federal income tax purposes at any time during the shorter of the
five-year period ending on the date of disposition or the period that the
non-U.S. holder held shares of our common stock or Warrants exercisable for shares of
our common stock and, in the case where shares of our common stock are regularly traded
on an established securities market, the non-U.S. holder has owned, directly or
indirectly, more than 5% of shares of our common stock at any time within the shorter
of the five-year period preceding a disposition of shares of our common stock or such
non-U.S. holder&#146;s holding period for the shares of our common stock (or, in the case of
a disposition of Warrants exercisable for shares of our common stock, the
non-U.S. holder owned warrants exercisable for shares of our common stock that is
regularly traded on an established securities market and that had a fair market value
on the date they were acquired that was greater than the fair market value on that date
of 5% of such shares of our common stock).</TD>
</TR>

</TABLE>
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unless an applicable treaty provides otherwise, gain described in the first bullet point above
will be subject to tax at generally applicable U.S. Federal income tax rates. Any gain described in
the first bullet point above of a non-U.S. holder that is a foreign corporation may also be subject
to an additional &#147;branch profits tax&#148; at a 30% rate or such lower rate as may be specified by an
applicable income tax treaty. Gain described in the second bullet point above (which may be offset
by U.S. source capital losses) will be subject to a flat 30% U.S. Federal income tax.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;With respect to the third bullet point above, there can be no assurance that shares of our
common stock will be treated as regularly traded on an established securities market. The Company
believes that it will be a &#147;United States real property holding corporation&#148; for U.S. Federal
income tax purposes. Any capital gain described in the third bullet point will generally be subject to the
same maximum tax rates that are applicable to U.S. holders.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Information Reporting and Back-up Withholding</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A U.S. holder may be subject to information reporting requirements with respect to dividends
paid on shares of our common stock, and on the proceeds from the sale, exchange or disposition of
shares of our common stock or warrants exercisable for shares of our common stock. In addition, a
U.S. holder may be subject to back-up withholding (currently at 28%) on dividends paid on common
shares, and on the proceeds from the sale, exchange or other disposition of shares of our common
stock or Warrants exercisable for shares of our common stock unless the U.S. holder provides
certain identifying information, such as a duly executed IRS Form W-9 certifying that he, she, or
it is not subject to backup withholding or appropriate W-8, or otherwise establishes an exemption.
Back-up withholding is not an additional tax and the amount of any back-up withholding will be
allowable as a credit against a U.S. holder&#146;s U.S. Federal income tax liability and may entitle
such holder to a refund, provided that certain required information is timely furnished to the IRS.
In general, a non-U.S. holder will not be subject to information reporting and backup withholding.
However, a non-U.S. holder may be required to establish an exemption from information reporting and
backup withholding by certifying the non-U.S. holder&#146;s non-U.S. status on Form W-8BEN. Holders are
urged to consult their own tax advisors regarding the application of the information reporting and backup withholding rules to them.
</DIV>

<DIV align="left">
<A name="132"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>LEGAL MATTERS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The validity of the shares of our common stock offered hereby will be passed upon for us by
Davis Graham &#038; Stubbs LLP, Denver, Colorado.
</DIV>

<DIV align="left">
<A name="133"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>EXPERTS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The consolidated
financial statements of Resolute Energy Corporation as of December 31, 2009 and 2008, and for each of the years in the two-year period then
ended, and for the period from February 26, 2007 (inception) to December 31, 2007, have been included herein in reliance upon the report
of KPMG LLP, independent registered public accounting firm, incorporated herein, and upon the authority of said firm as experts in
accounting and auditing.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The combined balance
sheet of Resolute Natural Resources Company, LLC, Resolute Aneth, LLC, WYNR, LLC, BWNR, LLC, RNRC Holdings, Inc. and Resolute Wyoming, Inc.
as of December 31, 2008 and the related combined statements of operations, shareholder&#146;s/member&#146;s equity (deficit), and cash flows for the
period from January 1, 2009 to September 24, 2009, and the years ended December 31, 2008 and 2007 (with the exception of Resolute Wyoming,
Inc. for the year ended December 31, 2007) have been audited by Deloitte &#38; Touche LLP, independent registered public accounting firm, as
stated in their report dated March 29, 2010 appearing in our Annual
Report on Form 10-K for the year ended December 31, 2009 attached
as Appendix A hereto (which report expresses an unqualified opinion on the financial statements and
includes an explanatory paragraph relating to the retrospective adjustment for the change in accounting for non controlling interests as
described in Note 2).  The 2007 financial statements of Resolute Wyoming Inc. not presented separately herein have been audited by Grant Thorton
LLP. Such financial statements are included in reliance upon the report of such firm given
upon their authority as experts in auditing and accounting. All of the foregoing firms are independent public accounting firms.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The financial statements of Resolute Wyoming, Inc., formerly Primary Natural Resources, Inc.,
as of December&nbsp;31, 2007 and for the year then ended (not presented
separately herein) have been audited by Grant Thornton LLP, independent registered public
accountants, as indicated in their report with respect
</DIV>




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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">thereto. The report of Grant Thornton LLP is
included as an exhibit to the registration statement of which this prospectus forms a part in
reliance upon the authority of said firm as experts in auditing and accounting in giving said
report.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Estimates of historical oil and natural gas reserves and related information of the Company as
of December&nbsp;31, 2009, December&nbsp;31, 2008 and December&nbsp;31, 2007 included in the Form 10-K attached as
Appendix&nbsp;A hereto are based upon engineering studies prepared by the Company and audited by
Netherland, Sewell &#038; Associates, Inc., independent petroleum engineers. Such estimates and related
information have been so included in reliance upon the authority of such firm as experts in such
matters.
</DIV>

<DIV align="left">
<A name="134"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>WHERE YOU CAN FIND MORE INFORMATION</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We file annual, quarterly and special reports, proxy statements and other information with the
SEC. You may read and copy any document that we file at the Public Reference Room of the SEC at 100
F Street, N.E., Washington, D.C. 20549. You may obtain information on the operation of the Public
Reference Room by calling the SEC at 1-800-SEC-0330. In addition, the SEC maintains an internet
website that contains reports, proxy statements and other information about issuers, like us, that
file electronically with the SEC. The address of that site is www.sec.gov.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;These filings and other documents are available and may be accessed on our website at
www.resolutenergy.com. You may request a copy of these filings at no cost, by writing or calling
Resolute Energy Corporation, Attention: Secretary, 1675 Broadway, Suite&nbsp;1950 Denver, CO,
303-534-4600.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We make our website content available for information purposes only. It should not be relied
upon for investment purposes, nor is it incorporated by reference in this prospectus.
</DIV>




<P align="center" style="font-size: 10pt"><!-- Folio -->26<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left">
<A name="135"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>APPENDIX A</B></U>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>ANNUAL REPORT ON FORM 10-K<BR>
FOR THE FISCAL YEAR ENDED DECEMBER 31, 2009</B>
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->A-1<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV style="width: 94%; margin-left: 3%"><!-- BEGIN PAGE WIDTH -->

<CENTER style="font-size: 1pt; width: 100%; border-bottom: 3pt solid #000000"></CENTER>

<CENTER style="font-size: 1pt; width: 100%; border-bottom: 1pt solid #000000"></CENTER>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 12pt">UNITED STATES SECURITIES AND
    EXCHANGE COMMISSION<BR>
    </FONT><FONT style="font-size: 10pt">Washington, D. C.
    20549</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 13%; border-bottom: 1pt solid #000000"></CENTER>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 20pt"><FONT style="white-space: nowrap">FORM&#160;10-K</FONT></FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="7%">&nbsp;</TD>  <!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=02 type=gutter -->
    <TD width="92%">&nbsp;</TD> <!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<!-- TableOutputBody -->
<TR valign="bottom">
<TD nowrap align="center" valign="top">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <FONT style="font-family: Wingdings; font-variant: normal">&#254;
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <B>ANNUAL REPORT PURSUANT TO SECTION&#160;13 OR 15(d)&#160;OF
    THE SECURITIES EXCHANGE ACT OF 1934</B>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="center" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    <B><!-- XBRL,dc -->For the fiscal year ended December&#160;31,
    2009</B><!-- /XBRL,dc -->
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" align="center" valign="top">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <B>OR</B>
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="center" valign="top">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <FONT style="font-family: Wingdings; font-variant: normal">&#111;
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <B>TRANSITION REPORT PURSUANT TO SECTION&#160;13 OR
    15(d)&#160;OF THE SECURITIES EXCHANGE ACT OF 1934</B>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="center" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    <B>For the transition period
    from&#160;&#160;&#160;&#160;&#160;to&#160;&#160;&#160;&#160;&#160;</B>
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <B>Commission File
    <FONT style="white-space: nowrap">No.&#160;001-34464</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 13%; border-bottom: 1pt solid #000000"></CENTER>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 24pt">RESOLUTE ENERGY
    CORPORATION</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    (Exact Name of Registrant as Specified in its Charter)
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="50%">&nbsp;</TD> <!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=02 type=gutter -->
    <TD width="49%">&nbsp;</TD> <!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<!-- TableOutputBody -->
<TR valign="bottom">
<TD nowrap align="center" valign="top">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <B><FONT style="font-size: 10pt">Delaware</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <B><FONT style="font-size: 10pt">27-0659371</FONT></B>
</TD>
</TR>
<TR valign="bottom">
<TD align="center" valign="top">
    <FONT style="font-size: 8pt">(State or other Jurisdiction of
    Incorporation or Organization)
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    <FONT style="font-size: 8pt">(I.R.S. Employer Identification
    Number)
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="center" valign="top">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <B><FONT style="font-size: 10pt">1675 Broadway, Suite&#160;1950
    Denver, CO</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <B>80202</B>
</TD>
</TR>
<TR valign="bottom">
<TD align="center" valign="top">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <FONT style="font-size: 8pt">(Address of Principal Executive
    Offices)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    <FONT style="font-size: 8pt">(Zip Code)
    </FONT>
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 10pt"><FONT style="white-space: nowrap">(303)&#160;534-4600</FONT></FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    (Registrant&#146;s telephone number, including area code)
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Securities registered pursuant to Section&#160;12(b) of the Act:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="51%">&nbsp;</TD> <!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=02 type=gutterleft -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=02 type=gutterright -->
    <TD width="47%">&nbsp;</TD> <!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom" style="border-left: 1px solid #000000; padding-left: 2pt; border-top: 1px solid #000000">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B><FONT style="font-size: 9pt">Title of Each Class</FONT></B>
</DIV>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B><FONT style="font-size: 9pt">Name of Exchange on Which
    Registered</FONT></B>
</DIV>
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD align="center" valign="top" style="border-left: 1px solid #000000; padding-left: 2pt; border-top: 1px solid #000000">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Common Stock, par value $0.0001 per share
</DIV>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD align="center" valign="top" style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
    New York Stock Exchange
</TD>
</TR>
<TR valign="bottom">
<TD align="center" valign="top" style="border-left: 1px solid #000000; padding-left: 2pt; border-top: 1px solid #000000">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Warrants, each exercisable for one share of Common Stock
</DIV>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD align="center" valign="top" style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
    New York Stock Exchange
</TD>
</TR>
<TR style="font-size: 1pt">
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Securities registered pursuant to Section&#160;12(g) of the Act:
    <B>None</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Indicate by check mark if the registrant is a well-known
    seasoned issuer, as defined in Rule&#160;405 of the Securities
    Act&#160;Yes&#160;<FONT style="font-family: Wingdings; font-variant: normal">&#111;</FONT>&#160;No&#160;<FONT style="font-family: Wingdings; font-variant: normal">&#254;
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Indicate by check mark if the registrant is not required to file
    reports pursuant to Section&#160;13 or Section&#160;15 of the
    Exchange Act&#160;Yes
    <FONT style="font-family: Wingdings; font-variant: normal">&#111;</FONT>&#160;No&#160;<FONT style="font-family: Wingdings; font-variant: normal">&#254;
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Indicate by check mark whether the registrant (1)&#160;has filed
    all reports required to be filed by Section&#160;13 or 15(d) of
    the Securities Exchange Act of 1934 during the preceding
    12&#160;months (or for such shorter period that the registrant
    was required to file such reports), and (2)&#160;has been
    subject to such filing requirements for the past
    90&#160;days.&#160;Yes&#160;<FONT style="font-family: Wingdings; font-variant: normal">&#254;</FONT>&#160;No&#160;<FONT style="font-family: Wingdings; font-variant: normal">&#111;
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Indicate by check mark whether the registrant has submitted
    electronically and posted on its corporate Web site, if any,
    every Interactive Data File required to be submitted and posted
    pursuant to Rule&#160;405 of
    <FONT style="white-space: nowrap">Regulation&#160;S-T</FONT>
    (&#167;&#160;232.405 of this chapter) during the preceding
    12&#160;months (or for such shorter period that the registrant
    was required to submit and post such
    files).&#160;Yes&#160;<FONT style="font-family: Wingdings; font-variant: normal">&#111;</FONT>&#160;No&#160;<FONT style="font-family: Wingdings; font-variant: normal">&#111;
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Indicate by check mark if delinquent filers pursuant to
    item&#160;405 of
    <FONT style="white-space: nowrap">Regulation&#160;S-K</FONT>
    (&#167;&#160;229.405 of this chapter) is not contained herein,
    and will not be contained, to the best of the registrant&#146;s
    knowledge, indefinite proxy or information statements
    incorporated by reference in Part&#160;III of this
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    or any amendment to this
    <FONT style="white-space: nowrap">Form&#160;10-K.&#160;</FONT><FONT style="font-family: Wingdings; font-variant: normal">&#111;
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Indicate by check mark whether the registrant is a large
    accelerated filer, an accelerated filer, a non-accelerated
    filer, or a smaller reporting company. See the definitions of
    &#147;large accelerated filer,&#148; &#147;accelerated
    filer&#148; and &#147;smaller reporting company&#148; in Rule
    <FONT style="white-space: nowrap">12b-2</FONT> of the
    Exchange Act. (Check one):
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="50%">&nbsp;</TD> <!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>  <!-- colindex=02 type=gutter -->
    <TD width="48%">&nbsp;</TD> <!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<!-- TableOutputBody -->
<TR valign="bottom">
<TD align="right" valign="top">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Large accelerated filer
    <FONT style="font-family: Wingdings; font-variant: normal">&#111;
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    Accelerated
    filer&#160;<FONT style="font-family: Wingdings; font-variant: normal">&#111;
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="right" valign="top">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Non-accelerated filer
    <FONT style="font-family: Wingdings; font-variant: normal">&#254;
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="right" valign="top">
    Smaller reporting
    company&#160;<FONT style="font-family: Wingdings; font-variant: normal">&#111;
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="right" valign="top">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    (Do not check if a smaller reporting company)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Indicate by check mark whether the registrant is a shell company
    (as defined in
    <FONT style="white-space: nowrap">Rule&#160;12b-2</FONT>
    of the Exchange
    Act).&#160;Yes&#160;<FONT style="font-family: Wingdings; font-variant: normal">&#111;</FONT>&#160;No&#160;<FONT style="font-family: Wingdings; font-variant: normal">&#254;
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The aggregate market value of registrant&#146;s common stock
    held by non-affiliates on June&#160;30, 2009, computed by
    reference to the price at which the common stock was last sold
    as posted on the New York Stock Exchange, was $ N/A. (The
    Registrant became subject to reporting requirements of the
    Exchange Act in September 2009, and therefore is not able to
    provide information about the market value as of the end of the
    second quarter of 2009.)
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    As of March&#160;29, 2010, 53,160,375&#160;shares of the
    Registrant&#146;s $0.0001&#160;par value Common Stock were
    outstanding.
</DIV>

<DIV style="margin-top: 8pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 100%; border-bottom: 1pt solid #000000"></CENTER>

<CENTER style="font-size: 1pt; width: 100%; border-bottom: 3pt solid #000000"></CENTER>
<!-- XBRL Pagebreak Begin -->

<P align="CENTER" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
A-2
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 94%; margin-left: 3%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->
</DIV><!-- END PAGE WIDTH -->
<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 12pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">CAUTIONARY
    NOTE&#160;REGARDING FORWARD-LOOKING STATEMENTS</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 6%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    This Annual Report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    contains &#147;forward-looking statements&#148; as that term is
    defined in the Private Securities Litigation Reform Act of 1995.
    The use of any statements containing the words
    &#147;anticipate,&#148; &#147;intend,&#148; &#147;believe,&#148;
    &#147;estimate,&#148; &#147;project,&#148; &#147;expect,&#148;
    &#147;plan,&#148; &#147;should&#148; or similar expressions are
    intended to identify such statements. Forward-looking statements
    included in this report relate to, among other things, expected
    future production, expenses and cash flows in 2010, the nature,
    timing and results of capital expenditure projects, amounts of
    future capital expenditures, our future debt levels and
    liquidity and future compliance with covenants under our
    revolving credit facility. Although we believe that the
    expectations reflected in such forward-looking statements are
    reasonable, those expectations may prove to be incorrect.
    Disclosure of important factors that could cause actual results
    to differ materially from our expectations, or cautionary
    statements, are included under the heading &#147;Risk
    Factors&#148; in this report and our Registration Statement on
    <FONT style="white-space: nowrap">Form&#160;S-4,</FONT>
    as amended (Registration
    <FONT style="white-space: nowrap">No.&#160;333-161076).</FONT>
    All forward-looking statements speak only as of the date made.
    All subsequent written and oral forward-looking statements
    attributable to us, or persons acting on our behalf, are
    expressly qualified in their entirety by the cautionary
    statements. Except as required by law, we undertake no
    obligation to update any forward-looking statement. Factors that
    could cause actual results to differ materially from our
    expectations include, among others, those factors referenced in
    the &#147;Risk Factors&#148; section of this report and our
    Registration Statement on
    <FONT style="white-space: nowrap">Form&#160;S-4,</FONT>
    as amended, and such things as:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="3%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    volatility of oil and gas prices, including reductions in prices
    that would adversely affect our revenue, income, cash flow from
    operations, liquidity and reserves;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    a continuation of, or further deterioration in, currently
    adverse conditions in global credit markets and in economic
    conditions generally;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    discovery, estimation, development and our ability to replace
    oil and gas reserves;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    our future cash flow, liquidity and financial position of the
    Company;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the success of our business and financial strategy, hedging
    strategies and plans of the Company;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the amount, nature and timing of our capital expenditures,
    including future development costs;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    a lack of available capital and financing;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the effectiveness and results of our
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    flood program;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the success of the development plan and production from our
    Aneth Field Properties;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the timing and amount of future production of oil and gas;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    exploratory drilling in the Bakken trend of the Williston Basin;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    availability of drilling and production equipment;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    success of refracs scheduled in the Muddy formation;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    commencement of activities in the Big Horn Basin;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    inaccuracy in reserve estimates and expected production rates;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    our operating costs and other expenses;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the success in marketing oil and gas;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    competition in the oil and gas industry;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    uninsured or underinsured losses in, or operational problems
    affecting, our operations;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the impact and costs related to compliance with or changes in
    laws or regulations governing our oil and natural gas operations;
</TD>
</TR>

</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="CENTER" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
A-3

</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="3%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    our relationship with the Navajo Nation and Navajo Nation Oil
    and Gas, as well as the timing of when certain purchase rights
    held by Navajo Nation Oil and Gas become exercisable;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the impact of weather and the occurrence of disasters, such as
    fires, floods and other events and natural disasters;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    environmental liabilities;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    expected increase in capacity due to additional pumps in the
    McElmo Creek pipeline;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    anticipated
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    supply to be sourced from Kinder Morgan;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    risks related to our level of indebtedness;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    developments in oil-producing and gas-producing countries;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the success of strategic plans, expectations and objectives of
    our future operations;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    loss of senior management or technical personnel;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    acquisitions and other business opportunities (or the lack
    thereof) that may be presented to and pursued by us;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    risk factors discussed or referenced in this report;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    other factors, many of which are beyond our control.
</TD>
</TR>

</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="CENTER" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
A-4

</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 11pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">TABLE OF
    CONTENTS</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>


<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="7%">&nbsp;</TD>  <!-- colindex=01 type=quadleft -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=01 type=maindata -->
    <TD width="7%">&nbsp;</TD>  <!-- colindex=01 type=quadright -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=02 type=gutter -->
    <TD width="81%">&nbsp;</TD> <!-- colindex=02 type=maindata -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=03 type=gutter -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=03 type=quadleft -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=03 type=maindata -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=03 type=quadright -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<!-- TableOutputBody -->
<TR valign="bottom">
<TD>&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    <A HREF='#101'><B>PART&#160;I --</B></A>
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD>&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    <A HREF='#102'>Item 1. and 2.</A>
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <A HREF='#102'>Business and Properties</A>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">A-6</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD>&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    <A HREF='#103'>Item 1A.</A>
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <A HREF='#103'>Risk Factors</A>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">A-34</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD>&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    <A HREF='#104'>Item 3.</A>
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <A HREF='#104'>Legal Proceedings</A>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">A-50</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD>&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    <A HREF='#105'>Item 4.</A>
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <A HREF='#105'>Submission of Matters to a Vote of Security
    Holders</A>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">A-50</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD>&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    <A HREF='#106'><B>PART&#160;II --</B></A>
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD>&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    <A HREF='#107'>Item 5.</A>
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <A HREF='#107'>Market for Registrant&#146;s Common Equity,
    Related Stockholder Matters and Issuer Purchases of Equity
    Securities</A>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">A-51</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD>&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    <A HREF='#108'>Item 6.</A>
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <A HREF='#108'>Selected Financial Data</A>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">A-53</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD>&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    <A HREF='#109'>Item 7.</A>
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <A HREF='#109'>Management&#146;s Discussion and Analysis of
    Financial Condition and Results of Operations</A>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">A-54</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD>&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    <A HREF='#110'>Item 7A.</A>
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <A HREF='#110'>Quantitative and Qualitative Disclosures About
    Market Risk</A>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">A-69</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD>&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    <A HREF='#111'>Item 8.</A>
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <A HREF='#111'>Financial Statements and Supplementary Data</A>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">A-70</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD>&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    <A HREF='#112'>Item 9.</A>
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <A HREF='#112'>Changes in and Disagreements with Accountants on
    Accounting and Financial Disclosure</A>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">A-70
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD>&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    <A HREF='#113'>Item 9A.</A>
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <A HREF='#113'>Controls and Procedures</A>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">A-70
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD>&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    <A HREF='#114'>Item 9B.</A>
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <A HREF='#114'>Other Information</A>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">A-70</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD>&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    <A HREF='#115'><B>PART&#160;III --</B></A>
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD>&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    <A HREF='#116'>Item 10.</A>
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <A HREF='#116'>Directors, Executive Officers and Corporate
    Governance</A>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">A-71</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD>&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    <A HREF='#117'>Item 11.</A>
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <A HREF='#117'>Executive Compensation</A>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">A-78</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD>&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    <A HREF='#118'>Item 12.</A>
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <A HREF='#118'>Security Ownership of Certain Beneficial Owners
    and Management and Related Stockholder Matters</A>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">A-88</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD>&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    <A HREF='#119'>Item 13.</A>
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <A HREF='#119'>Certain Relationships and Related Transactions
    and Director Independence</A>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">A-92</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD>&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    <A HREF='#120'>Item 14.</A>
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <A HREF='#120'>Principal Accounting Fees and Services</A>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">A-93</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD>&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    <A HREF='#121'><B>PART IV --</B></A>
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD>&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    <A HREF='#122'>Item 15.</A>
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <A HREF='#122'>Exhibits, Financial Statement Schedules</A>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">A-94</TD>
<TD>&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

</DIV>

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<P align="CENTER" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
A-5

</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='101'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">PART&#160;I</FONT></B>
</DIV>

</A>
<A name='102'>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Item&#160;1.&#160;and
    2.&#160;BUSINESS AND PROPERTIES</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">RESOLUTE&#146;S
    BUSINESS</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Resolute Energy Corporation (&#147;Resolute&#148; or the
    &#147;Company&#148;), a Delaware corporation incorporated on
    July&#160;28, 2009, was formed to consummate a business
    combination with Hicks Acquisition Company&#160;I, Inc.
    (&#147;HACI&#148;), a Delaware corporation incorporated on
    February&#160;26, 2007. HACI was a blank check company that was
    formed to acquire through a merger, capital stock exchange,
    asset acquisition, stock purchase, reorganization or similar
    business combination, one or more businesses or assets.
    HACI&#146;s initial public offering (the &#147;Offering&#148;)
    was consummated on October&#160;3, 2007. HACI had not engaged in
    any operations or generated any operating revenue prior to the
    business combination with Resolute.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    On September&#160;25, 2009 (the &#147;Acquisition Date&#148;),
    HACI consummated a business combination under the terms of a
    Purchase and IPO Reorganization Agreement (&#147;Acquisition
    Agreement&#148;) with Resolute and Resolute Holdings Sub, LLC
    (&#147;Sub&#148;), whereby, through a series of transactions,
    HACI&#146;s stockholders collectively acquired a majority of the
    outstanding shares of Resolute common stock (the &#147;Resolute
    Transaction&#148;). As a result of the Resolute Transaction,
    Resolute owned, directly or indirectly, 100% of the equity
    interests of Resolute Natural Resources Company, LLC
    (&#147;Resources&#148;), WYNR, LLC (&#147;WYNR&#148;), BWNR, LLC
    (&#147;BWNR&#148;), RNRC Holdings, Inc. (&#147;RNRC&#148;), and
    Resolute Wyoming, Inc. (&#147;RWI&#148;) (formerly known as
    Primary Natural Resources, Inc. (&#147;PNR&#148;)), and owned a
    99.996% equity interest in Resolute Aneth, LLC
    (&#147;Aneth&#148;), (collectively &#147;Predecessor
    Resolute&#148;). The entities comprising Predecessor Resolute
    prior to the Resolute Transaction were wholly owned by Sub
    (except for Aneth, which was 99.996% owned by Sub), which in
    turn is a wholly-owned subsidiary of Resolute Holdings, LLC
    (&#147;Holdings&#148;). Under generally accepted accounting
    principles, HACI was the accounting acquirer.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Resolute is an independent oil and gas company engaged in the
    exploration, exploitation and development of its oil and gas
    properties located in Utah, Wyoming, North Dakota and, to a
    lesser extent, properties in Alabama and Oklahoma. Approximately
    90% of Resolute&#146;s revenue is generated from the sale of oil
    production. Resolute&#146;s main focus is on increasing reserves
    and production from its properties located in Utah (its
    &#147;Aneth Field Properties&#148;) and from Hilight Field and
    related properties in Wyoming, (&#147;Wyoming Properties&#148;),
    while improving efficiency and controlling costs in its
    operations. Resolute believes that significantly more oil can be
    recovered from its Aneth Field Properties through industry
    standard secondary and tertiary recovery techniques. Resolute
    has completed a number of exploitation projects that have
    increased its proved developed reserve base, and it has plans
    for additional expansion and enhancement projects. In its
    Wyoming Properties, Resolute has identified 36 exploitation
    opportunities similar to those successfully completed by the
    previous operator. Resolute plans to further expand its reserve
    base through a focused acquisition strategy by looking to
    acquire properties that have upside potential through
    development drilling and exploitation projects and through the
    acquisition, exploration and exploitation of acreage that
    appears to contain relatively low risk and repeatable drilling
    opportunities. Also, Resolute seeks to reduce the effect of
    short-term commodity price fluctuations on its cash flow through
    the use of various derivative instruments.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Resolute&#146;s largest asset, constituting 93% of its proved
    reserves, is its ownership of working interests in Greater Aneth
    Field (&#147;Aneth Field&#148;), a mature, long-lived oil
    producing field located in the Paradox Basin on the Navajo
    Reservation in southeast Utah. Resolute owns a majority of the
    working interests in, and is the operator of, three federal
    production units covering approximately 43,000&#160;gross acres.
    These are the Aneth Unit, in which Resolute owns a 62% working
    interest, the McElmo Creek Unit, in which Resolute owns a 75%
    working interest, and the Ratherford Unit, in which Resolute
    owns a 59% working interest. As of December&#160;31, 2009,
    Resolute had interests in, and operated 399&#160;gross (262 net)
    active producing wells and 334&#160;gross (218 net) active water
    and
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    injection wells on its Aneth Field Properties. The crude oil
    produced from the Aneth Field Properties is generally
    characterized as light, sweet crude oil that is highly desired
    as a refinery blending feedstock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Resolute&#146;s Wyoming Properties are largely located in the
    Powder River Basin of Wyoming and constitute approximately 7% of
    Resolute&#146;s net proved reserves. Hilight Field, anchoring
    the Wyoming production and reserves, produces oil and gas from
    the Muddy formation. Shallow coalbed methane (&#147;CBM&#148;)
    production also
</DIV>
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<P align="center" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <BR>
A-6
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    comes from this area. Resolute also owns properties in eastern
    Wyoming and Oklahoma that produce oil and gas. As of
    December&#160;31, 2009, the Wyoming Properties consisted of
    466&#160;gross (420 net) active wells and Resolute operates all
    but 6&#160;gross (1 net) wells. In addition, Resolute holds
    exploration leasehold rights in Wyoming&#146;s Big Horn Basin
    and Alabama&#146;s Black Warrior Basin.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    In March 2010, Resolute acquired a 45% working interest in
    approximately 61,000&#160;gross (42,000&#160;net leasehold)
    acres in Williams County, North Dakota. This undeveloped
    leasehold is located within the Bakken shale trend of the
    Williston Basin. Although the Middle Bakken formation will be
    the primary objective, secondary objectives include the Three
    Forks, Madison and Red River formations. Resolute expects to
    participate in drilling at least three horizontal wells in this
    area during 2010.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    As of December&#160;31, 2009, Resolute&#146;s estimated net
    proved reserves were approximately 64.4&#160;MMBoe, of which
    approximately 35% were proved developed producing reserves and
    approximately 77% were oil. The pre-tax
    <FONT style="white-space: nowrap">PV-10</FONT> of
    Resolute&#146;s net proved reserves at December&#160;31, 2009,
    was $479.9&#160;million and the standardized measure of its
    estimated net proved reserves as of December&#160;31, 2009, was
    $361.0&#160;million. For additional information about the
    calculation of Resolutes&#146;s
    <FONT style="white-space: nowrap">PV-10</FONT> and
    its standardized measure, please read &#147;<I>Business and
    Properties&#160;&#151; Estimated Net Proved Reserves</I>.&#148;
    The following table sets forth summary information attributable
    to Resolute&#146;s estimated net proved reserves that is derived
    from its December&#160;31, 2009, reserve report which was
    developed by Resolute and audited by Netherland,
    Sewell&#160;&#038; Associates, Inc. (&#147;NSAI&#148;),
    independent petroleum engineers. Reserves and production
    information is as follows.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="45%">&nbsp;</TD> <!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=02 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>    <!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=02 type=hang1 -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=03 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>    <!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=03 type=hang1 -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=04 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>    <!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>  <!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=05 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>    <!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=05 type=hang1 -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=06 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>    <!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=06 type=hang1 -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=07 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=07 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>    <!-- colindex=07 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=07 type=hang1 -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=08 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=08 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>    <!-- colindex=08 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=08 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 6pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="22" align="center" valign="bottom">
    <B>Estimated Net Proved Reserves as of December&#160;31, 2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Average Net<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 6pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="22" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>(MMBoe)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Daily<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 6pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Proved<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Proved<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Production<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 6pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Developed<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Developed<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Proved Undeveloped</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Total<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>(Boe per day)<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 6pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Producing</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Non-Producing</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Drilling</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Total</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Proved</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>(1)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Aneth Field Properties
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="font-size: 7pt">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="font-size: 7pt">
    19.6
</TD>
<TD nowrap align="left" valign="bottom" style="font-size: 7pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="font-size: 7pt">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="font-size: 7pt">
    10.6
</TD>
<TD nowrap align="left" valign="bottom" style="font-size: 7pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="font-size: 7pt">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="font-size: 7pt">
    29.4
</TD>
<TD nowrap align="left" valign="bottom" style="font-size: 7pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="font-size: 7pt">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="font-size: 7pt">
    0.1
</TD>
<TD nowrap align="left" valign="bottom" style="font-size: 7pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="font-size: 7pt">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="font-size: 7pt">
    29.5
</TD>
<TD nowrap align="left" valign="bottom" style="font-size: 7pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="font-size: 7pt">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="font-size: 7pt">
    59.7
</TD>
<TD nowrap align="left" valign="bottom" style="font-size: 7pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="font-size: 7pt">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="font-size: 7pt">
    5,424
</TD>
<TD nowrap align="left" valign="bottom" style="font-size: 7pt">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Wyoming Properties
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="font-size: 7pt">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="font-size: 7pt">
    2.7
</TD>
<TD nowrap align="left" valign="bottom" style="font-size: 7pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="font-size: 7pt">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="font-size: 7pt">
    2.0
</TD>
<TD nowrap align="left" valign="bottom" style="font-size: 7pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="font-size: 7pt">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="font-size: 7pt">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom" style="font-size: 7pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="font-size: 7pt">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="font-size: 7pt">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom" style="font-size: 7pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="font-size: 7pt">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="font-size: 7pt">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom" style="font-size: 7pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="font-size: 7pt">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="font-size: 7pt">
    4.7
</TD>
<TD nowrap align="left" valign="bottom" style="font-size: 7pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="font-size: 7pt">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="font-size: 7pt">
    2,013
</TD>
<TD nowrap align="left" valign="bottom" style="font-size: 7pt">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Total
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="font-size: 7pt">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="font-size: 7pt">
    22.3
</TD>
<TD nowrap align="left" valign="bottom" style="font-size: 7pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="font-size: 7pt">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="font-size: 7pt">
    12.6
</TD>
<TD nowrap align="left" valign="bottom" style="font-size: 7pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="font-size: 7pt">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="font-size: 7pt">
    29.4
</TD>
<TD nowrap align="left" valign="bottom" style="font-size: 7pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="font-size: 7pt">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="font-size: 7pt">
    0.1
</TD>
<TD nowrap align="left" valign="bottom" style="font-size: 7pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="font-size: 7pt">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="font-size: 7pt">
    29.5
</TD>
<TD nowrap align="left" valign="bottom" style="font-size: 7pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="font-size: 7pt">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="font-size: 7pt">
    64.4
</TD>
<TD nowrap align="left" valign="bottom" style="font-size: 7pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="font-size: 7pt">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="font-size: 7pt">
    7,437
</TD>
<TD nowrap align="left" valign="bottom" style="font-size: 7pt">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Future operating costs ($/Boe)(2)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="font-size: 7pt">
    $
</TD>
<TD nowrap align="right" valign="bottom" style="font-size: 7pt">
    &#160;25.35
</TD>
<TD nowrap align="left" valign="bottom" style="font-size: 7pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="font-size: 7pt">
    $
</TD>
<TD nowrap align="right" valign="bottom" style="font-size: 7pt">
    &#160;13.45
</TD>
<TD nowrap align="left" valign="bottom" style="font-size: 7pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="font-size: 7pt">
    $
</TD>
<TD nowrap align="right" valign="bottom" style="font-size: 7pt">
    9.91
</TD>
<TD nowrap align="left" valign="bottom" style="font-size: 7pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="font-size: 7pt">
    $
</TD>
<TD nowrap align="right" valign="bottom" style="font-size: 7pt">
    &#160;12.97
</TD>
<TD nowrap align="left" valign="bottom" style="font-size: 7pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="font-size: 7pt">
    $
</TD>
<TD nowrap align="right" valign="bottom" style="font-size: 7pt">
    9.92
</TD>
<TD nowrap align="left" valign="bottom" style="font-size: 7pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="font-size: 7pt">
    $
</TD>
<TD nowrap align="right" valign="bottom" style="font-size: 7pt">
    &#160;15.96
</TD>
<TD nowrap align="left" valign="bottom" style="font-size: 7pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="font-size: 7pt">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="font-size: 7pt">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom" style="font-size: 7pt">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Future production taxes ($/Boe)(3)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="font-size: 7pt">
    $
</TD>
<TD nowrap align="right" valign="bottom" style="font-size: 7pt">
    7.65
</TD>
<TD nowrap align="left" valign="bottom" style="font-size: 7pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="font-size: 7pt">
    $
</TD>
<TD nowrap align="right" valign="bottom" style="font-size: 7pt">
    7.04
</TD>
<TD nowrap align="left" valign="bottom" style="font-size: 7pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="font-size: 7pt">
    $
</TD>
<TD nowrap align="right" valign="bottom" style="font-size: 7pt">
    6.31
</TD>
<TD nowrap align="left" valign="bottom" style="font-size: 7pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="font-size: 7pt">
    $
</TD>
<TD nowrap align="right" valign="bottom" style="font-size: 7pt">
    7.37
</TD>
<TD nowrap align="left" valign="bottom" style="font-size: 7pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="font-size: 7pt">
    $
</TD>
<TD nowrap align="right" valign="bottom" style="font-size: 7pt">
    6.31
</TD>
<TD nowrap align="left" valign="bottom" style="font-size: 7pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="font-size: 7pt">
    $
</TD>
<TD nowrap align="right" valign="bottom" style="font-size: 7pt">
    6.92
</TD>
<TD nowrap align="left" valign="bottom" style="font-size: 7pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="font-size: 7pt">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="font-size: 7pt">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom" style="font-size: 7pt">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Future PUD development costs (in millions)(4)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="font-size: 7pt">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="font-size: 7pt">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom" style="font-size: 7pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="font-size: 7pt">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="font-size: 7pt">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom" style="font-size: 7pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="font-size: 7pt">
    $
</TD>
<TD nowrap align="right" valign="bottom" style="font-size: 7pt">
    &#160;310.2
</TD>
<TD nowrap align="left" valign="bottom" style="font-size: 7pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="font-size: 7pt">
    $
</TD>
<TD nowrap align="right" valign="bottom" style="font-size: 7pt">
    1.6
</TD>
<TD nowrap align="left" valign="bottom" style="font-size: 7pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="font-size: 7pt">
    $
</TD>
<TD nowrap align="right" valign="bottom" style="font-size: 7pt">
    &#160;311.8
</TD>
<TD nowrap align="left" valign="bottom" style="font-size: 7pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="font-size: 7pt">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="font-size: 7pt">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom" style="font-size: 7pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="font-size: 7pt">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="font-size: 7pt">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom" style="font-size: 7pt">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Future PUD development costs ($/Boe)(5)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="font-size: 7pt">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="font-size: 7pt">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom" style="font-size: 7pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="font-size: 7pt">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="font-size: 7pt">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom" style="font-size: 7pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="font-size: 7pt">
    $
</TD>
<TD nowrap align="right" valign="bottom" style="font-size: 7pt">
    10.57
</TD>
<TD nowrap align="left" valign="bottom" style="font-size: 7pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="font-size: 7pt">
    $
</TD>
<TD nowrap align="right" valign="bottom" style="font-size: 7pt">
    11.17
</TD>
<TD nowrap align="left" valign="bottom" style="font-size: 7pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="font-size: 7pt">
    $
</TD>
<TD nowrap align="right" valign="bottom" style="font-size: 7pt">
    10.57
</TD>
<TD nowrap align="left" valign="bottom" style="font-size: 7pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="font-size: 7pt">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="font-size: 7pt">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom" style="font-size: 7pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="font-size: 7pt">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="font-size: 7pt">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom" style="font-size: 7pt">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 5%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="1%"></TD>
    <TD width="1%"></TD>
    <TD width="98%"></TD>
</TR>

<TR>
    <TD valign="top">
    <FONT style="font-size: 7pt">1)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 7pt">For the year ended
    December&#160;31, 2009.
    </FONT></TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <FONT style="font-size: 7pt">2)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 7pt">Determined by dividing
    Resolute&#146;s estimated future operating costs as of
    December&#160;31, 2009, by total estimated net proved reserves
    as of December&#160;31, 2009, for each reserve category.
    </FONT></TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <FONT style="font-size: 7pt">3)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 7pt">Determined by dividing
    Resolute&#146;s estimated future production taxes as of
    December&#160;31, 2009, by total estimated net proved reserves
    as of December&#160;31, 2009, for each reserve category.
    </FONT></TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <FONT style="font-size: 7pt">4)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 7pt">Future development costs include
    costs incurred in connection with the initiation, extension and
    expansion of
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    flood projects, including
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    purchases, drilling of development wells, upgrades to field
    infrastructure, workovers of producing wells and recompletion of
    existing wells into new producing zones.
    </FONT></TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <FONT style="font-size: 7pt">5)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 7pt">Determined by dividing
    Resolute&#146;s estimated total future development costs related
    to reserves classified as proved undeveloped by total estimated
    net proved undeveloped reserves as of December&#160;31, 2009.
    </FONT></TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Resolute&#146;s
    Business Strategies</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>Bring Proved Developed Non-Producing and Proved Undeveloped
    Reserves into Production.</I>&#160;At December&#160;31, 2009,
    Resolute had estimated net proved reserves of approximately
    42.1&#160;MMBoe that were classified as proved developed
    non-producing and proved undeveloped. An estimated
    40.0&#160;MMBoe, or 95% of those reserves, are attributable to
    recoveries associated with expansions, extensions and processing
    of the tertiary recovery
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    floods that are currently in operation on Resolute&#146;s Aneth
    Field Properties. Predecessor Resolute and Resolute incurred
    approximately $21.9&#160;million of capital expenditures related
    to the Aneth Field Properties during 2009, and Resolute expects
    to incur an additional $377.4&#160;million of capital
    expenditures over the next 28&#160;years (including purchases of
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>),
    in connection with bringing those incremental reserves
    attributable to Resolute&#146;s
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    flood projects into production. Resolute&#146;s current plan
    anticipates approximately $162&#160;million of these future
    capital expenditures will be incurred from 2010 through 2012.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <BR>
A-7
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>Increase Production and Improve Efficiency of Operations on
    Resolute&#146;s Existing Properties.</I>&#160;Resolute&#146;s
    management team has experience in managing operationally
    intensive oil and gas properties. As the operator of the Aneth
    Field Properties, Resolute has the ability to directly manage
    its costs, control the timing of its exploitation activities and
    effectively implement programs to increase production and
    improve the efficiency of its operations. For example,
    Predecessor Resolute initiated a program to actively work with
    vendors to reduce labor and material costs. Predecessor Resolute
    also conducted a proprietary
    <FONT style="white-space: nowrap">3-D</FONT> seismic
    survey of the Aneth Unit in 2007, which is the first
    <FONT style="white-space: nowrap">3-D</FONT> seismic
    survey covering Aneth Field. Resolute expects that the data
    obtained from this seismic survey will provide information to
    enable it to more efficiently develop and improve the recovery
    from its Aneth Field Properties. In addition, soon after
    Predecessor Resolute acquired properties from Chevron and from
    ExxonMobil and became the operator of the Aneth, McElmo Creek
    and Ratherford Units, Predecessor Resolute undertook a program
    of repair and maintenance of those producing assets. As a result
    of these efforts, Resolute has seen a reduction in the well
    workover costs. Also, because Resolute is the operator of three
    federal units in Aneth Field, it has been able to assemble a
    critical mass of employees and projects and allocate its
    resources across a broader area in a more efficient manner than
    was previously the case when each unit had a different operator.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>Pursue Acquisitions of Properties with Development
    Potential.</I>&#160;From inception, Predecessor Resolute&#146;s
    goal was to grow its reserve base through a focused acquisition
    strategy. It completed three significant acquisitions, two in
    Utah and one in Wyoming. Substantially all of its Aneth Field
    Properties were acquired through significant purchases in
    November 2004 and April 2006. Predecessor Resolute then acquired
    its Wyoming Properties in July 2008. Resolute looks to acquire
    similar producing properties in the onshore United States that
    have upside potential through relatively low-risk development
    drilling and exploitation projects. It believes its knowledge of
    various operating areas, strong management and staff and solid
    industry relationships will allow it to find, capitalize on and
    integrate strategic acquisition opportunities in various areas.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>Acquire and Explore Properties in Oil Prone
    Areas.</I>&#160;Resolute recently acquired leasehold interests
    in the Williston Basin that are prospective for oil production
    in the Middle Bakken formation as well as other formations.
    Resolute intends to explore these properties and to acquire,
    explore and develop other properties in areas of the United
    States that are prospective for production of oil or natural gas
    liquids (&#147;NGL&#148;).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>Reduce Commodity Price Risk through
    Hedging.</I>&#160;Resolute seeks to reduce the effect of
    short-term commodity price fluctuations and achieve less
    volatile and more predictable cash flows through the use of
    various derivative instruments such as swaps, puts, calls and
    collars. Resolute expects to continue to use these financial
    arrangements to reduce its commodity price risk. As of
    December&#160;31, 2009, Resolute had in place oil and gas swaps,
    oil and gas collars and a gas basis hedge. These included oil
    swaps covering approximately 75% of its anticipated 2010 oil
    production at a weighted average price of $67.24 per Bbl, oil
    collars covering approximately 4% of its anticipated 2010 oil
    production with a floor of $105.00 per Bbl and ceiling of
    $151.00 per Bbl, gas swaps covering approximately 73% of its
    anticipated 2010 gas production at a weighted average price of
    $9.69 per MMBtu, and a CIG gas basis hedge priced at $2.10 per
    MMBtu covering approximately 34% of its anticipated 2010 gas
    production. Additional instruments are also in place for future
    years and are summarized in the table below.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="48%">&nbsp;</TD> <!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=02 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>    <!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=02 type=hang1 -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=03 type=lead -->
    <TD width="13%" align="right">&nbsp;</TD>   <!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=03 type=hang1 -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=04 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>    <!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=04 type=hang1 -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=05 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>    <!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=05 type=hang1 -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=06 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>    <!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=06 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Oil Swap<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Oil (NYMEX WTI)<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Collar<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Volumes<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Weighted Average<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Volumes<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Floor<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Ceiling<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Year</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Bbl per Day</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Hedge Price per Bbl</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Bbl per Day</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Price</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Price</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    2010
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,650
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;67.24
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    200
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;105.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;151.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    2011
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,250
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    68.26
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    2012
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,250
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    68.26
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    2013
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    60.47
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="71%">&nbsp;</TD> <!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=02 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>    <!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=02 type=hang1 -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=03 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>    <!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=03 type=hang1 -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=04 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>    <!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=04 type=hang1 -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=05 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>    <!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=05 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Gas<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Basis Hedges</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Swap<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Swap<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Volumes<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Gas<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Volumes<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>MMBtu<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>(Henry Hub)<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>MMBtu<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Swap<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Year</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>per Day</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Swap Price</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>per Day</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Price</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    2010
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,800
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;9.69
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,800
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;2.10
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    2011
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,750
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    9.32
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,800
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2.10
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    2012
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,100
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    7.42
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,800
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2.10
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    2013
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,900
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    7.40
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,800
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2.10
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

</DIV>
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    <BR>
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Competitive
    Strengths</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>A High Quality Base of Long-Lived Oil Producing
    Properties.</I>&#160;The Aneth Field Properties have several
    characteristics that Resolute believes will provide a stable
    production platform with which to fund its development and
    growth activities:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="1%"></TD>
    <TD width="3%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    The properties are expected to have a long productive life. As
    of December&#160;31, 2009, the proved developed producing
    reserves had a
    <FONT style="white-space: nowrap">reserves-to-production</FONT>
    ratio of approximately 10&#160;years and the total proved
    reserves had a
    <FONT style="white-space: nowrap">reserves-to-production</FONT>
    ratio of 31 years.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    The light, sweet crude oil produced from its Aneth Field
    Properties is more attractive to refineries than the heavy or
    sour crude oil found in many areas, including the Permian Basin.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>Properties with Significant Low-Risk and Low-Cost Development
    Opportunities.</I>&#160;As of December&#160;31, 2009,
    approximately 42.1&#160;MMBoe, or 65% of Resolute&#146;s
    estimated net proved reserves, were classified as proved
    developed non-producing or proved undeveloped. An estimated
    40.0&#160;MMBoe, or 95% of those reserves, are attributable to
    recoveries associated with expansions, extensions and processing
    of the tertiary recovery
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    floods that are currently in operation on Resolute&#146;s Aneth
    Field Properties. Resolute&#146;s current development plan for
    its Aneth Field Properties indicates that in six years the daily
    production rate, on a Boe basis, should be double the average
    production rate achieved during the twelve months ended
    December&#160;31, 2009. After that, Resolute expects the
    production rate to remain relatively stable for approximately
    four years and then begin a natural decline. Resolute believes
    these development projects, particularly its planned
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    flood projects, are relatively low risk compared to other
    conventional drilling-focused exploration and production
    activities, in large part because of the successful results of
    the McElmo Creek Unit
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    flood program that has been in operation since 1985 and because
    of the observed response from the
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    flood expansion Resolute has undertaken in the Aneth Unit.
    Following the initiation of the
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    flood project in the McElmo Creek Unit in 1985, oil production
    from the unit increased by approximately 30% over a thirteen
    year period (approximately 22% as a result of the
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    flood project and approximately 8% as a result of 24 newly
    drilled wells). Production then returned to a state of natural
    decline in 1998. Because of similar geological characteristics
    across Resolute&#146;s Aneth Field Properties, Resolute expects
    to achieve analogous incremental reserves in Aneth Unit as were
    seen in McElmo Creek Unit,, but at accelerated production rates,
    due to the higher rate of
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>injection
    in Resolute&#146;s Aneth Unit project.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>Operating Control Over the Resolute
    Properties.</I>&#160;Resolute is the operator of the Aneth,
    McElmo Creek and Ratherford Units. As a result of having a
    critical mass of employees and projects and operating control
    across the three federal units encompassing approximately
    43,000&#160;acres, it has the ability to utilize its employees
    on a prioritized basis. Because Resolute is the operator of all
    of its Aneth Field Properties, it believes it can attract
    contract services, materials and equipment from a broader market
    and negotiate more favorable terms than would otherwise be
    available. Resolute also has the ability to control the timing,
    scope and costs of development projects undertaken in its Aneth
    Field Properties. Resolute also operates Hilight Field and most
    of its other Wyoming Properties.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>Experienced Management Team with Operational, Transactional
    and Financial Experience in the Energy Industry.</I>&#160;With
    an average industry work experience of more than 25&#160;years,
    the senior management team of Resolute has considerable
    experience in acquiring, exploring, exploiting, developing and
    operating oil and gas properties, particularly in operationally
    intensive oil and gas fields. Five members of its senior
    management who formed Holdings in 2004 previously worked
    together as part of the senior management team of HS Resources,
    Inc., an independent oil and gas company that was listed on the
    New York Stock Exchange and primarily operated in the
    Denver-Julesburg Basin in northeast Colorado. HS Resources
    conducted resource development programs, managed and enhanced a
    gas gathering and processing system and built a hydrocarbon
    physical marketing and transportation business. Its development
    activities included drilling new wells, deepening wells and
    recompleting and refracturing existing wells to add reserves and
    enhance production. HS Resources also had an active program of
    acquiring producing properties and properties with development
    potential. HS Resources was acquired by Kerr-McGee Corporation
    in 2001.
</DIV>
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    <BR>
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Aneth
    Field</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Aneth Field, located in San&#160;Juan County, Utah, was
    discovered by Texaco in 1956 and was subsequently developed by
    several large integrated oil companies. It is the largest oil
    field in the Paradox Basin. Resolute&#146;s Aneth Field
    Properties cover approximately 43,000&#160;acres and during the
    twelve months ended December&#160;31, 2009, gross production
    from the Aneth Field Properties averaged 9,188&#160;barrels of
    oil per day.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The primary producing horizon in Aneth Field is the
    Pennsylvanian-age&#160;Desert Creek formation, which is a
    carbonate algal-mound formation with average depth of
    approximately 5,525&#160;feet. While there is some reservoir
    heterogeneity in Aneth Field, development of the reserves
    generally has been accomplished with well-tested methodologies,
    including drilling and infilling vertical wells, horizontal
    drilling, waterflood activities and
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    flooding. For administrative, organizational and operational
    reasons, in 1961 Aneth Field was divided into four separate
    federal production units to facilitate efficient development of
    the field and recovery of reserves. The three units that
    Resolute operates, the Aneth Unit, the McElmo Creek Unit and the
    Ratherford Unit, which constitute Resolute&#146;s Aneth Field
    Properties, possess substantially similar geologic and operating
    characteristics.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Predecessor Resolute acquired its Aneth Field Properties
    primarily through two significant acquisitions. In November
    2004, it acquired a 53% operating working interest in the Aneth
    Unit, a 15% non-operating working interest in the McElmo Creek
    Unit and a 3% non-operating working interest in the Ratherford
    Unit (&#147;Chevron Properties&#148;). In the April 2006
    acquisition, it acquired an additional 7.5% non-operating
    working interest in the Aneth Unit, a 60% operating working
    interest in the McElmo Creek Unit and a 56% operating working
    interest in the Ratherford Unit ( &#147;ExxonMobil
    Properties&#148;).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Predecessor Resolute acquired its Aneth Field Properties in
    connection with its strategic alliance with Navajo Nation Oil
    and Gas Company, Inc., (&#148; NNOG&#148;), an oil and gas
    company owned by the Navajo Nation. NNOG maintains a minority
    interest in each of the Chevron Properties and the ExxonMobil
    Properties and possesses options to purchase additional minority
    interests in those properties from Resolute under certain
    circumstances. Please read &#147;&#151;&#160;<I>Relationship
    with the Navajo Nation</I>.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>Aneth Unit.</I>&#160;During the twelve months ended
    December&#160;31, 2009, Aneth Unit production averaged
    approximately 3,115&#160;barrels of oil per day (gross) from
    162&#160;gross (100 net) active producing wells. Resolute
    operated 150&#160;gross (93 net) active injection wells in the
    Aneth Unit. Since the discovery of oil at the site in 1956, the
    Aneth Unit has produced a total of approximately 153&#160;MMBbl
    of oil. The Aneth Unit was originally developed with vertical
    wells drilled on
    <FONT style="white-space: nowrap">80-acre</FONT>
    spacing and was infill drilled to
    <FONT style="white-space: nowrap">40-acre</FONT>
    spacing in the 1970s. Since unitization in 1961, the unit has
    been under waterflood. Between 1994 and 1998, an affiliate of
    Texaco operated the Aneth Unit and drilled 43 multi-lateral
    horizontal wells (23 producers and 20 injectors). Most of these
    horizontal wells were utilized to create a horizontal waterflood
    pattern on the eastern side of the unit. In 1998, the injectors
    in two square miles of the Aneth Unit were converted to a
    water-alternating-gas
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    pilot project to assess the possibility of a field-wide
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    injection flood program. The multi-lateral horizontal wells and
    the pilot
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    program were successful in increasing production rate and adding
    reserves, however, the pilot
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    program was never expanded into a unit-wide program. Predecessor
    Resolute became operator of the Aneth Unit on December&#160;1,
    2004, and has been successful in reducing the decline rate such
    that the average daily gross oil production from the Aneth Unit
    as a whole has remained relatively constant since the time of
    acquisition.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>McElmo Creek Unit.</I>&#160;During the twelve months ended
    December&#160;31, 2009, McElmo Creek Unit production averaged
    approximately 3,649&#160;barrels of oil per day (gross) from
    140&#160;gross (105 net) active producing wells. Resolute
    operated 107&#160;gross (80 net) active injection wells on the
    McElmo Creek Unit. Since its discovery, the McElmo Creek Unit
    has produced a total of approximately 163&#160;MMBbl of oil. The
    McElmo Creek Unit has been under waterflood since the early
    1960s and prior operators commenced infill drilling to
    <FONT style="white-space: nowrap">40-acre</FONT>
    spacing during the 1970s. A stabilized oil production decline
    trend was established for the waterflood over approximately
    seven years prior to the initiation of a
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    flood program in 1985. Following the initiation of the
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    flood project in the McElmo Creek Unit in 1985, oil production
    from the unit increased by approximately 30% over a 13&#160;year
    period (approximately 22% as a result of the
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    flood project and approximately 8% as a result of 24 newly
    drilled wells). Production then returned to a state of natural
    decline in 1998. Prior to Predecessor Resolute&#146;s
    acquisition of the ExxonMobil Properties, the McElmo Creek Unit
    was operated by ExxonMobil. Predecessor Resolute became operator
    of the McElmo Creek Unit on June&#160;1, 2006, and was
    successful in increasing the average daily
</DIV>
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    <BR>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    gross production rate. This was due to a number of factors,
    including its efforts to return wells to operation, improve
    artificial lift capacity at producing wells, improve compressor
    run times, increase production from new horizontal drilling,
    reduce freeze problems in the winter months and increase
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    injection.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>Ratherford Unit.</I>&#160;During the twelve months ended
    December&#160;31, 2009, Ratherford Unit production averaged
    approximately 2,424&#160;barrels of oil per day (gross) from
    97&#160;gross (57 net) active producing wells. Resolute operated
    77&#160;gross (45 net) active injection wells on the Ratherford
    Unit. Since discovery, the Ratherford Unit has produced a total
    of approximately 102&#160;MMBbl of oil. The core of the
    Ratherford Unit has been developed with horizontal wells, while
    the edges of the unit have been developed with vertical wells.
    Predecessor Resolute became operator of the Ratherford Unit on
    June&#160;1, 2006, and was successful in increasing the average
    daily gross production rate. This increase in production
    resulted from a number of factors, including its efforts to
    improve artificial lift capacity at producing wells, increase
    production from new horizontal drillings, return wells to
    operation and increase water injection resulting from injection
    well cleanouts.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Wyoming
    Properties</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Resolute&#146;s Wyoming Properties consist of three units in
    Hilight Field, minor
    <FONT style="white-space: nowrap">non-unitized</FONT>
    Muddy formation production in the Hilight area,
    <FONT style="white-space: nowrap">non-unitized</FONT>
    CBM production in the Hilight area and twelve other small fields
    in Wyoming. Resolute also owns interests in two small fields in
    Oklahoma. All but one of the Wyoming Properties are operated by
    Resolute.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Hilight Field consists of the Jayson Unit, the Grady Unit, the
    Central Hilight Unit, and the South Hilight Unit. Resolute has
    an 82.7% working interest in Jayson, an 82.5% working interest
    in the Grady Unit and a 98.5% working interest in Central
    Hilight Unit. The Jayson, Grady and Central Hilight Units cover
    an area of almost 50,000&#160;acres, and are operated by
    Resolute. Hilight Field was discovered by Inexco Oil Company in
    1969, was developed on
    <FONT style="white-space: nowrap">160-acre</FONT>
    spacing, unitized in
    <FONT style="white-space: nowrap">1971-1972</FONT>
    and underwent waterflood between 1972 and the mid-1990s. As of
    December&#160;31, 2009, there were 144 active producing wells,
    and cumulative production through December&#160;31, 2009, from
    Resolute&#146;s three operated units was 68.3&#160;MMBbl of oil
    and 150.0&#160;Bcf of gas. Average daily gross production for
    the twelve months ending December&#160;31, 2009, was
    215&#160;Bbl of oil per day and 10,258&#160;Mcf of gas per day.
    Net proved reserves assigned to these properties as of
    December&#160;31, 2009, were 4.4&#160;MMBoe. Muddy formation
    sandstones form the main reservoir in the field. Average depth
    to the Muddy formation is approximately 9,100 ft. Minor
    production also comes from the Upper Cretaceous Niobrara, Upper
    Cretaceous Turner, and Pennsylvanian Minnelusa reservoirs.
    Recent activity includes 21 infill wells, including three
    horizontal laterals drilled by the prior operator in 2006 and
    2007, and five Muddy re-stimulation, or refrac projects. Future
    activity may include the continuation of the infill and refrac
    programs, new drilling to extend the field boundaries, and
    exploration for unconventional oil from the overlying Niobrara
    and Mowry shales.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Resolute&#146;s CBM production in the Hilight area comes from
    263 producing wells. Average daily gross production for the
    twelve months ending December&#160;31, 2009, was 2,900&#160;Mcf
    per day. Although it varies from well to well, Resolute has an
    average of approximately 91% working interest in its Hilight
    area CBM properties. No net proved reserves were attributable to
    these wells as of December&#160;31, 2009, The Wyodak-Anderson
    coals of the Paleocene Fort&#160;Union formation are the
    reservoir for this shallow gas reserve. Average depth to the
    reservoir is less than 500&#160;feet. Recent activity by the
    prior operator includes seventeen wells that were drilled to
    extend the central portion of the field to the east. Since
    Predecessor Resolute took over operations, the CBM field has
    undergone downsizing and reconfiguration in an attempt to find
    the most economic balance between lease operating expenses and
    production.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Resolute also has working interests in twelve small fields in
    Wyoming and two in Oklahoma. Currently, Resolute operates wells
    in Campbell, Carbon, Natrona and Crook counties, Wyoming, and
    Dewey and Woodward counties, Oklahoma. During the twelve months
    ending December&#160;31, 2009, these properties produced an
    average of approximately 299&#160;barrels of oil per day from
    52&#160;gross (34 net) active producing wells. In addition,
    there are 5&#160;gross (3 net) active water injection wells. Net
    proved reserves assigned to these properties as of
    December&#160;31, 2009, were 311&#160;MBoe.
</DIV>
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Exploration
    Properties</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>Big Horn Basin Properties.</I>&#160;Predecessor Resolute
    developed a grassroots exploration concept in early 2005 to
    target an unconventional oil resource in the Mowry shale of the
    Big Horn Basin in northwest Wyoming. Since that time, the Mowry
    shale has become an emerging oil play over a larger area in
    northern Wyoming and southern Montana. Predecessor Resolute
    began leasing in June 2005 and it has acquired 82,133&#160;gross
    (70,811 net) acres in the play with more than 99% of its leased
    properties having at least five years remaining on the lease
    term. Predecessor Resolute entered into an area of mutual
    interest agreement effective November&#160;1, 2006, with
    Fidelity Exploration and Production Company
    (&#147;Fidelity&#148;) covering acreage in the southeast part of
    the basin where 22,644&#160;gross acres were jointly acquired on
    a <FONT style="white-space: nowrap">50-50</FONT>
    basis. That agreement has expired, but the acreage remains
    subject to a joint operating agreement for its remaining term.
    Resolute has not yet commenced development of this asset.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>Black Warrior Basin Properties.</I>&#160;In mid-2005,
    Predecessor Resolute initiated an exploration program in the
    Black Warrior Basin of northwest Alabama that targeted
    unconventional gas resources in the Devonian Chattanooga shale,
    the Mississippian Floyd shale, and the Pennsylvanian Pottsville
    coals. Approximately 39,500&#160;net acres are currently leased.
    Predecessor Resolute drilled a vertical well in April 2007 that
    penetrated all three objectives and was cased without a
    completion attempt. It later entered into a participation
    agreement with Huber Energy LLC (&#147;Huber&#148;), effective
    June&#160;26, 2008, under which Huber can earn an interest in
    the acreage by incurring all costs on specific development
    activities. Huber re-entered Resolute&#146;s vertical well and
    completed the Chattanooga shale and recovered gas, but at
    uneconomic rates. The well is currently shut-in. Huber acquired
    proprietary
    <FONT style="white-space: nowrap">2-D</FONT> seismic
    data in July 2009 for risk reduction on potential future
    operational activities targeting the Chattanooga and Floyd
    shales. Huber is also undertaking permitting activities for a
    potential CBM pilot program on the leasehold. The Pottsville
    formation has been producing CBM from adjacent areas since the
    early 1980s.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Recently
    Announced Activities</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>Williston Basin Properties.</I>&#160;In March 2010, Resolute
    acquired a 45% working interest in approximately
    61,000&#160;gross (42,000&#160;net leasehold) acres in Williams
    County, North Dakota. This undeveloped leasehold is located
    within the Bakken shale trend of the Williston Basin. Although
    the Middle Bakken formation will be the primary objective,
    secondary objectives include the Three Forks, Madison and Red
    River formations. For 2010, Resolute has allocated approximately
    $25&#160;million for acreage acquisition, drilling and
    completion activities in this area, and expects to participate
    in drilling at least three horizontal wells during 2010.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Oil Recovery
    Overview</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    When an oil field is first produced, the oil typically is
    recovered as a result of natural pressure within the producing
    formation. The only natural force present to move the crude oil
    through the reservoir rock to the wellbore is the pressure
    differential between the higher pressure in the rock formation
    and the lower pressure in the wellbore. Various types of pumps
    are often used to reduce pressure in the wellbore, increasing
    the pressure differential. At the same time, there are many
    factors that act to impede the flow of crude oil, depending on
    the nature of the formation and fluid properties, such as
    pressure, permeability, viscosity and water saturation. This
    stage of production, referred to as &#147;primary
    recovery,&#148; recovers only a small fraction of the crude oil
    originally in place in a producing formation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Many, but not all, oil fields are amenable to assistance from a
    waterflood, a form of &#147;secondary recovery,&#148; which is
    used to maintain reservoir pressure and to help sweep oil to the
    wellbore. In a waterflood, some of the wells are used to inject
    water into the reservoir while other wells are used to produce
    the fluid. As the waterflood matures, the fluid produced
    contains increasing amounts of water and decreasing amounts of
    oil. Surface equipment is used to separate the oil from the
    water, with the oil going to pipelines or holding tanks for sale
    and the water being recycled to the injection facilities.
    Primary recovery followed by secondary recovery usually produces
    between 15% and 40% of the crude oil originally in place in a
    producing formation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    A third stage of oil recovery is called &#147;tertiary
    recovery&#148; or &#147;enhanced oil recovery&#148;,
    (&#147;EOR&#148;). In addition to maintaining reservoir
    pressure, this type of recovery seeks to alter the properties of
    the oil in ways that facilitate
</DIV>
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    <BR>
A-12
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    production. The three major types of tertiary recovery are
    chemical flooding, thermal recovery (such as a steamflood) and
    miscible displacement involving
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    or hydrocarbon injection.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    In a
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    flood,
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    is liquefied under high pressure and injected into the
    reservoir. The
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    then swells the oil in a way that increases the mobilization of
    bypassed oil while also reducing the oil&#146;s viscosity. The
    lighter components of the oil vaporize into the
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    while the
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    also condenses into the oil. In this manner, the two fluids
    become miscible, mixing to form a homogeneous fluid that is
    mobile and has lower viscosity and lower interfacial tension,
    thus facilitating the migration of oil and gas to the producer
    wells.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Miscible
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    flooding was first commercially successful with Chevron&#146;s
    1972 miscible
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    flood in the SACROC field in Scurry County, Texas. According to
    the Oil&#160;&#038; Gas Journal&#146;s 2008 Worldwide EOR
    Survey, there were 105 miscible
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    projects in the United States (with an additional sixteen
    miscible
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    projects in the planning stages) that produced an estimated
    249,700&#160;barrels of oil per day during 2008. In addition to
    Resolute&#146;s projects in its Aneth Field Properties,
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    projects are located in Texas, Oklahoma, New Mexico, Colorado,
    Wyoming, Michigan and Mississippi. Four companies, Occidental
    Petroleum, Kinder Morgan, Amerada Hess and Chevron, are
    responsible for the majority of the estimated daily production
    from these
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    projects.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Planned Operating
    and Development Activities</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Resolute has prepared a development program for its Aneth Field
    Properties that includes
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    flooding, field infrastructure enhancements, recompletions,
    workovers of producing and injection wells, infill drilling and
    waterflood enhancement. The application of each of these
    activities and technologies has been successfully established in
    various locations within the Aneth Field Properties, and the
    development plans have been designed to enhance or extend
    projects that were tested or initiated by the previous operators
    but were never fully completed due to such factors as lack of
    fieldwide operatorship and lower commodity prices. Resolute
    believes that its close working relationship with NNOG and the
    Navajo Nation will enhance its ability to advance development of
    its Aneth Field Properties.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>CO</I><SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    <I>Floods.</I>&#160;A major component of planned activity over
    the next several years involves extensions and expansions of the
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    floods initiated by the major oil companies, first in the McElmo
    Creek Unit in 1985 and then in the Aneth Unit in 1998. The
    McElmo Creek Unit
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    flood is virtually unit-wide, whereas the Aneth Unit
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    flood was limited to a pilot project covering approximately two
    square miles in the northeast corner of that unit.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The Aneth and McElmo Creek Units exhibit similar geologic
    characteristics. As a result, Resolute expects its Aneth Unit
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    flood to achieve results analogous to those achieved in the
    McElmo Creek
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    flood program, adjusted for operating and timing differences.
    Therefore, Resolute has modeled its estimate of increased
    incremental proved developed non-producing and proved
    undeveloped reserves based upon the results achieved in the
    McElmo Creek Unit
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    flood. It also has modeled its projection of increased rate of
    oil production based upon the oil production response of the
    McElmo Creek Unit as a function of the injection of
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>.
    The oil production rate response is related to the rate at which
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    is injected. The McElmo Creek
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    project was initiated in 1985 with a relatively low rate of
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    injection, and therefore experienced an oil production rate
    response that was lower than what might have been achieved had
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    been injected at a higher rate. Resolute estimates that the rate
    of oil production will increase faster at the Aneth Unit than
    the production response experienced at the McElmo Creek Unit
    because of Resolute&#146;s plan to inject
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    volumes at a greater rate at the Aneth Unit than at the McElmo
    Creek Unit.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>Aneth Unit.</I>&#160;Construction activities and costs
    associated with phases 1, 2 and 3 of the Aneth Unit
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    expansion project, covering the western portion of the Aneth
    Unit, are now substantially complete. Initial
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    injection began in July 2007 and oil response has been observed
    in all three active phases. Phase 4 construction is scheduled to
    begin during the fourth quarter of 2010 and injection of
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    is expected to commence in the second quarter of 2011 with
    significant production response estimated in 2012.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>McElmo Creek Unit.</I>&#160;Resolute plans to expand the
    existing
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    flood project into a segment of the Desert Creek zone that has
    not yet been
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    flooded. It performed well under waterflood and was abandoned by
    a prior operator after it reached a prior economic limit of
    water cut and before the existing
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    flood was implemented.
</DIV>
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    <BR>
A-13
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    This segment is expected to perform well under
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    flood. Additional waterflood reserves will also be recovered as
    the waterflood will be effectively restarted in conjunction with
    the start of the
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    flood.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>Ratherford Unit.</I>&#160;The geology and, except for the
    prevalence of horizontal wells, the overall operations of the
    Ratherford Unit are fundamentally the same as the other two
    units, including an extensive waterflood of the Desert Creek
    reservoir. Resolute is evaluating future plans to include a
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    flood of this unit.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The following table sets forth, as of December&#160;31, 2009,
    Resolute&#146;s estimate of the future capital expenditures, net
    to its interest, for construction, well work and other costs and
    for purchases of
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    required to implement its
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    flood projects in two of the units of its Aneth Field Properties
    through 2038. The following table also sets forth the estimated
    net proved developed non-producing and proved undeveloped
    reserves included in Resolute&#146;s reserve report as of
    December&#160;31, 2009, which Resolute anticipates will be
    produced as a result of these projects. Resolute and Predecessor
    Resolute incurred $21.9&#160;million of capital expenditures
    related to the Aneth Field Properties during 2009, and Resolute
    expects to incur an additional $377.4&#160;million of capital
    expenditures over the next 28&#160;years (including purchases of
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>),
    in connection with bringing into production those incremental
    proved developed non-producing and proved undeveloped reserves
    attributable to its
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    flood project. Resolute has entered into two
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    purchase contracts for a substantial portion of the
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    it expects to use in connection with its
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    flood projects. In order to further these
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    flood projects, it expects to incur approximately
    $162&#160;million of these future capital expenditures from 2010
    through 2012.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
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    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=03 type=hang1 -->
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    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=04 type=hang1 -->
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    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=06 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>    <!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=06 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Estimated<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Estimated<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Estimated<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Future<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Estimated<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Future Total<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Estimated<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Future<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Capital<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Future
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2<BR>
    </SUB></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Capital<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Reserves<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Development<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Expenditures</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Purchases</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Expenditures</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>(MMBoe)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Cost ($/Boe)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="18" align="center" valign="bottom">
    <B>(in millions, except as otherwise indicated)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Aneth Unit&#160;&#151; Phases 1, 2 and 3
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    8.6
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    58.6
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    67.2
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10.6
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    6.34
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Aneth Unit&#160;&#151; Phase 4 and Plant
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    84.3
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    108.1
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    192.4
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16.3
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;11.80
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    McElmo Creek Unit&#160;&#150; DC IIC and Plant
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    50.8
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    67.0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    117.8
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13.1
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8.99
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 13pt">
    Total
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;143.7
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;233.7
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;377.4
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    40.0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    9.44
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    As Resolute advances its
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    projects, the injected
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    will displace an increasing portion of the water currently being
    injected in the waterflood operation. Resolute will need to
    safely dispose of that water, and, to that end, has drilled a
    water disposal well with four horizontal laterals. Engineering
    studies have indicated that this initial well should be able to
    handle most of the incremental water production. To protect
    against the possibility that the first water disposal well might
    become incapable of handling all volumes of water to be disposed
    of, Resolute is presently in the process of securing permits to
    drill a second water disposal well to handle any excess water
    disposal needs. This well could be ready for water disposal by
    the second quarter of 2011.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The success of Resolute&#146;s
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    projects also depends on acquiring adequate amounts of
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>.
    Resolute has entered into two
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    purchase contracts that provide a significant portion of the
    anticipated
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    required through 2016 to pursue
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    projects and to continue its existing
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    floods. Resolute estimates that, as of December&#160;31, 2009
    and through 2016, it will need gross aggregate volumes of
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    of approximately 177.7&#160;Bcf, or approximately 115.6&#160;Bcf
    net to its working interest. As of December&#160;31, 2009, it
    had gross aggregate volumes of approximately 108.7&#160;Bcf
    committed to it under the two contracts noted above.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    One of these contracts is with ExxonMobil Gas&#160;&#038; Power
    Marketing Company (&#147;EMGP&#148;). The price per Mcf of
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    under this contract is 1.4% of the price of West Texas
    Intermediate crude oil. The volume Resolute is allowed to take
    and that EMGP is required to deliver is 20,000&#160;Mcf per day,
    or approximately 3.6&#160;Bcf over the six months remaining on
    the contract from January&#160;1, 2010. Resolute is obligated to
    take or if not taken, pay for 80% of this volume on a monthly
    basis, with limited
    <FONT style="white-space: nowrap">make-up</FONT>
    rights for volumes not taken. Resolute also has the right to
    resell any
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    it is obligated to take under this contract but that it is not
    able to use. Resolute has the right to take delivery into either
    the McElmo Creek Pipeline (which would be for its own use) or
    into Kinder Morgan&#146;s Cortez Pipeline (which would occur if
    it were reselling the
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>).
    The contract term runs until June&#160;30, 2010, and it will not
    be renewed. As of December&#160;31, 2009, Resolute had made
    payments of $0.3&#160;million under this contract for
    0.4&#160;MMcf of
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    for which it had not yet taken delivery.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <BR>
A-14
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The second contract for the purchase of
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    is with Kinder Morgan
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    Company, L.P (&#147;Kinder Morgan&#148;). This gas is also
    delivered from the McElmo Dome field. The price per Mcf of
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    under this contract is 1.75% of the price of West Texas
    Intermediate crude oil, and the contract runs through
    December&#160;31, 2016. This contract has a variable schedule of
    committed contract quantities intended to make available the
    expected requirements of Phases 1, 2, 3 and 4 of Resolute&#146;s
    Aneth Unit
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    project as well as the requirements of its expansion project in
    the McElmo Creek Unit, less the volumes expected to be provided
    under its EMGP contract. The Kinder Morgan contract maximum
    daily quantities range from a high of approximately
    41,000&#160;Mcf per day in 2010, declining to approximately
    6,000&#160;Mcf per day during 2016, the last year of the
    contract. The aggregate total contract quantity over the term of
    the contract for these projects is approximately 63.6&#160;Bcf.
    Resolute has the option to increase the total contract volume by
    approximately 41.5&#160;Bcf between 2011 and 2016. Following the
    termination of the EMGP contract in June 2010, all of
    Resolute&#146;s supply of
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    is expected to be under the Kinder Morgan contract.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Resolute is required to take, or pay for if not taken, 75% of
    the total of the maximum daily quantities for each month during
    the term of the Kinder Morgan contract. There are
    <FONT style="white-space: nowrap">make-up</FONT>
    provisions allowing any
    <FONT style="white-space: nowrap">take-or-pay</FONT>
    payments it makes to be applied against future purchases for
    specified periods of time. Resolute has a one time right to
    reduce committed volumes under the contract by an amount between
    10.0 and 25.3&#160;Bcf for 25% of the contract price at the time
    the volumes are released. It does not have the right to resell
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    required to be purchased under the Kinder Morgan contract. As of
    December&#160;31, 2009, Resolute had made payments of
    $1.4&#160;million under this contract for 1.3&#160;MMcf of
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    for which it had not yet taken delivery.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    that Resolute purchases for its use will be delivered to it
    through the McElmo Creek Pipeline. This pipeline is
    approximately 25&#160;miles in length and runs directly from the
    McElmo Dome Field to Resolute&#146;s McElmo Creek Unit.
    Pipelines within the Aneth Field Properties are used to
    distribute the
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    to the Aneth Unit. Resolute owns a 75% interest in, and is the
    operator of, the McElmo Creek Pipeline. Resolute recently added
    a pump to the pipeline to increase capacity to 70,000&#160;Mcf
    per day. Additional pumps are planned to further increase
    capacity to more than 130,000&#160;Mcf per day.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>Wyoming Properties.</I>&#160;Resolute has prepared a
    multi-year development plan for the Wyoming Properties. At
    Hilight Field, the previous operator was successful in adding
    new reserves by stimulating the Muddy formation. Resolute plans
    to continue this program with 38 refracs scheduled to be
    completed between 2010 and 2012. The repair and maintenance
    program will continue and certain water discharge facilities are
    scheduled to be reconfigured in 2010. At the Hilight area CBM
    property, any new operational activities will be planned after
    the results of the field reconfiguration, which was implemented
    on a trial basis beginning in April 2009, are fully analyzed. At
    the other fourteen properties acquired in June 2008, two proved
    undeveloped reserve locations are scheduled to be drilled in
    2011, and the repair and maintenance program will continue.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Other Planned
    Activities</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>Aneth Field&#160;&#151; Gas Processing.</I>&#160;Currently
    there are two types of gas production in Aneth Field, saleable
    gas and contaminated gas. The saleable gas stream has low levels
    of
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>and
    is sold. The contaminated gas stream has high levels of
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    which prevents it from being sold. This contaminated gas stream
    currently is compressed and re-injected into the reservoir. As
    Resolute continues its
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    injection and expansion plans, the volume of contaminated gas
    will significantly increase. This contaminated stream is rich in
    NGL, which represents a valuable product. Resolute plans to
    install new facilities and gas plant equipment to process and
    treat this contaminated stream. This project will recover
    condensate and also strip the majority of the
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    from the contaminated stream. The condensate will be sold and
    the
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    will be compressed and re-injected. The residue gas stream will
    be marketed through third party facilities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>Black Warrior Basin Properties.</I>&#160;Activities on
    Resolute&#146;s Black Warrior Basin exploration acreage in
    Alabama are expected to occur in 2010 and 2011. Under a
    participation agreement with Huber, Huber has the option to
    perform specified activities which would earn it an interest in
    Resolute&#146;s Black Warrior acreage. Huber may drill,
    complete, and test a five-well CBM pilot in 2010 to earn into
    the CBM leasehold interests. Permitting for such a pilot is
    ongoing. In addition, Huber has the option to further develop
    the deeper Floyd
    <FONT style="white-space: nowrap">and/or</FONT>
    Chattanooga shale-gas plays to earn additional interest in the
    acreage. Potential earning activities include completing the
    Floyd formation from Resolute&#146;s existing vertical well, or
    drilling, completing, and testing the Chattanooga formation in a
</DIV>
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    <BR>
A-15
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    horizontal lateral from Resolute&#146;s existing vertical well,
    or drilling, completing, and testing the Chattanooga formation
    from a new well.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>Big Horn Basin Properties.</I>&#160;Resolute has
    82,133&#160;gross (70,811 net) acres in the Big Horn Basin. In
    2006, Predecessor Resolute entered into an area of mutual
    interest agreement with Fidelity covering certain acreage in the
    southeast portion of the basin, under which approximately
    22,644&#160;gross acres were jointly acquired on a
    <FONT style="white-space: nowrap">50-50</FONT> basis.
    That agreement has expired, but the acreage remains subject to a
    joint operating agreement for its remaining term. In addition,
    both Resolute and Fidelity independently control additional
    leaseholds in the immediate area. The emerging Mowry shale oil
    resource play is the primary reservoir target and the Frontier
    and Phosphoria are secondary reservoir targets. A well to test
    the Mowry is tentatively planned for 2011.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>Williston Basin Properties.</I>&#160;In March 2010, Resolute
    acquired a 45% working interest in approximately
    61,000&#160;gross (42,000 net) leasehold acres in Williams
    County, North Dakota. This undeveloped leasehold is located
    within the Bakken shale trend of the Williston Basin. Although
    the Middle Bakken formation will be the primary objective,
    secondary objectives include the Three Forks, Madison and Red
    River formations. For 2010, Resolute has allocated approximately
    $25&#160;million for acreage acquisition, drilling and
    completion activities in this area and expects to participate in
    drilling at least three horizontal wells.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Estimated Net
    Proved Reserves</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Reserve estimates as of December&#160;31, 2009, were prepared by
    Resolute and audited by NSAI, Resolute&#146;s independent
    petroleum engineers. Please read &#147;<I>Risk
    Factors&#160;&#151; Risks Related to Resolute&#146;s Business,
    Operations and Industry</I>&#148; and &#147;<I>Management&#146;s
    Discussion and Analysis of Financial Condition and Results of
    Operations of Resolute</I>&#148; in evaluating the material
    presented below.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Resolute&#146;s reserve report was prepared under the direct
    supervision of Resolute&#146;s Reservoir Engineering Manager,
    who is a qualified reserve estimator and auditor. The report was
    based upon a review of property interests being appraised,
    production from such properties, current costs of operation and
    development, current prices for production, agreements relating
    to current and future operations and sale of production,
    geoscience and engineering data, and other information. The
    reserve estimates were reviewed internally by senior management.
    An audit of the reserve estimates was performed by NSAI.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The professional qualifications of Resolute&#146;s Reservoir
    Engineering Manager meet or exceed the qualifications of reserve
    estimators and auditors set forth in the &#147;Standards
    Pertaining to the Estimating and Auditing of Oil and Gas
    Reserves Information&#148; promulgated by the Society of
    Petroleum Engineers. His qualifications include: Bachelor of
    Science degree in Petroleum Engineering from the Colorado School
    of Mines, 1982; registered professional engineer with the State
    of Colorado since 1987; member of Society of Petroleum Engineers
    since 1980; more than 27&#160;years of practical petroleum
    engineering experience; more than 27&#160;years of practical
    experience in estimating and evaluating reserves information
    with at least five of these years being in charge of estimating
    and evaluating reserves.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The reserves estimates shown herein have been independently
    audited by NSAI, a worldwide leader in petroleum property
    analysis for industry, financial organizations and government
    agencies. NSAI was founded in 1961 and is registered to perform
    consulting petroleum engineering services by the Texas Board of
    Professional Engineers Registration. Within NSAI, the technical
    person primarily responsible for the NSAI audit is David Miller.
    Mr.&#160;Miller has been practicing consulting petroleum
    engineering at NSAI since 1997. He is a Registered Professional
    Engineer in the State of Texas and has more than 28&#160;years
    of practical experience in petroleum engineering, with more than
    12&#160;years experience in the estimation and evaluation of
    reserves. He graduated from the University of Kentucky in 1981
    with a Bachelor of Science degree in Civil Engineering and from
    Southern Methodist University in 1994 with a Master of Business
    Administration degree. Mr.&#160;Miller meets or exceeds the
    education, training, and experience requirements set forth in
    the Standards Pertaining to the Estimating and Auditing of Oil
    and Gas Reserves Information promulgated by the Society of
    Petroleum Engineers; he is proficient in judiciously applying
    industry standard practices to engineering and geoscience
    evaluations as well as applying SEC and other industry reserves
    definitions and guidelines.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    A report of NSAI regarding its audit of the estimates of proved
    reserves at December&#160;31, 2009, has been filed as
    Exhibit&#160;99.1 to this report and is incorporated herein,
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <BR>
A-16
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The following table presents Resolute&#146;s estimated net
    proved oil, gas and NGL reserves and the present value of its
    estimated net proved reserves as of December&#160;31, 2009, all
    according to standards set by the Securities and Exchange
    Commission (&#147;SEC&#148;). The standardized measure shown in
    the table below is not intended to represent the current market
    value of Resolute&#146;s estimated oil and gas reserves.
    Resolute&#146;s estimates of net proved reserves have not been
    filed with or included in reports to any federal authority or
    agency other than the SEC.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="58%">&nbsp;</TD> <!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=02 type=lead -->
    <TD width="11%" align="right">&nbsp;</TD>   <!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=02 type=hang1 -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=03 type=lead -->
    <TD width="11%" align="right">&nbsp;</TD>   <!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=03 type=hang1 -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=04 type=lead -->
    <TD width="11%" align="right">&nbsp;</TD>   <!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 9pt">Utah</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 9pt">Wyoming</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 9pt">Total</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Estimated net proved developed reserves:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Oil (MBbl)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;29,851
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,044
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    30,895
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Gas (MMcf)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    904
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14,620
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15,524
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    NGL (MBbl)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    192
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,264
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,456
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    MBoe
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    30,194
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,745
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    34,938
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Estimated net proved undeveloped reserves:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Oil (MBbl)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18,923
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    42
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18,965
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Gas (MMcf)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    22,705
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    22,705
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    NGL (MBbl)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,747
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,747
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    MBoe
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    29,454
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    42
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    29,496
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Estimated net proved reserves:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Oil (MBbl)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    48,774
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,086
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    49,860
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Gas (MMcf)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    23,609
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;14,620
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    38,229
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    NGL (MBbl)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,939
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,264
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,203
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Total (MBoe)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    59,648
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,786
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;64,434
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Standardized measure ($ in millions)(1)(2)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    361
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Discounted future income taxes
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    119
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <FONT style="white-space: nowrap">PV-10</FONT> ($ in
    millions)(1)(3)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    480
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 5%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="1%"></TD>
    <TD width="1%"></TD>
    <TD width="98%"></TD>
</TR>

<TR>
    <TD valign="top">
    1) </TD>
    <TD></TD>
    <TD valign="bottom">
    In accordance with SEC and Financial Accounting Standards Board
    (&#147;FASB&#148;) requirements, Resolute&#146;s estimated net
    proved reserves and standardized measure at December&#160;31,
    2009, were determined utilizing prices equal to the twelve-month
    unweighted arithmetic average of first day of the month prices,
    resulting in an average NYMEX oil price of $61.18 per Bbl of oil
    and an average Henry Hub spot market gas price of $3.87 per
    MMBtu, such prices deemed to be &#147;current&#148; by the SEC
    and FASB.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    2) </TD>
    <TD></TD>
    <TD valign="bottom">
    Standardized measure is the present value of estimated future
    net revenue to be generated from the production of proved
    reserves, determined in accordance with the rules and
    regulations of the SEC and FASB, less future development,
    production and income tax expenses, and discounted at 10% per
    annum to reflect the timing of future net revenue. Calculation
    of standardized measure does not give effect to derivatives
    transactions. For a description of Resolute&#146;s derivatives
    transactions, please read &#147;<I>Management&#146;s Discussion
    and Analysis of Financial Condition and Results of Operations of
    Resolute&#160;&#151; Quantitative and Qualitative Disclosures
    About Market Risk.&#148;</I></TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    3) </TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="white-space: nowrap">PV-10</FONT> is a
    non-GAAP measure and incorporates all elements of the
    standardized measure, but excludes the effect of income taxes.
    Management believes that pre-tax cash flow amounts are useful
    for evaluative purposes since future income taxes, which are
    affected by a company&#146;s unique tax position and strategies,
    can make after-tax amounts less comparable.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Proved developed reserves are reserves that can be expected to
    be recovered through existing wells with existing equipment and
    operating methods. Proved undeveloped reserves are proved
    reserves that are expected to be recovered from new wells
    drilled within five years to known reservoirs on undrilled
    acreage for which the existence and recoverability of such
    reserves can be estimated with reasonable certainty, or from
    existing wells on which a relatively major expenditure is
    required to establish production.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The data in the above table represent estimates only. Oil and
    gas reserve engineering is inherently a subjective process of
    estimating underground accumulations of oil and gas that cannot
    be measured in an exact way. The accuracy of any reserves
    estimate is a function of the quality of available data and
    engineering and geological
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <BR>
A-17
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    interpretation and judgment. Accordingly, reserves estimates may
    vary, perhaps significantly, from the quantities of oil and gas
    that are ultimately recovered. Please read &#147;<I>Risk
    Factors&#160;&#151; Risks Related to Resolute&#146;s Business,
    Operations and Industry</I>.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Future prices received for production and costs may vary,
    perhaps significantly, from the prices and costs assumed for
    purposes of these estimates. The 10% discount factor used to
    calculate present value, which is required by SEC and FASB
    pronouncements, is not necessarily the most appropriate discount
    rate. The present value, no matter what discount rate is used,
    is materially affected by assumptions as to timing of future
    production, which may prove to be inaccurate.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Producing oil and gas reservoirs generally are characterized by
    declining production rates that vary depending upon reservoir
    characteristics and other factors. Therefore, without reserve
    additions in excess of production through successful
    exploitation and development activities or acquisitions,
    Resolute&#146;s reserves and production will ultimately decline
    over time. Please read &#147;<I>Risk Factors&#160;&#151; Risks
    Related to Resolute&#146;s Business, Operations and
    Industry&#148; </I>and &#147;<I>Note&#160;15&#160;&#151;
    Supplemental Oil and Gas Information (unaudited)</I>&#148; to
    the audited consolidated financial statements of Resolute for a
    discussion of the risks inherent in oil and gas estimates and
    for certain additional information concerning Resolute&#146;s
    estimated proved reserves.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    At December&#160;31, 2009, no proved undeveloped reserves have
    remained undeveloped for more than five years.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Proved reserves reported by Resolute of 64.4&#160;MMBoe at
    December&#160;31, 2009, represent a 31% increase over the
    49.3&#160;MBoe reported by Predecessor Resolute at
    December&#160;31, 2008. Production (including that of
    Predecessor Resolute) during 2009 reduced proved reserves by
    2.7&#160;MMBoe, while revisions of previous estimates increased
    proved reserves by 17.8&#160;MMBoe. Commodity pricing was the
    principal factor leading to the revisions in proved reserves. In
    accordance with the varying SEC requirements in effect at each
    year end, the reserves at December&#160;31, 2009, utilized
    prices of $61.18 per barrel of oil and $3.87 per MMBtu, as
    compared to prices of $44.60 per barrel of oil and $5.24 per
    MMBtu of gas at December&#160;31, 2008.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Costs incurred of $23&#160;million (including that incurred by
    Predecessor Resolute) to develop Resolute&#146;s proved
    undeveloped reserves in 2009 declined from the
    $52.3&#160;million incurred by Predecessor Resolute in 2008,
    primarily due to a lower average cost of
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    purchased and lower activity levels in response to lower
    commodity prices in the first half of 2009.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The following table sets forth Resolute&#146;s net proved
    reserves at December&#160;31, 2009, based on alternative price
    scenarios as identified below in the footnotes to the table. The
    price scenarios illustrate the sensitivity of our estimated
    reserve quantities under various price and cost assumptions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="54%">&nbsp;</TD> <!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>  <!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=02 type=lead -->
    <TD width="11%" align="right">&nbsp;</TD>   <!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>  <!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=03 type=lead -->
    <TD width="10%" align="right">&nbsp;</TD>   <!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>  <!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=04 type=lead -->
    <TD width="11%" align="right">&nbsp;</TD>   <!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <FONT style="font-size: 9pt">SEC Case (1)
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <FONT style="font-size: 9pt">Flat Case (2)
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <FONT style="font-size: 9pt">Strip Case (3)
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Proved oil reserves (MMBbl)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    58.1
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    62.8
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    75.5
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Proved gas reserves (Bcf)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    38.2
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    43.5
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    44.1
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Proved equivalents (MMBoe)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    64.4
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    70.1
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    82.8
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <FONT style="white-space: nowrap">PV-10</FONT>
    (millions)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $480
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $885
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $1,067
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="1%"></TD>
    <TD width="4%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    1)&#160;&#160;
</TD>
    <TD align="left">
    Represents reserves utilizing the SEC guidelines which were in
    effect at December&#160;31, 2009. The SEC Case utilized prices
    equal to the twelve-month unweighted arithmetic average of first
    day of the month prices, resulting in an average NYMEX oil price
    of $61.18 per Bbl of oil and an average Henry Hub spot market
    gas price of $3.87 per MMBtu of gas.
</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    2)&#160;&#160;
</TD>
    <TD align="left">
    Represents reserves utilizing the SEC guidelines which were in
    effect at December&#160;31, 2008. The Flat Case was based on
    prices in effect at December&#160;31, 2009, which were a NYMEX
    oil price of $79.36 per Bbl of oil and a Henry Hub spot market
    gas price of $5.79 per MMBtu of gas.
</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    3)&#160;&#160;
</TD>
    <TD align="left">
    Represents reserves utilizing future strip prices at
    December&#160;31, 2009. The Strip Case utilized prices which
    included NYMEX front-month oil prices of $82.30, $86.13, $87.99,
    and $89.53 per barrel for each of the years from 2010 through
    2013. Prices were held constant thereafter at $91.30 per barrel
    for 2014 and beyond. Similarly, gas prices used were $5.77,
    $6.31, $6.48, and $6.62 per MMBtu for the four year period, and
    $6.80 per MMBtu for 2014 and thereafter. Capital and operating
    costs were escalated by 3% per year through 2014 and held
    constant thereafter. Aneth field operating costs were allocated
    on a per-well and
    <FONT style="white-space: nowrap">per-barrel</FONT>
    cost model rather than the per-well and per-producing unit cost
    model used in the SEC and Flat cases.
</TD>
</TR>

</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <BR>
A-18
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Production and
    Price History</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Set forth in the table below are Resolute and Predecessor
    Resolute&#146;s operating data for 2009, 2008 and 2007.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="52%">&nbsp;</TD> <!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=02 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>    <!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=02 type=hang1 -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=03 type=gutterleft -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=03 type=gutterright -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=03 type=lead -->
    <TD width="11%" align="right">&nbsp;</TD>   <!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>  <!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=04 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>    <!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=04 type=hang1 -->
    <TD width="5%">&nbsp;</TD>  <!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=05 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>    <!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=05 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Resolute</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Predecessor Resolute</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>For the 267 day<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Year Ended<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>period ended<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>December&#160;31,</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>September&#160;24,</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Year Ended December&#160;31,</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <B>Production Sales Data:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Oil (MBbl)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    543
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,444
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,049
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,127
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Gas and NGL (MMcfe)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    958
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,400
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,645
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,800
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Combined volumes (Mboe)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    703
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,011
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,823
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,760
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Daily combined volumes (Boe per day)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,173
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,530
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,712
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,561
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 9pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <B>Average Realized Prices (excluding derivative
    settlements):</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Oil ($/Bbl)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;69.11
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;50.32
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;94.47
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;69.80
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Gas and NGL ($/Mcfe)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.10
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.73
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7.59
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.45
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 9pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <B>Average Realized Prices (including derivative
    settlements):</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Oil ($/Bbl)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    61.47
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    55.79
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    81.39
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    67.30
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Gas and NGL ($/Mcfe)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.09
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.78
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8.38
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7.20
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 9pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <B>Average Production Costs ($/Boe):</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Lease operating expense
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    23.02
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    16.84
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    20.04
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    16.76
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Production and ad valorem taxes
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8.26
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.42
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10.42
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7.42
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Productive
    Wells</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The following table sets forth information as of
    December&#160;31, 2009, relating to the productive wells in
    which Resolute owns a working interest. Productive wells consist
    of producing wells and wells capable of producing, including
    wells awaiting connection to production facilities. Gross wells
    are the total number of producing wells in which Resolute has a
    working interest, and net wells are the sum of Resolute&#146;s
    fractional working interests owned in gross wells. In addition
    to the wells set forth below, as of December&#160;31, 2009,
    Resolute had interests in and operated 334&#160;gross (218 net)
    active water and
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    injection wells on the Aneth Field Properties, and 5&#160;gross
    (3 net) active water injection wells associated with the Wyoming
    Properties.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="85%">&nbsp;</TD> <!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>  <!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=02 type=lead -->
    <TD width="2%" align="right">&nbsp;</TD>    <!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=02 type=hang1 -->
    <TD width="6%">&nbsp;</TD>  <!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=03 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Producing Wells</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Area</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Gross</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Net</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Aneth Field Properties
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    399
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    262
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Wyoming Properties
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    466
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    420
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Total
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    865
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    682
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Acreage</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    All of Resolute&#146;s leasehold acreage is categorized as
    developed or undeveloped. The following table sets forth
    information as of December&#160;31, 2009, relating to the
    Company&#146;s leasehold acreage:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="64%">&nbsp;</TD> <!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>  <!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=02 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>    <!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>  <!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=03 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>    <!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>  <!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=04 type=lead -->
    <TD width="13%" align="right">&nbsp;</TD>   <!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Developed Acreage (1)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Average Net<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Area</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Gross (2)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Net (3)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Revenue Interest (4)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Aneth Field Unit acreage (UT)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    43,218
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    28,122
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    55.42
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Hilight Field Unit acreage (WY)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    48,710
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    44,577
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    75.98
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Hilight area
    <FONT style="white-space: nowrap">non-unit</FONT>
    acreage (WY)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,613
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,308
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    85.00
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Other
    <FONT style="white-space: nowrap">non-unit</FONT>
    acreage (WY and OK)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,904
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,441
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    61.09
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Total
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    102,445
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    80,448
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <BR>
A-19
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="63%">&nbsp;</TD> <!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>  <!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=02 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>    <!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>  <!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=03 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>    <!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>  <!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=04 type=lead -->
    <TD width="13%" align="right">&nbsp;</TD>   <!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=04 type=hang1 -->
</TR>
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<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Undeveloped Acreage (5)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Average Net<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Area</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Gross (2)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Net (3)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Revenue Interest (4)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Hilight area
    <FONT style="white-space: nowrap">non-unit</FONT>
    acreage (WY)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,017
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,786
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    81.25
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Big Horn Basin acreage (WY)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    82,133
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    70,811
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    86.00
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Black Warrior Basin acreage (AL)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    47,728
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    39,518
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    82.00
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Other
    <FONT style="white-space: nowrap">non-unit</FONT>
    acreage (WY, OK and UT)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,984
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    712
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    81.25
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Total
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    143,862
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    116,827
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Approximately 22,000&#160;net acres of undeveloped acreage
    expires in 2010 and approximately 2,000 and 1,300&#160;net acres
    expire in 2011 and 2012, respectively. The majority of the
    expirations (approximately 19,000&#160;net acres) in 2010
    through 2012 relate to acreage in the Black Warrior Basin in
    Alabama.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 5%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="1%"></TD>
    <TD width="1%"></TD>
    <TD width="98%"></TD>
</TR>

<TR>
    <TD valign="top">
    1) </TD>
    <TD></TD>
    <TD valign="bottom">
    Developed acreage is acreage attributable to wells producing oil
    or gas.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    2) </TD>
    <TD></TD>
    <TD valign="bottom">
    The number of gross acres is the total number of acres in which
    Resolute owns a working interest and/or unitized interest.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    3) </TD>
    <TD></TD>
    <TD valign="bottom">
    Net acres are calculated as the sum of Resolute&#146;s working
    interests in gross acres.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    4) </TD>
    <TD></TD>
    <TD valign="bottom">
    The net revenue interest is the percentage of total production
    to which Resolute is entitled after reductions for burdens on
    production such as royalties and overriding royalties.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    5) </TD>
    <TD></TD>
    <TD valign="bottom">
    Undeveloped acreage includes leases either within their primary
    term or held by production.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Drilling
    Results</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Subsequent to the acquisition in September 2009, Resolute did
    not engage in drilling exploratory or developmental wells.
    Predecessor Resolute did not engage in drilling in 2009 and
    2008, but in 2007 drilled 15&#160;gross (14.6 net) wells.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Relationship with
    the Navajo Nation</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The purchase of Resolute&#146;s Aneth Field Properties was
    facilitated by Predecessor Resolute&#146;s strategic alliance
    with NNOG and, through NNOG, the Navajo Nation. The Navajo
    Nation formed NNOG, a wholly-owned corporate entity, under
    Section&#160;17 of the Indian Reorganization Act. Resolute
    supplies NNOG with acquisition, operational and financial
    expertise and NNOG helps Resolute communicate and interact with
    the Navajo Nation agencies.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Resolute&#146;s strategic alliance with NNOG is embodied in a
    Cooperative Agreement that Predecessor Resolute entered into
    with NNOG in 2004 to facilitate Resolute and NNOG&#146;s joint
    acquisition of the Chevron Properties. The agreement was amended
    subsequently to facilitate the joint acquisition of the
    ExxonMobil Properties. Among other things, this agreement
    provides that:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="4%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Resolute and NNOG will cooperate on the acquisition and
    subsequent development of their respective properties in Aneth
    Field.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    NNOG will assist Resolute in dealing with the Navajo Nation and
    its various agencies, and Resolute will assist NNOG in expanding
    its financial expertise and its operating capabilities. Since
    Predecessor Resolute and NNOG acquired the Aneth Field
    Properties, NNOG has helped facilitate interaction between
    Resolute and the Navajo Nation Minerals Department and other
    agencies of the Navajo Nation.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    NNOG has a right of first negotiation in the event of a proposed
    sale or change of control of Resolute or a sale by Resolute of
    all or substantially all of its Chevron Properties or ExxonMobil
    Properties. This right is separate from and in addition to the
    statutory preferential purchase right held by the Navajo Nation.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    In addition to the above provisions, Predecessor Resolute
    granted NNOG three separate but substantially similar purchase
    options. Each purchase option entitles NNOG to purchase from
    Resolute up to 10% of the undivided working interests that
    Resolute acquired from Chevron or ExxonMobil, as applicable, as
    to each unit in the Aneth Field Properties. Each purchase option
    entitles NNOG to purchase at fair market value, for a limited
</DIV>
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A-20
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    period of time, the applicable portion of the undivided working
    interest Resolute acquired. The fair market value is to be
    determined without giving effect to the existence of the Navajo
    Nation statutory preferential purchase right or the fact that
    the properties are located on the Navajo Reservation. Each
    option becomes exercisable based upon Resolute&#146;s achieving
    payout multiples of the relevant acquisition costs, subsequent
    capital costs and ongoing operating costs attributable to the
    applicable working interests. Revenue applicable to the
    determination of payout includes the effect of Resolute&#146;s
    hedging program. The multiples of payout that trigger the
    exercisability of the purchase options with respect to each of
    the Chevron Properties and the ExxonMobil Properties are 100%,
    150% and 200%. The options are not exercisable prior to four
    years from the relevant acquisition except in the case of a sale
    of such assets by, or a change of control of, Resolute. In that
    case, the first option for 10% would be accelerated and the
    other options would terminate.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    As of December&#160;31, 2009, the payout balance on the Chevron
    Properties was approximately $51.6&#160;million and the payout
    balance on the ExxonMobil Properties was approximately
    $108.3&#160;million. Assuming the purchase options are not
    accelerated due to a change of control of Resolute, and assuming
    Resolute continues to develop its Aneth Field Properties in
    accordance with its plans, Resolute expects that the initial
    payout associated with the purchase options would not occur for
    a number of years.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The following table demonstrates the maximum net undivided
    working interest in each of the Aneth Unit, the McElmo Creek
    Unit and the Ratherford Unit that NNOG could acquire from
    Resolute upon exercising each of its purchase options under the
    Cooperative Agreement. The exercise by NNOG of its purchase
    options in full would not give it the right to remove Resolute
    as operator of any of Resolute&#146;s Aneth Field Properties.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="65%">&nbsp;</TD> <!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=02 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>    <!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=02 type=hang1 -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=03 type=lead -->
    <TD width="12%" align="right">&nbsp;</TD>   <!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=03 type=hang1 -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=04 type=lead -->
    <TD width="9%" align="right">&nbsp;</TD>    <!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Aneth Unit</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>McElmo Creek Unit</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Ratherford Unit</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <B>Chevron Properties:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 13pt">
    Option 1 (100% Payout)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.30
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.50
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.30
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 13pt">
    Option 2 (150% Payout)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.30
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.50
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.30
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 13pt">
    Option 3 (200% Payout)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.30
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.50
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.30
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 13pt">
    Total
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15.90
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4.50
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.90
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <B>ExxonMobil Properties:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 13pt">
    Option 1 (100% Payout)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.75
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.00
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.60
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 13pt">
    Option 2 (150% Payout)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.75
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.00
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.60
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 13pt">
    Option 3 (200% Payout)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.75
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.00
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.60
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 13pt">
    Total
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.25
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18.00
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16.80
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Marketing and
    Customers</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>Aneth Field.</I>&#160;Resolute currently sells all of its
    crude from its Aneth Field Properties to a single customer,
    Western Refining Southwest, Inc. (&#147;Western&#148;), a
    subsidiary of Western Refining, Inc. under a contract that
    terminates August&#160;31, 2010. This contract which was
    effective September&#160;1, 2009, provides for a fixed
    differential to the NYMEX price for crude oil of $6.25 per Bbl.
    This contract continues
    <FONT style="white-space: nowrap">month-to-month</FONT>
    after August&#160;31, 2010, with either party having the right
    to terminate after the initial term, upon ninety days&#146;
    notice. The contract may also be terminated by Western after
    December&#160;30, 2009, upon sixty days notice, if Western is
    not able to renew its
    <FONT style="white-space: nowrap">right-of-way</FONT>
    agreements with the Navajo Nation or if such
    <FONT style="white-space: nowrap">rights-of-way</FONT>
    are declared invalid and either Western is prevented from using
    such rights-of way or the Navajo Nation declares Western to be
    in trespass with respect to such
    <FONT style="white-space: nowrap">rights-of-way.</FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Western has two refineries in the Four Corners area, the
    16,800&#160;barrel per day Bloomfield refinery in Farmington,
    New Mexico, and the 26,000&#160;barrel per day Gallup refinery
    in Gallup, New Mexico. In November 2009&#160;Western announced
    that it intended to discontinue refining operations at the
    Bloomfield refinery. Western now refines Resolute&#146;s crude
    oil at the Gallup refinery. Resolute&#146;s production is
    transported to the refinery via the Running Horse crude oil
    pipeline owned by NNOG to a terminal known as Bisti,
    approximately 20&#160;miles south of Farmington, New Mexico,
    that serves the refinery. The Resolute and NNOG oil has been
    jointly marketed to Western. The combined Resolute and NNOG
    volumes are approximately 7,000&#160;barrels of oil per day.
</DIV>
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    <BR>
A-21
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Resolute&#146;s Aneth Field crude oil is a sweet, light crude
    oil that is particularly well suited to be refined in
    Western&#146;s refinery. Although Resolute has sold all of its
    crude oil production to Western since Predecessor Resolute
    acquired the Chevron Properties in November 2004, and despite
    the value of Resolute&#146;s crude oil production to Western,
    Resolute cannot be certain that the commercial relationship with
    Western will continue for the indefinite future, and Resolute
    cannot be certain that the refinery will not suffer significant
    down-time or be closed. If for any reason Western is unable or
    unwilling to purchase Resolute&#146;s crude oil production,
    Resolute has other alternatives for marketing its crude oil
    production. Resolute has been working with NNOG to establish
    alternative transportation and markets for Resolute&#146;s crude
    oil. A joint venture comprised of affiliates of NNOG and
    Resolute has completed construction of a high volume truck
    loading facility located at the terminal end of NNOG&#146;s
    Running Horse Pipeline that will be operative and capable of
    loading all of Resolute and NNOG&#146;s production. Crude oil
    can be trucked a relatively short distance from the loading
    facility to rail loading sites near and south of Gallup, New
    Mexico, or longer distances to refineries or oil pipelines in
    southern New Mexico and west Texas. Resolute can also transport
    its crude oil by various combinations of truck, pipeline and
    rail from its Aneth Field Properties to markets north in Utah,
    Colorado and Wyoming. The cost of selling Resolute&#146;s crude
    oil to alternative markets in the short term would result in a
    greater differential to the NYMEX price for crude oil than
    Resolute currently receives. If Resolute chooses or is forced to
    sell to these alternative markets for a longer period of time,
    these costs could be lowered significantly. Under long term
    arrangements, which may require the investment of capital,
    Resolute believes it would realize a NYMEX differential
    substantially equivalent to the current differential realized in
    the price received from Western.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Resolute&#146;s gas production is minimally processed in the
    field and then sent via pipeline to the San&#160;Juan River Gas
    Plant for further processing. Resolute sells its gas at daily
    market prices to numerous purchasers at the tailgate of the
    plant, and it receives a contractually specified percentage of
    the proceeds from the sale of NGL and plant products.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>Wyoming.</I>&#160;Resolute sells the majority of its crude
    oil in Wyoming to TEPPCO Crude Oil, LLC and minor amounts to
    other purchasers in a competitive market. The price it receives
    relative to the NYMEX price varies depending on supply and
    demand differentials in the relevant geographic areas in which
    Resolute&#146;s wells are located and the quality of
    Resolute&#146;s crude oil. Resolute&#146;s conventional gas in
    Wyoming comes from Hilight Field and is sold to the Anadarko
    Petroleum Corporation Fort&#160;Union Gas Plant. Resolute
    receives a percentage of proceeds for the liquids sold by the
    plant, and Resolute can either take its residue gas in kind or
    market it through Anadarko. Currently, Resolute is selling its
    gas through Anadarko. Resolute&#146;s CBM gas also comes from
    the Hilight areas and is minimally conditioned at the
    Fort&#160;Union Gas Plant and is sold through Anadarko. Resolute
    receives the Colorado Interstate Gas Company index price for all
    the gas it sells.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>Hedging.</I>&#160;Resolute enters into hedging transactions
    from time to time with unaffiliated third parties for portions
    of its crude oil and gas production to achieve more predictable
    cash flows and to reduce exposure to short-term fluctuations in
    oil and gas prices. For more a detailed discussion, please read
    &#147;<I>Pursue Acquisitions of Properties with Low-Risk
    Development Potential, Management&#146;s Discussion and Analysis
    of Financial Condition and Results of Operations of Resolute
    &#151;&#160;Overview&#148; and &#147;&#151;&#160;Quantitative
    and Qualitative Disclosures About Market Risk.&#148;</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>Other Factors.</I>&#160;The market for Resolute&#146;s
    production depends on factors beyond its control, including
    domestic and foreign political conditions, the overall level of
    supply of and demand for oil and gas, the price of imports of
    oil and gas, weather conditions, the price and availability of
    alternative fuels, the proximity and capacity of transportation
    facilities and overall economic conditions. The oil and gas
    industry as a whole also competes with other industries in
    supplying the energy and fuel requirements of industrial,
    commercial and individual consumers.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Aneth Gas
    Processing Plant</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Resolute has an interest in gas gathering and compression
    facilities located within and adjacent to its Aneth Field
    Properties. Collectively called the Aneth Gas Processing Plant,
    the facility comprises: a)&#160;an active gas compression
    operation currently operated by Resolute and b)&#160;a larger
    complex of inactive, decommissioned and partially dismantled gas
    processing plant facilities for which Chevron remains the
    operator of record. In 2006, Chevron began the process of
    demolishing the inactive portions of the Aneth Gas Processing
    Plant. It continues to manage the project, and it retains a 39%
    interest in all demolition and environmental
    <FONT style="white-space: nowrap">clean-up</FONT>
    expenses. Resolute acquired ExxonMobil&#146;s 25% interest in
    the decommissioned plant and is responsible for that portion of
</DIV>
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    <BR>
A-22
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    decommissioning and cleanup costs. Activities performed to date
    include removal of asbestos-containing building and insulation
    materials, partial dismantling of inactive gas plant buildings
    and facilities, and limited remediation of hydrocarbon-affected
    soil.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    As of December&#160;31, 2009, Resolute estimates the total cost
    to fully decommission the inactive portion of the Aneth Gas
    Processing Plant site to be $28.0&#160;million, of which
    approximately $17.1&#160;million had already been incurred and
    paid for. The remaining demolition liability net to
    Resolute&#146;s interest is $1.4&#160;million (on a GAAP basis
    that includes an inflation factor and a discount rate).
    Demolition activities are scheduled to be concluded in 2012.
    These costs do not include any costs for
    <FONT style="white-space: nowrap">clean-up</FONT> or
    remediation of the subsurface. The Aneth Gas Processing Plant
    site was previously evaluated by the Environmental Protection
    Agency (&#147;EPA&#148;) for possible listing on the National
    Priorities List (&#147;NPL&#148;), of sites contaminated with
    hazardous substances with the highest priority for
    <FONT style="white-space: nowrap">clean-up</FONT>
    under the Comprehensive Environmental Response Compensation and
    Liability Act (&#147;CERCLA&#148;). Based on its investigation,
    the EPA concluded no further investigation was warranted and
    that the site was not required to be listed on the NPL. The
    Navajo Environmental Protection Agency now has primary
    jurisdiction over the Aneth Gas Processing Plant site. Resolute
    cannot predict whether it will require further investigation and
    possible
    <FONT style="white-space: nowrap">clean-up,</FONT>
    and the ultimate
    <FONT style="white-space: nowrap">clean-up</FONT>
    liability may be affected by the Navajo Nation&#146;s recent
    enactment of a Navajo CERCLA. The Navajo CERCLA, in some cases,
    imposes broader obligations and liabilities than the federal
    CERCLA. Resolute has been advised by Chevron that a significant
    portion of the subsurface
    <FONT style="white-space: nowrap">clean-up</FONT> or
    remediation costs, if any, would be covered by an indemnity from
    the prior owner of the plant, and Chevron has provided Resolute
    with a copy of the pertinent purchase agreement that appears to
    support its position. Resolute cannot predict, however, whether
    any subsurface remediation will be required or what the cost of
    this
    <FONT style="white-space: nowrap">clean-up</FONT> or
    remediation could be. Additionally, it cannot be certain whether
    any of such costs will be reimbursable to it pursuant to the
    indemnity of the prior owner. Please read also &#147;<I>&#151;
    Environmental, Health and Safety Matters and
    Regulation&#160;&#151; Waste Handling</I>.&#148;
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Title to
    Properties</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    In connection with Predecessor Resolute&#146;s acquisition of
    the Chevron Properties and the ExxonMobil Properties, it
    obtained attorneys&#146; title opinions showing good and
    defensible title in the seller to at least 80% of the proved
    reserves of the acquired properties as shown in the relevant
    reserve reports presented by the sellers. Predecessor Resolute
    also reviewed land files and public and private records on
    substantially all of the acquired properties containing proved
    reserves. It performed similar title and land file reviews prior
    to acquiring the Wyoming Properties; however, the prior title
    opinions available for it to review and update constituted 62%
    of the proved reserves of the acquired properties and only the
    public records for these properties were reviewed. Resolute
    believes it has satisfactory title to all of its material proved
    properties in accordance with standards generally accepted in
    the industry. Prior to completing an acquisition of proved
    hydrocarbon leases in the future, it intends to perform title
    reviews on the most significant leases, and, depending on the
    materiality of properties, it may obtain a new title opinion or
    review previously obtained title opinions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The Aneth Field Properties are subject to a statutory
    preferential purchase right for the benefit of the Navajo Nation
    to purchase at the offered price any Navajo Nation oil and gas
    lease or working interest in such a lease at the time a proposal
    is made to transfer the lease or interest. This could make it
    more difficult to sell Resolute&#146;s oil and gas leases and,
    therefore, could reduce the value of the Aneth Field leases if
    it were to attempt to sell them.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Resolute&#146;s properties are also subject to certain other
    encumbrances, such as customary interests generally retained in
    connection with the acquisition of real property, customary
    royalty interests and contract terms and restrictions, liens
    under operating agreements, liens for current taxes and other
    burdens, easements, restrictions and minor encumbrances
    customary in the oil and gas industry. It believes that none of
    these liens, restrictions, easements, burdens and encumbrances
    will materially detract from the value of these properties or
    from its interest in these properties or will materially
    interfere with the intended operation of its business.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Competition</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Competition is intense in all areas of the oil and gas industry.
    Major and independent oil and gas companies actively bid for
    desirable properties, as well as for the equipment and labor
    required to operate and develop such properties. Many of
    Resolute&#146;s competitors have financial and personnel
    resources that are substantially greater
</DIV>
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    <BR>
A-23
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    than its own, and such companies may be able to pay more for
    productive properties and to define, evaluate, bid for and
    purchase a greater number of properties than Resolute&#146;s
    financial or human resources permit. Resolute&#146;s ability to
    acquire additional properties and to discover reserves in the
    future will depend on its ability to evaluate and select
    suitable properties and to consummate transactions in a highly
    competitive environment.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Seasonality</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Resolute&#146;s operations have not historically been subject to
    seasonality in any material respect.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Environmental,
    Health and Safety Matters and Regulation</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>General.</I>&#160;Resolute is subject to various stringent
    and complex federal, tribal, state and local laws and
    regulations governing environmental protection, including the
    discharge of materials into the environment, and protection of
    human health and safety. These laws and regulations may, among
    other things:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="4%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    require the acquisition of various permits before drilling
    commences or other operations are undertaken;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    require the installation of expensive pollution control
    equipment;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    restrict the types, quantities and concentration of various
    substances that can be released into the environment in
    connection with oil and gas drilling, production, transportation
    and processing activities;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    suspend, limit or prohibit construction, drilling and other
    activities in certain lands lying within wilderness, wetlands
    and other protected areas;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    require remedial measures to mitigate pollution from historical
    and ongoing operations, such as the closure of pits and plugging
    of abandoned wells and remediation of releases of crude oil or
    other substances;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    require preparation of an Environmental Assessment
    <FONT style="white-space: nowrap">and/or</FONT> an
    Environmental Impact Statement.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    These laws and regulations may also restrict the rate of oil and
    gas production to a level below the rate that would otherwise be
    possible. The regulatory burden on the oil and gas industry
    increases the cost of doing business in the industry and
    consequently affects profitability.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Governmental authorities have the power to enforce compliance
    with environmental laws, regulations and permits, and violations
    are subject to injunctive action, as well as administrative,
    civil and criminal penalties. The effects of these laws and
    regulations, as well as other laws or regulations that may be
    adopted in the future, could have a material adverse impact on
    Resolute&#146;s business, financial condition and results of
    operations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Resolute believes its operations are in substantial compliance
    with all existing environmental, health and safety laws and
    regulations and that continued compliance with existing
    requirements will not have a material adverse impact on its
    financial condition and results of operations. Spills or
    releases may occur, however, in the course of its operations.
    There can be no assurance that Resolute will not incur
    substantial costs and liabilities as a result of such spills or
    releases, including those relating to claims for damage to
    property, persons and the environment, nor can there be any
    assurance that the passage of more stringent laws or regulations
    in the future will not have a negative effect on Resolute&#146;s
    business, financial condition, or results of operations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The following is a summary of the more significant existing
    environmental, health and safety laws and regulations to which
    oil and gas business operations are generally subject and with
    which compliance may have a material adverse effect on
    Resolute&#146;s capital expenditures, earnings or competitive
    position, as well as a discussion of certain matters that
    specifically affect its operations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>Comprehensive Environmental Response, Compensation, and
    Liability Act.</I>&#160;CERCLA, also known as the
    &#147;Superfund law,&#148; and comparable tribal and state laws
    may impose strict, joint and several liability, without regard
    to fault, on classes of persons who are considered to be
    responsible for the release of CERCLA hazardous substances into
    the environment. These persons include the owner or operator of
    the site where a release occurred, and anyone who disposed or
    arranged for the disposal of a hazardous substance released at
    the site. Under CERCLA, such persons may be subject to joint and
    several liability for the costs of cleaning up the hazardous
    substances that have been released into the environment, for
    damages to natural resources and for
</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    the costs of certain health studies. In addition, it is not
    uncommon for neighboring landowners and other third parties to
    file claims for personal injury and property damage allegedly
    caused by the hazardous substances released into the
    environment. Such claims may be filed under CERCLA, as well as
    state common law theories or state laws that are modeled after
    CERCLA. In the course of its operations, Resolute generates
    waste that may fall within the definition of hazardous
    substances under CERCLA, as well as under the recently adopted
    Navajo Nation CERCLA which, unlike the federal CERCLA, defines
    hazardous substances to include crude oil and other
    hydrocarbons, thereby subjecting Resolute to potential liability
    under CERCLA, tribal and state law equivalents to CERCLA and
    common law. Therefore, governmental agencies or third parties
    could seek to hold Resolute responsible for all or part of the
    costs to clean up a site at which such hazardous substances may
    have been released or deposited, or other damages resulting from
    a release.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>Waste Handling.</I>&#160;The Resource Conservation and
    Recovery Act (&#147;RCRA&#148;) and comparable tribal and state
    statutes, regulate the generation, transportation, treatment,
    storage, disposal and cleanup of hazardous and non-hazardous
    wastes. Under the auspices of the federal EPA, the individual
    states administer some or all of the provisions of RCRA,
    sometimes in conjunction with their own, more stringent
    requirements. Drilling fluids, produced waters and many of the
    other wastes associated with the exploration, development and
    production of crude oil or gas are currently exempt under
    federal law from regulation as hazardous wastes and instead are
    regulated under RCRA&#146;s non-hazardous waste provisions. It
    is possible, however, that oil and gas exploration and
    production wastes now classified federally as non-hazardous
    could be classified as hazardous wastes in the future. Any such
    change could result in an increase in Resolute&#146;s operating
    expenses, which could have a material adverse effect on the
    results of operations and financial position. Also, in the
    course of operations, Resolute generates some amounts of
    industrial solid wastes, such as paint wastes, waste solvents,
    and waste oils, that may be regulated as hazardous wastes under
    RCRA, tribal and state laws and regulations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Resolute has an interest in the Aneth Gas Processing Plant
    located in the Aneth Unit. This gas plant consists of a
    non-operational portion of the plant that is in the process of
    being decommissioned and removed by Chevron and an operational
    portion dedicated to compression. Resolute is responsible for a
    portion of the costs of decommissioning and removal and
    <FONT style="white-space: nowrap">clean-up</FONT> of
    the non-operational portion of the plant and any restoration and
    other costs related to the operational processing facilities.
    For additional information related to Resolute&#146;s
    obligations related to this plant, please read
    &#147;&#151;&#160;<I>Aneth Gas Processing Plant</I>.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>Air Emissions.</I>&#160;The federal Clean Air Act and
    comparable tribal and state laws regulate emissions of various
    air pollutants through air emissions permitting programs and the
    imposition of other requirements. These regulatory programs may
    require Resolute to install expensive emissions control
    equipment, modify its operational practices and obtain permits
    for existing operations, and before commencing construction on a
    new or modified source of air emissions such laws may require
    Resolute to reduce its emissions at existing facilities. As a
    result, Resolute may be required to incur increased capital and
    operating costs. Federal, tribal and state regulatory agencies
    can impose administrative, civil and criminal penalties for non-
    compliance with air permits or other requirements of the federal
    Clean Air Act and associated tribal and state laws and
    regulations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    In June 2005, the EPA and ExxonMobil entered into a consent
    decree settling various alleged violations of the federal Clean
    Air Act associated with ExxonMobil&#146;s prior operation of the
    McElmo Creek Unit. In response, ExxonMobil submitted amended
    Title&#160;V and Prevention of Significant Deterioration
    (&#147;PSD&#148;) permit applications for the McElmo Creek Unit
    main flare and other sources, and also paid a civil penalty and
    costs associated with a Supplemental Environmental Project, or
    &#147;SEP.&#148; Pursuant to the consent decree, upgrades to the
    main flare were completed in May 2006 by ExxonMobil, and all of
    the remaining material compliance measures of the consent decree
    have been met by Resolute. The EPA is processing the
    Title&#160;V and PSD permit applications. Resolute remains
    subject to the consent decree, including stipulated penalties
    for violations of emissions limits and compliance measures set
    forth in the consent decree.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Actual air emissions reported for these facilities are in
    material compliance with emission limits contained in the draft
    permits and the consent decree when emissions associated with
    qualified equipment malfunctions are taken into account.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>Water Discharges.</I>&#160;The federal Water Pollution
    Control Act, or the Clean Water Act, and analogous tribal and
    state laws, impose restrictions and strict controls with respect
    to the discharge of pollutants, including spills and
</DIV>
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    <BR>
A-25
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    leaks of oil and other substances, into waters of the United
    States, including wetlands. The discharge of pollutants into
    regulated waters is prohibited by the Clean Water Act, except in
    accordance with the terms of a permit issued by the EPA or an
    authorized tribal or state agency. Federal, tribal and state
    regulatory agencies can impose administrative, civil and
    criminal penalties for unauthorized discharges or non-
    compliance with discharge permits or other requirements of the
    Clean Water Act and analogous tribal and state laws and
    regulations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    In addition, the Oil Pollution Act of 1990, or OPA, augments the
    Clean Water Act and imposes strict liability for owners and
    operators of facilities that are the source of a release of oil
    into waters of the United States. OPA and its associated
    regulations impose a variety of requirements on responsible
    parties related to the prevention of oil spills and liability
    for damages resulting from such spills. For example, operators
    of oil and gas facilities must develop, implement, and maintain
    facility response plans, conduct annual spill training for
    employees and provide varying degrees of financial assurance to
    cover costs that could be incurred in responding to oil spills.
    In addition, owners and operators of oil and gas facilities may
    be subject to liability for cleanup costs and natural resource
    damages as well as a variety of public and private damages that
    may result from oil spills.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    In August 2004, the EPA and ExxonMobil entered into a consent
    decree settling alleged violations of the federal Clean Water
    Act related to past spills of produced water and crude oil from
    the McElmo Creek and Ratherford Units and failure to prepare and
    implement Spill Prevention, Control and Countermeasure Plans.
    ExxonMobil paid a civil penalty and costs to implement a SEP,
    and made improvements to the production and injection systems.
    Resolute expects the consent decree to be terminated during 2010
    following confirmation by the EPA of completion of the SEP.
    Until the consent decree is terminated by the EPA, Resolute
    remains subject to various monitoring, recordkeeping, and
    reporting requirements outlined in the consent decree, as well
    as stipulated penalties for spills of produced water and crude
    oil at the McElmo Creek and Ratherford Units.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    In November 2001, the EPA issued an administrative order to
    ExxonMobil for removal and remediation of crude oil released as
    a result of a shallow casing leak at the McElmo Creek
    <FONT style="white-space: nowrap">P-20&#160;well</FONT>
    in January 2001. In response, ExxonMobil performed various site
    assessment activities and began recovering crude oil from the
    ground water. Resolute is obligated to complete the ground water
    monitoring and remedial activities required under the
    administrative order, at an estimated cost of approximately
    $100,000 per year, with anticipated closure to occur in the
    fourth quarter of 2010 or early 2011.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>Underground Injection Control.</I>&#160;Resolute&#146;s
    underground injection operations are subject to the federal Safe
    Drinking Water Act, as well as analogous tribal and state laws
    and regulations. Under Part&#160;C of the Safe Drinking Water
    Act, the EPA established the Underground Injection Control
    program, which established the minimum program requirements for
    tribal and state programs regulating underground injection
    activities. The Underground Injection Control program includes
    requirements for permitting, testing, monitoring, recordkeeping
    and reporting of injection well activities, as well as a
    prohibition against the migration of fluid containing any
    contaminant into underground sources of drinking water. Federal,
    tribal and state regulations require Resolute to obtain a permit
    from applicable regulatory agencies to operate its underground
    injection wells. Resolute believes it has obtained the necessary
    permits from these agencies for its underground injection wells
    and that it is in substantial compliance with permit conditions
    and applicable federal, tribal and state rules. Nevertheless,
    these regulatory agencies have the general authority to suspend
    or modify one or more of these permits if continued operation of
    one of the underground injection wells is likely to result in
    pollution of freshwater, the substantial violation of permit
    conditions or applicable rules, or leaks to the environment.
    Although Resolute monitors the injection process of its wells,
    any leakage from the subsurface portions of the injection wells
    could cause degradation of fresh groundwater resources,
    potentially resulting in cancellation of operations of a well,
    issuance of fines and penalties from governmental agencies,
    incurrence of expenditures for remediation of the affected
    resource and imposition of liability by third parties for
    property damages and personal injuries.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>Pipeline Integrity, Safety, and
    Maintenance.</I>&#160;Resolute&#146;s ownership interest in the
    McElmo Creek Pipeline has caused it to be subject to regulation
    by the federal Department of Transportation, or the DOT, under
    the Hazardous Liquid Pipeline Safety Act and comparable state
    statutes, which relate to the design, installation, testing,
    construction, operation, replacement and management of hazardous
    liquid pipeline facilities. Any entity that owns or operates
    such pipeline facilities must comply with such regulations,
    permit access to and copying of records, and file reports and
    provide required information. The DOT may assess fines and
    penalties for violations of these and other requirements imposed
    by its regulations. Resolute believes it is in material
    compliance with all
</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    regulations imposed by the DOT pursuant to the Hazardous Liquid
    Pipeline Safety Act. Pursuant to the Pipeline Inspection,
    Protection, Enforcement, and Safety Act of 2006, the DOT was
    required to issue new regulations by December&#160;31, 2007,
    setting forth specific integrity management program requirements
    applicable to low stress hazardous liquid pipelines. Resolute
    believes that these new regulations, which have yet to be
    issued, will not have a material adverse effect on its financial
    condition or results of operations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>Environmental Impact Assessments.</I>&#160;Significant
    federal decisions, such as the issuance of federal permits or
    authorizations for many oil and gas exploration and production
    activities are subject to the National Environmental Policy Act
    (&#147;NEPA&#148;). NEPA requires federal agencies, including
    the Department of Interior, to evaluate major federal agency
    actions having the potential to significantly impact the
    environment. In the course of such evaluations, an agency will
    prepare an environmental assessment that assesses the potential
    direct, indirect and cumulative impacts of a proposed project
    and, if necessary, will prepare a more detailed Environmental
    Impact Statement that may be made available for public review
    and comment. All of Resolute&#146;s current exploration and
    production activities, as well as proposed exploration and
    development plans on federal lands, require governmental permits
    that are subject to the requirements of NEPA. This process has
    the potential to delay any oil and gas development projects.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Other Laws and
    Regulations</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>Climate Change.</I>&#160;Recent scientific studies have
    suggested that emissions of gases commonly referred to as
    &#147;greenhouse gases&#148; or &#147;GHG&#148;, including
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>,
    nitrogen dioxide and methane, may be contributing to warming of
    the Earth&#146;s atmosphere. Other nations have already agreed
    to regulate emissions of GHG pursuant to the United Nations
    Framework Convention on Climate Change, (&#147;UNFCCC&#148;) and
    the Kyoto Protocol, an international treaty (not including the
    United States) pursuant to which many UNFCCC member countries
    have agreed to reduce their emissions of GHG to below 1990
    levels by 2012. In response to such studies and international
    action, the U.S.&#160;Congress is now considering legislation to
    reduce emissions of GHG, and the EPA has promulgated a mandatory
    GHG reporting rule that took effect January&#160;1, 2010. As
    finalized, the mandatory reporting rule (MRR) does not require
    reporting by Resolute for its operations in Aneth Field.
    However, on March&#160;23, 2010, EPA proposed several amendments
    to the MRR that would trigger reporting requirements for the
    Company. Among the proposed amendments are provisions that would
    apply to operators that inject
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    for enhanced oil recovery and geologic sequestration, regardless
    of the magnitude of associated
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    emissions, and also to operators of oil and natural gas systems
    that emit more than 25,000 metric tons of
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>-equivalent
    GHGs across an entire producing basin, based on the aggregated
    GHG emissions of all facilities in a basin under common control
    of an operator. On June&#160;26, 2009, the House of
    Representatives passed H.R. 2454, the Waxman-Markey
    &#147;American Clean Energy and Security Act of 2009,&#148;
    which would require 17% reduction in GHG emission by
    &#147;covered entities&#148; by 2020, relative to 2005 GHG
    emission levels, and create an elaborate system of allocated and
    tradable emission allowances and offsets to achieve mandated
    reductions of up to 80% by the year 2050. Companion legislation
    is being considered in the Senate, and a consensus bill could be
    developed later in 2010. Prior to this legislative action on
    climate change by the U.S.&#160;Congress, a number of states
    chose not to wait for Congress to develop and implement climate
    control legislation and have already taken legal measures to
    reduce emissions of GHG, primarily through the planned
    development of GHG emission inventories
    <FONT style="white-space: nowrap">and/or</FONT>
    regional cap and trade programs. For example, on August&#160;22,
    2007, the Western Climate Initiative, which is comprised of a
    number of Western states and Canadian provinces, including the
    State of Utah, issued a GHG reduction goal statement seeking to
    collectively reduce regional GHG emissions to 15% below 2005
    levels by 2020. Also, as a result of the U.S.&#160;Supreme
    Court&#146;s decision on April&#160;2, 2007, in
    <I>Massachusetts, et al.&#160;v. EPA</I>, the EPA may be
    required to regulate GHG emissions from mobile sources (e.g.,
    cars and trucks) even if Congress does not adopt new legislation
    specifically addressing emissions of GHG. The Court&#146;s
    holding in <I>Massachusetts&#160;v. EPA </I>that GHG fall under
    the federal Clean Air Act&#146;s definition of &#147;air
    pollutant&#148; also may result in future regulation of GHG
    emissions from stationary sources under Clean Air Act programs,
    due to EPA&#146;s recent &#147;endangerment finding&#148; that
    links global warming to man-caused emissions of GHGs and
    concludes there is an endangerment to public health and the
    environment that requires regulatory action. The passage or
    adoption of new legislation or regulations that restrict
    emissions of GHG or require reporting of such emissions in areas
    where Resolute conducts business could adversely affect its
    operations.
</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>Department of Homeland Security.</I>&#160;The Department of
    Homeland Security Appropriations Act of 2007 requires the
    Department of Homeland Security (&#147;DHS&#148;), to issue
    regulations establishing risk-based performance standards for
    the security at chemical and industrial facilities, including
    oil and gas facilities that are deemed to present &#147;high
    levels of security risk.&#148; The DHS is in the process of
    adopting regulations that will determine whether some of
    Resolute&#146;s facilities or operations will be subject to
    additional DHS-mandated security requirements. Presently, it is
    not possible to accurately estimate the costs Resolute could
    incur to comply with any such facility security laws or
    regulations, but such expenditures could be substantial.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>Occupational Safety and Health Act.</I>&#160;Resolute is
    subject to the requirements of the federal Occupational Safety
    and Health Act (&#147;OSHA&#148;) and comparable state statutes
    that strictly govern protection of the health and safety of
    workers. The Occupational Safety and Health
    Administration&#146;s hazard communication standard, the
    Emergency Planning and Community
    <FONT style="white-space: nowrap">Right-to-Know</FONT>
    Act, and similar state statutes require that information be
    maintained about hazardous materials used or produced in
    operations and that this information be provided to employees,
    state and local government authorities, and the public. Resolute
    believes that it is in substantial compliance with these
    applicable requirements and with other OSHA and comparable
    requirements.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Laws and
    Regulations Pertaining to Oil and Gas Operations on Navajo
    Nation Lands</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>General.</I>&#160;Laws and regulations pertaining to oil and
    gas operations on Navajo Nation lands derive from both Navajo
    law and federal law, including federal statutes, regulations and
    court decisions, generally referred to as federal Indian law.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>The Federal Trust&#160;Responsibility.</I>&#160;The federal
    government has a general trust responsibility to Indian tribes
    regarding lands and resources that are held in trust for such
    tribes. The trust responsibility may be a consideration in
    courts&#146; resolution of disputes regarding Indian trust lands
    and development of oil and gas resources on Indian reservations.
    Courts may consider the compliance of the Secretary of the
    U.S.&#160;Department of the Interior, or the Interior Secretary,
    with trust duties in determining whether leases,
    <FONT style="white-space: nowrap">rights-of-way,</FONT>
    or contracts relative to tribal land are valid and enforceable.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>Tribal Sovereignty and Dependent Status.</I>&#160;The United
    States Constitution vests in Congress the power to regulate the
    affairs of Indian tribes. Indian tribes hold a sovereign status
    that allows them to manage their internal affairs, subject to
    the ultimate legislative power of Congress. Tribes are therefore
    often described as domestic dependent nations, retaining all
    attributes of sovereignty that have not been taken away by
    Congress. Retained sovereignty includes the authority and power
    to enact laws and safeguard the health and welfare of the tribe
    and its members and the ability to regulate commerce on the
    reservation. In many instances, tribes have the inherent power
    to levy taxes and have been delegated authority by the United
    States to administer certain federal health, welfare and
    environmental programs.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Because of their sovereign status, Indian tribes also enjoy
    sovereign immunity from suit and may not be sued in their own
    courts or in any other court absent Congressional abrogation or
    a valid tribal waiver of such immunity. The United States
    Supreme Court has ruled that for an Indian tribe to waive its
    sovereign immunity from suit, such waiver must be clear,
    explicit and unambiguous.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    NNOG is a federally chartered corporation incorporated under
    Section&#160;17 of the Indian Reorganization Act and is wholly
    owned by the Navajo Nation. Section&#160;17 corporations
    generally have broad powers to sue and be sued. Courts will
    review and construe the charter of a Section&#160;17 corporation
    to determine whether the tribe has either universally waived the
    corporation&#146;s sovereign immunity, or has delegated that
    power to the Section&#160;17 corporation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The NNOG federal charter of incorporation provides that NNOG
    shares in the immunities of the Navajo Nation, but empowers NNOG
    to waive such immunities in accordance with processes identified
    in the charter. NNOG has contractually waived its sovereign
    immunity, and certain other immunities and rights it may have
    regarding disputes with Resolute relating to certain of the
    Aneth Field Properties, in the manner specified in its charter.
    Although the NNOG waivers are similar to waivers that courts
    have upheld, if challenged, only a court of competent
    jurisdiction may make that determination based on the facts and
    circumstances of a case in controversy.
</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Tribal sovereignty also means that in some cases a tribal court
    is the only court that has jurisdiction to adjudicate a dispute
    involving a tribe, tribal lands or resources or business
    conducted on tribal lands or with tribes. Although language
    similar to that used in Resolute&#146;s agreements with NNOG
    that provide for alternative dispute resolution and federal or
    state court jurisdiction has been upheld in other cases, there
    is no guarantee that a court would enforce these dispute
    resolution provisions in a future case.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>Federal Approvals of Certain Transactions Regarding Tribal
    Lands.</I>&#160;Under current federal law, the Interior
    Secretary (or the Interior Secretary&#146;s appropriate
    designee) must approve any contract with an Indian tribe that
    encumbers, or could encumber, for a period of seven years or
    more, (1)&#160;lands owned in trust by the United States for the
    benefit of an Indian tribe or (2)&#160;tribal lands that are
    subject to a federal restriction against alienation, or
    collectively Tribal Lands. Failure to obtain such approval, when
    required, renders the contract void.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Except for Resolute&#146;s oil and gas leases,
    <FONT style="white-space: nowrap">rights-of-way</FONT>
    and operating agreements with the Navajo Nation, Resolute&#146;s
    agreements do not by their terms specifically encumber Tribal
    Lands, and it believes that no Interior Secretarial approval was
    required to enter into those agreements. With respect to its oil
    and gas leases and unit operating agreements, these and all
    assignments to Resolute have been approved by the Interior
    Secretary. In the case of
    <FONT style="white-space: nowrap">rights-of-way</FONT>
    and assignments of these to Resolute, some of these have been
    approved by the Interior Secretary and others are in various
    stages of applications for renewal and approval. It is common
    for these approvals to take an extended period of time, but such
    approvals are routine and Resolute believes that all required
    approvals will be obtained in due course.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>Federal Management and Oversight.</I>&#160;Reflecting the
    federal trust relationship with tribes, the Bureau of Indian
    Affairs, or the BIA, exercises oversight of matters on the
    Navajo Nation reservation pertaining to health, welfare and
    trust assets of the Navajo Nation. Of relevance to Resolute, the
    BIA must approve all leases,
    <FONT style="white-space: nowrap">rights-of-way,</FONT>
    applications for permits to drill, seismic permits,
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    pipeline permits and other permits and agreements relating to
    development of oil and gas resources held in trust for the
    Navajo Nation. While NNOG has been successful in facilitating
    timely approvals from the BIA, such timeliness is not guaranteed
    and obtaining such approvals may cause delays in developing the
    Aneth Field Properties.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>Resources Committee of the Navajo Nation
    Council.</I>&#160;The Resources Committee is a standing
    committee of the Navajo Nation Tribal Council, and has oversight
    and regulatory authority over all lands and resources of the
    Navajo Nation. The Resources Committee reviews, negotiates and
    recommends to the Navajo Nation Tribal Council actions involving
    the approval of energy development agreements and mineral
    agreements; gives final approvals of rights of way, surface
    easements, geophysical permits, geological prospecting permits,
    and other surface rights for infrastructure; oversees and
    regulates all activities within the Navajo Nation involving
    natural resources and surface disturbance; sets policy for
    natural resource development and oversees the enforcement of
    federal and Navajo law in the development and utilization of
    resources, including issuing cease and desist orders and
    assessing fines for violation of its regulations and orders. The
    Resources Committee also has oversight authority over, among
    other agencies and matters, the Navajo Nation Environmental
    Protection Agency and Navajo Nation environmental laws, the
    Navajo Nation Minerals Department and Navajo Nation oil and gas
    laws and the Navajo Nation Land Department and Navajo Nation
    land use laws. While NNOG has been successful thus far in
    facilitating timely approvals from the Resources Committee for
    Resolute&#146;s operations, such timeliness is not guaranteed
    and obtaining future approvals may cause delays in developing
    the Aneth Field Properties.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>Navajo Nation Minerals Department of the Division of Natural
    Resources.</I>&#160;The
    <FONT style="white-space: nowrap">day-to-day</FONT>
    operation of the Navajo Nation minerals program, including the
    initial negotiation of agreements, applications for approval of
    assignments, exercise of tribal preferential rights and most
    other permits and licenses relating to oil and gas development,
    is managed by the professional staff of the Navajo Nation
    Minerals Department, located within the Division of Natural
    Resources and subject to the oversight of the Resources
    Committee. The Resources Committee and the Navajo Nation Council
    typically defer to the Minerals Department in decisions to
    approve all leases and other agreements relating to oil and gas
    resources held in trust for the Navajo Nation. While NNOG has
    been successful thus far in facilitating timely action and
    favorable recommendations from the Minerals Department for
    Resolute&#146;s operations, such timeliness is not guaranteed
    and obtaining future approvals may cause delays in developing
    the Aneth Field Properties.
</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>Taxation Within the Navajo Nation.</I>&#160;In certain
    instances, federal, state and tribal taxes may be applicable to
    the same event or transaction, such as severance taxes. State
    taxes are rarely applicable within the Navajo Nation Reservation
    except as authorized by Congress or when the application of such
    taxes does not adversely affect the interests of the Navajo
    Nation. Federal taxes of general application are applicable
    within the Navajo Nation, unless specifically exempted by
    federal law. Resolute currently pays the following taxes to the
    Navajo Nation:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="4%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Oil and Gas Severance Tax.</I>&#160;Resolute pays severance
    tax to the Navajo Nation. The severance tax is payable monthly
    and is 4% of its gross proceeds from the sale of oil and gas.
    Approximately 84% of the Aneth Unit is subject to the Navajo
    Nation severance tax. The other 16% of the Aneth Unit is exempt
    because it is either located off of the reservation or it is
    incremental enhanced oil recovery production, which is not
    subject to the severance tax. Presently all of the McElmo Creek
    and Ratherford Units are subject to the severance tax.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Possessory Interest Tax.</I>&#160;Resolute pays a possessory
    interest tax to the Navajo Nation. The possessory interest tax
    applies to all property rights under a lease within the Navajo
    Nation boundaries, including natural resources.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Sales Tax.</I>&#160;Resolute pays the Navajo Nation a 4%
    sales tax in lieu of the Navajo Business Activity Tax. All goods
    and services purchased for use on the Navajo Nation reservation
    are subject to the sales tax. The sale of oil and gas is exempt
    from the sales tax.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>Royalties from Production on Navajo Nation
    Lands.</I>&#160;Under Resolute&#146;s agreements and leases with
    the Navajo Nation, it pays royalties to the Navajo Nation. The
    Navajo Nation is entitled to take its royalties in kind, which
    it currently does for its oil royalties but not its gas
    royalties. The Minerals Management Service of the United States
    Department of the Interior has the responsibility for managing
    and overseeing royalty payments to the Navajo Nation as well as
    the right to audit royalty payments.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>Navajo Preference in Employment Act.</I>&#160;The Navajo
    Nation has enacted the Navajo Preference in Employment Act, or
    the Employment Act, requiring preferential hiring of Navajos by
    non-governmental employers operating within the boundaries of
    the Navajo Nation. The Employment Act requires that any Navajo
    candidate meeting job description requirements receives a
    preference in hiring. The Employment Act also provides that
    Navajo employees can only be terminated, penalized, or
    disciplined for &#147;just cause,&#148; requires a written
    affirmative action plan that must be filed with the Navajo
    Nation, establishes the Navajo Labor Commission as a forum to
    resolve employment disputes and provides authority for the
    Navajo Labor Commission to establish wage rates on construction
    projects. The restrictions imposed by the Employment Act and its
    recent broad interpretations by the Navajo Supreme Court may
    limit Resolute&#146;s pool of qualified candidates for
    employment.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>Navajo Business Opportunity Act.</I>&#160;Navajo Nation law
    requires companies doing business in the Navajo Nation to
    provide preference priorities to certified Navajo-owned
    businesses by giving them a first opportunity and contracting
    preference for all contracts within the Navajo Nation. While
    this law does not apply to the granting of mineral leases,
    subleases, permits, licenses and transactions governed by other
    applicable Navajo and federal law, Resolute treats this law as
    applicable to its material non-mineral contracts and procurement
    relating to its general business activities within the Navajo
    Nation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>Navajo Environmental Laws.</I>&#160;The Navajo Nation has
    enacted various environmental laws that may be applicable to
    Resolute&#146;s Aneth Field Properties. As a practical matter,
    these laws are patterned after similar federal laws, and the EPA
    currently enforces these laws in conjunction with the Navajo
    EPA. The current practice does not preclude the Navajo Nation
    from taking a more active role in enforcement or from changing
    direction in the future. Some of the Navajo Nation environmental
    laws not only provide for civil, criminal and administrative
    penalties, but also provide for third-party suits brought by
    Navajo Nation tribal members directly against an alleged
    violator, with specified jurisdiction in the Navajo Nation
    District Court in Window Rock. A recent example of this relates
    to the March 2008 adoption by the Navajo Nation of the Navajo
    Comprehensive Environmental Response, Compensation, and
    Liability Act (&#147;Navajo CERCLA&#148;), which gives the
    Navajo EPA broad authority over environmental assessment and
    remediation of facilities contaminated with hazardous
    substances. Navajo CERCLA is patterned after federal CERCLA with
    the important exception that, unlike federal CERCLA, Navajo
    CERCLA considers crude oil and other hydrocarbons to be
    hazardous substances subject to CERCLA response actions and
    damages. Navajo CERCLA also imposes a tariff on the
    transportation of hazardous substances,
</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    including petroleum and petroleum products, across Navajo lands.
    Resolute is negotiating with representatives of the Navajo
    Nation Council, Navajo Department of Justice, Navajo
    Environmental Protection Agency, NNOG, an industry group headed
    by the New Mexico Oil and Gas Association and Colorado Oil and
    Gas Association, (&#147;the NMOGA Group&#148;), and others, to
    mitigate Navajo CERCLA&#146;s potential impact on oilfield
    operations on Navajo lands. The NMOGA Group in particular has
    challenged the validity of the law and has entered into a
    tolling agreement with Navajo EPA that should forestall material
    implementation of Navajo CERCLA at oil and gas facilities while
    appropriate rules and guidelines are developed with input from
    the oil and gas sector. The tolling agreement was renewed in
    August 2009, and negotiations among Navajo EPA, Resolute and the
    NMOGA Group remain ongoing.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>Thirty-Two Point Agreement.</I>&#160;An explosion at an
    ExxonMobil facility in Aneth Field in December 1997 prompted
    protests by local tribal members. The protesters asserted
    concerns about environmental degradation, health problems,
    employment opportunities and renegotiating leases. The protest
    was settled among the local residents, ExxonMobil and the Navajo
    Nation by the Thirty-Two Point Agreement that provided, among
    other things, for ExxonMobil to pay partial salaries for two
    Navajo public liaison specialists, follow Navajo hiring
    practices, and settle further issues addressed in the Thirty-Two
    Point Agreement in the Navajo Nation&#146;s
    &#147;peacemaker&#148; courts, which follow a community-level
    conflict resolution format. After the Thirty-Two Point Agreement
    was executed, Aneth Field resumed normal operations. While
    Resolute did not assume the obligations of ExxonMobil under the
    Thirty-Two Point Agreement when it acquired the ExxonMobil
    Properties in 2006, it has been its policy to voluntarily comply
    with this agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>Moratorium on Future Oil and Gas Development Agreements and
    Exploration.</I>&#160;In February 1994, the Navajo Nation issued
    a moratorium on future oil and gas development agreements and
    exploration on lands situated within the Aneth Chapter on the
    Navajo Reservation. All of the Aneth Unit and a significant
    portion of the McElmo Creek Unit are located within the Aneth
    Chapter. The Navajo Nation has recently taken the position that
    the term of the moratorium is indefinite. Given that
    Resolute&#146;s operations within the Aneth Chapter are based on
    existing agreements and that Resolute currently does not
    contemplate new exploration in this mature field, the moratorium
    has had and is expected to continue to have minor impact to
    Resolute operations.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Other Regulation
    of the Oil and Gas Industry</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The oil and gas industry is extensively regulated by numerous
    federal, state and local authorities, including Native American
    tribes. Legislation affecting the oil and gas industry is under
    constant review for amendment or expansion, frequently
    increasing the regulatory burden. Also, numerous departments and
    agencies, both federal and state and Native American tribes, are
    authorized by statute to issue rules and regulations binding on
    the oil and gas industry and individual companies, some of which
    carry substantial penalties for failure to comply. Although the
    regulatory burden on the oil and gas industry increases
    Resolute&#146;s cost of doing business and, consequently,
    affects profitability, these burdens generally do not affect
    Resolute any differently or to any greater or lesser extent than
    they affect other companies in the industry with similar types,
    quantities and locations of production.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>Drilling and Production.</I>&#160;Resolute&#146;s operations
    are subject to various types of regulation at federal, state,
    local and Navajo Nation levels. These types of regulation
    include requiring permits for the drilling of wells, drilling
    bonds and reports concerning operations. Most states, and some
    counties, municipalities, the Navajo Nation and other Native
    American tribes also regulate one or more of the following:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="4%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the location of wells;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the method of drilling and casing wells;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the rates of production or &#147;allowables&#148;;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the surface use and restoration of properties upon which wells
    are drilled;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the plugging and abandoning of wells;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    notice to surface owners and other third-parties.
</TD>
</TR>

</TABLE>
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<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    On state, federal and Indian lands, the Bureau of Land
    Management laws and regulations regulate the size and shape of
    drilling and spacing units or proration units governing the
    pooling of oil and gas properties. Some states allow forced
    pooling or integration of tracts to facilitate exploration while
    other states rely on voluntary pooling of lands and leases. In
    some instances, forced pooling or unitization may be implemented
    by third-parties and may reduce Resolute&#146;s interest in the
    unitized properties. In addition, state conservation laws
    establish maximum rates of production from oil and gas wells,
    generally prohibit or limit the venting or flaring of gas and
    impose requirements regarding the ratability of production.
    These laws and regulations may limit the amount of oil and gas
    that Resolute can produce from its wells or limit the number of
    wells or the locations where it can drill. Moreover, each state
    generally imposes a production or severance tax with respect to
    the production and sale of oil and gas within its jurisdiction.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>Gas Sales and Transportation.</I>&#160;Historically, federal
    legislation and regulatory controls have affected the price of
    gas and the manner in which Resolute&#146;s production is
    marketed. Federal Energy Regulatory Commission
    (&#147;FERC&#148;) has jurisdiction over the transportation and
    sale for resale of gas in interstate commerce by gas companies
    under the Natural Gas Act of 1938 and the Natural Gas Policy Act
    of 1978. Since 1978, various federal laws have been enacted
    which have resulted in the complete removal of all price and
    non-price controls for sales of domestic gas sold in &#147;first
    sales,&#148; which include all of Resolute sales of its own
    production.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    FERC also regulates interstate gas transportation rates and
    service conditions, which affects the marketing of gas that
    Resolute produces, as well as the revenue Resolute receives for
    sales of its gas. Commencing in 1985, FERC promulgated a series
    of orders, regulations and rule makings that significantly
    fostered competition in the business of transporting and
    marketing gas. Today, interstate pipeline companies are required
    to provide nondiscriminatory transportation services to
    producers, marketers and other shippers, regardless of whether
    such shippers are affiliated with an interstate pipeline
    company. FERC&#146;s initiatives have led to the development of
    a competitive, unregulated, open access market for gas purchases
    and sales that permits all purchasers of gas to buy gas directly
    from third-party sellers other than pipelines. However, the gas
    industry historically has been very heavily regulated;
    therefore, Resolute cannot guarantee that the less stringent
    regulatory approach recently pursued by FERC and Congress will
    continue indefinitely into the future nor can it determine what
    effect, if any, future regulatory changes might have on gas
    related activities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Under FERC&#146;s current regulatory regime, transmission
    services must be provided on an open-access, non-discriminatory
    basis at cost-based rates or at market-based rates if the
    transportation market at issue is sufficiently competitive.
    Gathering service, which occurs upstream of jurisdictional
    transmission services, is regulated by the states on-shore and
    instate waters. Although its policy is still in flux, FERC
    recently has reclassified certain jurisdictional transmission
    facilities as non-jurisdictional gathering facilities, which has
    the tendency to increase Resolute&#146;s costs of getting gas to
    <FONT style="white-space: nowrap">point-of-sale</FONT>
    locations.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Employees</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    As of December&#160;31, 2009, Resolute had 132&#160;full-time
    employees and 3&#160;part-time employees, including 26
    geologists, geophysicists, petroleum engineers and land and
    regulatory professionals. Approximately 40 of Resolute&#146;s
    field level employees are represented by the United Steel, Paper
    and Forestry, Rubber, Manufacturing, Energy, Allied Industrial
    and Service Workers International Union, or USW labor union, and
    are covered by a collective bargaining agreement. Resolute
    believes that it has a satisfactory relationship with its
    employees.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Offices</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Resolute currently leases approximately 22,725&#160;square feet
    of office space in Denver, Colorado at 1675 Broadway,
    Suite&#160;1950, Denver, Colorado 80202, where its principal
    offices are located. In February 2010, Resolute entered into an
    amended lease agreement which increased the office space to
    28,800&#160;square feet and extended the lease term through July
    2013. In addition, Resolute owns and maintains field offices in
    Cortez, Colorado and Montezuma Creek, Utah, and leases other,
    less significant, office space in locations where staff are
    located. Resolute believes that its office facilities are
    adequate for its current needs and that additional office space
    can be obtained if necessary.
</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Available
    Information</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The Company maintains a link to investor relations information
    on its website, <I>www.resoluteenergy.com</I>, where it makes
    available, free of charge, the Company&#146;s filings with the
    SEC, including its annual reports on
    <FONT style="white-space: nowrap">Form&#160;10-K,</FONT>
    quarterly reports on
    <FONT style="white-space: nowrap">Form&#160;10-Q,</FONT>
    current reports on
    <FONT style="white-space: nowrap">Form&#160;8-K,</FONT>
    and all amendments to those reports filed or furnished pursuant
    to Section&#160;13(a) or 15(d) of the Securities Exchange Act of
    1934, (&#147;Exchange Act&#148;), as soon as reasonably
    practicable after the Company electronically files such material
    with, or furnishes it to, the SEC. The Company also makes
    available on its website copies of the charters of the audit,
    compensation and corporate governance/nominating committees of
    the Company&#146;s Board of Directors, its code of business
    conduct and ethics, audit committee whistleblower policy,
    stockholder and interested parties communication policy and
    corporate governance guidelines. Stockholders may request a
    printed copy of these governance materials or any exhibit to
    this report by writing to the Secretary, Resolute Energy
    Corporation, 1675 Broadway, Suite&#160;1950, Denver, Colorado
    80202. You may also read and copy any materials the Company
    files with the SEC at the SEC&#146;s Public Reference Room,
    which is located at 100&#160;F&#160;Street, NE, Room&#160;1580,
    Washington,&#160;D.C. 20549. Information regarding the Public
    Reference Room may be obtained by calling the SEC at
    <FONT style="white-space: nowrap">1-800-SEC-0330.</FONT>
    In addition, the SEC maintains a website at <I>www.sec.gov
    </I>that contains the documents the Company files with the SEC.
    The Company&#146;s website and the information contained on or
    connected to its website is not incorporated by reference herein
    and its web address is included as an inactive textual reference
    only.
</DIV>
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="13%"></TD>
    <TD width="87%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: Arial, Helvetica">ITEM&#160;1A.&#160;&#160;&#160;</FONT></B>
</TD>
    <TD>
    <A name='103'></A><B><FONT style="font-family: Arial, Helvetica">RISK
    FACTORS</FONT></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>You should consider carefully the following risk factors, as
    well as the other information set forth in this
    <FONT style="white-space: nowrap">Form&#160;10-K.</FONT></I>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Risks Related to
    Resolute&#146;s Business, Operations and Industry</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>The risk factors set forth below are not the only risks that
    may affect Resolute&#146;s business. Resolute&#146;s business
    could also be affected by additional risks not currently known
    to it or that it currently deems to be immaterial. If any of the
    following risks were actually to occur, Resolute&#146;s
    business, financial condition or results of operations could be
    materially adversely affected.</I>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: Arial, Helvetica">Resolute&#146;s
    oil production from its Aneth Field Properties is presently
    connected by pipeline to only one customer, and such sales are
    dependent on gathering systems and transportation facilities
    that Resolute does not control. With only one pipeline connected
    customer, when these facilities or systems are unavailable,
    Resolute&#146;s operations can be interrupted and its revenue
    reduced.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The marketability of Resolute&#146;s oil and gas production
    depends in part upon the availability, proximity and capacity of
    pipelines, gas gathering systems, and processing facilities
    owned by third parties. In general, Resolute does not control
    these facilities and its access to them may be limited or denied
    due to circumstances beyond its control. A significant
    disruption in the availability of these facilities could
    adversely impact Resolute&#146;s ability to deliver to market
    the oil and gas Resolute produces, and thereby cause a
    significant interruption in its operations. In some cases,
    Resolute&#146;s ability to deliver to market its oil and gas is
    dependent upon coordination among third parties who own
    pipelines, transportation and processing facilities that
    Resolute uses, and any inability or unwillingness of those
    parties to coordinate efficiently could also interrupt
    Resolute&#146;s operations. These are risks for which Resolute
    generally does not maintain insurance.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    With respect to oil produced at its Aneth Field Properties,
    Resolute operates in a remote part of southeastern Utah, and
    currently Resolute sells all of its crude oil production to a
    single customer, Western. Resolute and Western, with the consent
    of NNOG, entered into a new contract effective September&#160;1,
    2009, covering the joint crude oil volumes of Resolute and NNOG
    from Aneth Field with an initial term of one year and continuing
    <FONT style="white-space: nowrap">month-to-month</FONT>
    thereafter, with either party having the right to terminate
    after the initial term, upon ninety days&#146; notice. The
    contract may also be terminated by Western after
    December&#160;30, 2009, upon sixty days notice, if Western is
    not able to renew its
    <FONT style="white-space: nowrap">right-of-way</FONT>
    agreements with the Navajo Nation or if such
    <FONT style="white-space: nowrap">rights-of-way</FONT>
    are declared invalid and either Western is prevented from using
    such rights-of way or the Navajo Nation declares Western to be
    in trespass with respect to such
    <FONT style="white-space: nowrap">rights-of-way.</FONT>
    Resolute&#146;s crude oil production is currently transported to
    a terminal that serves Western&#146;s two refineries in the
    region via a crude oil pipeline owned by NNOG. In November 2009,
    Western announced that it intended to discontinue refining
    operations at one of its two refineries. See <I>Business and
    Properties - Marketing and Customers&#160;&#151; Aneth
    Field</I>. There are presently no pipelines in service that run
    the entire distance from Resolute&#146;s Aneth Field Properties
    to any alternative markets. If Western did not purchase
    Resolute&#146;s crude oil, Resolute would have to transport its
    crude oil to other markets by a combination of the NNOG
    pipeline, truck and rail, which would result, in the short term,
    in a lower price relative to the NYMEX price than it currently
    receives. Resolute may in the future receive prices with a
    greater differential to NYMEX than it currently receives, which
    if not offset by increases in the NYMEX price for crude oil
    could result in a material adverse effect on Resolute&#146;s
    financial results.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Resolute would also have to find alternative markets if
    Western&#146;s refining capacity in the region is temporarily or
    permanently shut-down for any reason or if NNOG&#146;s pipeline
    to Western&#146;s refineries is temporarily or permanently
    shut-in for any reason. Resolute does not have any control over
    Western&#146;s decisions with respect to its refineries.
    Resolute would also not have control over similar decisions by
    any replacement customers.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Resolute customarily ships crude oil to Western daily and
    receives payment on the twentieth day of the month following the
    month of production. As a result, at any given time, Western
    owes Resolute between 20 and 50&#160;days of production revenue.
    Based upon average production from Aneth Field during the three
    months ended December&#160;31, 2009, and a NYMEX oil price of
    $80.00 per barrel, Western could owe Resolute between
    $8&#160;million and $20&#160;million. If Western defaults on its
    obligation to pay Resolute for the crude oil it has delivered,
</DIV>
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    <BR>
A-34
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Resolute&#146;s income would be materially and negatively
    affected. Both Moody&#146;s Investor Services and
    Standard&#160;&#038; Poor&#146;s have assigned credit ratings to
    Western&#146;s long-term debt that are below investment grade
    and Standard&#160;&#038; Poor&#146;s has recently put Western on
    credit watch negative.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    With respect to its Wyoming operations, Resolute does not have
    any long-term supply or similar agreements with entities for
    which it acts as a producer and currently sells most of its
    Wyoming oil production under a purchase agreement with a single
    purchaser. Resolute is therefore dependent upon its ability to
    sell oil and gas at the prevailing wellhead market price. There
    can be no assurance that purchasers will be available or that
    the prices they are willing to pay will remain stable and not
    decline.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: Arial, Helvetica">Current
    financial conditions may have effects on Resolute&#146;s
    business and financial condition that Resolute cannot
    predict.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Turmoil in the global financial system may continue to have an
    impact on Resolute&#146;s business and financial condition, and
    Resolute may continue to face challenges if conditions in the
    financial markets do not improve. Resolute&#146;s ability to
    access the capital markets has been restricted as a result of
    this turmoil and may be restricted in the future when Resolute
    would like, or need, to raise capital. The financial turmoil may
    also limit the number of prospects for Resolute&#146;s
    development and acquisition, or make such transactions
    uneconomic or difficult to consummate, and make it more
    difficult for Resolute to develop its reserves. The economic
    situation could also adversely affect the collectability of
    Resolute&#146;s trade receivables and cause Resolute&#146;s
    commodity hedging arrangements, if any, to be ineffective if
    Resolute&#146;s counterparties are unable to perform their
    obligations or seek bankruptcy protection. It may also adversely
    affect any of Resolute&#146;s partners&#146; ability to fulfill
    their obligations under operating agreements and Resolute may be
    required to fund these expenditures from other sources or reduce
    Resolute&#146;s planned activities. Additionally, the global
    economic situation could lead to further reduced demand for oil
    and gas, lower product prices or continued product price
    volatility which would have a negative effect on Resolute&#146;s
    revenue.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: Arial, Helvetica">Inadequate
    liquidity could materially and adversely affect Resolute&#146;s
    business operations in the future.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Resolute&#146;s ability to generate cash flow depends upon
    numerous factors related to its business that may be beyond its
    control, including:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="4%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the amount of oil and gas it produces;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the price at which it sells its oil and gas production and the
    costs it incurs to market its production;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the effectiveness of its commodity price hedging strategy;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the development of proved undeveloped properties and the success
    of its enhanced oil recovery activities;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the level of its operating and general and administrative costs;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    its ability to replace produced reserves;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    prevailing economic conditions;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    government regulation and taxation;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the level of its capital expenditures required to implement its
    development projects and make acquisitions of additional
    reserves;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    its ability to borrow under its revolving credit facility;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    its debt service requirements contained in its revolving credit
    facility or future debt agreements;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    fluctuations in its working capital needs;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    timing and collectability of receivables.
</TD>
</TR>

</TABLE>
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    <BR>
A-35
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: Arial, Helvetica">Resolute&#146;s
    planned operations, as well as replacement of its production and
    reserves, will require additional capital that may not be
    available.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Resolute&#146;s business is capital intensive, and requires
    substantial expenditures to maintain currently producing wells,
    to make the acquisitions of additional reserves
    <FONT style="white-space: nowrap">and/or</FONT>
    conduct its exploration, exploitation and development program
    necessary to replace its reserves, to pay expenses and to
    satisfy its other obligations, which will require cash flow from
    operations, additional borrowings or proceeds from the issuance
    of additional equity, or some combination thereof, which may not
    be available to Resolute.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    For example, Resolute expects to spend an additional
    $377.4&#160;million of capital expenditures over the next
    28&#160;years (including
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    purchases) to implement and complete its proved developed
    non-producing and proved undeveloped
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    flood projects. Resolute expects to incur approximately
    $161.7&#160;million of these future capital expenditures between
    2010 and 2012 based on its year-end 2009 SEC case reserve
    report. To the extent Resolute&#146;s production and reserves
    decline faster than it anticipates, Resolute will require a
    greater amount of capital to maintain its production.
    Resolute&#146;s ability to obtain bank financing or to access
    the capital markets for future equity or debt offerings may be
    limited by its financial condition at the time of any such
    financing or offering, the covenants in its revolving credit
    facility or future debt agreements, adverse market conditions or
    other contingencies and uncertainties that are beyond its
    control. Resolute&#146;s failure to obtain the funds necessary
    for future activities could materially affect its business,
    results of operations and financial condition. Even if Resolute
    is successful in obtaining the necessary funds, the terms of
    such financings could limit Resolute&#146;s activities and its
    ability to pay dividends. In addition, incurring additional debt
    may significantly increase Resolute&#146;s interest expense and
    financial leverage, and issuing additional equity may result in
    significant equity holder dilution.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <B><I>A significant part of Resolute&#146;s development plan
    involves the implementation of its
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>projects.
    The supply of
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB></I></B>
    <B><I>and efficacy of the planned projects is uncertain, and
    other resources may not be available or may be more expensive
    than expected, which could adversely impact production, revenue
    and earnings, and may require a write-down of reserves.</I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Producing oil and gas reservoirs are depleting assets generally
    characterized by declining production rates that vary depending
    upon factors such as reservoir characteristics. A significant
    part of Resolute&#146;s business strategy depends on its ability
    to successfully implement
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    floods and other development projects it has planned for its
    Aneth Field Properties in order to counter the natural decline
    in production from the field. As of December&#160;31, 2009,
    approximately 65% of Resolute&#146;s estimated net proved
    reserves were classified as proved developed non-producing and
    proved undeveloped, meaning Resolute must undertake additional
    development activities before it can produce those reserves.
    These development activities involve numerous risks, including
    insufficient quantities of
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>,
    project execution risks and cost overruns, insufficient capital
    to allocate to these projects, and inability to obtain equipment
    and materials that are necessary to successfully implement these
    projects.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    A critical part of Resolute&#146;s development strategy depends
    upon its ability to purchase
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>.
    Resolute currently has entered into contracts to purchase
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    from two suppliers, EMGP and Kinder Morgan. The contract with
    EMGP expires June&#160;30, 2010; the contract with Kinder Morgan
    expires in 2016. All of the
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    Resolute has under contract comes from the McElmo Dome field.
    Following the termination of the EMGP contract in June 2010, all
    of Resolute&#146;s
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    will be supplied under the Kinder Morgan contract. If Resolute
    is unable to purchase sufficient
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    under either of its existing contracts, or from Kinder Morgan
    after June 2010, either because Resolute&#146;s suppliers are
    unable or are unwilling to supply the contracted volumes,
    Resolute would have to purchase
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    from other owners of
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    in the McElmo Dome field or elsewhere. In such an event,
    Resolute may not be able to locate substitute supplies of
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    at acceptable prices or at all. In addition, certain suppliers
    of
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>,
    such as Kinder Morgan, use
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    in their own tertiary recovery projects. As a result, if
    Resolute needs to purchase additional volumes of
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>,
    these suppliers may not be willing to sell a portion of their
    supply of
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    to Resolute if their own demand for
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    exceeds their supply. Additionally, even if adequate supplies
    are available for delivery from the McElmo Dome field, Resolute
    could experience temporary or permanent shut-ins of
    Resolute&#146;s pipeline that delivers
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    from that field to its Aneth Field Properties. If Resolute is
    unable to obtain the
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    it requires and is unable to undertake its development projects
    or if Resolute&#146;s development projects are significantly
    delayed, Resolute&#146;s recoverable reserves may not be as much
    as it currently anticipates, it will not realize its expected
    incremental production, and its expected decline in the rate of
    production from its Aneth Field Properties will be accelerated.
    If Resolute&#146;s requirements for
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    were to decrease, it could be required to incur
</DIV>
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    <BR>
A-36
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    costs for
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    that it has not purchased or to purchase more
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    than it could use effectively. For more information about
    Resolute&#146;s minimum financial obligations under these
    contracts, please read &#147;<I>Resolute&#146;s
    Business&#160;&#151; Planned Operating and Development
    Activities</I>.&#148; For more information about Resolute&#146;s
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    development program and Resolute&#146;s minimum financial
    obligations under these contracts, please read
    &#147;<I>Resolute&#146;s Business&#160;&#151; Planned Operating
    and Development Activities</I>.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    In addition, Resolute&#146;s estimate of future development
    costs, including with respect to its planned
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    development projects, is based on Resolute&#146;s current
    expectation of prices and other costs of
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>,
    equipment and personnel Resolute will need in the future to
    implement such projects. Resolute&#146;s actual future
    development costs may be significantly higher than Resolute
    currently estimates, and delays in executing its development
    projects could result in higher labor and other costs associated
    with these projects. If costs become too high, Resolute&#146;s
    future development projects may not be economical and Resolute
    may be forced to abandon its development projects.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Furthermore, the results Resolute obtains from its
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    flood projects may not be the same as it expected when preparing
    its estimate of net proved reserves. Lower than expected
    production results or delays in when Resolute first realizes
    additional production as a result of its
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    flood projects will reduce the value of its reserves, which
    could reduce its ability to incur indebtedness, require Resolute
    to use cash to repay indebtedness, and require Resolute to
    write-down the value of its reserves. Therefore, Resolute&#146;s
    future reserves, production and future cash flow are highly
    dependent on Resolute&#146;s success in efficiently developing
    and exploiting its current estimated net proved undeveloped
    reserves.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: Arial, Helvetica">Resolute is a
    party to contracts that require it to pay for a minimum quantity
    of
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>.
    These contracts limit Resolute&#146;s ability to curtail costs
    if its requirements for
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    decrease.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Resolute&#146;s contracts with Kinder Morgan and EMGP require
    Resolute to take, or pay for if not taken, a minimum volume of
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    on a monthly basis. The
    <FONT style="white-space: nowrap">take-or-pay</FONT>
    obligations result in minimum financial obligations through
    2016, in the case of the Kinder Morgan contract, and through
    2010 in the case of the EMGP contract. The
    <FONT style="white-space: nowrap">take-or-pay</FONT>
    provisions in both contracts allow Resolute to subsequently
    apply
    <FONT style="white-space: nowrap">take-or-pay</FONT>
    payments made to volumes subsequently taken, but these
    provisions have limitations and Resolute may not be able to
    utilize all such amounts paid if the limitations apply or if
    Resolute does not subsequently take sufficient volumes to
    utilize the amounts previously paid.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: Arial, Helvetica">Oil and gas
    prices are volatile and change for reasons that are beyond
    Resolute&#146;s control. Decreases in the price Resolute
    receives for its oil and gas production can adversely affect its
    business, financial condition, results of operations and
    liquidity and impede its growth.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The oil and gas markets are highly volatile, and Resolute cannot
    predict future prices. Resolute&#146;s revenue, profitability
    and cash flow depend upon the prices and demand for oil and
    natural gas. The markets for these commodities are very volatile
    and even relatively modest drops in prices can significantly
    affect Resolute&#146;s financial results and impede its growth.
    Prices for oil and gas may fluctuate widely in response to
    relatively minor changes in the supply of and demand for the
    commodities, market uncertainty and a variety of additional
    factors that are beyond Resolute&#146;s control, such as:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="4%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    domestic and foreign supply of and demand for oil and gas,
    including as a result of technological advances affecting energy
    consumption and supply;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    weather conditions;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    overall domestic and global political and economic conditions;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    actions of the Organization of Petroleum Exporting Countries and
    other state-controlled oil companies relating to oil price and
    production controls;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the price of foreign imports;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    political and economic conditions in oil producing countries,
    including the Middle East and South America;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    technological advances affecting energy consumption;
</TD>
</TR>

</TABLE>
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<P align="center" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <BR>
A-37
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="4%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    variations between product prices at sales points and applicable
    index prices;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    domestic, tribal and foreign governmental regulations and
    taxation;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the impact of energy conservation efforts;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the capacity, cost and availability of oil and gas pipelines and
    other transportation and gathering facilities, and the proximity
    of these facilities to its wells;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the availability of refining and processing capability;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    factors specific to the local and regional markets where
    Resolute&#146;s production occurs;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the price and availability of alternative fuels.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    In the past, the price of crude oil has been extremely volatile,
    and Resolute expects this volatility to continue. For example,
    during the twelve months ended December&#160;31, 2009, the NYMEX
    price for light sweet crude oil ranged from a high of $81.04 per
    Bbl to a low of $33.98 per Bbl. For calendar year 2008, the
    range was from a high of $145.28 per Bbl to a low of $33.03 per
    Bbl, and for the five years ended December&#160;31, 2009, the
    price ranged from a high of $145.28 per Bbl to a low of $31.41
    per Bbl.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    A decline in oil and gas prices can significantly affect many
    aspects of Resolute&#146;s business, including financial
    condition, revenue, results of operations, liquidity, rate of
    growth and the carrying value of Resolute&#146;s oil and gas
    properties, all of which depend primarily or in part upon those
    prices. For example, declines in the prices Resolute receives
    for its oil and gas adversely affect its ability to finance
    capital expenditures, make acquisitions, raise capital and
    satisfy its financial obligations. In addition, declines in
    prices reduce the amount of oil and gas that Resolute can
    produce economically and, as a result, adversely affect its
    quantities of proved reserves. Among other things, a reduction
    in its reserves can limit the capital available to Resolute, as
    the maximum amount of available borrowing under its revolving
    credit facility is, and the availability of other sources of
    capital likely will be, based to a significant degree on the
    estimated quantities of those reserves.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: Arial, Helvetica">Resolute&#146;s
    estimated proved reserves are based on many assumptions that may
    turn out to be inaccurate. Any significant inaccuracies in these
    reserve estimates or underlying assumptions will materially
    affect the quantities of Resolute&#146;s proved
    reserves.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Resolute&#146;s estimate of proved reserves for the period ended
    December&#160;31, 2009, is based on the quantities of oil and
    gas that engineering and geological analyses demonstrate with
    reasonable certainty to be recoverable from established
    reservoirs in the future under current operating and economic
    parameters. Netherland, Sewell&#160;&#038; Associates, Inc.,
    independent petroleum engineers, audited reserve and economic
    evaluations of all properties that were prepared by Resolute on
    a
    <FONT style="white-space: nowrap">well-by-well</FONT>
    basis. Oil and gas reserve engineering is not exact; it relies
    on subjective interpretations of data that may be inaccurate or
    incomplete and requires predictions and assumptions of future
    reservoir behavior and economic conditions. Estimates of
    economically recoverable oil and gas reserves and of future net
    cash flows depend upon a number of variable factors and
    assumptions, including:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="4%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the assumed accuracy of field measurements and other reservoir
    data;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    assumptions regarding expected reservoir performance relative to
    historical analog reservoir performance;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the assumed effects of regulations by governmental agencies;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    assumptions concerning future oil and gas prices;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    assumptions concerning future operating costs, severance and
    excise taxes, development costs and workover and remedial costs.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Because all reserve estimates are to some degree subjective,
    each of the following items may differ materially from those
    assumed in estimating reserves:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="4%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the quantities of oil and gas that are ultimately recovered;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the timing of the recovery of oil and gas reserves;
</TD>
</TR>

</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <BR>
A-38
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="4%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the production and operating costs incurred;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the amount and timing of future development expenditures.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Furthermore, different reserve engineers may make different
    estimates of reserves and cash flows based on the same available
    data. As a result of all these factors, Resolute may make
    material changes to reserves estimates to take into account
    changes in its assumptions and the results of its development
    activities and actual drilling and production.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    If these assumptions prove to be incorrect, Resolute&#146;s
    estimates of reserves, the economically recoverable quantities
    of oil and gas attributable to any particular group of
    properties, the classifications of reserves based on risk of
    recovery and Resolute&#146;s estimates of the future net cash
    flows from its reserves could change significantly. In addition,
    if declines in oil and gas prices result in its having to make
    substantial downward adjustments to its estimated proved
    reserves, or if its estimates of development costs increase,
    production data factors change or drilling results deteriorate,
    accounting rules may require Resolute to make downward
    adjustments, as a non-cash impairment charge to earnings, to the
    carrying value of Resolute&#146;s oil and gas properties. If
    Resolute incurs impairment charges in the future, Resolute could
    have a material adverse effect on its results of operations in
    the period incurred and on its ability to borrow funds under its
    credit facility.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: Arial, Helvetica">The
    standardized measure of future net cash flows from
    Resolute&#146;s net proved reserves is based on many assumptions
    that may prove to be inaccurate. Any material inaccuracies in
    Resolute&#146;s reserve estimates or underlying assumptions will
    materially affect the quantities and present value of its proved
    reserves.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Actual future net cash flows from Resolute&#146;s oil and gas
    properties will be determined by the actual prices Resolute
    receives for oil and gas, its actual operating costs in
    producing oil and gas, the amount and timing of actual
    production, the amount and timing of Resolute&#146;s capital
    expenditures, supply of and demand for oil and gas and changes
    in governmental regulations or taxation, which may differ from
    the assumptions used in creating estimates of future cash flows.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The timing of both Resolute&#146;s production and its incurrence
    of expenses in connection with the development and production of
    oil and gas properties will affect the timing of actual future
    net cash flows from proved reserves, and thus their actual
    present value. In addition, the 10% discount factor Resolute
    uses when calculating discounted future net cash flows in
    compliance with guidance from the Financial Accounting Standards
    Board may not be the most appropriate discount factor based on
    interest rates in effect from time to time and risks associated
    with Resolute or the oil and gas industry in general.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: Arial, Helvetica">Currently,
    substantially all of Resolute&#146;s oil producing properties
    are located on the Navajo Reservation, making Resolute
    vulnerable to risks associated with laws and regulations
    pertaining to the operation of oil and gas properties on Native
    American tribal lands.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Substantially all of Resolute&#146;s Aneth Field Properties,
    which represent approximately 93% of Resolute&#146;s total
    proved reserves and approximately 75% of Resolute&#146;s
    production (on an equivalent barrel basis) at December&#160;31,
    2009, are located on the Navajo Reservation in southeastern
    Utah. Operation of oil and gas interests on Indian lands
    presents unique considerations and complexities. These arise
    from the fact that Indian tribes are &#147;dependent&#148;
    sovereign nations located within states, but are subject only to
    tribal laws and treaties with, and the laws and Constitution of,
    the United States. This creates a potential overlay of three
    jurisdictional regimes&#160;&#151; Indian, federal and state.
    These considerations and complexities could arise around various
    aspects of Resolute&#146;s operations, including real property
    considerations, employment practices, environmental matters and
    taxes.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    For example, Resolute is subject to the Navajo Preference in
    Employment Act. This law requires that it give preference in
    hiring to members of the Navajo Nation, or in some cases other
    Native American tribes, if such a person is qualified for the
    position, rather than hiring the most qualified person. A
    further regulatory requirement is imposed by the Navajo Nation
    Business Opportunity Act which requires Resolute to give
    preference to businesses owned by Navajo persons when it is
    hiring contractors. These regulatory restrictions can negatively
    affect Resolute&#146;s ability to recruit and retain the most
    highly qualified personnel or to utilize the most experienced
    and economical contractors for its projects.
</DIV>
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<P align="center" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <BR>
A-39
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Furthermore, because tribal property is considered to be held in
    trust by the federal government, before Resolute can take
    actions such as drilling, pipeline installation or similar
    actions, it is required to obtain approvals from various federal
    agencies that are in addition to customary regulatory approvals
    required of oil and gas producers operating on non-Indian
    property. Resolute also is required to obtain approvals from the
    Resources Committee, which is a standing committee of the Navajo
    Nation Tribal Council, before Resolute can take similar actions
    with respect to its Aneth Field Properties. These approvals
    could result in delays in its implementation of, or otherwise
    prevent it from implementing, its development program. These
    approvals, even if ultimately obtained, could result in delays
    in Resolute&#146;s ability to implement its development program.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    In addition, under the Native American laws and regulations,
    Resolute could be held liable for personal injuries, property
    damage (including site
    <FONT style="white-space: nowrap">clean-up</FONT> and
    restoration costs) and other damages. Failure to comply with
    these laws and regulations may also result in the suspension or
    termination of Resolute&#146;s operations and subject it to
    administrative, civil and criminal penalties, including the
    assessment of natural resource damages.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    For additional information about the legal complexities and
    considerations associated with operating on the Navajo
    Reservation, please read &#147;<I>Resolute&#146;s
    Business&#160;&#151; Laws and Regulations Pertaining to Oil and
    Gas Operations on Navajo Nation Lands</I>.&#148;
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: Arial, Helvetica">NNOG has
    options to purchase a portion of Resolute&#146;s Aneth Field
    Properties.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    NNOG has a total of six options to purchase for cash at fair
    market value, in the aggregate, up to 30.0% of Resolute&#146;s
    interest in the Chevron Properties and 30.0% of its interest in
    the ExxonMobil Properties. These options become exercisable over
    a period of time if financial hurdles related to recovery by
    Resolute of its investments are met. If NNOG exercises its
    purchase options in full, it could acquire from Resolute
    undivided working interests representing an 18.15% working
    interest in the Aneth Unit, a 22.5% working interest in the
    McElmo Creek Unit and a 17.7% working interest in the Ratherford
    Unit. If NNOG were to exercise any of these options, Resolute
    might not be able to effectively redeploy the cash received from
    NNOG. For additional information about NNOG&#146;s purchase
    right, please read &#147;<I>Resolute&#146;s Business&#160;&#151;
    Relationship with the Navajo Nation</I>.&#148;
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: Arial, Helvetica">The statutory
    preferential purchase right held by the Navajo Nation to acquire
    transferred Navajo Nation oil and gas leases and NNOG&#146;s
    right of first negotiation could diminish the value Resolute may
    be able to receive in a sale of its properties.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Nearly all of Resolute&#146;s Aneth Field Properties are located
    on the Navajo Reservation. The Navajo Nation has a statutory
    preferential right to purchase at the offered price any Navajo
    Nation oil and gas lease or working interest in such a lease at
    the time a proposal is made to transfer the lease or interest.
    The existence of this right can make it more difficult to sell a
    Navajo Nation oil and gas lease because this right may
    discourage third parties from purchasing such a lease and,
    therefore, could reduce the value of Resolute&#146;s leases if
    it were to attempt to sell them. In addition, under the terms of
    Resolute&#146;s Cooperative Agreement with NNOG, Resolute is
    obligated to first negotiate with NNOG to sell its Aneth Field
    Properties before it may offer to sell such properties to any
    other third party. This contractual right could make it more
    difficult for Resolute to sell its Aneth Field Properties. For
    additional information about the right of first negotiation for
    the benefit of NNOG, please read &#147;<I>Resolute&#146;s
    Business&#160;&#151; Relationship with the Navajo
    Nation</I>.&#148;
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: Arial, Helvetica">All of
    Resolute&#146;s producing properties are located in two
    geographic areas, making it vulnerable to risks associated with
    operating in only two geographic areas.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    A substantial amount of Resolute&#146;s sales of oil and gas and
    93% of its total proved reserves at December&#160;31, 2009, are
    currently located in its Aneth Field Properties in the southeast
    Utah portion of the Paradox Basin in the Four Corners area of
    the southwestern United States. Essentially all of the remainder
    of Resolute&#146;s sales of oil and gas and 7% of its total
    proved reserves are predominantly located in Hilight Field in
    the Powder River Basin in northeastern Wyoming and southeastern
    Montana. As a result of Resolute&#146;s lack of diversification
    in asset type and location, any delays or interruptions of
    production from these wells caused by such factors as
    governmental regulation, transportation capacity constraints,
    curtailment of production or interruption of transportation of
    oil produced from the wells in these fields, price fluctuations,
    natural disasters or shut-downs of the pipelines
</DIV>
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    <BR>
A-40
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    connecting its Aneth Field production to refineries would have a
    significantly greater impact on Resolute&#146;s results of
    operations than if Resolute possessed more diverse assets and
    locations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Lack of geographic diversification also affects the prices to be
    received for Resolute&#146;s oil and gas production from its
    properties, since prices are determined to a significant extent
    by factors affecting the regional supply of and demand for oil
    and gas, including the adequacy of the pipeline and processing
    infrastructure in the region to transport or process
    Resolute&#146;s production and that of other producers. Those
    factors result in basis differentials between the published
    indices generally used to establish the price received for
    regional oil and gas production and the actual (frequently
    lower) price Resolute may receive for its production.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: Arial, Helvetica">Developing and
    producing oil and gas are costly and high-risk activities with
    many uncertainties that could adversely affect Resolute&#146;s
    financial condition or results of operations, and insurance may
    not be available or may not fully cover losses.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    There are numerous risks associated with developing, completing
    and operating a well, and cost factors can adversely affect the
    economics of a well. Resolute&#146;s development and producing
    operations may be curtailed, delayed or canceled as a result of
    other factors, including:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="4%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    high costs, shortages or delivery delays of rigs, equipment,
    labor or other services;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    unexpected operational events
    <FONT style="white-space: nowrap">and/or</FONT>
    conditions;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    reductions in oil or gas prices or increases in the differential
    between index oil or gas prices and prices received by Resolute;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    increases in severance taxes;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    limitations on Resolute&#146;s ability to sell its crude oil or
    gas production;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    adverse weather conditions and natural disasters;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    facility or equipment malfunctions, and equipment failures or
    accidents;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    pipe or cement failures and casing collapses;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    compliance with environmental and other governmental
    requirements;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    environmental hazards, such as leaks, oil spills, pipeline
    ruptures and discharges of toxic gases;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    lost or damaged oilfield development and service tools;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    unusual or unexpected geological formations, and pressure or
    irregularities in formations;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    fires, blowouts, surface craterings and explosions;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    shortages or delivery delays of equipment and services;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    title problems;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    objections from surface owners and nearby surface owners in the
    areas where Resolute operates;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    uncontrollable flows of oil, gas or well fluids.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Any of these or other similar occurrences could reduce
    Resolute&#146;s cash from operations or result in the disruption
    of Resolute&#146;s operations, substantial repair costs,
    significant damage to property, environmental pollution and
    impairment of its operations. The occurrence of these events
    could also affect third parties, including persons living near
    Resolute&#146;s operations, Resolute&#146;s employees and
    employees of Resolute&#146;s contractors, leading to injuries or
    death.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Insurance against all operational risk is not available to
    Resolute, and pollution and environmental risks generally are
    not fully insurable. Additionally, Resolute may elect not to
    obtain insurance if it believes that the cost of available
    insurance is excessive relative to the perceived risks
    presented. Losses could, therefore, occur for uninsurable or
    uninsured risks or in amounts in excess of existing insurance
    coverage. Moreover, insurance may not be available in the future
    at commercially reasonable costs and on commercially reasonable
    terms. Changes
</DIV>
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    <BR>
A-41
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    in the insurance markets subsequent to the terrorist attacks on
    September&#160;11, 2001, have made it more difficult for
    Resolute to obtain coverage for terrorist attacks and related
    risks. Resolute may not be able to obtain the levels or types of
    insurance it would otherwise have obtained prior to these market
    changes, and any insurance coverage Resolute does obtain may
    contain large deductibles or it may not cover all hazards or
    potential losses. Losses and liabilities from uninsured and
    underinsured events or a delay in the payment of insurance
    proceeds could adversely affect Resolute&#146;s business,
    financial condition and results of operations.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: Arial, Helvetica">Exploration
    and development drilling may not result in commercially
    productive reserves.</FONT></I></B>
</DIV>

<DIV style="margin-top: 9pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Resolute may not encounter commercially productive reservoirs
    through its drilling operations. In 2010, Resolute expects to
    incur approximately $30&#160;million of capital expenditures for
    acreage acquisition, exploration and development drilling, most
    significantly in the Williston Basin properties in North Dakota.
    The new wells Resolute drills or participates in may not be
    productive and the Company may not recover all or any portion of
    its investment in such wells. The seismic data and other
    technologies Resolute uses do not allow it to know conclusively
    prior to drilling whether it will find oil or gas or, if found,
    that the hydrocarbons will be produced economically. The cost of
    drilling, completing and operating a well is often uncertain,
    and cost factors can adversely affect the economics of a
    project. Resolute&#146;s efforts will be unprofitable if it
    drills dry wells or wells that are productive but do not produce
    enough reserves to return a profit after drilling, operating and
    other costs. Further, Resolute&#146;s drilling operations may be
    curtailed, delayed or canceled as a result of a variety of
    factors, including:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="4%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    increases in the cost of, or shortages or delays in the
    availability of, drilling rigs and equipment;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    unexpected drilling conditions;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    title problems;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    pressure or irregularities in formations;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    equipment failures or accidents;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    adverse weather conditions;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    compliance with environmental and other governmental
    requirements.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: Arial, Helvetica">If Resolute
    does not make acquisitions of reserves on economically
    acceptable terms, Resolute&#146;s future growth and ability to
    maintain production will be limited to only the growth it
    intends to achieve through the development of its proved
    developed non-producing and proved undeveloped
    reserves.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Producing oil and gas reservoirs are generally characterized by
    declining production rates that vary depending upon reservoir
    characteristics and other factors. The rate of decline will
    change if production from Resolute&#146;s existing wells
    declines in a different manner than Resolute has estimated and
    can change under other circumstances. Resolute&#146;s future oil
    and gas reserves and production and, therefore, Resolute&#146;s
    cash flow and income are highly dependent upon its success in
    efficiently developing and exploiting its current reserves and
    economically finding or acquiring additional recoverable
    reserves.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Resolute intends to grow by bringing its proved developed
    non-producing reserves into production, developing its proved
    undeveloped reserves and exploring for and finding additional
    reserves on its non-proved properties. Resolute&#146;s ability
    to further grow depends in part on its ability to make
    acquisitions, particularly in the event NNOG exercises its
    options to increase its working interest in the Aneth Field
    Properties. Resolute may be unable to make such acquisitions
    because it is:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="4%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    unable to identify attractive acquisition candidates or
    negotiate acceptable purchase contracts with the seller;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    unable to obtain financing for these acquisitions on
    economically acceptable terms;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    outbid by competitors.
</TD>
</TR>

</TABLE>
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    <BR>
A-42
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    If Resolute is unable to acquire properties containing proved
    reserves at acceptable costs, Resolute&#146;s total level of
    proved reserves and associated future production will decline as
    a result of its ongoing production of its reserves.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: Arial, Helvetica">Any
    acquisitions Resolute completes are subject to substantial risks
    that could negatively affect its financial condition and results
    of operations.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Even if Resolute does make acquisitions that it believes will
    enhance its growth, financial condition or results of
    operations, any acquisition involves potential risks, including,
    among other things:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="4%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the validity of Resolute&#146;s assumptions about the acquired
    properties or company&#146;s reserves, future production, the
    future prices of oil and gas, infrastructure requirements,
    environmental and other liabilities, revenue and costs;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    an inability to integrate successfully the properties and
    businesses Resolute acquires;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    a decrease in Resolute&#146;s liquidity to the extent it uses a
    significant portion of its available cash or borrowing capacity
    to finance acquisitions or operations of the acquired properties;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    a significant increase in its interest expense or financial
    leverage if Resolute incurs debt to finance acquisitions or
    operations of the acquired properties;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the assumption of unknown liabilities, losses or costs for which
    Resolute is not indemnified or for which Resolute&#146;s
    indemnity is inadequate;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the diversion of management&#146;s attention from other business
    concerns;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    an inability to hire, train or retain qualified personnel to
    manage and operate Resolute&#146;s growing business and assets;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    unforeseen difficulties encountered in operating in new
    geographic areas;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    customer or key employee losses at the acquired businesses.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Resolute&#146;s decision to acquire a property or business will
    depend in part on the evaluation of data obtained from
    production reports and engineering studies, geophysical and
    geological analyses and seismic and other information, the
    results of which are often inconclusive and subject to various
    interpretations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Also, Resolute&#146;s reviews of acquired properties are
    inherently incomplete because it generally is not feasible to
    perform an in-depth review of the individual properties involved
    in each acquisition. Even a detailed review of records and
    properties may not necessarily reveal existing or potential
    problems, nor will it permit a buyer to become sufficiently
    familiar with the properties to assess fully their deficiencies
    and potential problems. Inspections may not always be performed
    on every well, and environmental problems, such as ground water
    contamination, are not necessarily observable even when an
    inspection is undertaken. The potential risks in making
    acquisitions could adversely affect Resolute&#146;s ability to
    achieve anticipated levels of cash flows from the acquired
    businesses or realize other anticipated benefits of those
    acquisitions.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: Arial, Helvetica">Resolute&#146;s
    future debt levels may limit its flexibility to obtain
    additional financing and pursue other business
    opportunities.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Resolute expects to have the ability to incur additional debt
    under its revolving credit facility, subject to borrowing base
    limitations. Resolute&#146;s increased level of indebtedness
    could have important consequences to Resolute, including:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="4%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Resolute&#146;s ability to obtain additional financing, if
    necessary, for working capital, capital expenditures,
    acquisitions or other purposes may be impaired or such financing
    may not be available on favorable terms;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    covenants contained in Resolute&#146;s existing and future
    credit and debt arrangements will require it to meet financial
    tests that may affect its flexibility in planning for and
    reacting to changes in its business, including possible
    acquisition opportunities;
</TD>
</TR>

</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <BR>
A-43
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="4%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Resolute will need a substantial portion of its cash flow to
    make principal and interest payments on its indebtedness,
    reducing the funds that would otherwise be available for
    operations and future business opportunities;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Resolute&#146;s debt level will make it more vulnerable than its
    competitors with less debt to competitive pressures or a
    downturn in its business or the economy generally.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Resolute&#146;s ability to service its indebtedness will depend
    upon, among other things, its future financial and operating
    performance, which will be affected by prevailing economic
    conditions and financial, business, regulatory and other
    factors, some of which are beyond Resolute&#146;s control. If
    Resolute&#146;s operating results are not sufficient to service
    its current or future indebtedness, it will be forced to take
    actions such as reducing or delaying business activities,
    acquisitions, investments
    <FONT style="white-space: nowrap">and/or</FONT>
    capital expenditures, selling assets, restructuring or
    refinancing Resolute&#146;s indebtedness, or seeking additional
    equity capital or bankruptcy protection. Resolute may not be
    able to effect any of these remedies on satisfactory terms or at
    all.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: Arial, Helvetica">Resolute&#146;s
    revolving credit facility has substantial financial and
    operating covenants that restrict Resolute&#146;s business and
    financing activities and prohibit Resolute from paying
    dividends. Future borrowing agreements would likely include
    similar restrictions.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The operating and financial covenants in Resolute&#146;s senior
    secured revolving credit facility restrict Resolute&#146;s
    ability to finance future operations or capital needs or to
    engage, expand or pursue its business activities.
    Resolute&#146;s revolving credit facility currently restricts,
    and it anticipates that any amendment to such facility would
    restrict, its ability to:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="4%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    incur indebtedness;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    grant liens;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    make acquisitions and investments;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    lease equipment;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    redeem or prepay other debt;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    pay dividends to shareholders or repurchase shares;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    enter into transactions with affiliates;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    enter into a merger, consolidation or sale of assets.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The revolving credit agreement matures in March 2014, unless
    extended, and is secured by all of Resolute&#146;s oil and gas
    properties as well as a pledge of all ownership interests in
    operating subsidiaries. The revolving credit agreement has a
    borrowing base (currently $260&#160;million) determined by the
    lenders based on their evaluation of the value of the
    collateral. Resolute is required to maintain a consolidated
    current ratio of at least 1.0 to 1.0 at the end of any fiscal
    quarter; and may not permit its Maximum Leverage Ratio
    (consolidated indebtedness to consolidated EBITDA as defined in
    the credit agreement) to exceed 4.0 to 1.0 at the end of each
    fiscal quarter. Resolute&#146;s revolving credit facility does
    not permit it to pay dividends to shareholders.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Resolute may enter into additional borrowing agreements which
    would likely include additional operating and financial
    covenants.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: Arial, Helvetica">Shortages of
    qualified personnel or field equipment and services could affect
    Resolute&#146;s ability to execute its plans on a timely basis,
    reduce its cash flow and adversely affect its results of
    operations.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The demand for qualified and experienced geologists,
    geophysicists, engineers, field operations specialists, landmen,
    financial experts and other personnel in the oil and gas
    industry can fluctuate significantly, often in correlation with
    oil and gas prices, causing periodic shortages. From time to
    time, there also have been shortages of drilling rigs and other
    field equipment, as demand for rigs and equipment has increased
    along with the number of wells being drilled. These factors can
    also result in significant increases in costs for equipment,
    services and personnel. Higher oil and gas prices generally
    stimulate increased demand and result in increased prices for
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <BR>
A-44
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    drilling rigs, crews and associated supplies, equipment and
    services. Historically, increased demand resulting from high
    commodity prices have at times significantly increased costs and
    resulted in some difficulty in obtaining drilling rigs,
    experienced crews and related services. Resolute may continue to
    experience such difficulties in the future. If shortages persist
    or prices continue to increase, Resolute&#146;s profit margin,
    cash flow and operating results could be adversely affected and
    Resolute&#146;s ability to conduct its operations in accordance
    with current plans and budgets could be restricted.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: Arial, Helvetica">Resolute&#146;s
    hedging activities could reduce its net income, which could
    reduce the price at which the Company&#146;s stock may
    trade.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    To achieve more predictable cash flow and to reduce
    Resolute&#146;s exposure to adverse changes in the price of oil
    and gas, Resolute has entered into, and plans to enter into in
    the future, derivative arrangements covering a significant
    portion of its oil and gas production. These derivative
    arrangements could result in both realized and unrealized
    hedging losses. Resolute&#146;s derivative instruments are
    subject to
    <FONT style="white-space: nowrap">mark-to-market</FONT>
    accounting treatment, and the change in fair market value of the
    instrument is reported in Resolute&#146;s statement of
    operations each quarter, which has resulted in, and will in the
    future likely result in, significant unrealized net gains or
    losses.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    As of December&#160;31, 2009, Resolute had in place oil and gas
    swaps, oil and gas collars and a gas basis hedge. These included
    oil swaps covering approximately 75% of its anticipated 2010 oil
    production at a weighted average price of $67.24 per Bbl, oil
    collars covering approximately 4% of its anticipated 2010 oil
    production with a floor of $105.00 per Bbl and ceiling of
    $151.00 per Bbl, gas swaps covering approximately 73% of its
    anticipated 2010 gas production at a weighted average price of
    $9.69 per MMBtu, and a CIG gas basis hedge priced at $2.10 per
    MMBtu covering approximately 34% of its anticipated 2010 gas
    production. Additional instruments are also in place for future
    years and are summarized in the table below. Resolute expects to
    continue to use hedging arrangements to reduce commodity price
    risk with respect to its estimated production from producing
    properties. Please read &#147;<I>Management&#146;s Discussion
    and Analysis of Financial Condition and Results of Operations of
    Resolute&#160;&#151; How Resolute Evaluates Its
    Operations&#160;&#151; Production Levels, Trends and
    Prices</I>&#148; and &#147;<I>Management&#146;s Discussion and
    Analysis of Financial Condition and Results of
    Resolute&#160;&#151; Quantitative and Qualitative Disclosures
    About Market Risk</I>.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="59%">&nbsp;</TD> <!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=02 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>    <!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=02 type=hang1 -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=03 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>    <!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=03 type=hang1 -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=04 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>    <!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=04 type=hang1 -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=05 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>    <!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=05 type=hang1 -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=06 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>    <!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=06 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Oil<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>(NYMEX<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>WTI)<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Oil<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Weighted<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Collar<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Swap<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Average<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Volumes<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Volumes<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Hedge Price<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Bbl per<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Floor<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Ceiling<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Year</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Bbl per Day</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>per Bbl</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Day</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Price</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Price</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    2010
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,650
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;67.24
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    200
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;105.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;151.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    2011
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,250
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    68.26
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    2012
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,250
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    68.26
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    2013
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    60.47
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="66%">&nbsp;</TD> <!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>  <!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=02 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>    <!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=02 type=hang1 -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=03 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>    <!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=03 type=hang1 -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=04 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>    <!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=04 type=hang1 -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=05 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>    <!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=05 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Basic Hedges</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Gas Swap<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Swap<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Volumes<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Gas (Henry<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Volumes<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>MMBtu per<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Hub) Swap<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>MMBtu per<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Swap<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Year</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>day</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Price</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Day</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Price</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    2010
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,800
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;9.69
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,800
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;2.10
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    2011
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,750
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    9.32
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,800
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2.10
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    2012
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,100
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    7.42
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,800
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2.10
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    2013
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,900
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    7.40
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,800
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2.10
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Resolute&#146;s actual future production during a period may be
    significantly higher or lower than it estimates at the time it
    enters into derivative transactions for such period. If the
    actual amount is higher than it estimates, it will have more
    unhedged production and therefore greater commodity price
    exposure than it intended. If the actual amount is lower than
    the nominal amount that is subject to Resolute&#146;s derivative
    financial instruments, it might be forced to satisfy all or a
    portion of its derivative transactions without the benefit of
    the cash flow from its sale of
</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    the underlying physical commodity, resulting in a substantial
    diminution of its liquidity. As a result of these factors,
    Resolute&#146;s derivative activities may not be as effective as
    it intends in reducing the volatility of its cash flows, and in
    certain circumstances may actually increase the volatility of
    its cash flows.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    In addition, Resolute&#146;s derivative activities are subject
    to the risk that a counterparty may not perform its obligation
    under the applicable derivative instrument. If hedge
    counterparties, some of which have received governmental support
    in connection with the ongoing credit crisis, are unable to make
    payments to Resolute under its hedging arrangements,
    Resolute&#146;s results of operations, financial condition and
    liquidity would be adversely affected.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: Arial, Helvetica">The
    effectiveness of hedging transactions to protect Resolute from
    future oil price declines will be dependent upon oil prices at
    the time it enters into future hedging transactions as well as
    its future levels of hedging, and as a result its future net
    cash flow may be more sensitive to commodity price
    changes.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    As Resolute&#146;s hedges expire, more of its future production
    will be sold at market prices unless it enters into additional
    hedging transactions. Resolute&#146;s revolving credit facility
    prohibits it from entering into hedging arrangements for more
    than 85% of its production from projected proved developed
    producing reserves using economic parameters specified in its
    credit agreements. The prices at which Resolute hedges its
    production in the future will be dependent upon commodity prices
    at the time it enters into these transactions, which may be
    substantially lower than current prices. Accordingly,
    Resolute&#146;s commodity price hedging strategy will not
    protect it from significant and sustained declines in oil and
    gas prices received for its future production. Conversely,
    Resolute&#146;s commodity price hedging strategy may limit its
    ability to realize cash flow from commodity price increases. It
    is also possible that a larger percentage of Resolute&#146;s
    future production will not be hedged as the Company&#146;s
    hedging policies may change, which would result in its oil
    revenue becoming more sensitive to commodity price changes.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: Arial, Helvetica">The nature of
    Resolute&#146;s assets exposes it to significant costs and
    liabilities with respect to environmental and operational safety
    matters. Resolute is responsible for costs associated with the
    removal and remediation of the decommissioned Aneth Gas
    Processing Plant.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Resolute may incur significant costs and liabilities as a result
    of environmental, health and safety requirements applicable to
    its oil and gas exploitation, production and other activities.
    These costs and liabilities could arise under a wide range of
    environmental, health and safety laws and regulations, including
    agency interpretations thereof and governmental enforcement
    policies, which have tended to become increasingly strict over
    time. Failure to comply with these laws and regulations may
    result in the assessment of administrative, civil and criminal
    penalties, the imposition of investigatory, cleanup and site
    restoration costs and liens, the denial or revocation of permits
    or other authorizations and the issuance of injunctions to limit
    or cease operations. Compliance with these laws and regulations
    also increases the cost of Resolute&#146;s operations and may
    prevent or delay the commencement or continuance of a given
    operation. In addition, claims for damages to persons or
    property may result from environmental and other impacts of its
    operations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Resolute has an interest in the Aneth Gas Processing Plant,
    which is currently being decommissioned. Under Resolute&#146;s
    purchase agreement with Chevron, Chevron is responsible for
    indemnifying Resolute against the decommissioning and
    <FONT style="white-space: nowrap">clean-up</FONT> or
    remediation costs allocable to the 39% interest Resolute
    purchased from it. Under Resolute&#146;s purchase agreement with
    ExxonMobil, however, Resolute is responsible for the
    decommissioning and
    <FONT style="white-space: nowrap">clean-up</FONT> or
    remediation cost allocable to the interests it purchased from
    ExxonMobil, which is 25% of the total cost of the project. If
    Chevron fails to pay its share of the decommissioning costs in
    accordance with the purchase agreement, Resolute could be held
    responsible for 64% of the total costs to decommission and
    remediate the Aneth Gas Processing Plant. Chevron is managing
    the decommissioning process and, based on Resolute&#146;s
    current estimate, the total cost of the decommissioning is
    $28.0&#160;million. $17.1&#160;million has already been incurred
    and paid for as of December&#160;31, 2009. This estimate does
    not include any costs for any possible subsurface
    <FONT style="white-space: nowrap">clean-up</FONT> or
    remediation of the site.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The Aneth Gas Processing Plant site was previously evaluated by
    the U.S.&#160;EPA for possible listing on the NPL of sites
    contaminated with hazardous substances with the highest priority
    for <FONT style="white-space: nowrap">clean-up</FONT>
    under the CERCLA. Based
</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    on its investigation, the EPA concluded no further investigation
    was warranted and that the site was not required to be listed on
    the NPL. The Navajo Environmental Protection Agency now has
    primary jurisdiction over the Aneth Gas Processing Plant site,
    however, and Resolute cannot predict whether it will require
    further investigation and possible
    <FONT style="white-space: nowrap">clean-up,</FONT>
    and the ultimate cleanup liability may be affected by the recent
    enactment by the Navajo Nation of a Navajo CERCLA. In some
    matters, the Navajo CERCLA imposes broader obligations and
    liabilities than the federal CERCLA. Resolute has been advised
    by Chevron that a significant portion of the subsurface
    <FONT style="white-space: nowrap">clean-up</FONT> or
    remediation costs, if any, would be covered by an indemnity from
    the prior owner of the plant, and Chevron has provided Resolute
    with a copy of the pertinent purchase agreement that appears to
    support its position. Resolute cannot predict whether any
    subsurface remediation will be required or what the costs of the
    subsurface
    <FONT style="white-space: nowrap">clean-up</FONT> or
    remediation could be. Additionally, it cannot be certain whether
    any of such costs will be reimbursable to it pursuant to the
    indemnity of the prior owner. To the extent any such costs are
    incurred and not reimbursed pursuant to the indemnity from the
    prior owner, Resolute would be liable for 25% of such costs as a
    result of its acquisition of the ExxonMobil Properties. Please
    read &#147;<I>Resolute&#146;s Business&#160;&#151; Aneth Gas
    Processing Plant</I>&#148; for additional information about this
    liability.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Strict or joint and several liability to remediate contamination
    may be imposed under environmental laws, which could cause
    Resolute to become liable for the conduct of others or for
    consequences of its own actions that were in compliance with all
    applicable laws at the time those actions were taken. New or
    modified environmental, health or safety laws, regulations or
    enforcement policies could be more stringent and impose
    unforeseen liabilities or significantly increase compliance
    costs. Please read &#147;<I>Resolute&#146;s Business&#160;&#151;
    Environmental, Health and Safety Matters and
    Regulation</I>&#148; for more information.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: Arial, Helvetica">Resolute may
    be unable to compete effectively with larger companies, which
    may adversely affect its operations and ability to generate and
    maintain sufficient revenue.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The oil and gas industry is intensely competitive, and Resolute
    competes with companies that have greater resources. Many of
    these companies not only explore for and produce oil and gas,
    but also refine and market petroleum and other products on a
    regional, national or worldwide basis. These companies may be
    able to pay more for oil and gas properties and exploratory
    prospects or identify, evaluate, bid for and purchase a greater
    number of properties and prospects than Resolute&#146;s
    financial or human resources permit. In addition, these
    companies may have a greater ability to continue exploration or
    exploitation activities during periods of low oil and gas market
    prices. Resolute&#146;s larger competitors may be able to absorb
    the burden of present and future federal, state, local and other
    laws and regulations more easily than Resolute can, which would
    adversely affect Resolute&#146;s competitive position.
    Resolute&#146;s ability to acquire additional properties and to
    discover reserves in the future will depend upon its ability to
    evaluate and select suitable properties and to consummate
    transactions in this highly competitive environment.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: Arial, Helvetica">Resolute is
    subject to complex federal, state, tribal, local and other laws
    and regulations that could adversely affect the cost, manner or
    feasibility of doing business.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Exploration, exploitation, development, production and marketing
    operations in the oil and gas industry are regulated extensively
    at the federal, state and local levels. In addition,
    substantially all of Resolute&#146;s current leases in the Aneth
    Field are regulated by the Navajo Nation. Some of its future
    leases may be regulated by Native American tribes. Environmental
    and other governmental laws and regulations have increased the
    costs to plan, design, drill, install, operate and properly
    abandon oil and gas wells and other recovery operations. Under
    these laws and regulations, Resolute could also be liable for
    personal injuries, property damage and other damages. Failure to
    comply with these laws and regulations may result in the
    suspension or termination of Resolute&#146;s operations or
    denial or revocation of permits and subject Resolute to
    administrative, civil and criminal penalties. In addition, the
    President&#146;s budget and other legislative proposals would
    terminate various tax deductions currently available to
    companies engaged in oil and gas development and production. Tax
    deductions that are proposed to be terminated include the
    deduction for intangible drilling and development costs, the
    deduction for qualified tertiary injectant expenses, and the
    domestic manufacturing deduction. If enacted, the elimination of
    these deductions will adversely affect our business.
</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Part of the regulatory environment in which Resolute operates
    includes, in some cases, federal requirements for obtaining
    environmental assessments, environmental impact statements
    <FONT style="white-space: nowrap">and/or</FONT> plans
    of development before commencing exploration and production
    activities. In addition, Resolute&#146;s activities are subject
    to regulation by oil and gas producing states and the Navajo
    Nation regarding conservation practices, protection of
    correlative rights and other concerns. These regulations affect
    Resolute&#146;s operations and could limit the quantity of oil
    and gas it may produce and sell. A risk inherent in
    Resolute&#146;s
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    flood project is the need to obtain permits from federal, state,
    local and Navajo Nation tribal authorities. Delays or failures
    in obtaining regulatory approvals or permits or the receipt of
    an approval or permit with unreasonable conditions or costs
    could have a material adverse effect on Resolute&#146;s ability
    to exploit its properties. Additionally, the oil and gas
    regulatory environment could change in ways that might
    substantially increase the financial and managerial costs to
    comply with the requirements of these laws and regulations and,
    consequently, adversely affect Resolute&#146;s profitability.
    Proposed GHG, or GHG, reporting rules, and proposed GHG cap and
    trade legislation are two examples of proposed changes in the
    regulatory climate that would affect Resolute. Furthermore,
    Resolute may be placed at a competitive disadvantage to larger
    companies in the industry, which can spread these additional
    costs over a greater number of wells and larger operating staff.
    Please read &#147;<I>Resolute&#146;s Business&#160;&#151;
    Environmental, Health and Safety Matters and
    Regulation</I>&#148; and &#147;<I>Resolute&#146;s
    Business&#160;&#151; Other Regulation of the Oil and Gas
    Industry</I>&#148; for a description of the laws and regulations
    that affect Resolute.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: Arial, Helvetica">Possible
    regulation related to global warming and climate change could
    have an adverse effect on Resolute&#146;s operations and demand
    for oil and gas.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Recent scientific studies have suggested that emissions of GHG
    including
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    and methane, may be contributing to warming of the Earth&#146;s
    atmosphere. In response to such studies, the U.S.&#160;Congress
    is considering legislation to reduce emissions of GHG. In
    addition, several states have already taken legal measures to
    reduce emissions of GHG. As a result of the U.S.&#160;Supreme
    Court&#146;s decision on April&#160;2, 2007, in
    <I>Massachusetts, et al.&#160;v. EPA</I>, the EPA also may be
    required to regulate GHG emissions from mobile sources (e.g.
    cars and trucks) even if Congress does not adopt new legislation
    specifically addressing emissions of GHG. Other nations have
    already agreed to regulate emissions of GHG, pursuant to the
    United Nations Framework Convention on Climate Change, and the
    subsequent &#147;Kyoto Protocol,&#148; an international treaty
    pursuant to which participating countries (not including the
    United States) have agreed to reduce their emissions of GHG to
    below 1990 levels by 2012. Passage of state or federal climate
    control legislation or other regulatory initiatives or the
    adoption of regulations by the EPA and state agencies that
    restrict emissions of GHG in areas in which Resolute conducts
    business could have an adverse effect on Resolute&#146;s
    operations and demand for oil and gas.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: Arial, Helvetica">Resolute
    depends on a limited number of key personnel who would be
    difficult to replace.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Resolute depends substantially on the performance of its
    executive officers and other key employees. Resolute has not
    entered into any employment agreements with any of these
    employees, and Resolute does not maintain key person life
    insurance policies on any of these employees. The loss of any
    member of the senior management team or other key employees
    could negatively affect Resolute&#146;s ability to execute its
    business strategy.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: Arial, Helvetica">Terrorist
    attacks aimed at Resolute&#146;s facilities or operations could
    adversely affect its business.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The United States has been the target of terrorist attacks of
    unprecedented scale. The U.S.&#160;government has issued
    warnings that U.S.&#160;energy assets may be the future targets
    of terrorist organizations. These developments have subjected
    Resolute&#146;s operations to increased risks. Any terrorist
    attack at Resolute&#146;s facilities, or those of its customers
    or suppliers, could have a material adverse effect on
    Resolute&#146;s business.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: Arial, Helvetica">Work stoppages
    or other labor issues at Resolute&#146;s facilities could
    adversely affect its business, financial position, results of
    operations, or cash flows.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    As of December&#160;31, 2009, approximately 40 of
    Resolute&#146;s field level employees were represented by the
    United Steel, Paper and Forestry, Rubber, Manufacturing, Energy,
    Allied Industrial and Service Workers International Union, and
    covered by a collective bargaining agreement. Although Resolute
    believes that its relations with its employees are generally
    satisfactory, if Resolute is unable to reach agreement with any
    of its unionized work
</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    groups on future negotiations regarding the terms of their
    collective bargaining agreements, or if additional segments of
    Resolute&#146;s workforce become unionized, Resolute may be
    subject to work interruptions or stoppages. Work stoppages at
    the facilities of Resolute&#146;s customers or suppliers may
    also negatively affect Resolute&#146;s business. If any of
    Resolute&#146;s customers experience a material work stoppage,
    the customer may halt or limit the purchase of Resolute&#146;s
    products. Moreover, if any of Resolute&#146;s suppliers
    experience a work stoppage, its operations could be adversely
    affected if an alternative source of supply is not readily
    available. Any of these events could be disruptive to
    Resolute&#146;s operations and could adversely affect its
    business, financial position, results of operations, or cash
    flows.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: Arial, Helvetica">Resolute may
    be required to write down the carrying value of its properties
    in the future.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Resolute uses the full cost accounting method for oil and gas
    exploitation, development and exploration activities. Under the
    full cost method rules, Resolute performs a ceiling test and if
    the net capitalized costs for a cost center exceed the ceiling
    for the relevant properties, it writes down the book value of
    the properties. Accordingly, Resolute could recognize
    impairments in the future if oil and gas prices are low, if
    Resolute has substantial downward adjustments to its estimated
    proved reserves, if Resolute experiences increases in its
    estimates of development costs or deterioration in its
    exploration and development results.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    At December&#160;31, 2009, using its year-end reserve estimates
    prepared in accordance with the recently promulgated SEC rules,
    total capitalized costs exceeded the full cost ceiling by
    approximately $150&#160;million. No impairment expense was
    recorded at December&#160;31, 2009, as the Company requested and
    received an exemption from the SEC to exclude the Resolute
    Transaction from the full cost ceiling assessment for a period
    of twelve months following the acquisition, provided the Company
    can demonstrate that the fair value of the acquired properties
    exceed the carrying value in the interim periods through
    June&#160;30, 2010.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    At the time of the Resolute Transaction, Resolute valued the
    properties using NYMEX forward strip prices for a period of five
    years and then held prices flat thereafter. The Company also
    used various discount rates and other risk factors depending on
    the classification of reserves. Management believes this
    internal pricing model reflected the fair value of the assets
    acquired. Under full cost ceiling test rules, the commodity
    price utilized was equal to the twelve-month unweighted
    arithmetic average of first day of the month prices, resulting
    in an average NYMEX oil price of $61.18 per barrel of oil and an
    average Henry Hub spot market price of gas of $3.87 per MMBtu of
    gas, which may not be indicative of actual fair market values.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The request for exemption was made because the Company believes
    that the fair value of the Resolute Transaction properties can
    be demonstrated beyond a reasonable doubt to exceed unamortized
    cost. Management continues to believe that its internal model
    utilizing NYMEX strip prices continues to reflect the fair value
    of these reserves and clearly exceeds carrying value at
    December&#160;31, 2009.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    While commodity prices have increased since September&#160;30,
    2009, Resolute recognizes that due to volatility associated with
    oil and gas prices, a downward trend could occur. If such a case
    were to occur and is deemed to be other than temporary, Resolute
    would assess Resolute&#146;s properties for impairment during
    the requested exemption period. Further, if Resolute cannot
    demonstrate that fair value exceeds the unamortized carrying
    costs during the exemption periods, it will recognize impairment.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: Arial, Helvetica">Compliance
    with the Sarbanes-Oxley Act of 2002 and other obligations of
    being a public company will require substantial financial and
    management resources.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Section&#160;404 of the Sarbanes-Oxley Act of 2002, or the
    Sarbanes-Oxley Act, will require that the Company implement,
    evaluate and report on its system of internal controls. If the
    Company fails to implement and maintain the adequacy of its
    internal controls, it could be subject to regulatory scrutiny,
    civil or criminal penalties
    <FONT style="white-space: nowrap">and/or</FONT>
    stockholder litigation. Any inability to provide reliable
    financial reports could harm the Company&#146;s business.
    Section&#160;404 of the Sarbanes-Oxley Act also requires that
    the Company&#146;s independent registered public accounting firm
    report on management&#146;s evaluation of the Company&#146;s
    system of internal controls. In addition, as a newly public
    company, Resolute has been required to assume additional
    reporting and disclosure responsibilities, which will require
    the hiring of additional personnel and the establishment of
    additional systems. Any failure to implement required new or
    improved controls or systems, or difficulties encountered in the
</DIV>
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    <BR>
A-49
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    implementation of adequate controls over its financial processes
    and reporting and disclosures in the future, could harm the
    Company&#146;s operating results or cause the Company to fail to
    meet its reporting obligations. Inferior internal controls could
    also cause investors to lose confidence in the Company&#146;s
    reported financial information, which could have a negative
    effect on the trading price of the shares of Company common
    stock.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>


<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="12%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: Arial, Helvetica">ITEM&#160;3.&#160;&#160;&#160;&#160;</FONT></B>
</TD>
    <TD>
    <A name='104'></A><B><FONT style="font-family: Arial, Helvetica">LEGAL
    PROCEEDINGS</FONT></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Legal
    Proceedings</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    In February of 2008, Resolute and, separately, the Navajo Nation
    and NNOG, filed Protests and Motions for Intervention with FERC
    objecting to a February&#160;8, 2008, tariff filing by Western
    Refining Pipeline Company, a subsidiary of Western Refining,
    Inc. The filing was with respect to service on the 16&#160;inch
    diameter Tex-New Mex Crude Oil Pipeline that runs from Jal, New
    Mexico to a pipeline terminal known as Bisti, south of
    Farmington, New Mexico. Resolute, the Navajo Nation and NNOG
    complained that Western was using the pipeline to implement an
    anti-competitive market scheme designed to drive down the price
    of crude oil in the Four Corners area in violation of the
    Interstate Commerce Act. FERC ruled that the protesting parties
    lacked standing to intervene. In August of 2008, Resolute
    appealed the FERC order to the United States Court of Appeals
    for the District of Columbia Circuit. On February&#160;26, 2010,
    the court decided that the FERC order was not reviewable and
    dismissed the appeal. Resolute has not decided whether it will
    take further action on this matter.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Resolute is not a party to any other material pending legal or
    governmental proceedings, other than ordinary routine litigation
    incidental to its business. While the ultimate outcome and
    impact of any proceeding cannot be predicted with certainty,
    Resolute&#146;s management believes that the resolution of any
    of its pending proceedings will not have a material adverse
    effect on its financial condition or results of operations.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>


<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="12%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: Arial, Helvetica">ITEM&#160;4.&#160;&#160;&#160;&#160;</FONT></B>
</TD>
    <TD>
    <A name='105'></A><B><FONT style="font-family: Arial, Helvetica">SUBMISSION
    OF MATTERS TO A VOTE OF SECURITY HOLDERS</FONT></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 6%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Not Applicable
</DIV>
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    <BR>
A-50
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='106'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">PART&#160;II</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 24pt; font-size: 1pt">&nbsp;</DIV>




<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="12%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: Arial, Helvetica">ITEM&#160;5.&#160;&#160;&#160;&#160;</FONT></B>
</TD>
    <TD>
    <A name='107'></A><B><FONT style="font-family: Arial, Helvetica">MARKET
    FOR REGISTRANT&#146;S COMMON EQUITY, RELATED STOCKHOLDER MATTERS
    AND ISSUER PURCHASES OF EQUITY SECURITIES</FONT></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Price Range of
    Common Stock and Number of Holders</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Resolute&#146;s common stock is listed on the New York Stock
    Exchange under the symbol &#147;REN&#148;.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The following table sets forth the high and the low sale prices
    per share of Resolute&#146;s common stock for the period from
    September&#160;28, 2009 (inception) through December&#160;31,
    2009. The closing price of the common stock on March&#160;29,
    2010 was $12.21
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="66%">&nbsp;</TD> <!-- colindex=01 type=maindata -->
    <TD width="8%">&nbsp;</TD>  <!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=02 type=lead -->
    <TD width="9%" align="right">&nbsp;</TD>    <!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=02 type=hang1 -->
    <TD width="4%">&nbsp;</TD>  <!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=03 type=lead -->
    <TD width="9%" align="right">&nbsp;</TD>    <!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 9pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
    <FONT style="font-size: 9pt">Period
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 9pt">High</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 9pt">Low</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 6pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    3rd Quarter
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;10.60
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    9.72
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    4th&#160;Quarter
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;11.79
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;10.12
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    As of March&#160;29, 2010, there were approximately 80 record
    holders of Resolute&#146;s common stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Resolute&#146;s warrants are listed on the New York Stock
    Exchange under the symbol &#147;RENWS&#148;.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The following table sets forth the high and the low sale prices
    per share of Resolute&#146;s warrants for the period from
    September&#160;28, 2009 (inception) through December&#160;31,
    2009. The closing price of the warrants on March&#160;29, 2010
    was $2.46.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="66%">&nbsp;</TD> <!-- colindex=01 type=maindata -->
    <TD width="8%">&nbsp;</TD>  <!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=02 type=lead -->
    <TD width="9%" align="right">&nbsp;</TD>    <!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=02 type=hang1 -->
    <TD width="4%">&nbsp;</TD>  <!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=03 type=lead -->
    <TD width="9%" align="right">&nbsp;</TD>    <!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 9pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
    <FONT style="font-size: 9pt">Period
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 9pt">High</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 9pt">Low</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 8pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    3rd Quarter
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;1.65
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;1.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    4th&#160;Quarter
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;2.38
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;1.40
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Unregistered
    Sales of Equity Securities</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Not applicable.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Dividend
    Policy</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Resolute has not declared any cash dividends on its common stock
    since inception and has no plans to do so in the foreseeable
    future. The ability of Resolute&#146;s Board of Directors to
    declare any dividend is subject to limits imposed by the terms
    of its credit agreement, which currently prohibit Resolute from
    paying dividends on its common stock. Resolute&#146;s ability to
    pay dividends is also subject to limits imposed by Delaware law.
    In determining whether to declare dividends, the Board of
    Directors will consider the limits imposed by credit agreement,
    financial condition, results of operations, working capital
    requirements, future prospects and other factors it considers
    relevant.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Comparison of
    Cumulative Return</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The following graph compares the cumulative return on a $100
    investment in Resolute common stock from September&#160;28,
    2009, the date the common stock began trading on the New York
    Stock Exchange, through December&#160;31, 2009, to that of the
    cumulative return on a $100 investment in the Russell 2000 Index
    and the S&#038;P 500 Energy Index for the same period. In
    calculating the cumulative return, reinvestment of dividends, if
    any, is assumed. The indices are included for comparative
    purpose only. This graph is not &#147;soliciting material,&#148;
    is not deemed filed with the SEC and is not to be incorporated
    by reference in any of our filings under the Securities Act of
    1933 or the Exchange Act, whether made before or after the date
    hereof and irrespective of any general incorporation language in
    any such filing.
</DIV>
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    <BR>
A-51
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <FONT style="font-family: Arial, Helvetica">COMPARISON OF
    CUMULATIVE TOTAL RETURN<BR>
    AMONG RESOLUTE ENERGY CORPORATION, THE RUSSELL 2000 INDEX,<BR>
    AND THE S&#038;P 500 ENERGY INDEX
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <IMG src="d72194d7219403.gif" alt="(PERFORMANCE GRAPH)">
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <BR>
A-52
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->


<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="12%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: Arial, Helvetica">ITEM&#160;6.&#160;&#160;&#160;&#160;</FONT></B>
</TD>
    <TD>
    <A name='108'></A><B><FONT style="font-family: Arial, Helvetica">SELECTED
    FINANCIAL DATA</FONT></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The following table presents Resolute&#146;s selected historical
    financial data for the years ended December&#160;31, 2009 and
    2008 and for the period from inception in 2007 to
    December&#160;31, 2007. The consolidated balance sheet and
    income statement information are derived from Resolute&#146;s
    audited financial statements included elsewhere in this report.
    HACI was the accounting acquirer and, accordingly, the
    historical financial data below reflects HACI since its
    inception in 2007. Results of oil and gas operations are
    reflected from the date of the Resolute Transaction in September
    2009. Future results may differ substantially from historical
    results because of changes in oil and gas prices, production
    increases or declines and other factors. This information should
    be read in conjunction with the consolidated financial
    statements and notes thereto and <I>&#147;Item&#160;7
    Management&#146;s Discussion and Analysis of Financial Condition
    and Results of Operations&#148; </I>presented elsewhere in this
    Annual Report on
    <FONT style="white-space: nowrap">Form&#160;10-K.</FONT>
    The discussion in Item&#160;7 regarding the Resolute Transaction
    affects the comparability of the information provided in this
    Selected Financial Data.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="63%">&nbsp;</TD> <!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=02 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>    <!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>  <!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=03 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>    <!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>  <!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=04 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>    <!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 9pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Year Ended December&#160;31,</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 9pt">2009</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 9pt">2008</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 9pt">2007</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 9pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" align="center" valign="bottom">
    (in thousands, except per share data)
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Statement of Operation Data:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 21pt">
    Revenue
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    42,416
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 21pt">
    Operating expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (57,361
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,560
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,036
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 21pt">
    Loss from operations
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (14,945
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,560
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,036
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 21pt">
    Other (expense) income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (50,185
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,601
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,154
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 21pt">
    (Loss) income before taxes
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (65,130
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,041
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,118
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 21pt">
    Income tax benefit (expense)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19,887
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,054
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,401
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 21pt">
    Net (loss) income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (45,243
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,987
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,717
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 9pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Basic and diluted (loss) earnings per share:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 21pt">
    Common stock, subject to redemption
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (0.16
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.09
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.06
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 21pt">
    Common stock
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (0.93
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.06
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.09
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Weighted average shares outstanding:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 21pt">
    Common stock, subject to redemption
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12,114
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16,560
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16,560
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 21pt">
    Common stock
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    46,394
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    45,105
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18,587
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 9pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Selected Cash Flow Data:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 21pt">
    Net cash (used in) provided by operating activities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (12,164
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3,031
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    5,164
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 21pt">
    Net cash provided by (used in) investing activities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    209,987
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,264
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (541,302
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 21pt">
    Net cash (used in) provided by financing activities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (198,187
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    536,190
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 24pt; font-size: 1pt">&nbsp;</DIV>



<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="63%">&nbsp;</TD> <!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=02 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>    <!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>  <!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=03 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>    <!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>  <!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=04 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>    <!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 9pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>As of December&#160;31,</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 9pt">2009</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 9pt">2008</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 9pt">2007</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 9pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" align="center" valign="bottom">
    (In thousands)
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Balance Sheet Data:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 21pt">
    Total assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    693,440
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    544,797
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    541,842
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 21pt">
    Long term debt
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    109,575
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 21pt">
    Total liabilities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    299,903
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19,291
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20,322
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 21pt">
    Shareholders&#146; equity
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    393,537
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    362,199
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    359,702
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

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    <BR>
A-53
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="12%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: Arial, Helvetica">ITEM&#160;7.&#160;&#160;&#160;&#160;</FONT></B>
</TD>
    <TD>
    <A name='109'></A><B><FONT style="font-family: Arial, Helvetica">MANAGEMENT&#146;S
    DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
    OPERATIONS</FONT></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    References to the &#147;Company,&#148; &#147;us&#148; or
    &#147;we&#148; refer to Resolute Energy Corporation
    (&#147;Resolute&#148;), a corporation formed to consummate a
    business combination between Hicks Acquisition Company&#160;I,
    Inc. (&#147;HACI&#148;), Resolute and Resolute Holdings Sub,
    LLC. &#147;Predecessor Resolute&#148; refers to the companies
    acquired by Resolute in the Resolute Transaction, as defined
    below, with respect to their operations prior to
    September&#160;25, 2009, the date of the Resolute Transaction.
    The following discussion and analysis should be read in
    conjunction with the consolidated financial statements and the
    notes thereto contained elsewhere in this report. Due to the
    nature of the Resolute Transaction, two sets of financial
    statements are presented in this report. The first set covers
    the reporting company, Resolute, including a pro forma
    presentation of Resolute giving effect to the Resolute
    Transaction and the acquisition of a net profits interest of RWI
    (defined below) as if they had occurred on January&#160;1, 2008.
    The second set covers the predecessor company, Predecessor
    Resolute, through September&#160;24, 2009. This discussion is
    presented in two parts, the first relating to the business of
    Resolute, and the second setting forth comparative data with
    respect to Predecessor Resolute.
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><U><FONT style="font-family: Arial, Helvetica">RESOLUTE
    ENERGY CORPORATION</FONT></U></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The following section of MD&#038;A addresses the business of
    Resolute, the Resolute Transaction, how Resolute evaluates its
    operations, factors that affect Resolute&#146;s operations and
    the results of operations, liquidity and capital resources of
    Resolute as the successor to HACI. HACI was the accounting
    acquirer in the Resolute financial statements presented herein.
    As such, the Resolute financial statements reflect the
    operations of HACI on a stand-alone basis prior to
    September&#160;25, 2009, the date of closing of the Resolute
    Transaction, and reflect Predecessor Resolute&#146;s operations
    as part of Resolute for the period from September&#160;25, 2009,
    through December&#160;31, 2009.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><U><FONT style="font-family: Arial, Helvetica">Overview</FONT></U></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Resolute is an independent oil and gas company engaged in the
    acquisition, exploration, development and production of oil, gas
    and hydrocarbon liquids. Resolute&#146;s strategy is to grow
    through exploration, exploitation and industry standard enhanced
    oil recovery projects.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    As of December&#160;31, 2009, Resolute&#146;s estimated net
    proved reserves were approximately 64&#160;million equivalent
    barrels of oil (&#147;MMBoe&#148;), of which approximately 54%
    were proved developed reserves and approximately 77% were oil.
    The standardized measure of Resolute&#146;s estimated net proved
    reserves as of December&#160;31, 2009, was $361&#160;million.
    See Note&#160;15 to the Consolidated Financial Statements.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Resolute focuses its efforts on increasing reserves and
    production while controlling costs at a level that is
    appropriate for long-term operations. Resolute&#146;s future
    earnings and cash flow from existing operations are dependent on
    a variety of factors including commodity prices, exploitation
    and recovery activities and its ability to manage its overall
    cost structure at a level that allows for profitable production.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><U><FONT style="font-family: Arial, Helvetica">The
    Resolute Transaction</FONT></U></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    On September&#160;25, 2009 (the &#147;Acquisition Date&#148;),
    Resolute consummated a business combination under the terms of a
    Purchase and IPO Reorganization Agreement dated as of
    August&#160;2, 2009 (the &#147;Acquisition Agreement&#148;) by
    and among us, HACI, Resolute Holdings Sub, LLC
    (&#147;Sub&#148;), Resolute Subsidiary Corporation, a
    wholly-owned subsidiary of Resolute (&#147;Merger Sub&#148;),
    Resolute Aneth, LLC, a subsidiary of Sub (&#147;Aneth&#148;),
    Resolute Holdings, LLC and HH-HACI, L.P. (the
    &#147;Sponsor&#148;), pursuant to which HACI stockholders
    acquired a majority of the outstanding shares of capital stock
    of Resolute and Resolute acquired all of the operating companies
    previously owned by Sub (the &#147;Resolute Transaction&#148;).
    Prior to September&#160;25, 2009, HACI was a blank check company
    formed for the purpose of acquiring, or acquiring control of,
    through a merger, capital stock exchange, asset acquisition,
    stock purchase, reorganization or similar business combination
    one or more businesses or assets.
</DIV>
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    <BR>
A-54
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    As a result of the Resolute Transaction, through a series of
    transactions, shareholders of HACI common stock, par value
    $0.0001 per share, acquired approximately 82% of the outstanding
    shares of Resolute common stock, par value $0.0001 per share
    (&#147;Resolute common stock&#148;), and Sub owned approximately
    18% of the outstanding Resolute common stock, excluding, in each
    case, warrants, options and the Resolute Earnout Shares (as
    defined below). HACI transferred $327&#160;million remaining in
    its trust account, after payment of expenses of $11&#160;million
    and redemption of HACI common stock and warrants in the amount
    of $201&#160;million, to Aneth in exchange for a membership
    interest in Aneth. Sub then contributed its direct and indirect
    ownership interests in its operating subsidiaries to HACI.
    Merger Sub merged with and into HACI, with HACI surviving the
    merger and continuing as a wholly-owned subsidiary of Resolute.
    As required by the Acquisition Agreement, the $327&#160;million
    was used to repay amounts owed under Aneth&#146;s credit
    facilities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    In exchange for Sub&#146;s contribution of its operating
    subsidiaries and as a result of the other transactions
    contemplated by the Acquisition Agreement, Sub acquired
    (i)&#160;9,200,000&#160;shares of Resolute common stock,
    (ii)&#160;4,600,000 warrants to purchase Resolute common stock
    at a price of $13.00 per share, with a five year life and
    subject to a trigger price of $13.75 per share (the
    &#147;Resolute Founders Warrants&#148;), (iii)&#160;2,333,333
    warrants to purchase Resolute common stock at a price of $13.00
    per share, with a five year life (the &#147;Resolute Sponsors
    Warrants&#148;), and (iv)&#160;1,385,000&#160;shares of Resolute
    common stock subject to forfeiture in the event a trigger price
    of $15.00 is not exceeded within five years following the
    closing of the Resolute Transaction and that have no economic
    rights until such trigger is met (the &#147;Resolute Earnout
    Shares&#148;). Of the 9,200,000&#160;shares of Resolute common
    stock issuable to Sub, 200,000 were issued to employees of
    Predecessor Resolute who became employees of Resolute upon
    closing of the Resolute Transaction in recognition of their
    services. 100,000&#160;shares vested immediately and the
    remaining 100,000&#160;shares will vest on the one year
    anniversary of the Acquisition Date, provided the recipient
    remains employed by the Company on that date. At the effective
    time of the Resolute Transaction, each outstanding share of HACI
    common stock was converted into the right to receive one share
    of Resolute common stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    In connection with the Resolute Transaction,
    7,335,000&#160;shares of HACI&#146;s common stock and 4,600,000
    warrants to purchase HACI common stock held by the Sponsor were
    cancelled and forfeited and an additional 1,865,000&#160;shares
    held by the Sponsor were converted into 1,865,000 Resolute
    Earnout Shares. As a result of the consummation of the Resolute
    Transaction, the Sponsor, together with its initial pre-public
    offering stockholders, owned (i)&#160;4,600,000&#160;shares of
    Resolute common stock, (ii)&#160;9,200,000 Resolute Founders
    Warrants, (iii)&#160;4,666,667 Resolute Sponsors Warrants, and
    (iv)&#160;1,865,000 Resolute Earnout Shares.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    At the effective time of the Resolute Transaction, each of the
    55,200,000 outstanding warrants that were issued in HACI&#146;s
    initial public offering (the &#147;Public Warrants&#148;) was
    converted, at the election of the warrantholder, into either
    (i)&#160;the right to receive $0.55 in cash or (ii)&#160;when
    properly tendered, the right to receive one warrant to purchase
    one share of Resolute common stock (a &#147;Resolute
    Warrant&#148;) at a exercise price of $13.00, subject to
    adjustment. The number of total Resolute Warrants was limited to
    27,600,000. Warrants that were voted against the Warrant
    Amendment (as defined below) were, at the effective time of the
    Resolute Transaction, converted into the right to receive $0.55
    in cash. Because more than 50% of the HACI warrantholders
    elected to receive Resolute Warrants, the properly voted and
    tendered warrants were exchanged pro rata. The Resolute Warrants
    have a five year life and are subject to redemption upon
    30&#160;days prior notice (as defined) at $.01 per Resolute
    Warrant, at the Company&#146;s option, when the price of
    Resolute&#146;s common stock equals or exceed $18.00 per share
    for a specified period.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><U><FONT style="font-family: Arial, Helvetica">How
    Resolute Evaluates Its Operations</FONT></U></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Resolute&#146;s management uses a variety of financial and
    operational measurements to analyze its operating performance.
    These measurements include: (i)&#160;production levels, trends
    and prices, (ii)&#160;reserve and production volumes and trends,
    (iii)&#160;operating expenses and general and administrative
    expenses, (iv)&#160;operating cash flow, and (v)&#160;EBITDA.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>Production Levels, Trends and Prices.</I>&#160;Oil and gas
    revenue is the product of Resolute&#146;s production multiplied
    by the price that it receives for that production. Because the
    price that Resolute receives is highly dependent on many factors
    outside of its control, except to the extent that it has entered
    into hedging arrangements that can influence its net price
    either positively or negatively, production is the primary
    revenue driver over which it has
</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    some influence. Although Resolute cannot greatly alter reservoir
    performance, it can aggressively implement exploitation
    activities that can increase production or diminish production
    declines relative to what would have been the case without
    intervention. Examples of activities that can positively
    influence production include minimizing production downtime due
    to equipment malfunction, well workovers and cleanouts,
    recompletions of existing wells in new parts of the reservoir,
    and expanded secondary and tertiary recovery programs. Total
    production for 2010 is expected to be between 2.7 and
    2.8&#160;MMBoe, or an average of 7,400 to 7,700 Boe per day.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The price of crude oil has been extremely volatile, and Resolute
    expects that this volatility will continue. Given the inherent
    volatility of crude oil prices, Resolute plans its activities
    and budget based on sales price assumptions that it believes to
    be reasonable. Resolute uses hedging arrangements to provide a
    measure of stability to its cash flows in an environment of
    volatile oil and gas prices. These instruments limit its
    exposure to declines in prices, but also limit its expected
    benefits if prices increase. Changes in the price of oil or gas
    will result in the recognition of a non-cash gain or loss
    recorded in other income or expense due to changes in the fair
    value of the hedging arrangements. Recognized gains or losses
    only arise from payments made or received on monthly settlements
    of contracts or if a contract is terminated prior to its
    expiration. Resolute typically enters into hedging arrangements
    that cover a significant portion of its estimated future oil and
    gas production. Resolute currently has such hedging arrangements
    in place through 2012, with lesser volumes hedged in 2013.
    Resolute has oil and gas derivatives in place for 2010 covering
    the aggregate average daily oil volumes of 3,850&#160;barrels of
    oil at NYMEX weighted average prices of $69.19; daily gas
    volumes of 3,800&#160;MMBtu at NYMEX weighted average prices of
    $9.69; and 1,800&#160;MMBtu per day of CIG basis gas hedges at
    $2.10 per MMBtu. These derivatives provide price protection on
    an estimated 66% at the midpoint of previously announced
    guidance relating to 2010 oil production and 55% at the midpoint
    of previously announced guidance relating to 2010 gas production.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>Reserve and Production Volumes and Trends.</I>&#160;From
    inception, Predecessor Resolute grew its reserve base through a
    focused acquisition strategy, completing three significant
    acquisitions. Predecessor Resolute acquired substantially all of
    its Aneth Field Properties through two significant purchases:
    the acquisition of the Chevron Properties was completed in
    November 2004 followed by the acquisition of the ExxonMobil
    Properties in April 2006. Predecessor Resolute acquired all of
    its Wyoming Properties through the purchase of Primary Natural
    Resources, Inc. (now known as Resolute Wyoming, Inc.
    (&#147;RWI&#148;)) in July 2008. Resolute looks to acquire
    similar producing properties that have upside potential through
    low-risk development drilling and exploitation projects.
    Resolute believes that its knowledge of various domestic, on
    shore operating areas, strong management and staff and solid
    industry relationships will allow it to find, capitalize on and
    integrate strategic acquisition opportunities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    At December&#160;31, 2009, Resolute had estimated net proved
    reserves of approximately 42&#160;MMBoe that were classified as
    proved developed non-producing and proved undeveloped. An
    estimated 40&#160;MMBoe, or 95%, of those reserves are
    attributable to recoveries associated with expansions,
    extensions and processing of the tertiary recovery
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    floods that are currently in operation on Resolute&#146;s Aneth
    Field Properties. Resolute expects to incur approximately
    $377&#160;million of capital expenditures over the next
    28&#160;years (including purchases of
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    under existing contracts), in connection with bringing those
    incremental reserves attributable to Resolute&#146;s
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    flood projects into production. Resolute believes that these
    expenditures will result in significant increases in its oil and
    gas production.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>Operating Expenses.</I>&#160;Operating expenses are costs
    associated with the operation of oil and gas properties and are
    classified as lease operating expenses and production and ad
    valorem taxes. Direct labor, repair and maintenance, workovers,
    utilities and contract services comprise the most significant
    portion of lease operating expenses. Resolute monitors its
    operating expenses in relation to the amount of production and
    the number of wells operated. Some of these expenses are
    relatively independent of the volume of hydrocarbons produced,
    but may fluctuate depending on the activities performed during a
    specific period. Other expenses, such as taxes and utility
    costs, are more directly related to production volumes or
    reserves. Severance taxes, for example, are charged based on
    production revenue and therefore are based on the product of the
    volumes that are sold and the price received therefor. Ad
    valorem taxes are based on the value of reserves. Because
    Resolute operates on the Navajo Reservation, it also pays a
    possessory interest tax, which is effectively an ad valorem tax
    assessed by the Navajo Nation. Resolute&#146;s largest utility
    expense is for electricity that is used primarily to power the
    pumps
</DIV>
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    <BR>
A-56
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    in producing wells and the compressors behind the injection
    wells. The more fluid that is moved, the greater the amount of
    electricity that is consumed. In the recent past, higher oil
    prices led to higher demand for drilling rigs, workover rigs,
    operating personnel and field supplies and services, which in
    turn caused increases in the costs of those goods and services.
    Resolute projects 2010 cash lease operating expenses of $17.75
    to $18.25 per Boe of production. Production taxes for 2010 are
    expected to be 13.5% to 14.5% of 2010 production revenue.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>General and Administrative Expenses.</I>&#160;Resolute
    monitors its general and administrative expenses carefully,
    attempting to balance the cash effect of incurring general and
    administrative costs against the benefits of, among other
    things, hiring and retaining highly qualified staff who can add
    value to the Company&#146;s asset base. In the current period
    the Company&#146;s general and administrative expenses were
    high, primarily due to costs incurred in consummating the
    Resolute Transaction. In future periods, absent other
    transactions, Resolute anticipates that general and
    administrative costs will be significantly lower. However,
    management anticipates that, effective with the Resolute
    Transaction, the Company will incur material additional annual
    general and administrative expenses that are associated with
    being a publicly traded company. These expenses include
    compensation and benefit expenses of certain additional
    personnel, increased fees paid to independent auditors, lawyers,
    independent petroleum engineers and other professional advisors,
    costs associated with shareholder reports, investor relations
    activities, registrar and transfer agent fees, increased
    director and officer liability insurance costs and director
    compensation. Resolute expects G&#038;A expense will be $3.00 to
    $3.50 per Boe of production, excluding non-cash stock-based
    compensation expense.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>Operating Cash Flow.</I>&#160;Operating cash flow is the cash
    directly derived from Resolute&#146;s oil and gas properties,
    before considering such things as administrative expenses and
    interest costs. Operating cash flow on a per unit of production
    basis is a measure of field efficiency, and can be compared to
    results obtained by operators of oil and gas properties with
    characteristics similar to Resolute&#146;s to evaluate relative
    performance. Aggregate operating cash flow is a measure of
    Resolute&#146;s ability to sustain overhead expenses and costs
    related to capital structure, including interest expenses.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>EBITDA.</I>&#160;EBITDA (a non-GAAP measure) is defined by
    the Company as consolidated net income adjusted to exclude
    interest expense, interest income, income taxes, depletion,
    depreciation and amortization, impairment expense, accretion of
    asset retirement obligation, change in fair value of derivative
    instruments, expiration of puts, non-cash equity-based
    compensation expense and noncontrolling interest. This
    definition is consistent with the definition of EBITDA in
    Resolute&#146;s existing credit agreement. EBITDA is also a
    financial measure that Resolute expects will be reported to its
    lenders and used as a gauge for compliance with some of the
    financial covenants under its revolving credit facility.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    EBITDA is used as a supplemental liquidity or performance
    measure by Resolute&#146;s management and by external users of
    its financial statements such as investors, commercial banks,
    research analysts and others, to assess:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="1%"></TD>
    <TD width="2%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the ability of Resolute&#146;s assets to generate cash
    sufficient to pay interest costs;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the financial metrics that support Resolute&#146;s indebtedness;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Resolute&#146;s ability to finance capital expenditures;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    financial performance of the assets without regard to financing
    methods, capital structure or historical cost basis;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Resolute&#146;s operating performance and return on capital as
    compared to those of other companies in the exploration and
    production industry, without regard to financing methods or
    capital structure;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the viability of acquisitions and capital expenditure projects
    and the overall rates of return on alternative investment
    opportunities.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    EBITDA should not be considered an alternative to, or more
    meaningful than, net income, operating income, cash flows from
    operating activities or any other measure of financial
    performance presented in accordance with GAAP as measures of
    operating performance, liquidity or ability to service debt
    obligations. Because Resolute has borrowed money to finance its
    operations, interest expense is a necessary element of its costs
    and its ability to generate gross margins. Because Resolute uses
    capital assets, depletion, depreciation and amortization are
</DIV>
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    <BR>
A-57
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    also necessary elements of its costs. Therefore, any measures
    that exclude these elements have material limitations. To
    compensate for these limitations, Resolute believes that it is
    important to consider both net income and net cash provided by
    operating activities determined under GAAP, as well as EBITDA,
    to evaluate its financial performance and liquidity. EBITDA
    excludes some, but not all, items that affect net income,
    operating income and net cash provided by operating activities
    and these measures may vary among companies. Resolute&#146;s
    EBITDA may not be comparable to EBITDA or EBITDA of any other
    company because other entities may not calculate these measures
    in the same manner.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><U><FONT style="font-family: Arial, Helvetica">Factors
    That Significantly Affect Resolute&#146;s Financial
    Results</FONT></U></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Revenue, cash flow from operations and future growth depend
    substantially on factors beyond Resolute&#146;s control, such as
    economic, political and regulatory developments and competition
    from other sources of energy. Crude oil prices have historically
    been volatile and may be expected to fluctuate widely in the
    future. Sustained periods of low prices for crude oil could
    materially and adversely affect Resolute&#146;s financial
    position, its results of operations, the quantities of oil and
    gas that it can economically produce, and its ability to obtain
    capital.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Like all businesses engaged in the exploration for and
    production of oil and gas, Resolute faces the challenge of
    natural production declines. As initial reservoir pressures are
    depleted, oil and gas production from a given well decreases.
    Thus, an oil and gas exploration and production company depletes
    part of its asset base with each unit of oil or gas it produces.
    Resolute attempts to overcome this natural decline by
    implementing secondary and tertiary recovery techniques and by
    acquiring more reserves than it produces. Resolute&#146;s future
    growth will depend on its ability to enhance production levels
    from existing reserves and to continue to add reserves in excess
    of production. Resolute will maintain its focus on costs
    necessary to produce its reserves as well as the costs necessary
    to add reserves through production enhancement, drilling and
    acquisitions. Resolute&#146;s ability to make capital
    expenditures to increase production from existing reserves and
    to acquire more reserves is dependent on availability of capital
    resources, and can be limited by many factors, including the
    ability to obtain capital in a cost-effective manner and to
    timely obtain permits and regulatory approvals.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: Arial, Helvetica">Results of
    Operations</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Through September&#160;24, 2009, HACI&#146;s efforts had been
    primarily limited to organizational activities, activities
    relating to its initial public offering, activities relating to
    identifying and evaluating prospective acquisition candidates,
    and activities relating to general corporate matters; HACI had
    not generated any revenue, other than interest income earned on
    the proceeds of its initial public offering.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    For the purposes of management&#146;s discussion and analysis of
    results of operations of Resolute, management has analyzed the
    year ended December&#160;31, 2009, in comparison to the year
    ended December&#160;31, 2008, for HACI. Any references to the
    2009 or 2008 period refer to these specific periods and
    companies. However, as a result of the Resolute Transaction, the
    2009 period includes 98&#160;days of oil and gas operations,
    while the 2008 period has no such activity.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Key measurements for the year ended December&#160;31, 2009 were
    as follows:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="81%">&nbsp;</TD> <!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>  <!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=02 type=lead -->
    <TD width="15%" align="right">&nbsp;</TD>   <!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Year Ended<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>December&#160;31, 2009</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <B>Net Sales:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Total sales (Boe)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    702,849
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Average daily sales (Boe/d)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,172
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <B>Average Sales Prices ($/Boe):</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Average sales price (excluding derivative settlements)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;60.35
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Average sales price (including derivative settlements)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    55.80
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <B>Expense per Boe:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Lease operating expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    31.29
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    General and administrative expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    33.90
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Depletion, depreciation, amortization and accretion
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    16.42
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

</DIV>
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    <BR>
A-58
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Subsequent to the Acquisition Date, the results of operations
    include Resolute and its subsidiaries (including HACI). For the
    year ended December&#160;31, 2009, Resolute had a loss before
    income taxes of $65.1&#160;million, a decrease of
    $71.1&#160;million, as compared to income before income taxes of
    approximately $6.0&#160;million for the year ended
    December&#160;31, 2008. The decrease is primarily attributable
    to $16.6&#160;million of Resolute Transaction costs,
    $46.3&#160;million of unrealized losses related to the change in
    the fair value of our derivative instruments and a
    $6.8&#160;million decrease in interest income during the year
    ended December&#160;31, 2009. For the year ended
    December&#160;31, 2009, Resolute earned approximately
    $0.8&#160;million in interest income, as compared to
    $7.6&#160;million in 2008. Interest income decreased in 2009 due
    to a decrease in cash and cash equivalents and cash held in
    trust, as well as a decrease in interest rates as a result of
    market conditions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    For the year ended December&#160;31, 2008, Resolute had income
    before income taxes of approximately $6.0&#160;million, an
    increase of $1.9&#160;million as compared to income before
    income taxes of $4.1&#160;million for the year ended
    December&#160;31, 2007. The increase is primarily attributable
    to $2.4&#160;million of additional interest income in 2008. For
    the year ended December&#160;31, 2008, Resolute earned
    approximately $7.6&#160;million in interest income, as compared
    to $5.2&#160;million in 2007. Interest income increased in 2008
    due to a significant increase in cash and cash equivalents as
    well as a full year of operations versus ten months of
    operations in 2007.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Revenue, lease operating expenses, depletion, depreciation,
    amortization and asset retirement obligation accretion, interest
    expense and loss on derivative instruments for the periods prior
    to September&#160;25, 2009, relate solely to Predecessor
    Resolute&#146;s operations and are not included in the Resolute
    Management Discussion and Analysis. For additional management
    discussion and analysis of the results of the acquired business,
    please see the management discussion and analysis for the
    Predecessor Resolute in this Annual Report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    below.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: Arial, Helvetica">Unaudited Pro
    Forma Results of Operations</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The following unaudited pro forma consolidated financial
    information below is provided to supplement the financial
    statement presentations contained in this
    <FONT style="white-space: nowrap">Form&#160;10-K.</FONT>
    Such unaudited pro forma data is prepared as if the Resolute
    Transaction and the 2008 acquisition of a net profits interest
    by RWI occurred on January&#160;1, 2008. These pro forma results
    eliminate certain activities of HACI as well as certain other
    non-recurring items in order to present what the Company
    believes is representative of the underlying business of the
    Company. The unaudited pro forma financial information is
    presented for informational purposes only and is not indicative
    of the results of operations that would have been achieved if
    the Resolute Transaction had taken place at the beginning of the
    earliest period presented or that may result in the future. The
    pro forma adjustments made are based on certain assumptions that
    Resolute believes are reasonable based on currently available
    information.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The pro forma loss from operations was $26.6&#160;million in
    2009, a decrease of $149.6&#160;million, or 85%, as compared to
    the pro forma loss from operations of $176.2&#160;million in
    2008. The components of this decrease are analyzed below.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Pro forma revenue was $127.8&#160;million in 2009, a decrease of
    $107.8&#160;million, or 46%, as compared to the
    $235.6&#160;million in 2008. The decrease in pro forma revenue
    was principally due to the 41% decrease in average sales price
    to $47.07 per Boe in 2009 from $80.02 in 2008. Additionally, pro
    forma production declined 8% to 2.7&#160;MMBoe in 2009 from
    2.9&#160;MMBoe in 2008, principally due to the loss of
    production from CBM wells that produced during all of 2008, but
    were shut-in during a majority of 2009 due to low commodity
    prices.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Pro forma combined lease operating expenses and production and
    ad valorem taxes were $68.8&#160;million in 2009, a decrease of
    $21.2&#160;million, or 24%, as compared to $90.0&#160;million in
    2008. Pro forma production taxes declined $10.8&#160;million, or
    37%, principally as a result of lower revenue, and lease
    operating expenses declined $10.4&#160;million, or 17%, as
    Resolute and Predecessor Resolute endeavored to reduce lease
    operating and workover costs during the low commodity price
    environment in 2009.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Pro forma general and administrative (and write-off of deferred
    acquisition costs) expenses were $31.9&#160;million in 2009, an
    increase of $10.1&#160;million, or 46%, as compared to
    $21.8&#160;million in 2008. The increase is principally due to
    the $19.1&#160;million of acquisition and transaction costs
    expensed in 2009, as compared to the $5.1&#160;million of
    similar costs in 2008. Offsetting decreases were principally due
    to the $3.7&#160;million of equity-based compensation in 2009,
    as compared to the $7.9&#160;million of similar cost in 2008.
</DIV>
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    <BR>
A-59
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Pro forma depletion, depreciation, amortization and accretion
    expense was $40.1&#160;million in 2009, a decrease of
    $14.9&#160;million, or 27%, as compared to the
    $55.0&#160;million in 2008. The decrease is partially due to the
    8% decrease in pro forma production noted above, but is
    primarily due to the lower pro forma carrying cost of proved oil
    and gas properties in 2009 following the $245.0&#160;million of
    impairment of proved properties recorded at December&#160;31,
    2008, and the additional $13.3&#160;million impairment recorded
    at March&#160;31, 2009.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><U><FONT style="font-family: Arial, Helvetica">Liquidity
    and Capital Resources</FONT></U></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    During 2009, the Company used $12.2&#160;million in operating
    activities, primarily as a result of changes in working capital,
    provided $210.0&#160;million in investing activities for the
    Resolute Transaction, and used $198.2&#160;million in financing
    activities from equity purchase agreements related to the
    Resolute Transaction. At December&#160;31, 2009, the Company had
    $0.5&#160;million in cash and $109.6&#160;million in debt
    outstanding under its Credit Facility (as defined below). Unused
    availability under the Credit Facility at December&#160;31,
    2009, was $121.9&#160;million. Subsequent to December&#160;31,
    2009, Resolute&#146;s primary sources of liquidity are expected
    to be cash generated from operating activities, amounts
    available under its Credit Facility and funds from future
    private and public equity and debt offerings. Resolute does not
    anticipate paying dividends to holders of its common stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Resolute plans to reinvest a sufficient amount of its cash flow
    in its development operations in order to maintain its
    production over the long term, and plans to use external
    financing sources as well as cash flow from operations and cash
    reserves to increase its production.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    If cash flow from operating activities does not meet
    expectations, Resolute may reduce its expected level of capital
    expenditures
    <FONT style="white-space: nowrap">and/or</FONT> fund
    a portion of its capital expenditures using borrowings under its
    Credit Facility, issuances of debt and equity securities or from
    other sources, such as asset sales. There can be no assurance
    that needed capital will be available on acceptable terms or at
    all. Resolute&#146;s ability to raise funds through the
    incurrence of additional indebtedness could be limited by the
    covenants in its credit facility. If Resolute is unable to
    obtain funds when needed or on acceptable terms, it may not be
    able to complete acquisitions that may be favorable to it or
    finance the capital expenditures necessary to maintain
    production or proved reserves.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    If Resolute incurs significant indebtedness in the future, its
    ability to obtain additional financing may be impaired, its
    ability to make changes in its business may become impaired due
    to covenant restrictions, a significant portion of its cash flow
    will be used to make payments in respect of principal and
    interest on the debt, rather than being available for operating
    or capital expenditures, and thus put Resolute at a competitive
    disadvantage as compared to its competitors that have less debt,
    and may limit its ability to pursue other business opportunities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Resolute plans to continue its practice of hedging a significant
    portion of its production. Hedge arrangements are generally
    settled within five days of the end of the month. As is typical
    in the oil and gas industry, however, Resolute does not
    generally receive the proceeds from the sale of its crude oil
    production until the 20th&#160;day of the month following the
    month of production. As a result, when commodity prices increase
    above the fixed price in the derivative contacts, Resolute will
    be required to pay the derivative counterparty the difference
    between the fixed price in the derivative contract and the
    market price before receiving the proceeds from the sale of the
    hedged production. If this occurs, Resolute may use working
    capital borrowings to fund its operations.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><U><FONT style="font-family: Arial, Helvetica">Revolving
    Credit Facility</FONT></U></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Resolute&#146;s credit facility is with a syndicate of banks led
    by Wachovia Bank, National Association (the &#147;Credit
    Facility&#148;) with Aneth as the borrower. The Credit Facility
    specifies a maximum borrowing base as determined by the lenders.
    The determination of the borrowing base takes into consideration
    the estimated value and future cash flows of Resolute&#146;s oil
    and gas properties in accordance with the lenders&#146;
    customary practices for oil and gas loans. The borrowing base is
    re-determined semi-annually, and the amount available for
    borrowing could be increased or decreased as a result of such
    re-determinations. Under certain circumstances, either Resolute
    or the lenders may request an interim re-determination. As of
    December&#160;31, 2009, the borrowing base was $240&#160;million
    and unused availability under the borrowing base was
    $121.9&#160;million. The borrowing base availability has been
    reduced by $8.5&#160;million in conjunction with letters of
    credit issued to vendors at December&#160;31, 2009.
</DIV>
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    <BR>
A-60
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The Credit Facility matures on April&#160;13, 2011 and, to the
    extent that the borrowing base, as adjusted from time to time,
    exceeds the outstanding balance, no repayments of principal are
    required prior to maturity.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The outstanding balance under the Credit Facility accrues
    interest, at Aneth&#146;s option, at either (a)&#160;the London
    Interbank Offered Rate, plus a margin which varies from 2.5% to
    3.5%, or (b)&#160;the Alternative Base Rate defined as the
    greater of (i)&#160;the Administrative Agent&#146;s Prime Rate,
    (ii)&#160;the Administrative Agent&#146;s Base CD rate plus 1%,
    or (iii)&#160;the Federal Funds Effective Rate plus 0.5%, plus a
    margin which varies from 1.0% to 2.0%. Each such margin is based
    on the level of utilization under the borrowing base. As of
    December&#160;31, 2009, the weighted average interest rate on
    the outstanding balance under the facility was 3.30%. The Credit
    Facility is collateralized by substantially all of the proved
    oil and gas assets of Aneth and RWI, and is guaranteed by
    Resolute and its subsidiaries other than Aneth.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The Credit Facility includes terms and covenants that place
    limitations on certain types of activities, the payment of
    dividends, and require satisfaction of certain financial tests.
    Resolute was in compliance with all terms and covenants of the
    Credit Facility at December&#160;31, 2009.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    On March&#160;30, 2010, the Company entered into a Restated
    Credit Agreement (the &#147;Restated Agreement&#148;). Under the
    terms of the Restated Agreement, the borrowing base was
    increased from $240.0&#160;million to $260.0&#160;million and
    the maturity date was extended to March 2014. At Resolute&#146;s
    option, the outstanding balance under the Credit Facility
    accrues interest at either (a)&#160;the London Interbank Offered
    Rate, plus a margin which varies from 2.25% to 3.0% or
    (b)&#160;the Alternative Base Rate, defined as the greater of
    (i)&#160;the Administrative Agent&#146;s Prime Rate,
    (ii)&#160;the Federal Funds Effective Rate plus 0.5%, or
    (iii)&#160;an adjusted London Interbank Offered Rate plus 1%,
    plus a margin which ranges from 1.25% to 2.0%.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    As of March&#160;30, 2010, Resolute had borrowings of
    $115.4&#160;million under the borrowing base, resulting in an
    unused availability of $136.1&#160;million.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><U><FONT style="font-family: Arial, Helvetica">Off Balance
    Sheet Arrangements</FONT></U></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Resolute does not have any off-balance sheet financing
    arrangements other than operating leases. Resolute has not
    guaranteed any debt or commitments of other entities or entered
    into any options on non-financial assets.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><U><FONT style="font-family: Arial, Helvetica">Contractual
    Obligations</FONT></U></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Resolute has the following contractual obligations and
    commitments as of December&#160;31, 2009:
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 7pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
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    <TD width="30%">&nbsp;</TD> <!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=02 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>    <!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=02 type=hang1 -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=03 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>    <!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=03 type=hang1 -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=04 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>    <!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=04 type=hang1 -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=05 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>    <!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=05 type=hang1 -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=06 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>    <!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=06 type=hang1 -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=07 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=07 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>    <!-- colindex=07 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=07 type=hang1 -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=08 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=08 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>    <!-- colindex=08 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=08 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="26" nowrap align="center" valign="bottom">
    <B>Payments Due By Year<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="26" nowrap align="center" valign="bottom">
    <B>(in thousands)<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>After<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2010</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2011</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2012</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2013</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2014</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2014</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Total (5)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    Long-term debt (1)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    109,575
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    109,575
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    Office and equipment leases
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    460
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    399
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    859
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    Operating equipment leases (2)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,747
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,747
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,747
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,747
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,747
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,769
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19,504
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    ExxonMobil escrow agreement (3)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,800
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,800
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,800
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,800
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,800
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17,900
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    26,900
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    purchases (4)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17,689
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14,665
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,477
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,088
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,924
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,443
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    65,286
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    Total
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    22,696
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    129,186
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;16,024
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    15,635
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;9,471
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    29,112
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;222,124
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>
&#160;&#160;&#160;&#160;&#160;
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    1) </TD>
    <TD></TD>
    <TD valign="bottom">
    Included in long-term debt is the outstanding principal amount
    under Resolute&#146;s Credit Facility. This table does not
    include future commitment fees, interest expense or other fees
    because the Credit Facility is floating rate instrument, and the
    Company cannot determine with accuracy the timing of future loan
    advances, repayments or future interest rates to be charged.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    2) </TD>
    <TD></TD>
    <TD valign="bottom">
    Operating equipment leases consist of compressors and other oil
    and gas field equipment used in the
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    project.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    3) </TD>
    <TD></TD>
    <TD valign="bottom">
    Under the terms of Resolute&#146;s purchase agreement with
    ExxonMobil, Resolute is obligated to make annual deposits into
    an escrow account that will be used to fund plugging and
    abandonment liabilities associated with the ExxonMobil
    Properties.</TD>
</TR>

</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <BR>
A-61
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>
&#160;&#160;&#160;&#160;&#160;
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    4) </TD>
    <TD></TD>
    <TD valign="bottom">
    Represents the minimum
    <FONT style="white-space: nowrap">take-or-pay</FONT>
    quantities associated with Resolute&#146;s existing
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    purchase contracts. For purposes of calculating the future
    purchase obligation under these contracts, Resolute has assumed
    the purchase price over the term of the contracts was the price
    in effect as of December&#160;31, 2009.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    5) </TD>
    <TD></TD>
    <TD valign="bottom">
    Total contractually obligated payment commitments do not include
    the anticipated settlement of derivative contracts, obligations
    to taxing authorities or amounts relating to our asset
    retirement obligations, which include plugging and abandonment
    obligations, due to the uncertainty surrounding the ultimate
    settlement amounts and timing of these obligations.
    Resolute&#146;s total asset retirement obligations were
    $9.2&#160;million at December&#160;31, 2009.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><U><FONT style="font-family: Arial, Helvetica">Critical
    Accounting Policies</FONT></U></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The discussion and analysis of Resolute&#146;s financial
    condition and results of operations is based upon the
    consolidated financial statements, which have been prepared in
    accordance with accounting principles generally accepted in the
    United States. The preparation of these financial statements
    requires Resolute to make estimates and assumptions that affect
    the reported amounts of assets, liabilities, revenue and
    expenses, and related disclosure of contingent assets and
    liabilities. The application of accounting policies involve
    judgments and uncertainties to such an extent that there is
    reasonable likelihood that materially different amounts could
    have been reported under different conditions, or if different
    assumptions had been used. Resolute evaluates estimates and
    assumptions on a regular basis. Resolute bases estimates on
    historical experience and various other assumptions that are
    believed to be reasonable under the circumstances, the results
    of which form the basis for making judgments about the carrying
    values of assets and liabilities that are not readily apparent
    from other sources. Actual results may differ, perhaps
    materially, from these estimates and assumptions used in
    preparation of Resolute&#146;s financial statements. Provided
    below is an expanded discussion of the most significant
    accounting policies, estimates and judgments. Resolute believes
    these accounting policies reflect Resolute&#146;s most
    significant estimates and assumptions used in the preparation of
    the financial statements.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>Oil and Gas Properties.</I>&#160;Resolute uses the full cost
    method of accounting for oil and gas producing activities. All
    costs incurred in the acquisition, exploration and development
    of properties, including costs of unsuccessful exploration,
    costs of surrendered and abandoned leaseholds, delay lease
    rentals and the fair value of estimated future costs of site
    restoration, dismantlement and abandonment activities, improved
    recovery systems and a portion of general and administrative
    expenses are capitalized within the cost center.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Resolute conducts tertiary recovery projects on a portion of its
    oil and gas properties in order to recover additional
    hydrocarbons that are not recoverable from primary or secondary
    recovery methods. Under the full cost method, all development
    costs are capitalized at the time incurred. Development costs
    include charges associated with access to and preparation of
    well locations, drilling and equipping development wells, test
    wells, and service wells including injection wells; acquiring,
    constructing, and installing production facilities and providing
    for improved recovery systems. Improved recovery systems include
    all related facility development costs and the cost of the
    acquisition of tertiary injectants, primarily purchased
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>.
    The development cost related to
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    purchases are incurred solely for the purpose of gaining access
    to incremental reserves not otherwise recoverable. The
    accumulation of injected
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>,
    in combination with additional purchased and recycled
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>,
    provide future economic value over the life of the project.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    In contrast, other costs related to the daily operation of the
    improved recovery systems include, but are not limited to,
    compression, electricity, separation, re-injection of recovered
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    and water, are considered production costs and are expensed as
    incurred. Costs incurred to maintain reservoir pressure are also
    expensed as incurred.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Capitalized general and administrative costs include salaries,
    employee benefits, costs of consulting services and other
    specifically identifiable costs and do not include costs related
    to production operations, general corporate overhead or similar
    activities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Investments in unproved properties are not depleted, pending
    determination of the existence of proved reserves. Unproved
    properties are assessed periodically to ascertain whether
    impairment has occurred. Unproved properties whose costs are
    individually significant are assessed individually by
    considering the primary
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <BR>
A-62
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    lease terms of the properties, the holding period of the
    properties, and geographic and geologic data obtained relating
    to the properties. Where it is not practicable to assess
    individually the amount of impairment of properties for which
    costs are not individually significant, such properties are
    grouped for purposes of assessing impairment. The amount of
    impairment assessed is added to the costs to be amortized, or is
    reported as a period expense as appropriate.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Pursuant to full cost accounting rules, Resolute must perform a
    ceiling test each quarter on its proved oil and gas assets. The
    ceiling test provides that capitalized costs less related
    accumulated depletion and deferred income taxes for each cost
    center may not exceed the sum of (1)&#160;the present value of
    future net revenue from estimated production of proved oil and
    gas reserves using current prices, excluding the future cash
    outflows associated with settling asset retirement obligations
    that have been accrued on the balance sheet, and a discount
    factor of 10%; plus (2)&#160;the cost of properties not being
    amortized, if any; plus (3)&#160;the lower of cost or estimated
    fair value of unproved properties included in the costs being
    amortized, if any; less (4)&#160;income tax effects related to
    differences in the book and tax basis of oil and gas properties.
    Should the net capitalized costs for a cost center exceed the
    sum of the components noted above, an impairment charge would be
    recognized to the extent of the excess capitalized costs.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    No gain or loss is recognized upon the sale or abandonment of
    undeveloped or producing oil and gas properties unless the sale
    represents a significant portion of oil and gas properties and
    the gain significantly alters the relationship between
    capitalized costs and proved oil reserves of the cost center.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Depletion and amortization of oil and gas properties is computed
    on the
    <FONT style="white-space: nowrap">unit-of-production</FONT>
    method based on proved reserves. Amortizable costs include
    estimates of asset retirement obligations and future development
    costs of proved reserves, including, but not limited to, costs
    to drill and equip development wells, constructing and
    installing production and processing facilities, and improved
    recovery systems including the cost of required future
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    purchases.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>Oil and Gas Reserve Quantities.</I>&#160;Resolute&#146;s
    estimate of proved reserves is based on the quantities of oil
    and gas that engineering and geological analyses demonstrate,
    with reasonable certainty, to be recoverable from established
    reservoirs in the future under current operating and economic
    parameters. Reserves and their relation to estimated future net
    cash flows affect Resolute&#146;s depletion and impairment
    calculations. As a result, adjustments to depletion and
    impairment are made concurrently with changes to reserves
    estimates. Resolute prepares reserves estimates, and the
    projected cash flows derived from these reserves estimates, in
    accordance with SEC and FASB guidelines. The accuracy of
    Resolute&#146;s reserves estimates is a function of many factors
    including but not limited to the following: the quality and
    quantity of available data, the interpretation of that data, the
    accuracy of various mandated economic assumptions and the
    judgments of the individuals preparing the estimates.
    Resolute&#146;s proved reserves estimates are a function of many
    assumptions, any or all of which could deviate significantly
    from actual results. As such, reserves estimates may vary
    materially from the ultimate quantities of oil, gas and natural
    gas liquids reserves eventually recovered.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>Derivative Instruments and Hedging
    Activities.</I>&#160;Resolute enters into derivative contracts
    to manage its exposure to oil and gas price volatility.
    Derivative contracts may take the form of futures contracts,
    swaps or options. Realized and unrealized gains and losses
    related to commodity derivatives are recognized in other income
    (expense). Realized gains and losses are recognized in the
    period in which the related contract is settled. The cash flows
    from derivatives are reported as cash flows from operating
    activities unless the derivative contract is deemed to contain a
    financing element. Derivatives deemed to contain a financing
    element are reported as financing activities in the consolidated
    statement of cash flows.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    FASB Accounting Standards Codification (&#147;ASC&#148;) Topic
    815, <I>Derivatives and Hedging</I>, requires recognition of all
    derivative instruments on the balance sheet as either assets or
    liabilities measured at fair value. Changes in the fair value of
    a derivative are recognized currently in earnings unless
    specific hedge accounting criteria are met. Gains and losses on
    derivative hedging instruments must be recorded in either other
    comprehensive income or current earnings, depending on the
    nature and designation of the instrument. Presently,
    Resolute&#146;s management has determined that the benefit of
    the financial statement presentation available under the
    provisions of FASB ASC Topic 815, which may allow for its
    derivative instruments to be reflected as cash flow hedges, is
    not commensurate with the administrative burden required to
    support that treatment. As a result,
</DIV>
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    <BR>
A-63
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Resolute marked its derivative instruments to fair value in
    accordance with the provisions of FASB ASC Topic 815 and
    recognized the changes in fair market value in earnings. Gains
    and losses on derivative instruments reflected in the
    consolidated statement of operations incorporate both realized
    and unrealized values.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>Asset Retirement Obligations.</I>&#160;Asset retirement
    obligations relate to future costs associated with the plugging
    and abandonment of oil and gas wells, removal of equipment and
    facilities from leased acreage and returning such land to its
    original condition. The fair value of a liability for an asset
    retirement obligation is recorded in the period in which it is
    incurred (typically when the asset is installed at the
    production location), and the cost of such liability increases
    the carrying amount of the related long-lived asset by the same
    amount. The liability is accreted each period and the
    capitalized cost is depleted on a
    <FONT style="white-space: nowrap">units-of-production</FONT>
    basis as part of the full cost pool. Revisions to estimated
    retirement obligations result in adjustments to the related
    capitalized asset and corresponding liability.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Resolute&#146;s estimated asset retirement obligation liability
    is based on estimated economic lives, estimates as to the cost
    to abandon the wells in the future, and federal and state
    regulatory requirements. The liability is discounted using a
    credit-adjusted risk-free rate estimated at the time the
    liability is incurred or revised. Revisions to the liability
    could occur due to changes in estimated abandonment costs or
    well economic lives, or if federal or state regulators enact new
    requirements regarding the abandonment of wells.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>Equity-Based Compensation.</I>&#160;Resolute accounts for
    stock-based compensation in accordance with FASB ASC Topic 718,
    which requires it to measure the grant date fair value of equity
    awards given to employees in exchange for services, and to
    recognize that cost, less estimated forfeitures, over the period
    that such services are performed.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>Income taxes.</I>&#160;Deferred tax assets and liabilities
    are recorded to account for the expected future tax consequences
    of events that have been recognized in the financial statements
    and tax returns. The ability to realize the deferred tax assets
    is routinely assessed. If the conclusion is that it is more
    likely than not that some portion or all of the deferred tax
    assets will not be realized, the tax asset would be reduced by a
    valuation allowance. The future taxable income is considered
    when making such assessments. Numerous judgments and assumptions
    are inherent in the determination of future taxable income,
    including factors such as future operating conditions
    (particularly as related to prevailing oil and gas prices).
    Income tax positions are also required to meet a
    more-likely-than-not recognition threshold to be recognized in
    the financial statements. Tax positions that previously failed
    to meet the more-likely-than-not threshold are recognized in the
    first subsequent financial reporting period in which that
    threshold is met. Previously recognized tax positions that no
    longer meet the more-likely-than-not threshold are derecognized
    in the first subsequent financial reporting period in which that
    threshold is no longer met.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><U><FONT style="font-family: Arial, Helvetica">Accounting
    Standards Update</FONT></U></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    In June of 2009, the FASB established the ASC as the single
    source of authoritative GAAP for all non-governmental entities
    with the exception of authoritative guidance from the SEC. All
    other accounting literature is considered non-authoritative. The
    ASC changes the way the Company cites authoritative guidance
    within the Company&#146;s financial statements and notes to the
    financial statements. The ASC is effective for periods ending on
    or after September&#160;15, 2009, and did not have a material
    impact on the Company&#146;s consolidated financial statements.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Resolute adopted FASB ASC Topic 805, <I>Business Combinations,
    </I>on January&#160;1, 2009. This guidance establishes
    principles and requirements for how the acquirer of a business
    recognizes and measures in its financial statements the
    contingent and identifiable assets acquired, the liabilities
    assumed, and any noncontrolling interest in the acquiree. The
    nature and magnitude of the specific effects of this guidance on
    the consolidated financial statements will depend upon the
    nature, terms and size of the acquisitions consummated after the
    effective date.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    In January 2010, the FASB issued additional guidance to improve
    disclosure requirements related to fair value measurements and
    disclosures. Specifically, this guidance requires disclosures
    about transfers in and out of Level&#160;1 and 2 fair value
    measurements, activity in Level&#160;3 fair value measurements
    (See Note&#160;12 of the Resolute Energy Corporation
    Consolidated Financial Statements for Level&#160;1, 2 and 3
    definitions), greater desegregation of
</DIV>
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    <BR>
A-64
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    the amounts on the consolidated balance sheets that are subject
    to fair value measurements and additional disclosures about the
    valuation techniques and inputs used in fair value measurements.
    This guidance is effective for annual reporting periods
    beginning after December&#160;31, 2009, except for disclosure of
    Level&#160;3 fair value measurement roll forward activity, which
    is effective for annual reporting periods beginning after
    December&#160;15, 2010. The Company is currently assessing the
    impact this guidance will have on the consolidated financial
    statements.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    On December&#160;31, 2008, the SEC published the final rules and
    interpretations updating its oil and gas reporting requirements.
    Many of the revisions are updates to definitions in the existing
    oil and gas rules to make them consistent with the petroleum
    resource management system. This system, which was developed by
    several industry organizations, is a widely accepted standard
    for the management of petroleum resources. Key revisions include
    changes to the pricing used to estimate reserves, the ability to
    include nontraditional resources in reserves, the use of new
    technology for determining reserves, and permitting disclosure
    of probable and possible reserves. The FASB ASC was updated in
    January of 2010 to align the oil and gas reserve estimation and
    disclosure requirements in the ASC with the SEC&#146;s oil and
    gas reporting requirements. The SEC will require companies to
    comply with the amended disclosure requirements for registration
    statements filed after January&#160;1, 2010, and for annual
    reports for fiscal years ending on or after December&#160;15,
    2009. Early adoption is not permitted. Resolute adopted the
    requirements for the year ended December&#160;31, 2009 and the
    consolidated financial statements were affected in the following
    manner:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="3%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    The price used in calculating reserves changed from a
    <FONT style="white-space: nowrap">single-day</FONT>
    closing price measured on the last day of the Company&#146;s
    fiscal year to a
    <FONT style="white-space: nowrap">12-month</FONT>
    average first of the month price for the previous twelve months
    as of the balance sheet date. This average price was utilized in
    the Company&#146;s depletion and ceiling test calculations.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    The notes to the consolidated financial statements include
    additional financial reporting disclosures.
</TD>
</TR>

</TABLE>
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    <BR>
A-65
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><U><FONT style="font-family: Arial, Helvetica">PREDECESSOR
    RESOLUTE </FONT></U></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The following section of MD&#038;A addresses the
    <FONT style="white-space: nowrap">period-to-period</FONT>
    comparisons of operating results for Predecessor Resolute.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Period Ended
    September&#160;24, 2009, Compared to the Year Ended
    December&#160;31, 2008</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    For the purposes of management&#146;s discussion and analysis of
    results of operations of Predecessor Resolute, management has
    presented the 267&#160;day period ended September&#160;24, 2009
    in comparison to the 366&#160;day year ended December&#160;31,
    2008. Any references to the 2009 or 2008 period refer to these
    specific periods. As such, the 2009 period is 27.0% shorter than
    the 2008 period.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <B><I>Revenue.</I></B>&#160;Revenue from oil and gas activities
    decreased to $85.3&#160;million during 2009, from
    $229.2&#160;million during 2008. The key revenue measurements
    were as follows:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 8pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="57%">&nbsp;</TD> <!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>  <!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=02 type=lead -->
    <TD width="10%" align="right">&nbsp;</TD>   <!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=02 type=hang1 -->
    <TD width="2%">&nbsp;</TD>  <!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=03 type=lead -->
    <TD width="10%" align="right">&nbsp;</TD>   <!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=03 type=hang1 -->
    <TD width="2%">&nbsp;</TD>  <!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=04 type=lead -->
    <TD width="11%" align="right">&nbsp;</TD>   <!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Percentage<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Increase<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>(Decrease)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <B>Net Sales:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Total sales (MBoe)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,011
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,823
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (28.8
</TD>
<TD nowrap align="left" valign="bottom">
    )%
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Average daily sales (Boe/d)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,530
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,712
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2.4
</TD>
<TD nowrap align="left" valign="bottom">
    )%
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <B>Average Sales Prices ($/Boe):</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Average sales price (excluding derivative settlements)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;42.45
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    81.19
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (47.7
</TD>
<TD nowrap align="left" valign="bottom">
    )%
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Average sales price (including derivative settlements)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    48.31
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;69.60
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (30.6
</TD>
<TD nowrap align="left" valign="bottom">
    )%
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Total production decreased 28.8% during 2009 as compared to
    2008, decreased only 2.4% during 2009 on a daily basis as
    compared to 2008. The overall production decrease was primarily
    due to shut-in of CBM wells in 2009 that were producing in 2008
    and the shorter 2009 production period. This decrease was
    mitigated on a daily basis by increased
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    production response in Aneth versus 2008. The average sales
    price per Boe decreased by 47.7% in 2009 as compared to 2008 due
    to lower commodity pricing in 2009.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <B><I>Operating Expenses.</I></B>&#160;Operating expenses
    consists of lease operating expense, depletion, depreciation and
    amortization, impairment of proved property and general
    administrative expenses. Predecessor Resolute assessed lease
    operating expenses in part by monitoring the expenses in
    relation to production volumes and the number of wells operated.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Lease operating expenses consist of lease operating expenses,
    including labor, field office rent, vehicle expenses,
    supervision, transportation, minor maintenance, tools and
    supplies, workover expenses, ad valorem, severance and other
    taxes and other customary charges.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Lease operating expenses per Boe decreased during 2009 as
    compared to 2008 as follows:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="59%">&nbsp;</TD> <!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>  <!-- colindex=02 type=gutter -->
    <TD width="5%" align="right">&nbsp;</TD>    <!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=02 type=body -->
    <TD width="5%" align="left">&nbsp;</TD>     <!-- colindex=02 type=hang1 -->
    <TD width="2%">&nbsp;</TD>  <!-- colindex=03 type=gutter -->
    <TD width="5%" align="right">&nbsp;</TD>    <!-- colindex=03 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=03 type=body -->
    <TD width="5%" align="left">&nbsp;</TD>     <!-- colindex=03 type=hang1 -->
    <TD width="2%">&nbsp;</TD>  <!-- colindex=04 type=gutter -->
    <TD width="6%" align="right">&nbsp;</TD>    <!-- colindex=04 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=04 type=body -->
    <TD width="6%" align="left">&nbsp;</TD>     <!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 9pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Percentage<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 9pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Increase<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 9pt">2009</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 9pt">2008</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 9pt">(Decrease)</FONT></B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Lease operating expenses per Boe
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;23.26
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;30.46
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (23.6
</TD>
<TD nowrap align="left" valign="bottom">
    )%
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Lease operating expenses decreased to $46.8&#160;million during
    2009, from $86.0&#160;million during 2008. The
    $39.2&#160;million, or 45.6%, decrease was principally
    attributable to an approximately $16.5&#160;million decrease in
    ad valorem, severance and other taxes generally caused by lower
    sales, $5.8&#160;million decrease in workover expenses,
    $6.0&#160;million decrease in labor costs and a
    $4.1&#160;million decrease in equipment materials and supplies,
    as well as the shorter 2009 operating period.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Depletion, depreciation, amortization and accretion expenses
    decreased to $21.9&#160;million during 2009, as compared to
    $50.3&#160;million during 2008. The $28.4&#160;million, or
    56.5%, decrease is principally due to a decrease in the per Boe
    depletion, depreciation and amortization rate from $17.83 per
    Boe in 2008 to $10.90 per Boe in 2009 due to the reduction in
    the carrying value of proved oil and gas properties in 2009
    following the impairment of proved properties at
    December&#160;31, 2008 and March&#160;31, 2009.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <BR>
A-66
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Pursuant to full cost accounting rules, Predecessor Resolute
    performed a ceiling test each quarter on its proved oil and gas
    assets. As a result of this limitation on capitalized costs,
    Predecessor Resolute included a provision for an impairment of
    oil and gas property costs for 2009 and 2008 of
    $13.3&#160;million and $245.0&#160;million, respectively.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    General and administrative expenses include the costs of
    Predecessor Resolute&#146;s employees and executive officers,
    related benefits, office leases, professional fees and other
    costs not directly associated with field operations. Predecessor
    Resolute monitors general and administrative expenses in
    relation to the amount of production and the number of wells
    operated.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="59%">&nbsp;</TD> <!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>  <!-- colindex=02 type=gutter -->
    <TD width="5%" align="right">&nbsp;</TD>    <!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=02 type=body -->
    <TD width="5%" align="left">&nbsp;</TD>     <!-- colindex=02 type=hang1 -->
    <TD width="2%">&nbsp;</TD>  <!-- colindex=03 type=gutter -->
    <TD width="5%" align="right">&nbsp;</TD>    <!-- colindex=03 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=03 type=body -->
    <TD width="5%" align="left">&nbsp;</TD>     <!-- colindex=03 type=hang1 -->
    <TD width="2%">&nbsp;</TD>  <!-- colindex=04 type=gutter -->
    <TD width="6%" align="right">&nbsp;</TD>    <!-- colindex=04 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=04 type=body -->
    <TD width="6%" align="left">&nbsp;</TD>     <!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 9pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Percentage<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 9pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Increase<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 9pt">2009</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 9pt">2008</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 9pt">(Decrease)</FONT></B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    General and administrative expenses per Boe
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    4.02
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    7.16
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (43.9
</TD>
<TD nowrap align="left" valign="bottom">
    )%
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    General and administrative expenses decreased to
    $8.1&#160;million during 2009, as compared to $20.2&#160;million
    during 2008. The $12.1&#160;million, or 60.0%, decrease in the
    absolute level of general and administrative expenses
    principally resulted from a $5.1&#160;million decrease in
    non-cash charges to compensation expense associated with
    equity-based compensation, a $4&#160;million decrease in
    salaries and wages, and a $1.8&#160;million decrease in
    professional fees.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <B><I>Other Income (Expense).</I></B>&#160;All oil and gas
    derivative instruments are accounted for under
    <FONT style="white-space: nowrap">mark-to-market</FONT>
    accounting rules, which provide for the fair value of the
    contracts to be reflected as either an asset or a liability on
    the balance sheet. The change in the fair value during an
    accounting period is reflected in the income statement for that
    period. During 2009, the fair value of oil and gas derivatives
    decreased by $23.5&#160;million. This amount included
    approximately $1.9&#160;million of realized gains on oil and gas
    derivatives, including a realized loss of $12.5&#160;million
    that was incurred to cash settle a 2010 hedge position as
    required under the terms of the Resolute Transaction and
    $25.4&#160;million of decreases in the unrealized future value
    of oil and gas derivatives. During 2008, the fair value of oil
    and gas derivatives increased by $96.0&#160;million. This amount
    included approximately $120.6&#160;million of unrealized gain in
    the future value of oil and gas derivatives and
    $24.6&#160;million of realized losses from monthly settlements.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Interest expense was $18.4&#160;million during 2009, as compared
    to $33.1&#160;million during 2008. The $14.7&#160;million, or
    44.4%, decrease is attributable to lower interest rates and to
    the shorter 2009 period.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <B><I>Income Tax Benefit (Expense).</I></B>&#160;Income tax
    benefit recognized during 2009 was $5.0&#160;million, as
    compared to an income tax benefit of $18.3&#160;million in 2008.
    The 2009 period included the effect of the reversal of a
    $0.4&#160;million contingent tax liability due to the expiration
    of the statute of limitations and recording $14.4&#160;million
    in deferred income tax expense.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Year Ended
    December&#160;31, 2008, Compared to the Year Ended
    December&#160;31, 2007</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>Revenue.</I>&#160;Revenue increased to $229.2&#160;million
    during 2008, from $173.3&#160;million during 2007. The key
    revenue measures were as follows:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="54%">&nbsp;</TD> <!-- colindex=01 type=maindata -->
    <TD width="3%">&nbsp;</TD>  <!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=02 type=lead -->
    <TD width="10%" align="right">&nbsp;</TD>   <!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>  <!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=03 type=lead -->
    <TD width="10%" align="right">&nbsp;</TD>   <!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>  <!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=04 type=lead -->
    <TD width="11%" align="right">&nbsp;</TD>   <!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 9pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Percentage<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 9pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Increase<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 9pt">2008</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 9pt">2007</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 9pt">(Decrease)</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <B>Net Sales:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Total sales (MBoe)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,823
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,760
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.3
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Average daily sales (Boe/d)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,712
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,561
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.0
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <B>Average Sales Prices ($/Boe):</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Average sales price (including derivative settlements)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;69.60
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;61.09
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13.9
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Average sales price (excluding derivative settlements)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;81.19
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    62.81
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    29.3
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The increase in revenue was primarily due to a 29.3% increase in
    the average sales price in 2008 excluding hedges as compared to
    the average sales price in 2007, as well as a 2% increase in
    production in 2008. The increase in production is due in part to
    Predecessor Resolute&#146;s ongoing efforts to enhance
    <FONT style="white-space: nowrap">day-to-day</FONT>
    production
</DIV>
<!-- XBRL Paragraph Pagebreak -->
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<P align="center" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <BR>
A-67
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    in its Aneth Field Properties. Average sales price, excluding
    the effects of hedges, increased to $81.19 per Boe during 2008,
    as compared to $62.81 per Boe during 2007.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <B><I>Lease Operating Expenses.</I></B>&#160;Lease operating
    expenses increased to $86.0&#160;million for 2008, from
    $66.7&#160;million for 2007. The increase of $19.3&#160;million
    in lease operating expenses for 2008, was attributable to an
    $8.9&#160;million increase in production taxes due principally
    to higher product prices, a $3.7&#160;million increase in field
    services, a $2.4&#160;million increase in repairs and
    maintenance and a $4.3&#160;million increase in other costs. The
    increase in non-tax related production expense was due primarily
    to the escalation in virtually all oil and gas industry costs
    induced by the high levels of industry activity during 2008.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="59%">&nbsp;</TD> <!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>  <!-- colindex=02 type=gutter -->
    <TD width="5%" align="right">&nbsp;</TD>    <!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=02 type=body -->
    <TD width="5%" align="left">&nbsp;</TD>     <!-- colindex=02 type=hang1 -->
    <TD width="2%">&nbsp;</TD>  <!-- colindex=03 type=gutter -->
    <TD width="5%" align="right">&nbsp;</TD>    <!-- colindex=03 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=03 type=body -->
    <TD width="5%" align="left">&nbsp;</TD>     <!-- colindex=03 type=hang1 -->
    <TD width="2%">&nbsp;</TD>  <!-- colindex=04 type=gutter -->
    <TD width="6%" align="right">&nbsp;</TD>    <!-- colindex=04 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=04 type=body -->
    <TD width="6%" align="left">&nbsp;</TD>     <!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 9pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Percentage<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 9pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="7" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Wtd. Avg $/Boe</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Increase<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 9pt">2008</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 9pt">2007</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 9pt">(Decrease)</FONT></B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Lease operating expenses per Boe
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    30.46
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    24.18
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    26.0
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <B><I>General and Administrative Expenses.</I></B>&#160;General
    and administrative expenses decreased to $20.2&#160;million
    during 2008, from $40.3&#160;million during 2007, due primarily
    to the recognition of a non-cash charge to equity based
    compensation expense of $34.5&#160;million in 2007 as compared
    to $7.9&#160;million in 2008.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="61%">&nbsp;</TD> <!-- colindex=01 type=maindata -->
    <TD width="6%">&nbsp;</TD>  <!-- colindex=02 type=gutter -->
    <TD width="2%" align="right">&nbsp;</TD>    <!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=02 type=body -->
    <TD width="2%" align="left">&nbsp;</TD>     <!-- colindex=02 type=hang1 -->
    <TD width="6%">&nbsp;</TD>  <!-- colindex=03 type=gutter -->
    <TD width="2%" align="right">&nbsp;</TD>    <!-- colindex=03 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=03 type=body -->
    <TD width="2%" align="left">&nbsp;</TD>     <!-- colindex=03 type=hang1 -->
    <TD width="6%">&nbsp;</TD>  <!-- colindex=04 type=gutter -->
    <TD width="9%" align="right">&nbsp;</TD>    <!-- colindex=04 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 9pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Percentage<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 9pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="7" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Wtd. Avg $/Boe</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Increase<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 9pt">2008</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 9pt">2007</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 9pt">(Decrease)</FONT></B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    General and administrative expenses per Boe
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    7.16
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    14.59
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (50.9
</TD>
<TD nowrap align="left" valign="bottom">
    )%
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <B><I>Impairment of Proved Properties.</I></B>&#160;Pursuant to
    full cost accounting rules, Predecessor Resolute performed a
    ceiling test each quarter on its proved oil and gas assets. As a
    result of this limitation on capitalized costs, Predecessor
    Resolute included a provision for an impairment of oil and gas
    property cost for 2008 and 2007 of $245.0 and $0&#160;million,
    respectively.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <B><I>Depletion, Depreciation and Amortization
    Expenses.</I></B>&#160;Depletion, depreciation and amortization
    increased to $50.3&#160;million for 2008, from
    $27.8&#160;million for 2007, due to an increase in the
    depletion, depreciation and amortization rate which primarily
    resulted from a reduction in future economic recoverable
    reserves associated with significantly reduced energy prices
    during the latter half of 2008.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <B><I>Other Income (Expense).</I></B>&#160;All of Predecessor
    Resolute&#146;s oil and gas derivative instruments are accounted
    for under
    <FONT style="white-space: nowrap">mark-to-market</FONT>
    accounting rules, which provide for the fair value of the
    contracts to be reflected as either an asset or a liability on
    its balance sheet. During 2008, Predecessor Resolute recognized
    a $96.0&#160;million gain on its derivative contracts. This
    amount included approximately $32.8&#160;million of realized
    losses, which was partially offset by an $8.2&#160;million gain
    on the forward sales of derivative contracts and a
    $120.6&#160;million unrealized gain in the fair market value of
    these contracts. During 2007, the fair value of Predecessor
    Resolute&#146;s oil hedges decreased by $106.2&#160;million.
    This amount included approximately $4.7&#160;million of realized
    losses and a $101.5&#160;million decline in the future value of
    future contracts.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Interest expense was $33.1&#160;million for 2008, compared to
    $35.9&#160;million for 2007. The decrease is attributable to a
    reduction in long term debt during 2008 as well as a reduction
    in interest rates.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <BR>
A-68
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->


<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="7%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: Arial, Helvetica">ITEM&#160;7A.
    </FONT></B>
</TD>
    <TD>
    <A name='110'></A><B><FONT style="font-family: Arial, Helvetica">QUANTITIVE
    AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK</FONT></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><U><FONT style="font-family: Arial, Helvetica">Commodity
    Price Risk and Hedging Arrangements</FONT></U></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Resolute&#146;s major market risk exposure is in the pricing
    applicable to oil and gas production. Realized pricing on
    Resolute&#146;s unhedged volumes of production is primarily
    driven by the spot market prices applicable to oil production
    and the prevailing price for gas. Pricing for oil production has
    been volatile and unpredictable for several years, and Resolute
    expects this volatility to continue in the future. The prices
    Resolute receives for unhedged production depend on many factors
    outside of Resolute&#146;s control.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Resolute periodically hedges a portion of its oil and gas
    production through swaps, puts, calls, collars and other such
    agreements. The purpose of the hedges is to provide a measure of
    stability to Resolute&#146;s cash flows in an environment of
    volatile oil and gas prices and to manage Resolute&#146;s
    exposure to commodity price risk.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Under the terms of its Credit Agreement the form of derivative
    instruments to be entered into is at Resolute&#146;s discretion,
    not to exceed 80% of its anticipated production from proved
    developed producing properties utilizing economic parameters
    specified in its credit agreements, including escalated prices
    and costs.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    By removing the price volatility from a significant portion of
    Resolute&#146;s oil production, Resolute has mitigated, but not
    eliminated, the potential effects of changing prices on the cash
    flow from operations for those periods. While mitigating
    negative effects of falling commodity prices, certain of these
    derivative contracts also limit the benefits Resolute would
    receive from increases in commodity prices. It is
    Resolute&#146;s policy to enter into derivative contracts only
    with counterparties that are major, creditworthy financial
    institutions deemed by management as competent and competitive
    market makers.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    As of December&#160;31, 2009, Resolute had entered into certain
    commodity swap contracts. The following table represents
    Resolute&#146;s commodity swaps with respect to its oil
    production through 2013:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="20%">&nbsp;</TD> <!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>  <!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=02 type=lead -->
    <TD width="9%" align="right">&nbsp;</TD>    <!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=02 type=hang1 -->
    <TD width="4%">&nbsp;</TD>  <!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=03 type=lead -->
    <TD width="17%" align="right">&nbsp;</TD>   <!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=03 type=hang1 -->
    <TD width="4%">&nbsp;</TD>  <!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=04 type=lead -->
    <TD width="12%" align="right">&nbsp;</TD>   <!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=04 type=hang1 -->
    <TD width="4%">&nbsp;</TD>  <!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=05 type=lead -->
    <TD width="20%" align="right">&nbsp;</TD>   <!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=05 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Oil (NYMEX WTI)<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Gas (NYMEX HH)<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Weighted Average<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Weighted Average<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Year</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Bbl per Day</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Hedge Price per Bbl</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>MMBtu per Day</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Hedge Price per MMBtu</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    2010
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,650
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;67.24
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,800
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;9.69
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    2011
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,250
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    68.26
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,750
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    9.32
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    2012
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,250
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    68.26
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,100
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    7.42
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    2013
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    60.47
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,900
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    7.40
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Resolute also uses basis swaps in connection with gas swaps in
    order to fix the price differential between the NYMEX Henry Hub
    price and the index price at which the gas production is sold.
    The table below sets forth Resolute&#146;s outstanding basis
    swaps as of December&#160;31, 2009:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="37%">&nbsp;</TD> <!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>  <!-- colindex=02 type=gutter -->
    <TD width="11%" align="right">&nbsp;</TD>   <!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=02 type=body -->
    <TD width="11%" align="left">&nbsp;</TD>    <!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>  <!-- colindex=03 type=gutter -->
    <TD width="6%" align="right">&nbsp;</TD>    <!-- colindex=03 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=03 type=body -->
    <TD width="6%" align="left">&nbsp;</TD>     <!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>  <!-- colindex=04 type=gutter -->
    <TD width="9%" align="right">&nbsp;</TD>    <!-- colindex=04 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=04 type=body -->
    <TD width="9%" align="left">&nbsp;</TD>     <!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Weighted Average<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Hedged Price<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Year</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Index</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>MMBtu per Day</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Differential per MMBtu</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    2010&#160;&#150; 2013
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    Rocky Mountain NWPL
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,800
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;2.10
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    As of December&#160;31, 2009, Resolute had entered into certain
    commodity collar contracts. The following table represents
    Resolute&#146;s commodity collars with respect to its oil and
    production:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="67%">&nbsp;</TD> <!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>  <!-- colindex=02 type=gutter -->
    <TD width="4%" align="right">&nbsp;</TD>    <!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=02 type=body -->
    <TD width="4%" align="left">&nbsp;</TD>     <!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>  <!-- colindex=03 type=gutter -->
    <TD width="9%" align="right">&nbsp;</TD>    <!-- colindex=03 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=03 type=body -->
    <TD width="9%" align="left">&nbsp;</TD>     <!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Oil (NYMEX WTI)<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Weighted Average<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Year</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Bbl per Day</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Hedge Price per Bbl</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    2010
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    200
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;105.00-151.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><U><FONT style="font-family: Arial, Helvetica">Interest Rate
    Risk</FONT></U></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    At December&#160;31, 2009, Resolute has $109.6&#160;million of
    outstanding debt. Interest is calculated under the terms of the
    agreement based on a LIBOR spread. A 10% increase in LIBOR would
    result in an estimated $0.1&#160;million increase in annual
    interest expense. Resolute does not currently intend to enter
    into any hedging arrangements to protect against fluctuations in
    interest rates applicable to its outstanding indebtedness.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <BR>
A-69
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><U><FONT style="font-family: Arial, Helvetica">Credit Risk
    and Contingent Features in Derivative Instruments</FONT></U></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Resolute is exposed to credit risk to the extent of
    nonperformance by the counterparties in the derivative contracts
    discussed above. All counterparties are also lenders under
    Resolute&#146;s Credit Facility. For these contracts, Resolute
    is not required to provide any credit support to its
    counterparties other than cross collateralization with the
    properties securing the Credit Facility. Resolute&#146;s
    derivative contracts are documented with industry standard
    contracts known as a Schedule to the Master Agreement and
    International Swaps and Derivative Association, Inc. Master
    Agreement (&#147;ISDA&#148;). Typical terms for the ISDAs
    include credit support requirements, cross default provisions,
    termination events, and set-off provisions. Resolute has set-off
    provisions with its lenders that, in the event of counterparty
    default, allow Resolute to set-off amounts owed under the Credit
    Facility or other general obligations against amounts owed for
    derivative contract liabilities.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>


<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="12%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: Arial, Helvetica">ITEM&#160;8.&#160;&#160;&#160;&#160;</FONT></B>
</TD>
    <TD>
    <A name='111'></A><B><FONT style="font-family: Arial, Helvetica">FINANCIAL
    STATEMENTS AND SUPPLEMENTARY DATA</FONT></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The information required by this item is included below in
    &#147;Item&#160;15. Exhibits, Financial Statements
    Schedules&#148;.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>


<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="12%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: Arial, Helvetica">ITEM&#160;9.&#160;&#160;&#160;&#160;</FONT></B>
</TD>
    <TD>
    <A name='112'></A><B><FONT style="font-family: Arial, Helvetica">CHANGES
    IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
    FINANCIAL DISCLOSURE</FONT></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 6%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    None.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>


<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="13%"></TD>
    <TD width="87%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: Arial, Helvetica">ITEM&#160;9A.&#160;&#160;&#160;</FONT></B>
</TD>
    <TD>
    <A name='113'></A><B><FONT style="font-family: Arial, Helvetica">CONTROLS
    AND PROCEDURES</FONT></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Attached as exhibits to this report are certifications of our
    CEO and CFO required pursuant to
    <FONT style="white-space: nowrap">Rule&#160;13a-14</FONT>
    under the Exchange Act. This section includes information
    concerning the controls and procedures evaluation referred to in
    the certifications. Our management, with the participation of
    Nicholas J. Sutton, our Chief Executive Officer, and Theodore
    Gazulis, our Chief Financial Officer, evaluated the
    effectiveness of the design and operation of our disclosure
    controls and procedures as of December&#160;31, 2009. Based on
    the evaluation, those officers have concluded that:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="4%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    our disclosure controls and procedures were effective to ensure
    that information required to be disclosed by us in the reports
    we file or submit under the Securities Exchange Act of 1934 was
    accumulated and communicated to our management, including our
    Chief Executive Officer and Chief Financial Officer, as
    appropriate to allow timely decisions regarding required
    disclosure.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    our disclosure controls and procedures were effective to ensure
    that information required to be disclosed by us in the reports
    we file or submit under the Securities Exchange Act of 1934 is
    recorded, processed, summarized and reported within the time
    periods specified in the SEC&#146;s rules and forms.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 5%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Internal Control
    Over Financial Reporting</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    There has not been any change in the Company&#146;s internal
    control over financial reporting that occurred during the
    quarterly period ended December&#160;31, 2009, that has
    materially affected, or is reasonably likely to affect, the
    Company&#146;s internal control over financial reporting.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The Company&#146;s Annual Report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for the year ending December&#160;31, 2009, does not include a
    report of management&#146;s assessment regarding internal
    control over financial reporting or an attestation report of the
    Company&#146;s registered public accounting firm due to a
    transition period established by rules of the SEC for newly
    public companies.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>


<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="14%"></TD>
    <TD width="86%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: Arial, Helvetica">ITEM&#160;9B.&#160;&#160;&#160;&#160;</FONT></B>
</TD>
    <TD>
    <A name='114'></A><B><FONT style="font-family: Arial, Helvetica">OTHER
    INFORMATION</FONT></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 6%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Not applicable
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <BR>
A-70
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='115'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">PART&#160;III</FONT></B>
</DIV>
</A>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>




<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="14%"></TD>
    <TD width="86%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: Arial, Helvetica">ITEM&#160;10.&#160;&#160;&#160;&#160;</FONT></B>
</TD>
    <TD>
    <A name='116'></A><B><FONT style="font-family: Arial, Helvetica">DIRECTORS,
    EXECUTIVE OFFICERS AND CORPORATE GOVERANCE</FONT></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: Arial, Helvetica">Directors</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The following table sets forth certain information as of
    March&#160;29, 2010, regarding the composition of the Board of
    Directors, including the term of each director.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
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    <TD width="1%">&nbsp;</TD>  <!-- colindex=02 type=quadright -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=03 type=gutter -->
    <TD width="34%">&nbsp;</TD> <!-- colindex=03 type=maindata -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=04 type=gutter -->
    <TD width="6%">&nbsp;</TD>  <!-- colindex=04 type=quadleft -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=04 type=maindata -->
    <TD width="6%">&nbsp;</TD>  <!-- colindex=04 type=quadright -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=05 type=gutter -->
    <TD width="7%">&nbsp;</TD>  <!-- colindex=05 type=quadleft -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=05 type=maindata -->
    <TD width="7%">&nbsp;</TD>  <!-- colindex=05 type=quadright -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 9pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Current Term to<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 9pt">Name</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 9pt">Age</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 9pt">Position</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 9pt">Director Since</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 9pt">Expire</FONT></B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Nicholas J. Sutton
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    65
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    Chief Executive Officer and Director
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    2009
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    2012
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    James M. Piccone
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    59
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    President, General Counsel, Secretary<BR>
    and Director
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    2009
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    2011
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Richard L. Covington
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    52
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Director
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    2009
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    2011
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    William H. Cunningham
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    66
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Director
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    2009
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    2010
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    James E. Duffy
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    59
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Director
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    2009
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    2010
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Kenneth A. Hersh
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    47
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Director
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    2009
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    2012
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Thomas O. Hicks, Jr.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    32
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Director
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    2009
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    2012
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    William J. Quinn
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    39
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Director
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    2009
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    2010
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Robert M. Swartz
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    57
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Director
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    2009
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    2011
</TD>
<TD>&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <B><I>Nicholas J. Sutton </I></B>is the Chief Executive Officer
    and has been a director of the Company since the Company&#146;s
    formation in July 2009. Mr.&#160;Sutton has been the Chief
    Executive Officer and a member of the board of managers of
    Predecessor Resolute and of Holdings since their founding in
    2004. Mr.&#160;Sutton was a co-founder and the Chief Executive
    Officer of HS Resources, Inc., a New York Stock Exchange listed
    company, from 1978 until the company&#146;s acquisition by
    Kerr-McGee Corporation in late 2001. From 2002 until the
    formation of Resolute Holdings, LLC in 2004, Mr.&#160;Sutton was
    a director of Kerr-McGee. Currently, Mr.&#160;Sutton is a
    director of Tidewater, Inc., the owner and operator of the
    world&#146;s largest fleet of vessels serving the global
    offshore oil industry, and a member of the Board of the St.
    Francis Memorial Hospital Foundation. He also is a member of the
    Society of Petroleum Engineers and of the American Association
    of Petroleum Geologists. In determining Mr.&#160;Sutton&#146;s
    qualifications to serve on our Board of Directors, the Board of
    Directors has considered, among other things, his experience and
    expertise in the oil and gas industry, his track record in
    growing public oil and gas companies, including managing
    acquisition programs, as well as his role in the founding of
    Holdings and the Resolute Transaction. In addition,
    Mr.&#160;Sutton has degrees in engineering and law, and has
    attended the Harvard Owner/President Management program, giving
    him expertise in all of the areas of importance to the Company.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <B><I>James M. Piccone </I></B>is the President, General
    Counsel, Secretary and has been a director of the Company since
    the Company&#146;s formation in July 2009. Mr.&#160;Piccone has
    been the President, General Counsel, Secretary and a member of
    the board of managers of Predecessor Resolute and of Holdings
    since their formation in 2004. From January 2002 until January
    2004 Mr.&#160;Piccone was Senior Vice President and General
    Counsel for Aspect Energy, LLC, a private oil and gas company.
    Mr.&#160;Piccone also served as a contract attorney for Aspect
    Energy from October 2001 until January 2002. Mr.&#160;Piccone
    served as Vice President&#160;&#151; General Counsel and
    Secretary of HS Resources from May 1995 until the acquisition of
    HS Resources by Kerr-McGee in August 2001. Mr.&#160;Piccone is
    admitted to the practice of law in Colorado and is a member of
    local and national bar associations. He is a member of the
    American Association of Corporate Counsel. In determining
    Mr.&#160;Piccone&#146;s qualifications to serve on our Board of
    Directors, the Board or Directors has considered, among other
    things, his management and legal expertise, his knowledge of the
    oil and gas industry and the role he played in the success of HS
    Resources and Holdings, including his role in the Resolute
    Transaction.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <B><I>Richard L. Covington </I></B>was elected to the
    Company&#146;s Board of Directors in September 2009.
    Mr.&#160;Covington has been a member of the Compensation and
    Corporate Governance/Nominating Committees since
    September&#160;25, 2009. He is a managing director of the
    Natural Gas Partners private equity funds. He has been a member
    of the board of managers of Holdings since its founding in 2004.
    Mr.&#160;Covington joined Natural Gas Partners in 1997. Prior to
    joining NGP, Mr.&#160;Covington was a senior shareholder at the
    law firm of Thompson&#160;&#038; Knight, LLP, in Dallas, Texas.
    Mr.&#160;Covington serves on the investment committee of NGP
    Capital Resources
</DIV>
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    Company and as a director of numerous private energy companies.
    In determining Mr.&#160;Covington&#146;s qualifications to serve
    on our Board of Directors, the Board of Directors has
    considered, among other things, his experience and expertise in
    the legal and finance aspects of the oil and gas industry and
    his role as a key advisor to Resolute from the founding of
    Holdings to the present.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <B><I>William H. Cunningham </I></B>was elected to the
    Company&#146;s Board of Directors in September 2009.
    Dr.&#160;Cunningham has been a member of the Audit Committee
    since September&#160;25, 2009, and between September&#160;25,
    2009 and December&#160;15, 2009 was also a member of the
    Compensation and Corporate Governance/Nominating Committees. He
    was a director of Hicks Acquisition Company&#160;I, Inc. from
    October 2007 through September 2009. Since 1979,
    Dr.&#160;Cunningham has served as a professor of marketing at
    the University of Texas at Austin and he has held the James L.
    Bayless Chair for Free Enterprise at the University of Texas at
    Austin since 1985. From 1983 to 1985 he was Dean of the College
    of Business Administration and Graduate School of Business of
    the University of Texas at Austin, from 1985 to 1992 he served
    as the President of the University of Texas at Austin and from
    1992 to 2000 he served as the Chancellor (Chief Executive
    Officer) of the University of Texas System. Dr.&#160;Cunningham
    currently serves on the Board of Directors of Lincoln National
    Corporation, a New York Stock Exchange listed holding company
    for insurance, investment management, broadcasting and sports
    programming businesses; Southwest Airlines, an airline listed on
    the New York Stock Exchange; and Lin Television, a New York
    Stock Exchange listed company that owns a number of television
    stations. Dr.&#160;Cunningham currently serves as a member of
    the Board of Trustees of John Hancock Mutual Funds.
    Dr.&#160;Cunningham received a Bachelor of Business
    Administration degree in 1966, a Master of Business
    Administration degree in 1967 and a Ph.D. in 1971, each from
    Michigan State University. Dr.&#160;Cunningham was president and
    chief executive officer of IBT Technologies, a privately held
    <FONT style="white-space: nowrap">e-learning</FONT>
    company, from December 2000 through December 2001. IBT
    Technologies filed for bankruptcy in December 2001 and has been
    liquidated. In determining Mr.&#160;Cunningham&#146;s
    qualifications to serve on our Board of Directors, the Board of
    Directors has considered, among other things, his academic
    experience in corporate governance matters in law schools and
    graduate business programs, his service on more than 20
    corporate boards, including in many instances as chairman of the
    audit committee of public companies, and his experience and
    expertise in marketing and management.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <B><I>James E. Duffy </I></B>was elected to the Company&#146;s
    Board of Directors in September 2009. Mr.&#160;Duffy has been a
    member of the Compensation and Audit Committees since
    September&#160;25, 2009, and between September&#160;25, 2009 and
    December&#160;15, 2009 was also a member of the Corporate
    Governance/Nominating Committee. He is a co-founder and, since
    2003, Chairman of StreamWorks Products Group, Inc., a private
    consumer products development company that manufactures products
    for the sport fishing, industrial safety, specialty tool and
    outdoor recreation industries. From 1990 to 2001 he served as
    Chief Financial Officer and Director of HS Resources, Inc. until
    its sale to Kerr-McGee Corporation. Prior to that time, he
    served as Chief Financial Officer and Director of a division of
    Tidewater, Inc. He was also a general partner in a boutique
    investment banking business specializing in the oil and gas
    business, and began his career with Arthur Young&#160;&#038; Co
    in San&#160;Francisco. He is a certified public accountant. In
    determining Mr.&#160;Duffy&#146;s qualifications to serve on our
    Board of Directors, the Board of Directors has considered, among
    other things, his experience and expertise in oil and gas
    finance, accounting, and banking as well as his position as
    chief financial officer of two public oil and gas companies and
    his service as an audit manager for a major accounting firm with
    engagement responsibility for public and private entities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <B><I>Kenneth A. Hersh </I></B>was elected to the Company&#146;s
    Board of Directors in September 2009. Mr.&#160;Hersh has been a
    member of the Compensation and Corporate Governance/Nominating
    Committees since September&#160;25, 2009. He is the Chief
    Executive Officer of NGP Energy Capital Management, L.L.C. and
    is a managing partner of the Natural Gas Partners private equity
    funds and has served in those or similar capacities since 1989.
    He has been a member of the board of managers of Holdings since
    its founding in 2004. Prior to joining Natural Gas Partners,
    L.P. in 1989, he was a member of the energy group in the
    investment banking division of Morgan Stanley&#160;&#038; Co. He
    currently serves on the investment committee and as a director
    of NGP Capital Resources Company, serves as a director of Eagle
    Rock Energy G&#038;P, LLC, the general partner of Eagle Rock
    Energy Partners, L.P., and as a director of numerous private
    companies. In determining Mr.&#160;Hersh&#146;s qualifications
    to serve on our Board of Directors, the Board of Directors has
    considered, among other things, his experience and expertise in
    finance,
</DIV>
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    investment banking and management in the energy industry and his
    extensive record of investing in and helping to develop numerous
    private and public oil and gas companies.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <B><I>Thomas O. Hicks,&#160;Jr.</I></B> was elected to the
    Company&#146;s Board of Directors in September 2009.
    Mr.&#160;Hicks has been a member of the Corporate
    Governance/Nominating Committee since September&#160;25, 2009,
    and between September&#160;25, 2009 and December&#160;15, 2009
    was also a member of the Compensation Committee. He was a vice
    president of HACI from February 2007 through September 2009 and
    was its secretary from August 2007 to September 2009.
    Mr.&#160;Hicks has served as a vice president of Hicks Holdings
    since 2005. Hicks Holdings is a Dallas-based family holding
    company for the Hicks family and a private investment firm which
    owns and manages assets in sports and real estate and makes
    corporate acquisitions. Mr.&#160;Hicks has served as Alternate
    Governor for the Dallas Stars Hockey Club. In 2004 and 2005,
    Mr.&#160;Hicks served as Director, Corporate and
    Suite&#160;Sales, for the Texas Rangers Baseball Club. From 2001
    to 2003, Mr.&#160;Hicks was an analyst at Greenhill&#160;&#038;
    Co. LLC, a New York based merchant banking firm. As an analyst,
    Mr.&#160;Hicks was involved in numerous private equity, mergers
    and acquisition advisory and financial restructuring
    transactions. Mr.&#160;Hicks currently serves as the chairman of
    the Campaign for Children in Crisis for Big Brother Big Sisters
    Organization of North Texas, and is on the boards of Big
    Brothers Big Sisters of North Texas, the Texas Rangers
    Foundation, Capital for Kids and is a member of Business
    Executives for National Security. In determining
    Mr.&#160;Hick&#146;s qualifications to serve on our Board of
    Directors, the Board of Directors has considered, among other
    things, his experience and expertise in sales, banking and
    management.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <B><I>William J. Quinn </I></B>was elected to the Company&#146;s
    Board of Directors in September 2009. Mr.&#160;Quinn has been a
    member of the Compensation Committee since September&#160;25,
    2009, and between September&#160;25, 2009, and December&#160;15,
    2009, was also a member of the Corporate Governance/Nominating
    Committee. He is the Executive Vice President of NGP Energy
    Capital Management and is a managing partner of the Natural Gas
    Partners private equity funds, having served in those or similar
    capacities since 1998. He has been a member of the board of
    managers of Holdings since its founding in 2004. He currently
    serves on the investment committee of NGP Capital Resources
    Company, and is a director of Eagle Rock Energy Partners, L.P.,
    and of its general partner, Eagle Rock Energy G&#038;P, LLC. He
    also serves as a member of the board of numerous private energy
    companies. In determining Mr.&#160;Quinn&#146;s qualifications
    to serve on our Board of Directors, the Board of Directors has
    considered, among other things, his extensive experience and
    expertise in finance and in the energy industry.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <B><I>Robert M. Swartz </I></B>was elected to the Company&#146;s
    Board of Directors in September 2009. Mr.&#160;Swartz has been a
    member of the Audit Committee since September&#160;25, 2009, and
    between September&#160;25, 2009, and December&#160;15, 2009, was
    also a member of the Compensation and Corporate
    Governance/Nominating Committees. He was a senior vice president
    of HACI from September 2007 until September 2009, and currently
    serves as a managing director and partner of Hicks Equity
    Partners LLC. Mr.&#160;Swartz is on the Board of Directors of
    Anvita Health. From 1999 until 2007, Mr.&#160;Swartz served in
    various positions at Centex Corporation, a New York Stock
    Exchange home building company, serving as Senior Vice President
    of Strategic Planning and Mergers and Acquisitions from 1999 to
    2000 and serving as Chairman and Chief Executive Officer of
    Centex HomeTeam Services from 2000 to 2007. From 1997 until
    1999, Mr.&#160;Swartz served as Executive Vice President of
    FirstPlus Financial Group, Inc., a consumer finance company in
    Dallas, Texas. In 1996, Mr.&#160;Swartz served as president and
    chief executive officer of AMRE, Inc. a nationwide home services
    provider. From 1994 to 1995, Mr.&#160;Swartz served as President
    of Recognition International, an NYSE high-technology company
    and previously served from 1990 to 1993 as that company&#146;s
    chief financial officer. Mr.&#160;Swartz received a Bachelors of
    Science degree in accounting from the State University of New
    York in Albany in 1973 and a Master of Business Administration
    degree in finance from New Hampshire College in 1976.
    Mr.&#160;Swartz is a Certified Public Accountant. In determining
    Mr.&#160;Swartz&#146;s qualifications to serve on our Board of
    Directors, the Board of Directors has considered, among other
    things, his experience and expertise in mergers and
    acquisitions, finance, accounting and management.
</DIV>
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Current Executive
    Officers</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The following table sets forth certain information as of
    March&#160;29, 2010, regarding the current executive officers of
    the Company.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="34%">&nbsp;</TD> <!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=02 type=gutter -->
    <TD width="9%">&nbsp;</TD>  <!-- colindex=02 type=quadleft -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=02 type=maindata -->
    <TD width="9%">&nbsp;</TD>  <!-- colindex=02 type=quadright -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=03 type=gutter -->
    <TD width="44%">&nbsp;</TD> <!-- colindex=03 type=maindata -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Name</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Age</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Position</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Nicholas J. Sutton
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    65
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    Chief Executive Officer and Director
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    James M. Piccone
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    59
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    President, General Counsel, Secretary and <BR>
    Director
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Richard F. Betz
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    48
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    Senior Vice President, Strategy and<BR>
    Planning
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Dale E. Cantwell
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    54
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    Senior Vice President, Operations
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Theodore Gazulis
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    55
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    Senior Vice President and Chief Financial<BR>
    Officer
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Janet W. Pasque
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    52
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    Senior Vice President, Land and Business<BR>
    Development
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <B><I>Nicholas J. Sutton&#160;&#151; </I></B>See above under
    <I>Directors </I>for Mr.&#160;Sutton&#146;s biography.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <B><I>James M. Piccone&#160;&#151; </I></B>See above under
    <I>Directors </I>for Mr.&#160;Piccone&#146;s biography.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <B><I>Richard F. Betz </I></B>has been Senior Vice President of
    the Company since September&#160;25, 2009, and was
    Vice&#160;President&#160;&#151; Business Development of the
    Company from July 2009 to September 2009. He has been Vice
    President, Business Development of Predecessor Resolute and
    Holdings since their founding in 2004. From September 2001 to
    January 2004, Mr.&#160;Betz was involved in various financial
    consulting activities related to the energy industry. Prior to
    that, Mr.&#160;Betz spent seventeen years with Chase Securities
    and successor companies, where he was involved primarily in oil
    and gas corporate finance. Mr.&#160;Betz was a Managing Director
    in the oil and gas investment banking coverage group with
    primary responsibility for mid-cap exploration and production
    companies as well as leveraged finance and private equity. In
    that capacity, Mr.&#160;Betz worked with the HS Resources
    management team for approximately twelve years.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <B><I>Dale E. Cantwell </I></B>has been Senior Vice President,
    Operations of the Company since September&#160;25, 2009, and was
    Vice President&#160;&#151; Operations of the Company from July
    2009 to September 2009. He has been Vice President, Operations
    of Predecessor Resolute and Holdings since their founding in
    2004. From March 2003 to January 2004, Mr.&#160;Cantwell was a
    private investor. After the acquisition of HS Resources by
    Kerr-McGee in August 2001 until February 2003, Mr.&#160;Cantwell
    was Vice President of Kerr-McGee Rocky Mountain Corporation.
    Prior to that, Mr.&#160;Cantwell was Vice President of
    Operations for HS Resources D-J Basin District. From 1979 until
    joining HS Resources in 1993, he worked for Amoco Production
    Company in various engineering and marketing capacities.
    Mr.&#160;Cantwell is a member of the Society of Petroleum
    Engineers.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <B><I>Theodore Gazulis </I></B>has been Senior Vice President
    and Chief Financial Officer of the Company since
    September&#160;25, 2009, and was Vice President of Finance,
    Chief Financial Officer and Treasurer of the Company from July
    2009 to September 2009. He has been Vice President&#160;&#151;
    Finance, Treasurer and Assistant Secretary of Predecessor
    Resolute and Holdings since their founding in 2004.
    Mr.&#160;Gazulis served as a Vice President of HS Resources from
    1984 until its merger with Kerr-McGee in 2001. Mr.&#160;Gazulis
    had primary responsibility for HS Resources&#146; capital
    markets activity and for investor relations and information
    technology. Subsequent to HS Resources&#146; acquisition by
    Kerr-McGee and prior to the formation of Resolute Natural
    Resources Company, Mr.&#160;Gazulis was a private investor and
    also undertook assignments with two privately-held oil and gas
    companies, serving on the Board of Directors of Contour Energy
    Co. and performing the functions of the Chief Financial Officer
    of Venoco, Inc. on a consulting basis. Prior to joining HS
    Resources, he worked for Amoco Production Company and Sohio
    Petroleum Company. He is a member of the American Association of
    Petroleum Geologists.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <B><I>Janet W. Pasque </I></B>has been Senior Vice President,
    Land and Development of the Company since September&#160;25,
    2009, and was Vice President&#160;&#151; Land of the Company
    from July 2009 to September 2009. She has been Vice President,
    Land of Predecessor Resolute and Holdings since their founding
    in 2004. Ms.&#160;Pasque was a Vice President of HS Resources
    where she had responsibility for the land department and joint
    responsibility for the company&#146;s exploration activities
    from 1993 until the company&#146;s acquisition by Kerr-McGee in
    late 2001. Subsequent to the HS Resources acquisition by
    Kerr-McGee, Ms.&#160;Pasque managed the land functions
</DIV>
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    <BR>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    at Kerr-McGee Rocky Mountain Corp. until early 2003.
    Ms.&#160;Pasque served as a land consultant from 2003 until the
    founding of Resolute Holdings, LLC in 2004. Prior to joining HS
    Resources in 1993, Ms.&#160;Pasque worked for Texaco Inc. and
    Champlin Petroleum Company. Ms.&#160;Pasque is a member of the
    American Association of Professional Landmen.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Family
    Relationships</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    There are no family relationships among any of the
    Company&#146;s directors and executive officers.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">The Company Board
    of Directors and Committees</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: Arial, Helvetica">Director
    Independence</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Under the rules of the NYSE, a majority of the members of the
    Board of Directors and all of the members of certain committees
    must be composed of &#147;independent directors,&#148; as
    defined in the rules of the NYSE. In general, an
    &#147;independent director&#148; is a person other than an
    officer or employee of the Company or any other individual who
    has a relationship, which, in the opinion of the Company&#146;s
    Board of Directors, would interfere with the director&#146;s
    exercise of independent judgment in carrying out the
    responsibilities of a director. Additional independence and
    qualification requirements apply to our directors serving on
    certain committees. The Company has standing audit,
    compensation, corporate governance/nominating and finance
    committees, each of which is composed entirely of independent
    directors, under each of the applicable standards. The
    Company&#146;s Board of Directors has determined that, other
    than Messrs.&#160;Sutton and Piccone, each member of the Board
    of Directors is independent under the NYSE rules. In making that
    determination, the Board of Directors considered the
    relationships of Messrs.&#160;Swartz, and Hicks with HACI and
    HH-HACI, L.P., a Delaware limited partnership, and the
    relationships of Messrs.&#160;Hersh, Covington and Quinn with
    various NGP entities.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">General</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The Company&#146;s business is managed under the direction of
    its Board of Directors. In connection with its oversight of the
    Company&#146;s operations and governance, the Board of Directors
    has adopted, among other things, the following:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="1%"></TD>
    <TD width="4%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Corporate Governance Guidelines to implement certain policies
    regarding the governance of the Company;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    a Code of Business Conduct and Ethics to provide guidance to
    directors, officers and employees with regard to certain ethical
    and compliance issues;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Charters of the Audit Committee, the Compensation Committee and
    the Corporate Governance/Nominating Committee of the Board of
    Directors;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    an Insider Trading Policy to facilitate compliance with insider
    trading regulations;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    an Audit Committee Whistleblower Policy to allow directors,
    officers and employees (i)&#160;to make confidential anonymous
    submissions regarding concerns with respect to accounting or
    auditing matters and (ii)&#160;provides for the receipt of
    complaints regarding accounting, internal controls or
    auditing;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    a Stockholder and Interested Parties Communication Policy
    pursuant to which holders of our securities and other interested
    parties can communicate with the Board of Directors, Board
    Committees
    <FONT style="white-space: nowrap">and/or</FONT>
    individual directors.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Other than the Insider Trading Policy, each of these documents
    can be viewed on the Company&#146;s website, available at:<U>
    www.resoluteenergy.com</U> under the &#147;Investor
    Relations&#148; tab, subheading &#147;Corporate
    Governance.&#148; Copies of the foregoing documents and
    disclosures are available without charge to any person who
    requests them. Requests should be directed to Resolute Energy
    Corporation, Attn: Secretary, 1675 Broadway, Suite&#160;1950,
    Denver, Colorado 80202.
</DIV>
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    <BR>
A-75
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Non-Management
    Sessions</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The Board of Directors schedules regular executive sessions
    involving exclusively non-management directors as required by
    NYSE rules. Mr.&#160;Covington, as the Lead Independent
    Director, presides at all such executive sessions
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: Arial, Helvetica">Audit
    Committee</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The Company has a separately designated Audit Committee, the
    members of which are Messrs.&#160;Duffy, Cunningham and Swartz,
    with Mr.&#160;Swartz serving as Chairman. The primary function
    of the Audit Committee is to assist the Board of Directors in
    its oversight of its financial reporting process. Among other
    things, the committee is responsible for reviewing and selecting
    our independent registered public accounting firm and reviewing
    our accounting practices and policies, and to serve as an
    independent and objective party to monitor the financial
    reporting process. The Board of Directors has determined that
    each of Mr.&#160;Swartz, Mr.&#160;Duffy and Mr.&#160;Cunningham
    qualifies as an &#147;audit committee financial expert&#148; as
    defined in Item&#160;407(d)(5) of SEC
    <FONT style="white-space: nowrap">Regulation&#160;S-K</FONT>
    and that each member of the committee is independent for
    purposes of SEC
    <FONT style="white-space: nowrap">Rule&#160;10A-3,</FONT>
    and &#147;financially literate&#148; for purposes of applicable
    NYSE rules. See &#147;Directors, Executive Officers and
    Corporate Governance&#160;&#151; Directors&#148; for a summary
    of the business experience of each member of the committee.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Corporate
    Governance/Nominating Committee</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The charter of the corporate governance/nominating committee
    provides that director candidates recommended by security
    holders will be considered on the same basis as candidates
    recommended by other persons. A security holder who wishes to
    recommend a candidate should send complete information regarding
    the candidate to Resolute Energy Corporation, Attn: Secretary,
    1675 Broadway, Suite&#160;1950, Denver, Colorado 80202. The
    information provided with respect to the nominee should include
    five years of professional background, academic qualifications,
    whether the nominee has been subject to any legal proceedings in
    the past 10&#160;years, the relationship between the security
    holder and the nominee, and any other specific experience,
    qualifications, attributes or skills that qualify the nominee
    for the board. The committee will assess each candidate,
    including candidates recommended by security holders, by
    evaluating all factors it considers appropriate, which may
    include career specialization, relevant technical skills or
    financial acumen, diversity of viewpoint and industry knowledge.
    The charter provides that nominees must meet certain minimum
    qualifications. In particular, a nominee must:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="1%"></TD>
    <TD width="4%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    have displayed the highest personal and professional ethics,
    integrity and values and sound business judgment;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    be highly accomplished in his or her field, with superior
    credentials and recognition and broad experience at the
    administrative or policy-making level in business, government,
    education, technology or public interest;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    have relevant expertise and experience and be able to offer
    guidance and advice to the chief executive officer based on that
    expertise and experience;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    with respect to a majority of directors, be independent and able
    to represent all stockholders and be committed to enhancing long
    term stockholder value;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    have sufficient time available to devote to the activities of
    the Board of Directors and to enhance his or her knowledge of
    the Company&#146;s business.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The committee does not have a formal policy with respect to the
    consideration of diversity when assessing director nominees, but
    considers diversity as part of its overall assessment of the
    board&#146;s functioning and needs.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Section&#160;16(a)
    Beneficial Ownership Reporting Compliance</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Section&#160;16(a) of the Securities Exchange Act of 1934
    requires our directors and executive officers, and persons who
    own more than ten percent of our common stock, to file with the
    Securities and Exchange Commission initial reports of ownership
    and reports of changes in ownership of our common stock. To our
    knowledge, based solely on a review of the copies of such
    reports available to us and written representations that no
    other reports were
</DIV>
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    <BR>
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    required, we believe that all reporting obligations of our
    officers, directors and greater than ten percent stockholders
    under Section&#160;16(a) were satisfied during the year ended
    December&#160;31, 2009, except as follows: Resolute Holdings,
    LLC, a beneficial owner of more than 10% of our common stock,
    filed late one Form&#160;4; Natural Gas Partners VII, a
    beneficial owner of more than 10% of our common stock, filed
    late one Form&#160;3; and Kenneth A. Hersh, a director, filed
    late one Form&#160;5.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Code of
    Ethics</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The Company has adopted a code of ethics that applies to
    directors, officers and employees that complies with the rules
    and regulations of the NYSE and SEC. The Code of Ethics is
    posted on the Company&#146;s website, at
    <U>www.resoluteenergy.com</U>, under the &#147;Investor
    Relations&#148; tab, subheading &#147;Corporate
    Governance.&#148; All amendments to, and waivers granted under,
    the Company&#146;s code of ethics will be disseminated on the
    Company&#146;s website in the manner required by SEC and NYSE
    rules.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Communications
    with the Board</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    In recognition of the importance of providing stockholders and
    other interested parties with the ability to communicate with
    members of the Board of Directors and with non-management
    directors, the Board of Directors has adopted a Stockholder and
    Interested Parties Communication Policy, a copy of which is
    available on our website. Pursuant to the policy, security
    holders and other interested persons may direct correspondence
    to the Board of Directors or to any individual director by mail
    to the following address:
    <FONT style="white-space: nowrap">c/o&#160;Resolute</FONT>
    Energy Corporation, Attention: Lead Independent Director, 1675
    Broadway, Suite&#160;1950, Denver, Colorado 80202.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Communications should not exceed 1,000 words in length and
    should indicate (i)&#160;the type and amount of Resolute
    securities held by the person submitting the communication
    <FONT style="white-space: nowrap">and/or</FONT> the
    nature of the person&#146;s other interest in Resolute,
    (ii)&#160;any personal interest the person has in the subject
    matter of the communication and (iii)&#160;the person&#146;s
    mailing address,
    <FONT style="white-space: nowrap">e-mail</FONT>
    address and telephone number. Unless the communication relates
    to an improper topic (e.g., it contains offensive content or
    advocates that we engage in illegal activities) or it fails to
    satisfy the procedural requirements of the policy, we will
    deliver it to the person(s) to whom it is addressed.
</DIV>
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    <BR>
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="7%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: Arial, Helvetica">ITEM&#160;11.
    </FONT></B>
</TD>
    <TD>
    <A name='117'></A><B><FONT style="font-family: Arial, Helvetica">EXECUTIVE
    COMPENSATION</FONT></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Summary
    Compensation Table</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The following table summarizes the total compensation paid or
    earned by our principal executive officer, our principal
    financial officer and four other most highly compensated
    executive officers (the &#147;Named Executive Officers&#148;)
    who served as executive officers from September&#160;25, 2009,
    the date the Company became a public reporting entity, through
    December&#160;31, 2009.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 7pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
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    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=09 type=body -->
    <TD width="4%" align="left">&nbsp;</TD>     <!-- colindex=09 type=hang1 -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=10 type=gutter -->
    <TD width="2%" align="right">&nbsp;</TD>    <!-- colindex=10 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=10 type=body -->
    <TD width="2%" align="left">&nbsp;</TD>     <!-- colindex=10 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Change in<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Pension Value<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>and<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Nonqualified<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Non-Equity<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Deferred<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Stock<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Option<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Incentive Plan<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Compensation<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>All Other<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
    <B>Name and<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Salary<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Bonus<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Awards<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Awards<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Compensation<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Earnings<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Compensation<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Total<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Principal Position</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Year</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>($)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>($)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>($)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>($)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>($)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>($)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>($)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>($)</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    Nicholas J.
    Sutton<SUP style="font-size: 85%; vertical-align: top">(1)(2)(5)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2009
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;191,827
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;138,111
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(3)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14,700
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(4)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;344,638
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD align="left" valign="bottom">
    Chief Executive Officer
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    James M.
    Piccone<SUP style="font-size: 85%; vertical-align: top">(1)(2)(5)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2009
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    102,308
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    100,611
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(3)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15,508
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(4)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    218,427
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
    President, General Counsel
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    Theodore
    Gazulis<SUP style="font-size: 85%; vertical-align: top">(1)(2)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2009
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    88,846
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    88,111
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(3)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14,700
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(4)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    191,657
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    Chief Financial Officer <BR>
    and Senior Vice<BR>
    President
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    Richard F.
    Betz<SUP style="font-size: 85%; vertical-align: top">(1)(2)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2009
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    88,846
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    75,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    163,846
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    Senior Vice President,<BR>
    Strategy and Planning
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    Dale E.
    Cantwell<SUP style="font-size: 85%; vertical-align: top">(1)(2)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2009
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    88,846
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    88,111
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(3)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15,508
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(4)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    192,465
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    Senior Vice President, <BR>
    Operations
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    Janet W.
    Pasque<SUP style="font-size: 85%; vertical-align: top">(1)(2)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2009
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    88,846
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    88,111
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(3)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15,508
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(4)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    192,465
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    Senior Vice President,<BR>
    Land and Business
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 14%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>


&#160;&#160;&#160;&#160;&#160;
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    1) </TD>
    <TD></TD>
    <TD valign="bottom">
    Each of the executive officers assumed such position with the
    Company upon completion of the Resolute Transaction on
    September&#160;25, 2009, at which time the Company became a
    reporting company pursuant to the Securities Exchange Act of
    1934. Prior to that time, each executive officer was employed by
    Predecessor Resolute, and, in that capacity, received the
    following salary and other compensation for the period from
    January&#160;1, 2009 through September&#160;24, 2009 (no other
    compensation was paid during that period):</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="38%">&nbsp;</TD> <!-- colindex=01 type=maindata -->
    <TD width="3%">&nbsp;</TD>  <!-- colindex=02 type=gutter -->
    <TD width="8%" align="right">&nbsp;</TD>    <!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=02 type=body -->
    <TD width="8%" align="left">&nbsp;</TD>     <!-- colindex=02 type=hang1 -->
    <TD width="5%">&nbsp;</TD>  <!-- colindex=03 type=gutter -->
    <TD width="17%">&nbsp;</TD> <!-- colindex=03 type=quadleft -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=03 type=maindata -->
    <TD width="17%">&nbsp;</TD> <!-- colindex=03 type=quadright -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
    <B><FONT style="font-size: 9pt">Salary and Other<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B><FONT style="font-size: 9pt">All Other<BR>
    </FONT></B>
</TD>
</TR>
<TR style="font-size: 9pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Compensation</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Salary</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Compensation</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Nicholas J. Sutton
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;71,346
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    James M. Piccone
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    120,481
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $2,201(4)
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Theodore Gazulis
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    120,481
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Richard E. Betz
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    120,481
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Dale E. Cantwell
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    120,481
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $2,201(4)
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Janet W. Pasque
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    120,481
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $2,201(4)
</TD>
<TD>&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>
&#160;&#160;&#160;&#160;&#160;
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    2) </TD>
    <TD></TD>
    <TD valign="bottom">
    Each of the executive officers is also an officer of Holdings,
    and has received equity and other compensation in such capacity.
    Such compensation is not included in the above table.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    3) </TD>
    <TD></TD>
    <TD valign="bottom">
    $13,111 of the bonus relates to matching 401(k) contributions
    that would have been made in 2009 in respect of
    2008&#160;employee contributions in accordance with policies of
    Predecessor Resolute. Because Predecessor Resolute had suspended
    its matching contributions in 2009, Resolute determined to pay
    the amount of such matching contributions in the form of a cash
    payment.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    4) </TD>
    <TD></TD>
    <TD valign="bottom">
    Consists of (i)&#160;contributions pursuant to the
    Company&#146;s 401(k) plan to match employee contributions made
    in 2009 and (ii)&#160;the value of parking paid for by the
    Company. The 401(k) matching contribution was paid in 2010, but
    accrued on the Company&#146;s financial statements in 2009.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    5) </TD>
    <TD></TD>
    <TD valign="bottom">
    Mr.&#160;Sutton and Mr.&#160;Piccone are also directors of the
    Company but received no compensation for their services as
    directors.</TD>
</TR>

</TABLE>
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    <BR>
A-78
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">2009 Grants of
    Plan-Based Awards</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The Company has one equity incentive plan, the 2009 Performance
    Incentive Plan (the &#147;Plan&#148;), pursuant to which the
    Company may grant stock options, restricted stock, restricted
    stock units and stock appreciation rights. The Plan provides for
    the issuance of up to 2,657,744&#160;shares of common stock. No
    plan-based awards have been made to the Named Executive Officers
    in 2009.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Outstanding
    Equity Awards at Fiscal Year End</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    There were no equity awards outstanding under the Plan at
    December&#160;31, 2009.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Option Exercises
    and Stock Vested in 2009</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    No options to purchase Company common stock were exercised by
    Named Executive Officers in 2009, and no options held by Named
    Executive Officers vested in 2009.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">2009 Pension
    Benefits</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The Company has no defined benefit pension plans.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">2009 Nonqualified
    Deferred Compensation Plans</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    In the year ended December&#160;31, 2009, the Company had no
    nonqualified plan that provides for deferral of compensation.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Potential
    Payments Upon Termination or Change of Control of
    Resolute</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    There are currently no agreements under which the Named
    Executive Officers would be entitled to receive payments upon
    termination or upon a change of control of the Company.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Compensation
    Discussion and Analysis of the Company</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The Company began operations on September&#160;25, 2009, and the
    Board of Directors and Compensation Committee assumed their
    positions at that date. The Compensation Committee is in the
    process of developing its compensation policies and philosophy
    for executive officers, and in February 2010 engaged Effective
    Compensation, Inc., an independent compensation consultant, to
    advise with respect to development of comprehensive compensation
    philosophy and practices for executives and other employees.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>Overview of the Company&#146;s Compensation
    Program.</I>&#160;The Company&#146;s Board of Directors has
    responsibility for establishing, implementing and continually
    monitoring adherence with the Company&#146;s compensation
    philosophy. The Board of Directors has delegated to the
    Compensation Committee of the Board of Directors its
    responsibilities with respect to development of a compensation
    program and implementation of that program. The Compensation
    Committee will be solely responsible for determining the
    compensation of the CEO and will make recommendations to the
    Board of Directors regarding the compensation of other executive
    officers. It will also administer equity incentive plans, and
    make recommendations to the Board of Directors regarding awards
    under the Incentive Plan. Generally, the types of compensation
    and benefits that are provided to the Company&#146;s executive
    officers are similar to those provided to the Company&#146;s
    other officers and employees. The Company does not have
    compensation plans that are solely for executive officers.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>Compensation Philosophy and Objectives.</I>&#160;The Company
    believes that the most effective compensation program is one
    that is designed to reward all employees, not just executives,
    for the achievement of the Company&#146;s short-term and
    long-term strategic goals. As a result, the Company&#146;s
    compensation philosophy is to provide all employees with cash
    incentives or a combination of cash and equity-based incentives
    that foster the continued growth and overall success of the
    Company and encourage employees to maximize stockholder value.
</DIV>
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    <BR>
A-79
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Under this philosophy, all the Company employees, from the most
    senior executives of the organization to entry level, have
    aligned interests. When establishing its total compensation, the
    Company has the following objectives:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="1%"></TD>
    <TD width="4%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    to attract, retain and motivate highly qualified and experienced
    individuals;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    to provide financial incentives, through an appropriate mix of
    fixed and variable pay components, to achieve the
    organization&#146;s key financial and operational objectives;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    to ensure that a portion of total compensation is &#147;at
    risk&#148; in the form of equity compensation;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    to offer competitive compensation packages that are consistent
    with the Company&#146;s core values, including the balance of
    fairness to the individual and the organization, and the demand
    for commitment and dedication in the performance of the job.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>Setting the Company&#146;s Executive
    Compensation.</I>&#160;The Compensation Committee is developing
    a comprehensive compensation plan that will encompass all
    elements of compensation for executives and all employees. The
    committee expects that process to be completed in the first half
    of 2010. Following development of the comprehensive plan and
    2010 implementation, executive compensation will be reviewed by
    the compensation committee no less frequently than annually.
    Compensation is expected to be based on the foregoing
    objectives, and to include as integral components base salary
    and annual and long-term incentive-based cash and non-cash
    compensation. In performing its compensation reviews and making
    its compensation decisions regarding the compensation of the
    Company&#146;s chief executive officer and other executive
    officers, the Compensation Committee of the Board of Directors
    will conduct an ongoing review of compensation data from other
    oil and gas companies of comparable size and scope. In
    establishing executive compensation, base salaries are expected
    to be targeted near the midpoint of a range established by this
    peer review, although adjustments are made for such things as
    experience, market factors or exceptional performance, among
    others, and potential total compensation, including annual
    incentive compensation, are expected to be at the upper range of
    total compensation at comparable companies if performance
    targets are met. Annual cash incentive and equity incentive
    awards will be designed to reflect progress toward company-wide
    financial goals and personal objectives, as well as salary grade
    level, and to balance rewards for short-term and long-term
    performance. Long-term incentive compensation will be used to
    reward and to encourage long-term performance and an alignment
    of interests between the individual and the organization.
    Long-term incentive grants will be used not only to reward prior
    performance, but also to retain executive officers and other
    employees and provide incentives for future exceptional
    performance. To the extent that business success makes long-term
    incentive awards more valuable, an individual&#146;s total
    compensation may move from the median to the high end of ranges
    established with reference to peer data.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    There is no pre-established policy or target for the allocation
    between either cash and non-cash or short-term and long-term
    incentive compensation for executive officers. Rather, the
    compensation committee engages in an individual analysis for
    each executive. Factors affecting compensation include:
    (i)&#160;the Company&#146;s annual performance; (ii)&#160;impact
    of the employee&#146;s performance on the Company&#146;s
    results; (iii)&#160;the Company&#146;s objective to provide
    total compensation that is higher than competitive levels when
    aggressive goals of the Company are exceeded; and
    (iv)&#160;internal equity. The size of the long-term incentive
    compensation grants will typically increase with the level of
    responsibility of the executive position. For the chief
    executive officer, long term incentive grants are typically the
    largest element of the total compensation package.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Executive officers generally receive the same benefits as other
    employees. The Company has matched 401(k) contributions made by
    all employees, including executive officers, in 2009.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>Executive Compensation Components.</I>&#160;The principal
    components of compensation for executive officers are:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="4%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    base salary;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    cash bonus;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    long-term incentive compensation;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    401(k) and other benefits.
</TD>
</TR>

</TABLE>
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    <BR>
A-80
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>Relative Size of Major Compensation Elements.</I>&#160;The
    combination of base salary, annual cash incentives and equity
    awards comprises total direct compensation. In setting executive
    compensation, the compensation committee considers the aggregate
    compensation payable to an executive officer and the form of
    that compensation. The compensation committee seeks to achieve
    the appropriate balance between immediate cash rewards and
    long-term financial incentives for the achievement of both
    annual and long-term financial and non-financial objectives.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The compensation committee may decide, as appropriate, to modify
    the mix of base salary, annual cash incentives and long-term
    equity incentives to best fit an executive officer&#146;s
    specific circumstances. For example, the compensation committee
    may make the decision to award more cash and not award an equity
    grant. This provides more flexibility to the Company to reward
    executive officers appropriately as they near retirement, when
    they may only be able to partially fulfill the vesting required
    for equity grants. The compensation committee may also increase
    the size of equity grants to an executive officer if the total
    number of career equity grants does not adequately reflect the
    executive&#146;s current position with the Company.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>Timing of Compensation Decisions.</I>&#160;In the first half
    of 2010, the Company will undertake a comprehensive analysis of
    its compensation system and establish performance and other
    goals. After this process is completed, it is expected that all
    elements of the executive officers&#146; compensation will be
    reviewed each February, including a review of financial,
    operating and personal objectives with respect to the prior
    year&#146;s results. At that time, the financial, operating and
    personal objectives and performance targets will be determined
    for the current year. The Board of Directors or the compensation
    committee may, however, review salaries or grant equity
    incentives at other times in connection with new appointments or
    promotions or other extraordinary events that occur during the
    year, or under other circumstances that it deems appropriate.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The following table summarizes the approximate timing of
    significant compensation events:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="50%">&nbsp;</TD> <!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=02 type=gutter -->
    <TD width="49%">&nbsp;</TD> <!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 9pt">Event</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 9pt">Timing</FONT></B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Base salary review and recommendation.
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    First quarter of the fiscal year for base salary for the current
    year.
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Executive performance evaluation and corresponding compensation
    recommendations.
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Results approved in February of each fiscal year for annual cash
    bonus with respect to prior year.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Earned incentive compensation paid in March.
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Granting of long term incentives to executives.
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    No set period.
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    External consultants&#146; analyses provided to the compensation
    committee evaluating executive compensation.
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    No set period.
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Establish executive officer performance objective(s).
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    February of each fiscal year for the current year.
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>Base Salary.</I>&#160;The Company provides executive officers
    with a base salary to compensate them for services rendered
    during the fiscal year. Base salaries for each of the Named
    Executive Officers were reset following the consummation of the
    Resolute Transaction, as follows: base salary levels for
    Messrs.&#160;Betz, Cantwell and Gazulis and Ms.&#160;Pasque were
    set at $300,000, for Mr.&#160;Piccone at $350,000, and for
    Mr.&#160;Sutton at $500,000. This decision reflected increased
    responsibilities associated with public company status, as well
    as other factors. The compensation committee reviewed survey
    data compiled by a third party of publicly available information
    of salary levels for executives at companies in the oil and gas
    industry with a market capitalization comparable to that of the
    Company. In addition, the compensation committee considered the
    then-current salary levels of executives. Prior to the Resolute
    Transaction in 2009, all Named Executive Officers had been
    executive officers of Resolute Holdings. Each executive had an
    agreed annual salary level of $175,000 per year, which reflected
    private company salary and equity arrangements for a
    <FONT style="white-space: nowrap">start-up</FONT>
    company that were no longer applicable to a much larger public
    company. Salaries had been unchanged since 2004, and these
    levels were not considered competitive with market rates. In
    addition, executives had foregone salary increases and had
    agreed to salary reductions from agreed salary levels in 2009 in
    response to cash flow concerns of Resolute Holdings.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Base salary for executive officers for 2010 will take into
    consideration salaries of executives of comparable companies in
    the oil and gas industry, individual performance, comparison to
    internal peer positions, the relative
</DIV>
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    <BR>
A-81
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    performance of the Company during the year, and overall
    performance against the Company objectives. Base salaries will
    be reviewed and adjusted pursuant to the procedures discussed
    above.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    There are occasions when a base salary can be reduced such as
    when an executive officer moves to a position of lesser
    responsibility in the organization. Alternatively, a base salary
    can be frozen for a number of years until it falls in line with
    comparable positions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>Cash Bonus.</I>&#160;Cash bonuses to executive officers will
    be made at the discretion of the Board of Directors. Cash
    bonuses totaling $578,055 were awarded in December 2009 to the
    Named Executive Officers for services during 2009. Each bonus
    was equal to approximately one quarter of each executive&#146;s
    annual salary at year-end 2009, subject to certain adjustments
    and special considerations. Mr.&#160;Sutton received a bonus of
    $138,100, Mr.&#160;Piccone a bonus of $100,600, and
    Messrs.&#160;Gazulis and Cantwell and Ms.&#160;Pasque each
    received bonuses of $88,100 and Mr.&#160;Betz received a bonus
    of $75,000. Factors considered in awarding this bonus included
    the exemplary efforts made by such executives in completing the
    Resolute Transaction and in transitioning to public company
    status. In addition, the bonuses took into consideration the
    salary reductions agreed to by the executives in 2009:
    Mr.&#160;Sutton had agreed to a 50% reduction in his salary from
    February 2009 and other executives had agreed to a 10% reduction
    in salary from April 2009. The Committee also considered, in
    determining the amount of the bonuses, that the Company&#146;s
    normal policy of matching employee 401(k) contributions had been
    suspended in 2009 (with respect to 2008 contributions) and that
    Named Executive Officers received no bonus in 2009 for services
    in 2008.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The Committee expects that future year-end cash bonuses would
    range from 0% to 150% of each executive&#146;s annual base
    salary, depending on an executive&#146;s position of
    responsibility and an assessment of that executive&#146;s
    contribution to the success of the Company. Performance targets
    will be established, and bonuses will reflect a combination of
    time vesting and achievement of performance objectives.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>Employment Agreements.</I>&#160;The Company expects to enter
    into employment agreements with the Named Executive Officers in
    2010. It is expected that the employment agreements will provide
    for (i)&#160;base salary, (ii)&#160;bonuses to be earned by
    achievement of specified performance targets,
    (iii)&#160;severance and change of control benefits,
    (iv)&#160;non-competition and non-solicitation provisions,
    (v)&#160;obligations to maintain the confidentiality of the
    Company information, and (vi)&#160;assignment of all
    intellectual property rights to the Company.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>Retirement and Other Benefit Plans.</I>&#160;All of the
    Company&#146;s employees will be eligible to participate in a
    401(k) plan. While the Company will have the option but not the
    requirement to match all or a portion of employee contributions
    to the 401(k) plan, a matching contribution was made in 2010 for
    2009 contributions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>Long-Term Incentive Compensation.</I>&#160;The Company has
    adopted the 2009 Incentive Performance Plan (the &#147;Incentive
    Plan&#148;), providing for long-term equity based awards
    intended to compensate key employees, consultants and directors.
    The principal terms of the Incentive Plan are summarized below
    under the caption &#147;2009 Incentive Performance Plan.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>Other Benefits Plans.</I>&#160;The Company offers a variety
    of health and benefit programs to all employees, including
    medical, dental, vision, life insurance and disability
    insurance. The Company&#146;s executive officers are generally
    eligible to participate in these employee benefit plans on the
    same basis as the rest of the Company&#146;s employees.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Compensation
    Programs and Potential of Risks&#160;&#151; </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The Company has determined that the risks arising from its
    compensation policies and practices are not reasonably likely to
    have a material adverse effect on the Company.
</DIV>
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    <BR>
A-82
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Director Summary
    Compensation Table</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The following table summarizes the compensation we paid to our
    non-employee directors between September&#160;25, 2009, the date
    the Company commenced operations, and December&#160;31, 2009.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 8pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="32%">&nbsp;</TD> <!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=02 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>    <!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=02 type=hang1 -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=03 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>    <!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=03 type=hang1 -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=04 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>    <!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=04 type=hang1 -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=05 type=lead -->
    <TD width="10%" align="right">&nbsp;</TD>   <!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=05 type=hang1 -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=06 type=lead -->
    <TD width="10%" align="right">&nbsp;</TD>   <!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=06 type=hang1 -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=07 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=07 type=lead -->
    <TD width="10%" align="right">&nbsp;</TD>   <!-- colindex=07 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=07 type=hang1 -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=08 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=08 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>    <!-- colindex=08 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=08 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Change in<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Pension Value<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Fees<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>and<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Earned<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Non-Equity<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Nonqualified<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>or Paid in<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Stock<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Option<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Incentive Plan<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Deferred<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>All Other<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Cash<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Awards<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Awards<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Compensation<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Compensation<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Compensation<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Total<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Name</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>($)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>($)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>($)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>($)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Earnings</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>($)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>($)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Kenneth A. Hersh
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14,144
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
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&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
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&nbsp;
</TD>
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    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
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&nbsp;
</TD>
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    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
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</TD>
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    &#151;
</TD>
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&nbsp;
</TD>
<TD>
&nbsp;
</TD>
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&nbsp;
</TD>
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    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14,144
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Richard L. Covington
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14,144
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
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&nbsp;
</TD>
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    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
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&nbsp;
</TD>
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    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
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</TD>
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&nbsp;
</TD>
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    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
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</TD>
<TD>
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</TD>
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</TD>
<TD nowrap align="left" valign="bottom">
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</TD>
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</TD>
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</TD>
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    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
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</TD>
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</TD>
<TD nowrap align="right" valign="bottom">
    14,144
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    William J. Quinn
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14,144
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
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</TD>
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</TD>
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</TD>
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</TD>
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</TD>
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</TD>
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</TD>
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</TD>
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</TD>
<TD nowrap align="right" valign="bottom">
    14,144
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    William H. Cunningham
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14,144
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
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</TD>
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</TD>
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</TD>
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    &#151;
</TD>
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</TD>
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</TD>
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</TD>
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</TD>
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&nbsp;
</TD>
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    &#151;
</TD>
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&nbsp;
</TD>
<TD>
&nbsp;
</TD>
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&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14,144
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Robert M. Swartz
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14,144
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
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&nbsp;
</TD>
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    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
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</TD>
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    &#151;
</TD>
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&nbsp;
</TD>
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</TD>
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</TD>
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</TD>
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</TD>
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&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14,144
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    James E. Duffy
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14,144
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
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    &#151;
</TD>
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&nbsp;
</TD>
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</TD>
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&nbsp;
</TD>
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    &#151;
</TD>
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&nbsp;
</TD>
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</TD>
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    &#151;
</TD>
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</TD>
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</TD>
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&nbsp;
</TD>
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</TD>
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    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
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&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14,144
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Thomas O. Hicks, Jr.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14,144
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
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    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
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&nbsp;
</TD>
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    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
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&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
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&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
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&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14,144
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    1)&#160;&#160;&#160;&#160;&#160;Messrs.&#160;Sutton and Piccone
    are not included in this table because as employees of the
    Company they receive no additional compensation for their
    services as directors. The compensation received by
    Messrs.&#160;Sutton and Piccone as employees is shown in
    &#147;&#151;&#160;Executive Officer Compensation in
    2009&#160;&#151; Summary Compensation Table.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    On December&#160;14, 2009, the compensation committee
    recommended, and the Board of Directors approved, the following
    annual compensation for non-employee directors: annual retainer
    of $50,000, fees of $2,000 for each Board of Directors meeting
    and $1,000 for each committee meeting, and additional
    compensation of $7,500 for each committee chairman. In addition,
    non-employee directors would receive equity compensation, in a
    form to be determined by the compensation committee, having a
    value of $50,000 annually. The cash fees appearing in the above
    table reflects this compensation arrangement for 2009. While the
    Board of Directors authorized the directors to receive equity
    compensation for services as a director for the period from
    September&#160;25, 2009 to December&#160;31, 2009, the form and
    terms of any such equity compensation were subject to analysis
    of legal, tax and other factors and had not been determined by
    the end of 2009. As a result, no awards were made in 2009, but
    awards of 1,373&#160;shares were made to each non-employee
    director on March&#160;16, 2010 with respect to 2009 services.
    See &#147;<I>Security Ownership of Certain Beneficial Owners and
    Management&#148;</I>.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    In addition, each director will be reimbursed for his or her
    <FONT style="white-space: nowrap">out-of-pocket</FONT>
    expenses in connection with attending meetings of the Board of
    Directors or committees. Each director is covered by a liability
    insurance policy paid for by the Company and is indemnified, to
    the fullest extent permitted under Delaware law, by the Company
    for his or her actions associated with being a director. The
    Company entered into indemnification agreements with each of its
    directors.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Compensation
    Committee Report</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    We, the Compensation Committee of the Board of Directors, have
    reviewed and discussed the Compensation Discussion and Analysis
    with the management of the Company, and, based on such review
    and discussion, have recommended to the Board of Directors that
    the Compensation Discussion and Analysis be included in this
    Annual Report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for the fiscal year ended December&#160;31, 2009.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 7%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Compensation Committee:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 7%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    James E. Duffy, Chairman
</DIV>

<DIV align="left" style="margin-left: 7%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Richard L. Covington
</DIV>

<DIV align="left" style="margin-left: 7%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Kenneth A. Hersh
</DIV>

<DIV align="left" style="margin-left: 7%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    William J. Quinn
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <BR>
A-83
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">2009 INCENTIVE
    PERFORMANCE PLAN</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The Company adopted the 2009 Incentive Performance Plan (the
    &#147;Incentive Plan&#148;) in July 2009, and the Incentive Plan
    was approved by the sole stockholder of the Company at that
    time. This summary is qualified in its entirety by the full text
    of the Incentive Plan.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>Purpose.</I>&#160;The purpose of the Incentive Plan is to
    promote the success of the Company and the interests of its
    stockholders by providing an additional means for the Company to
    attract, motivate, retain and reward directors, officers,
    employees and other eligible persons (including consultants and
    advisors) through the grant of awards and incentives for high
    levels of individual performance and improved financial
    performance of the Company. Equity-based awards are also
    intended to further align the interests of award recipients and
    the Company&#146;s stockholders.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>Administration.</I>&#160;The Company&#146;s Board of
    Directors or one or more committees consisting of independent
    directors appointed by the Company&#146;s Board of Directors
    will administer the Incentive Plan. Our Board of Directors has
    delegated general administrative authority for the Incentive
    Plan to the compensation committee, which is comprised of
    directors who qualify as independent under rules promulgated by
    the SEC and The New York Stock Exchange listing standards.
    Except with respect to grants to non-employee directors, a
    committee may delegate some or all of its authority with respect
    to the Incentive Plan to another committee of directors and
    certain limited authority to grant awards to employees may be
    delegated to one or more officers of the Company. For purposes
    of Section&#160;162(m) of the Internal Revenue Code of 1986, as
    amended (the &#147;Code&#148;),
    <FONT style="white-space: nowrap">Rule&#160;16b-3</FONT>
    of the Securities Exchange Act of 1934, as amended, the rules of
    the New York Stock Exchange (&#147;NYSE&#148;) and for grants to
    non-employee directors, the Incentive Plan must be administered
    by a committee consisting solely of independent directors. The
    appropriate acting body, be it the Company&#146;s Board of
    Directors, a committee within its delegated authority, or an
    officer within his or her delegated authority, is referred to in
    this plan description as the Administrator.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The Administrator has broad authority under the Incentive Plan
    with respect to award grants including, without limitation, the
    authority:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="1%"></TD>
    <TD width="4%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    to select participants and determine the type(s) of award(s)
    that they are to receive;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    to determine the number of shares that are to be subject to
    awards and the terms and conditions of awards, including the
    price (if any) to be paid for the shares or the award;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    to cancel, modify, or waive the Company&#146;s rights with
    respect to, or modify, discontinue, suspend, or terminate any or
    all outstanding awards, subject to any required consents;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    to accelerate or extend the vesting or exercisability or extend
    the term of any or all outstanding awards subject to any
    required consent;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    subject to the other provisions of the Incentive Plan, to make
    certain adjustments to an outstanding award and to authorize the
    conversion, succession or substitution of an award;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    to allow the purchase price of an award or shares of Company
    common stock to be paid in the form of cash, check, or
    electronic funds transfer, by the delivery of already-owned
    shares of Company common stock or by a reduction of the number
    of shares deliverable pursuant to the award, by services
    rendered by the recipient of the award, by notice of third party
    payment or by cashless exercise, on such terms as the
    Administrator may authorize, or any other form permitted by law.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>Eligibility.</I>&#160;Persons eligible to receive awards
    under the Incentive Plan include officers and employees of the
    Company or any of its subsidiaries, directors of the Company,
    and certain consultants and advisors to the Company or any of
    its subsidiaries.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>Authorized Shares.</I>&#160;The maximum number of shares of
    Company Common Stock that may be issued pursuant to awards under
    the Incentive Plan is 2,657,744. No awards were made in 2009.
    The Incentive Plan generally provides that shares issued in
    connection with awards that are granted by or become obligations
    of the Company through the assumption of awards (or in
    substitution for awards) in connection with an acquisition of
    another Company will not count against the shares available for
    issuance under the Incentive Plan.
</DIV>
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    <BR>
A-84
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>No Repricing.</I>&#160;In no case (except due to an
    adjustment to reflect a stock split or similar event or any
    repricing that may be approved by stockholders) will any
    adjustment be made to a stock option or stock appreciation right
    award under the Incentive Plan (by amendment, cancellation and
    regrant, exchange or other means) that would constitute a
    repricing of the per share exercise or base price of the award.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>Types of Awards.</I>&#160;The Incentive Plan authorizes stock
    options, stock appreciation rights, restricted stock, restricted
    stock units, stock bonuses and other forms of awards that may be
    granted or denominated in Company common stock or units of
    Company common stock, as well as cash bonus awards. The
    Incentive Plan retains flexibility to offer competitive
    incentives and to tailor benefits to specific needs and
    circumstances. Any award may be paid or settled in cash.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>Stock Options.</I>&#160;A stock option is the right to
    purchase shares of Company common stock at a future date at a
    specified price per share (the &#147;exercise price.&#148;) The
    per share exercise price of an option generally may not be less
    than the fair market value of a share of Company common stock on
    the date of grant. The maximum term of an option is ten years
    from the date of grant. An option may be either an incentive
    stock option or a nonqualified stock option. Incentive stock
    options are taxed differently than nonqualified stock options
    and are subject to more restrictive terms under the Code and the
    Incentive Plan. Incentive stock options may be granted only to
    employees of the Company or a subsidiary.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>Stock Appreciation Rights.</I>&#160;A stock appreciation
    right is the right to receive payment of an amount equal to the
    excess of the fair market value of shares of Company common
    stock on the date of exercise of the stock appreciation right
    over the base price of the stock appreciation right. The base
    price will be established by the Administrator at the time of
    grant of the stock appreciation right and generally cannot be
    less than the fair market value of a share of Company common
    stock on the date of grant. Stock appreciation rights may be
    granted in connection with other awards or independently. The
    maximum term of a stock appreciation right is ten years from the
    date of grant.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>Restricted Stock.</I>&#160;Shares of restricted stock are
    shares of Company common stock that are subject to certain
    restrictions on sale, pledge, or other transfer by the recipient
    during a particular period of time (the &#147;restricted
    period&#148;). Subject to the restrictions provided in the
    applicable award agreement and the Incentive Plan, a participant
    receiving restricted stock may have all of the rights of a
    stockholder as to such shares, including the right to vote and
    the right to receive dividends.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>Restricted Stock Units.</I>&#160;A restricted stock unit
    (&#147;RSU&#148;), represents the right to receive one share of
    Company common stock on a specific future vesting or payment
    date. Subject to the restrictions provided in the applicable
    award agreement and the Incentive Plan, a participant receiving
    RSUs has no stockholder rights until shares of common stock are
    issued to the participant. RSUs may be granted with dividend
    equivalent rights.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>Cash Awards.</I>&#160;The Administrator, in its sole
    discretion, may grant cash awards, including without limitation,
    discretionary awards, awards based on objective or subjective
    performance criteria, and awards subject to other vesting
    criteria.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>Other Awards.</I>&#160;The other types of awards that may be
    granted under the Incentive Plan include, without limitation,
    stock bonuses, performance stock, dividend equivalents, and
    similar rights to purchase or acquire shares of Company common
    stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>Performance-Based Awards.</I>&#160;The Administrator may
    grant awards that are intended to be performance-based
    compensation within the meaning of Section&#160;162(m) of the
    Code (&#147;Performance-Based Awards&#148;). Performance-Based
    Awards are in addition to any of the other types of awards that
    may be granted under the Incentive Plan (including options and
    stock appreciation rights which may also qualify as
    performance-based compensation for Section&#160;162(m)
    purposes). Performance-Based Awards may be in the form of
    restricted stock, performance stock, stock units, other rights,
    or cash bonus opportunities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The vesting or payment of Performance-Based Awards (other than
    options or stock appreciation rights) will depend on the
    absolute or relative performance of the Company on a
    consolidated, subsidiary, segment, division, or business unit
    basis. The Administrator will establish the targets on which
    performance will be measured based on criterion or criteria
    selected by the Administrator. The Administrator must establish
    criteria and targets in advance of applicable deadlines under
    the Code and while the attainment of the performance targets
    remains
</DIV>
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    <BR>
A-85
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    substantially uncertain. The Administrator may use any criteria
    it deems appropriate for this purpose, and applicable criteria
    may include one or more of the following: earnings per share,
    cash flow (which means cash and cash equivalents derived from
    either net cash flow from operations or net cash flow from
    operating, financing and investing activities), total
    stockholder return, gross revenue, revenue growth, operating
    income (before or after taxes), net earnings (before or after
    interest, taxes, depreciation
    <FONT style="white-space: nowrap">and/or</FONT>
    amortization), return on equity, capital employed, or on assets
    or net investment, cost containment or reduction, operating
    margin, debt reduction, finding and development costs,
    production growth or production growth per share, reserve
    replacement or reserve replacement per share or any combination
    thereof. The performance measurement period with respect to an
    award may be as short as three months to as long as ten years.
    Performance targets will be adjusted to mitigate the unbudgeted
    impact of material, unusual or nonrecurring gains and losses,
    accounting changes or other extraordinary events not foreseen at
    the time the targets were set unless the Administrator provides
    otherwise at the time of establishing the targets.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Performance-Based Awards may be paid in stock or in cash. Before
    any Performance-Based Award (other than an option or stock
    appreciation right) is paid, the Administrator must certify that
    the performance target or targets have been satisfied. The
    Administrator has discretion to determine the performance target
    or targets and any other restrictions or other limitations of
    Performance-Based Awards and may reserve discretion to reduce
    payments below maximum award limits.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>Acceleration of Awards; Possible Early Termination of
    Awards.</I>&#160;Generally, and subject to limited exceptions
    set forth in the Incentive Plan, if any person acquires more
    than 50% of the outstanding common stock or combined voting
    power of the Company, if there are certain changes in a majority
    of the Company Board of Directors, if stockholders prior to a
    transaction do not continue to own more than 50% of the voting
    securities of the Company (or a successor or a parent) following
    a reorganization, merger, statutory share exchange or
    consolidation or similar corporate transaction involving the
    Company or any of its subsidiaries, a sale or other disposition
    of all or substantially all of the Company&#146;s assets or the
    acquisition of assets or stock of another entity by the Company
    or any of its subsidiaries, or if the Company is dissolved or
    liquidated, then awards then-outstanding under the Incentive
    Plan may become fully vested or paid, as applicable, and may
    terminate or be terminated upon consummation of such a change in
    control event. The Administrator also has the discretion to
    establish other change in control provisions with respect to
    awards granted under the Incentive Plan. For example, the
    Administrator could provide for the acceleration of vesting or
    payment of an award in connection with a change in control event
    that is not described above or provide that any such
    acceleration shall be automatic upon the occurrence of any such
    event.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>Transfer Restrictions.</I>&#160;Awards under the Incentive
    Plan generally are not transferable by the recipient other than
    by will or the laws of descent and distribution, or pursuant to
    domestic relations orders, and are generally exercisable during
    the recipient&#146;s lifetime only by the recipient. Any amounts
    payable or shares issuable pursuant to an award generally will
    be paid only to the recipient or the recipient&#146;s
    beneficiary or representative. The Administrator has discretion,
    however, to establish written conditions and procedures for the
    transfer of awards to other persons or entities, as long as such
    transfers comply with applicable federal and state securities
    laws.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>Adjustments.</I>&#160;As is customary in incentive plans of
    this nature, the share limit and the number and kind of shares
    available under the Incentive Plan and any outstanding awards,
    as well as the exercise or purchase prices of awards, and
    performance targets under certain types of performance-based
    awards, are subject to adjustment in the event of certain
    reorganizations, mergers, combinations, recapitalizations, stock
    splits, stock dividends, or other similar events that change the
    number or kind of shares outstanding, and extraordinary
    dividends or distributions of property to the stockholders.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>No Limit on Other Authority.</I>&#160;The Incentive Plan does
    not limit the authority of the Company&#146;s Board of Directors
    or any committee to grant awards or authorize any other
    compensation, with or without reference to Company common stock,
    under any other plan or authority.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>Termination of, or Changes to, the Incentive
    Plan.</I>&#160;The Administrator may amend or terminate the
    Incentive Plan at any time and in any manner. Stockholder
    approval for an amendment will be required only to the extent
    then required by applicable law or any applicable listing agency
    or required under Sections&#160;162, 409A, 422 or 424 of the
    Code to preserve the intended tax consequences of the Incentive
    Plan. For example, stockholder approval
</DIV>
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    <BR>
A-86
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    will be required for any amendment that proposes to increase the
    maximum number of shares that may be delivered with respect to
    awards granted under the Incentive Plan. Adjustments as a result
    of stock splits or similar events will not, however, be
    considered an amendment requiring stockholder approval. Unless
    terminated earlier by the Board of Directors, the authority to
    grant new awards under the Incentive Plan will terminate ten
    years from the date of its adoption, or July&#160;31, 2019.
    Outstanding awards generally will continue following the
    expiration or termination of the Incentive Plan. Generally
    speaking, outstanding awards may be amended by the Administrator
    (except for a repricing), but the consent of the award holder is
    required if the amendment (or any plan amendment) materially and
    adversely affects the holder.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>Awards Under the Incentive Plan.</I>&#160;No awards were made
    under the Incentive Plan in 2009. Because future awards under
    the Incentive Plan will be granted in the discretion of the
    Company&#146;s Board of Directors or a committee of the board,
    the type, number, recipients and other terms of future awards
    cannot be determined at this time.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Securities
    Authorized for Issuance Under Equity Compensation
    Plans</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The following table sets forth certain information regarding
    shares of our common stock issuable upon the exercise of options
    granted under our compensation plans as of December&#160;31,
    2009.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"><!-- TABLE 01 -->
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="34%">&nbsp;</TD> <!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>  <!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=02 type=lead -->
    <TD width="19%" align="right">&nbsp;</TD>   <!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=02 type=hang1 -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=03 type=lead -->
    <TD width="16%" align="right">&nbsp;</TD>   <!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=03 type=hang1 -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=04 type=lead -->
    <TD width="21%" align="right">&nbsp;</TD>   <!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 9pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Number of securities<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Weighted-average<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Number of securities<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 9pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>to be issued upon<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>exercise price of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>remaining available for<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 9pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>exercise of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>outstanding<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>future issuance under<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 9pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>outstanding options,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>options, warrants<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>equity compensation<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
    <B><FONT style="font-size: 9pt">Plan Category</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 9pt">warrants and rights</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 9pt">and rights</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 9pt">plans</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Equity compensation plans approved by security holders
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;0.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;2,657,744
</TD>
<TD nowrap align="left" valign="bottom">
    &#160;&#160;(1)
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Equity compensation plans not approved by security holders
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Total
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,657,744
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 25%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>


&#160;&#160;&#160;&#160;&#160;
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"><!-- TABLE 06 -->

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    1) </TD>
    <TD></TD>
    <TD valign="bottom">
    Awards under the 2009 Performance Incentive Plan may be made in
    the form of options, restricted stock, restricted stock units or
    stock appreciation rights. At December&#160;31, 2009, no awards
    of any form had been granted.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Compensation
    Committee Interlocks and Insider Participation</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    No member of the compensation committee has been an officer or
    employee of the Company. None of the Company&#146;s executive
    officers serves as a member of the Board of Directors or the
    compensation committee of any entity that has one or more
    executive officers serving on the Company&#146;s Board of
    Directors, or on the compensation committee of the
    Company&#146;s Board of Directors.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Confidentiality
    and Non-Competition Agreements</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Each of the executive officers entered into a Confidentiality
    and Non-Competition Agreement (&#147;Confidentiality
    Agreement&#148;) dated January&#160;23, 2004, at the time of the
    formation of Predecessor Resolute. In this agreement, each
    officer agreed: (i)&#160;that all intellectual property
    developed, and business opportunities as to which such executive
    became aware, during his employment belong to Predecessor
    Resolute, (ii)&#160;to maintain confidentiality of proprietary
    information, and (iii)&#160;to turn over to Predecessor Resolute
    all business records during, and upon termination of, employment.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    In addition, Predecessor Resolute has the right, in its sole
    discretion, to agree to make severance payments to any executive
    officer for up to eighteen months following termination other
    than for Cause (as defined), or upon voluntary resignation
    following a reduction in annual salary. Severance payments would
    be equal to the executive&#146;s salary immediately prior to
    termination. During the period in which severance payments are
    being made, the executive may not engage in the oil and gas
    business in an area within a ten mile radius of the boundaries
    of any property interest of Predecessor Resolute (the
    &#147;Non-Compete&#148;). In addition, the executive is
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <BR>
A-87
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    subject to the Non-Compete, even if no severance is paid, if the
    executive resigns other than following a salary reduction, the
    executive is terminated for Cause, or the executive has breached
    any material provision of the Confidentiality Agreement. In
    addition, executive is in all events prohibited during the
    eighteen months following termination from inducing any other
    employee of Predecessor Resolute to terminate his employment or
    cease providing services to Predecessor Resolute. Upon the
    consummation of the Resolute Transaction, these agreements
    became agreements of Resolute.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>


<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="12%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: Arial, Helvetica">ITEM&#160;12.&#160;&#160;&#160;</FONT></B>
</TD>
    <TD>
    <A name='118'></A><B><FONT style="font-family: Arial, Helvetica">SECURITY
    OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND
    RELATED STOCKHOLDER MATTERS</FONT></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Security
    Ownership of Certain Beneficial Owners and Management</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The following table, based in part upon information supplied by
    officers, directors and principal stockholders, sets forth
    certain information known to the Company with respect to
    beneficial ownership of the Company&#146;s common stock par
    value $0.0001 per share (&#147;Common Stock&#148;) as of
    March&#160;29, 2010, by (i)&#160;each person known to the
    Company to be a beneficial owner of more than 5% of the
    Company&#146;s Common Stock, (ii)&#160;each Named Executive
    Officer (see &#147;Executive Compensation&#160;&#151; Summary
    Compensation Table&#148;), (iii)&#160;each director of the
    Company, and (iv)&#160;all directors and executive officers of
    the Company as a group. Except as otherwise indicated, each
    person has sole voting and investment power with respect to all
    shares shown as beneficially owned, subject to community
    property laws where applicable. Voting power is the power to
    vote or direct the voting of securities, and dispositive power
    is the power to dispose of or direct the disposition of
    securities. Except as otherwise indicated, the address of the
    persons listed below is
    <FONT style="white-space: nowrap">c/o&#160;Resolute</FONT>
    Energy Corporation, 1675 Broadway, Suite&#160;1950, Denver,
    Colorado 80202.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    For purposes of this beneficial ownership table,
    (x)&#160;&#147;Earnout Shares&#148; are shares of Common Stock
    subject to forfeiture, unless at any time prior to
    September&#160;25, 2014, either (a)&#160;the closing sale price
    of Common Stock exceeds $15.00 per share for 20 trading days in
    any 30 trading day period or (b)&#160;a change in control event
    occurs in which Common Stock is valued at greater than $15.00
    per share, (y)&#160;&#147;Founder&#146;s Warrants&#148; are
    warrants which entitle the holder to purchase one share of
    Company Common Stock at a price of $13.00 per share, subject to
    adjustment, commencing any time after the last sale price of
    Common Stock exceeds $13.75 for any 20&#160;days within any
    30&#160;day trading period prior to September&#160;25, 2014, and
    (z)&#160;&#147;Sponsor&#146;s Warrants&#148; are warrants which
    entitle the holder to purchase one share of Common Stock at a
    price of $13.00 per share at any time prior to
    September&#160;25, 2014. For purposes of calculating beneficial
    ownership, Earnout Shares and shares issuable on exercise of
    Sponsor&#146;s Warrants are considered to be beneficially owned
    by the holders thereof, but shares issuable on exercise of
    Founder&#146;s Warrants are not considered to be beneficially
    owned by such holders.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <BR>
A-88
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="59%">&nbsp;</TD> <!-- colindex=01 type=maindata -->
    <TD width="3%">&nbsp;</TD>  <!-- colindex=02 type=gutter -->
    <TD width="4%" align="right">&nbsp;</TD>    <!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=02 type=body -->
    <TD width="4%" align="left">&nbsp;</TD>     <!-- colindex=02 type=hang1 -->
    <TD width="5%">&nbsp;</TD>  <!-- colindex=03 type=gutter -->
    <TD width="8%">&nbsp;</TD>  <!-- colindex=03 type=maindata -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=04 type=gutter -->
    <TD width="7%" align="right">&nbsp;</TD>    <!-- colindex=04 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=04 type=body -->
    <TD width="7%" align="left">&nbsp;</TD>     <!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 9pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="5" nowrap align="center" valign="bottom">
    <B>Amount and Nature of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 9pt">&#160;&#160;&#160;&#160;&#160;&#160;&#160;Name
    and Address of Beneficial Owner</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="5" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 9pt">Beneficial Ownership
    (1)</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 9pt">Percent of Class</FONT></B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    SPO Advisory Corp.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18,421,059
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    29.9
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD align="left" valign="bottom">
    591 Redwood Highway, Suite&#160;3215<BR>
    Mill Valley, CA 94941
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 9pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Pine River Capital Management L.P.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,542,222
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (3)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8.5
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
    601 Carlson Parkway, Suite&#160;330 <BR>
    Minnetonka, MN 55305
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 9pt; background: #CCEEFF">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Thomas O. Hicks
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,036,923
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (4)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17.4
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD align="left" valign="bottom">
    100 Crescent Court, Suite&#160;1200<BR>
    Dallas, Texas 75201
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 9pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Advisory Research Energy Fund, L.P.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,766,466
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (5)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.8
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
    180 North Stetson St., Suite&#160;5500<BR>
    Chicago, IL 60601
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 9pt; background: #CCEEFF">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Advisory Research Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,021,250
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (6)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14.4
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD align="left" valign="bottom">
    180 North Stetson St., Suite&#160;5500 <BR>
    Chicago, IL 60601
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 9pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Natural Gas Partners VII, L.P.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,284,318
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (7)(8)(9)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18.5
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
    125&#160;E.&#160;John Carpenter Fwy., Suite&#160;600<BR>
    Irving, TX 75062
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 9pt; background: #CCEEFF">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Resolute Holdings LLC
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,718,433
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (7)(9)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.7
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="line-height: 9pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Kenneth A. Hersh
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,284,318
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (7)(8)(11)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18.5
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="line-height: 9pt; background: #CCEEFF">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Janet W. Pasque
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    243,233
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (10)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 9pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    William J. Quinn
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (11)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 9pt; background: #CCEEFF">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    James M. Piccone
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    266,243
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 9pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    James E. Duffy
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,373
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (12)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 9pt; background: #CCEEFF">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Richard L. Covington
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (11)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 9pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Theodore Gazulis
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    266,242
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (13)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 9pt; background: #CCEEFF">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Thomas O. Hicks, Jr.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    33,698
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (12)(14)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 9pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Robert M. Swartz
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    141,448
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (12)(15)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 9pt; background: #CCEEFF">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Dale E. Cantwell
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    254,738
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 9pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Richard F. Betz
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    266,243
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (16)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 9pt; background: #CCEEFF">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Nicholas J. Sutton
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    616,818
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.2
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="line-height: 9pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    William H. Cunningham
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    33,698
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (12)(17)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 9pt; background: #CCEEFF">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    All directors and executive officers as a group (13&#160;persons)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12,408,052
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (7)(8)(18)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    22.4
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

</DIV>
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A-89
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    (1) Security ownership information for beneficial owners is
    taken from statements filed with the Securities and Exchange
    Commission pursuant to Sections&#160;13(d), 13(g) and 16(a) and
    information made known to the Company. Beneficial ownership is
    determined in accordance with the rules of the Securities and
    Exchange Commission and generally includes voting or investment
    power with respect to securities. Shares of common stock subject
    to options or warrants that are currently exercisable or
    exercisable within 60&#160;days of the date of the table are
    deemed to be outstanding for the purpose of computing the
    percentage ownership of the person holding those options or
    warrants, but are not treated as outstanding for the purpose of
    computing the percentage ownership of any other person. The
    percentage of beneficial ownership is based on
    53,160,375&#160;shares of common stock outstanding as of
    March&#160;29, 2010.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    (2) This disclosure is based on the Schedule&#160;13D/A filed
    with the SEC on October&#160;29, 2009 by SPO Advisory Corp. on
    behalf of SPO Partners II, L.P., SPO Advisory Partners, L.P.,
    San&#160;Francisco Partners, L.P., SF Advisory Partners, L.P.,
    SPO Advisory Corp., John H. Scully, William E. Oberndorf,
    William J. Patterson and Edward H. McDermott.
    Messrs.&#160;Scully, Oberndorf, Patterson and McDermott are the
    four controlling persons of SPO Advisory Corp., which is the
    sole general partner of the sole general partners of SPO
    Partners II, L.P. and San&#160;Francisco Partners, L.P., and may
    be deemed to beneficially own the shares owned by SPO Partners
    II, L.P. and San&#160;Francisco Partners, L.P. Of these shares,
    SPO Partners II, L.P., through its sole general partner, SPO
    Advisory Partners, L.P., holds sole voting and dispositive power
    over 17,672,325&#160;shares (9,502,800&#160;shares of Company
    Common Stock and warrants covering 8,169,525&#160;shares of
    Company common stock issuable upon exercise); SPO Advisory
    Partners, L.P., through its sole general partner, SPO Advisory
    Corp, and in its capacity as sole general partner of SPO
    Partners II, L.P., holds sole voting and dispositive power over
    17,672,325&#160;shares (9,502,800&#160;shares of Company Common
    Stock and warrants covering 8,169,525&#160;shares of Company
    Common Stock issuable upon exercise); San&#160;Francisco
    Partners, L.P., through its sole general partner, SF Advisory
    Partners, L.P., holds sole voting and dispositive power over
    607,253&#160;shares (327,500&#160;shares of Company Common Stock
    and warrants covering 279,753&#160;shares of Company Common
    Stock issuable upon exercise); SF Advisory Partners, L.P.,
    through its sole general partner SPO Advisory Corp and in its
    capacity as sole general partner of San&#160;Francisco Partners,
    L.P. holds sole voting and dispositive power over
    607,253&#160;shares (327,500&#160;shares of Company Common Stock
    and warrants covering 279,753&#160;shares of Company Common
    Stock issuable upon exercise); SPO Advisory Corp, in its
    capacity as (i)&#160;sole general partner of SPO Advisory
    Partners, L.P., holds sole voting and dispositive power with
    respect to 9,502,800&#160;shares of Company Common Stock and
    warrants covering 8,169,525&#160;shares of Company Common Stock
    issuable upon exercise, and as (ii)&#160;the sole general
    partner of SF Advisory Partners, L.P. holds sole voting and
    dispositive power with respect to 327,500&#160;shares of Company
    Common Stock and warrants covering 279,753&#160;shares of
    Company Common Stock issuable upon exercise; and power is
    exercised through its four controlling persons, John H. Scully,
    William E. Oberndorf, William J. Patterson and Edward H.
    McDermott. John H. Scully holds sole voting power over
    3,913&#160;shares held in the John H. Scully Individual
    Retirement Account, which is self-directed, and shared voting
    and dispositive power over 18,279,578&#160;shares (there are
    9,830,300&#160;shares of Company Common Stock and warrants
    covering 8,449,278&#160;shares of Company Common Stock issuable
    upon exercise) beneficially owned by Mr.&#160;Scully solely in
    his capacity as one of four controlling persons of SPO Advisory
    Corp. William E. Oberndorf holds sole voting and dispositive
    power over 135,788&#160;shares held in the William E. Oberndorf
    Individual Retirement Account, which is self-directed, and
    shared voting and dispositive power over 18,279,578&#160;shares
    (there are 9,830,300&#160;shares of Company Common Stock and
    warrants covering 8,449,278&#160;shares of Company Common Stock
    issuable upon exercise) beneficially owned by Mr.&#160;Oberndorf
    solely in his capacity as one of four controlling persons of SPO
    Advisory Corp. William J. Patterson holds sole voting and
    dispositive power over 358&#160;shares held in the William J.
    Patterson Individual Retirement Account, which is self-directed,
    and shared voting and dispositive power over
    18,279,578&#160;shares (there are 9,830,300&#160;shares of
    Company Common Stock and warrants covering 8,449,278&#160;shares
    of Company Common Stock issuable upon exercise) beneficially
    owned by Mr.&#160;Patterson solely in his capacity as one of
    four controlling persons of SPO Advisory Corp. Edward H.
    McDermott holds sole voting and dispositive power over
    1,422&#160;shares held in the Edward H. McDermott Individual
    Retirement Account, which is self-directed, and shared voting
    and dispositive power over 18,279,578&#160;shares (there are
    9,830,300&#160;shares of Company Common Stock and warrants
    covering 8,449,278&#160;shares of Company Common Stock issuable
    upon exercise) beneficially owned by Mr.&#160;McDermott solely
    in his capacity as one of four controlling persons of SPO
    Advisory Corp.
</DIV>
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    (3) This disclosure is based on a Schedule&#160;13G/A filed on
    January&#160;29, 2010 by Pine River Capital Management L.P. on
    behalf of Brian Taylor and Nisswa Acquisition Master
    Fund&#160;Ltd. with the SEC on January&#160;29, 2010. The
    reporting person shares voting and dispositive power over
    4,542,222&#160;shares with Brian Taylor and shares voting and
    dispositive power over 4,333,177&#160;shares with Nisswa
    Acquisition Master Fund&#160;Ltd.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    (4) This disclosure is based on a (i)&#160;Schedule&#160;13D/A
    filed by Thomas O. Hicks on behalf of HH-HACI, L.P. (&#147;HH
    LP&#148;), HH-HACI GP, LLC, (&#147;HH LLC&#148;, the general
    partner of HH LP) and Mr.&#160;Hicks, the sole member of HH LLC,
    and (ii)&#160;a Form&#160;4 filed by HH LP, each of which was
    filed with the SEC on October&#160;21, 2009. HH LLC has sole
    voting and dispositive power over 430&#160;shares (which
    includes 124 Earnout Shares) and shared voting and dispositive
    power over 301,913&#160;shares (which includes 87,093 Earnout
    Shares). HH LLC also owns 613 Founder&#146;s Warrants. HH LP has
    sole voting power and dispositive over 301, 913&#160;shares
    (which includes 87,093 Earnout Shares), HH LP also owns 429,636
    Founder&#146;s Warrants. Thomas O. Hicks has sole voting and
    dispositive power over 7,200,301&#160;shares and shared voting
    and dispositive power over 2,836,622&#160;shares. The
    7,200,301&#160;shares includes 730,894 Earnout Shares and
    4,666,667 Sponsor&#146;s Warrants. Mr.&#160;Hicks also owns
    3,605,481 Founder&#146;s Warrants. The 2,836,622&#160;shares
    over which Mr.&#160;Hicks has shared voting and dispositive
    power include 430&#160;shares of Company Common Stock held by HH
    LLC, 301,913&#160;shares of Company Common Stock held by HH LP
    (each described above) and 2,534,279&#160;shares of Company
    Common Stock held by Mr.&#160;Hicks&#146; charitable foundation
    and estate planning entities for his family. The
    2,534,279&#160;shares include 731,079 Earnout Shares.
    Mr.&#160;Hicks&#146; charitable foundation and estate planning
    entities also own 3,606,400 Founders Warrants. HH LLC disclaims
    beneficial ownership of shares of Company Common Stock owned by
    HH LP, except to the extent of its pecuniary interest.
    Mr.&#160;Hicks disclaims beneficial ownership of any shares held
    by other entities, except to the extent of his pecuniary
    interest.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    (5) This disclosure is based on a Schedule&#160;13G/A filed by
    Advisory Research Energy Fund, L.P. with the SEC on
    February&#160;12, 2010. Advisory Research Energy Fund, L.P.
    shares with its general partner, Advisory Research, Inc., voting
    and dispositive power over these shares, which include
    2,516,466&#160;shares underlying currently exercisable warrants.
    Advisory Research Energy Fund, L.P. claims beneficial ownership
    over 3,766,466&#160;shares.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    (6) This disclosure is based on a Schedule&#160;13G/A filed by
    Advisory Research Inc. with the SEC on February&#160;12, 2010.
    Advisory Research Inc. shares voting and dispositive power over
    these shares, which include 2,516,466&#160;shares underlying
    currently exercisable warrants. Advisory Research Inc. manages
    accounts that may have the right to receive or the power to
    direct the receipt of dividends from, or the proceeds from the
    sale of, the 8,021,250&#160;shares. The interest of one such
    account, owned by Advisory Research Energy Fund&#160;L.P.,
    relates to ownership over 3,766,466&#160;shares, and is reported
    separately.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    (7) Based on (i)&#160;a Form&#160;3 filed by Natural Gas
    Partners VII, L.P. (&#147;NGP VII&#148;) with the SEC on
    February&#160;16, 2010, (ii)&#160;a Schedule&#160;13D filed with
    the SEC on February&#160;22, 2010 on behalf of Kenneth A. Hersh,
    NGP VII and Resolute Holdings, LLC (&#147;Resolute
    Holdings&#148;) and (iii)&#160;a Form&#160;5 filed by Kenneth
    Hersh with the SEC on February&#160;16, 2010. NGP VII shares
    voting and dispositive power over 4,008,152&#160;shares and has
    sole voting and dispositive power over 6,276,166&#160;shares.
    Securities beneficially owned are comprised as follows:
    (i)&#160;direct ownership of 6,276,166&#160;shares of Company
    Common Stock distributed by Resolute Holdings to NGP VII on
    December&#160;21, 2009 in a pro rata distribution by Resolute
    Holdings to its members for no consideration; (ii)&#160;indirect
    ownership of 289,719&#160;shares of Company Common Stock owned
    directly by NGP-VII Income Co-Investment Opportunities, L.P.
    (&#147;Co-Invest&#148;) and received in a pro rata distribution
    by Resolute Holdings to its members for no consideration. NGP
    VII owns 100% of NGP Income Management, L.L.C., which is the
    sole general partner of Co-Invest. NGP VII may be deemed to be
    the indirect beneficial owner of the 289,719&#160;shares of
    Company Common Stock owned by Co-Invest; (iii)&#160;indirect
    ownership of 1,385,100&#160;shares of Common Stock (including
    1,385,000 Earnout Shares) owned by Resolute Holdings. NGP VII
    and Co-Invest own approximately 71% of the outstanding
    membership interests of Resolute Holdings and therefore may be
    deemed to be the indirect beneficial owners of the Common Stock
    owned by Resolute Holdings; (iv)&#160;indirect ownership of
    2,333,333 Sponsor&#146;s Warrants owned by Resolute Holdings.
    Resolute Holdings also owns 4,600,000 Founder&#146;s Warrants.
    NGP VII may be deemed to be the indirect beneficial owner of
    warrants owned by Resolute Holdings. NGP VII disclaims
    beneficial ownership of the reported securities except to the
    extent of its pecuniary interest therein.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    (8) Includes 10,284,318&#160;shares over which Mr.&#160;Hersh
    has shared voting and dispositive power. Mr.&#160;Hersh is an
    Authorized Member of GFW VII, L.L.C., which is the sole general
    partner of G.F.W. Energy VII, L.P., which is the
</DIV>
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    sole general partner of NGP VII. Thus, Mr.&#160;Hersh may be
    deemed to indirectly beneficially own all the Company Common
    Stock directly and/or indirectly deemed beneficially owned by
    NGP VII. Mr.&#160;Hersh disclaims beneficial ownership of the
    reported securities except to the extent of his pecuniary
    interest therein.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    (9) Resolute Holdings has sole voting and dispositive power over
    3,718,433&#160;shares, consisting of (i)&#160;1,385,000 Earnout
    Shares, (ii)&#160;100&#160;shares of Company Common Stock and
    (iii)&#160;2,333,333 Sponsor&#146;s Warrants. Resolute Holdings
    also owns 4,600,000 Founder&#146;s Warrants. NGP VII and
    Co-Invest own approximately 71% of the outstanding membership
    interests of Resolute Holdings and therefore may be deemed to be
    the indirect beneficial owners of the Common Stock and warrants
    owned by Resolute Holdings.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    (10) All shares are held in a trust over which the reporting
    person is a co-trustee.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    (11) Messrs.&#160;Hersh, Quinn and Covington have waived their
    director compensation that would have been paid through the
    issuance of Company common stock on March&#160;16, 2010.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    (12) Includes 1,373&#160;shares of restricted stock granted
    pursuant to the 2009 performance incentive plan. 343&#160;shares
    vested on the date of grant, March&#160;16, 2010,
    343&#160;shares vest on the first and second anniversaries of
    the date of grant, and 344&#160;shares vest on the third
    anniversary of the date of grant.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    (13) Includes 38,462&#160;shares held by the reporting person in
    custodial accounts.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    (14) Includes (i)&#160;23,000&#160;shares of Company Common
    Stock, (ii)&#160;9,325 Earnout Shares; Excludes 45,999
    Founder&#146;s Warrants.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    (15) Includes (i)&#160;99,666&#160;shares of Company Common
    Stock, (ii)&#160;40,409 Earnout Shares; Excludes 199,332
    Founder&#146;s Warrants.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    (16) Includes 46,692&#160;shares held by the reporting person in
    custodial accounts.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    (17) Includes (i)&#160;23,000&#160;shares of Company Common
    Stock,(ii) 9,325 Earnout Shares; Excludes 46,000 Founder&#146;s
    Warrants.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    (18) Includes 4,120&#160;shares of restricted stock that are
    subject to future vesting.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>


<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="12%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: Arial, Helvetica">ITEM&#160;13.&#160;&#160;&#160;</FONT></B>
</TD>
    <TD>
    <A name='119'></A><B><FONT style="font-family: Arial, Helvetica">CERTAIN
    RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR
    INDEPENDENCE</FONT></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    At the time of the closing of the Resolute Transaction,
    $1.3&#160;million was held in bank accounts of Predecessor
    Resolute that represented payments received by Predecessor
    Resolute with respect to a tax distribution payable to Resolute
    Holdings. Following the Resolute Transaction, Resolute paid such
    amounts to Resolute Holdings.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">The
    Company&#146;s Review, Approval or Ratification of Transactions
    with Related Parties</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Pursuant to the Company&#146;s Code of Business Conduct and
    Ethics, the Board of Directors will review and approve all
    relationships and transactions in which it and its directors,
    director nominees and executive officers and their immediate
    family members, as well as holders of more than 5% of any class
    of its voting securities and their family members, have a direct
    or indirect material interest. In approving or rejecting such
    proposed relationships and transactions, the Board of Directors
    shall consider the relevant facts and circumstances available
    and deemed relevant to this determination. The Company has
    designated James M. Piccone as the compliance officer to
    generally oversee compliance with the Code of Conduct.
</DIV>
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    <BR>
A-92
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->


<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="12%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: Arial, Helvetica">ITEM&#160;14.&#160;&#160;&#160;</FONT></B>
</TD>
    <TD>
    <A name='120'></A><B><FONT style="font-family: Arial, Helvetica">PRINCIPAL
    ACCOUNTING FEE AND SERVICES</FONT></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    On September&#160;14, 2009, the Registration Statement on
    <FONT style="white-space: nowrap">Form&#160;S-4</FONT>
    relating to the Resolute Transaction was declared effective by
    the Securities and Exchange Commission. On December&#160;21,
    2009, KPMG LLP accepted its appointment as the Company&#146;s
    principal accountant. No fees were billed to Resolute by KPMG
    LLP during 2009. Resolute anticipates incurring audit fees from
    KPMG LLP of approximately $300,000, relating to the
    Company&#146;s Annual Report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for the year ended December&#160;31, 2009.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The charter of the Audit Committee includes certain policies and
    procedures regarding the pre-approval of audit and non-audit
    services performed by an outside accountant. The committee is
    required to pre-approve all engagement letters and fees for all
    auditing services (including providing comfort letters in
    connection with securities underwritings) and permissible
    non-audit services, subject to any exception under
    Section&#160;10A of the Exchange Act and the rules promulgated
    thereunder. Pre-approval authority may be delegated to a
    committee member or a subcommittee, and any such member or
    subcommittee shall report any decisions to the full committee at
    its next scheduled meeting.
</DIV>
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<P align="center" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <BR>
A-93
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='121'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">PART&#160;IV</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>


<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="7%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: Arial, Helvetica">ITEM&#160;15.
    </FONT></B>
</TD>
    <TD>
    <A name='122'></A><B><FONT style="font-family: Arial, Helvetica">EXHIBITS,
    FINANCIAL STATEMENT SCHEDULES</FONT></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    (a)(1) and (a)(2) Financial Statements and Financial Statement
    Schedules
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 3%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    See &#147;Item&#160;8 Financial Statements and Supplementary
    Data&#148;.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    (a)(3) Exhibits
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=01 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=01 type=body -->
    <TD width="9%" align="left">&nbsp;</TD>     <!-- colindex=01 type=align1 -->
    <TD width="3%">&nbsp;</TD>  <!-- colindex=02 type=gutter -->
    <TD width="86%">&nbsp;</TD> <!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="3" nowrap align="left" valign="bottom">
    <B>&#160;&#160;Exhibit<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="3" nowrap align="left" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>&#160;&#160;Number</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Description of Exhibits</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    2
</TD>
<TD nowrap align="left" valign="top">
    .1&#134;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Purchase and IPO Reorganization Agreement, dated as of
    August&#160;2, 2009, among Hicks Acquisition Company&#160;I,
    Inc., Resolute Energy Corporation, Resolute Subsidiary
    Corporation., Resolute Holdings, LLC, Resolute Holdings Sub,
    LLC, Resolute Aneth, LLC and HH-HACI, L.P., (incorporated by
    reference to <I>Annex&#160;A </I>to the Registration Statement
    on
    <FONT style="white-space: nowrap">Form&#160;S-4</FONT>
    filed with the SEC on August&#160;6, 2009 (File. No
    <FONT style="white-space: nowrap">33-161076)(&#147;Initial</FONT>
    <FONT style="white-space: nowrap">S-4&#148;).</FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    2
</TD>
<TD nowrap align="left" valign="top">
    .2
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Letter Agreement amending Purchase and IPO Reorganization
    Agreement, dated as of September&#160;9, 2009, among Hicks
    Acquisition Company&#160;I, Inc., Resolute Energy Corporation,
    Resolute Subsidiary Corporation., Resolute Holdings, LLC,
    Resolute Holdings Sub, LLC, Resolute Aneth, LLC and HH-HACI,
    L.P., (incorporated by reference to <I>Annex&#160;A </I>to the
    Initial <FONT style="white-space: nowrap">S-4.</FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    2
</TD>
<TD nowrap align="left" valign="top">
    .3&#134;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Purchase and Sale Agreement between Exxon Mobil Corporation,
    ExxonMobil Oil Corporation, Mobil Exploration and Producing
    North America Inc., Mobil Producing Texas&#160;&#038; New Mexico
    Inc. and Mobil Exploration&#160;&#038; Producing U.S. Inc. and
    Resolute Aneth, LLC&#160;&#151; 75% and Navajo Nation Oil and
    Gas Company&#160;&#151; 25% dated January&#160;1, 2005.
    (incorporated by reference to Exhibit&#160;2.2 to the Initial
    <FONT style="white-space: nowrap">S-4)</FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    2
</TD>
<TD nowrap align="left" valign="top">
    .4&#134;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Asset Sale Agreement Aneth Unit, Rutherford Unit and McElmo
    Creek Unit, San&#160;Juan County, Utah between Chevron U.S.A.
    Inc. (as seller) and Resolute Natural Resources Company and
    Navajo Nation Oil and Gas Company, Inc. (as buyer) dated
    October&#160;22, 2004. (incorporated by reference to
    Exhibit&#160;2.3 to the Initial
    <FONT style="white-space: nowrap">S-4)</FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    2
</TD>
<TD nowrap align="left" valign="top">
    .5&#134;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Stock Purchase Agreement dated June&#160;24, 2008, between
    Primary Natural Resources, Inc. (as seller) and Resolute
    Acquisition Company, LLC (as buyer). (incorporated by reference
    to Exhibit&#160;2.4 to the Initial
    <FONT style="white-space: nowrap">S-4)</FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    3
</TD>
<TD nowrap align="left" valign="top">
    .1
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Amended and Restated Certificate of Incorporation of Resolute
    Energy Corporation, filed September&#160;25, 2009
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    3
</TD>
<TD nowrap align="left" valign="top">
    .2
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Amended and Restated Bylaws of Resolute Energy Corporation
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    4
</TD>
<TD nowrap align="left" valign="top">
    .1
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Warrant Agreement between Resolute Energy Corporation and
    Continental Stock Transfer and Trust&#160;Company dated
    September&#160;25, 2009 (incorporated by reference as
    <I>Annex&#160;D </I>to the Initial
    <FONT style="white-space: nowrap">S-4)</FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    4
</TD>
<TD nowrap align="left" valign="top">
    .2
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Registration Rights Agreement dated September&#160;25, 2009,
    among Resolute Energy Corporation and certain holders.
    (incorporated by reference as Exhibit&#160;4.4 to Amendment
    No.&#160;2 to the Initial
    <FONT style="white-space: nowrap">S-4</FONT> filed on
    September&#160;8, 2009)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .1
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Second Amended and Restated Credit Agreement dated
    March&#160;30, 2010, between Resolute Energy Corporation as
    Borrower and certain of its Subsidiaries as Guarantors, Wells
    Fargo Bank, National Association, as Administrative Agent, Bank
    of Montreal as Syndication Agent, Deutsche Bank Securities Inc.,
    UBS Securities LLC and Union Bank, N.A. as Co-Documentation
    Agents, and The Lenders Party Hereto, Wells Fargo Securities,
    LLC and BMO Capital Markets as Joint Bookrunners and Joint Lead
    Arrangers
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .2#
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    2009 Performance Incentive Plan. (incorporated by reference as
    Exhibit&#160;10.7 to Amendment No.&#160;1 to the Initial
    <FONT style="white-space: nowrap">S-4</FONT> filed on
    August&#160;31, 2009)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .3#
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of Indemnification Agreement between Resolute Energy
    Corporation and each executive officer and independent director
    of the Company. (incorporated by reference as Exhibit&#160;10.8
    to Amendment No.&#160;1 to the initial
    <FONT style="white-space: nowrap">S-4</FONT> filed on
    August&#160;31, 2009)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .4&#134;&#134;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Cooperative Agreement between Resolute Natural Resources Company
    and Navajo Nation Oil and Gas Company dated October&#160;22,
    2004. (incorporated by reference by Exhibit&#160;10.9 to the
    Initial <FONT style="white-space: nowrap">S-4)</FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .5&#134;&#134;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    First Amendment of Cooperative Agreement between Resolute Aneth,
    LLC and Navajo Nation Oil and Gas Company, Inc. dated
    October&#160;21, 2005. (incorporated by reference as
    Exhibit&#160;10.10 to the Initial
    <FONT style="white-space: nowrap">S-4)</FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .6&#134;&#134;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Carbon Dioxide Sale and Purchase Agreement by and between
    ExxonMobil Gas&#160;&#038; Power Marketing Company (a division
    of Exxon Mobil Corporation), as agent for Mobil Producing
    Texas&#160;&#038; New Mexico, Inc. (Seller) and Resolute Aneth,
    LLC (Buyer) dated July&#160;1, 2006, as amended July&#160;21,
    2006. (incorporated by reference as Exhibit&#160;10.11 to
    Amendment No.&#160;1 to the Initial
    <FONT style="white-space: nowrap">S-4</FONT> filed on
    August&#160;31, 2009)
</TD>
</TR>
</TABLE>
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<P align="center" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <BR>
A-94
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->
<!-- XBRL Table Pagebreak -->

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"><!-- TABLE 01 -->
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=01 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=01 type=body -->
    <TD width="9%" align="left">&nbsp;</TD>     <!-- colindex=01 type=align1 -->
    <TD width="3%">&nbsp;</TD>  <!-- colindex=02 type=gutter -->
    <TD width="86%">&nbsp;</TD> <!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="3" nowrap align="left" valign="bottom">
    <B>&#160;&#160;Exhibit<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="3" nowrap align="left" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>&#160;&#160;Number</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Description of Exhibits</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .7&#134;&#134;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Product Sale and Purchase Contract by and between Resolute
    Natural Resources Company (Buyer) and Kinder Morgan
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">
    2</SUB> Company, L.P. (Seller) dated July&#160;1, 2007, as
    amended October&#160;1, 2007 and January&#160;1, 2009.
    (incorporated by reference as Exhibit&#160;10.12 to Amendment
    No.&#160;1 to the Initial
    <FONT style="white-space: nowrap">S-4</FONT> filed on
    August&#160;31, 2009)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .8
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Gas Sales and Purchase Contract&#160;&#151;
    Conventional&#160;&#038; Residue Gas dated April&#160;12, 1995,
    between Rim Offshore, Inc., as producer, and Western Gas
    Resources, Inc., as processor (Contract #6690), as amended
    July&#160;27, 2006 and March&#160;6, 2009. (incorporated by
    reference as Exhibit&#160;10.13 to Amendment No.&#160;1 to the
    Initial <FONT style="white-space: nowrap">S-4</FONT>
    filed on August&#160;31, 2009 )
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .9
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Consent Decree, entered into June 2005, relating to alleged
    violations of the federal Clean Air Act. (incorporated by
    reference as Exhibit&#160;10.16 to the Initial
    <FONT style="white-space: nowrap">S-4)</FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .10
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Consent Decree, entered into August 2004, relating to alleged
    violations of the federal Clean Water Act. (incorporated by
    reference as Exhibit&#160;10.17 to the Initial
    <FONT style="white-space: nowrap">S-4)</FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .11
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Crude Oil Purchase Agreement dated August&#160;27, 2009 between
    Western Refining Southwest, Inc., as purchaser, and Resolute
    Natural Resources Company, as seller. (incorporated by reference
    as Exhibit&#160;10.18 to Amendment No.&#160;1 to the Initial
    <FONT style="white-space: nowrap">S-4</FONT> filed on
    August&#160;31, 2009)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .12
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of Retention Award Agreement between Resolute Energy
    Corporation and certain award recipients. (incorporated by
    reference as Exhibit&#160;10.19 to Amendment No.&#160;2 to the
    Initial <FONT style="white-space: nowrap">S-4</FONT>
    filed on September&#160;8, 2009)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .13
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of Restricted Stock Award Agreement for Non-employee
    Directors
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .14#
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of Confidentiality and Non Compete Agreement among Resolute
    Holdings, LLC and certain employees dated as of January&#160;23,
    2004.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    21
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    List of Subsidiaries of Resolute Energy Corporation.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    23
</TD>
<TD nowrap align="left" valign="top">
    .1
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Consent of Deloitte&#160;&#038; Touche LLP.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    23
</TD>
<TD nowrap align="left" valign="top">
    .2
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Consent of KPMG LLP.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    23
</TD>
<TD nowrap align="left" valign="top">
    .3
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Consent of Netherland, Sewell&#160;&#038; Associates, Inc.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    23
</TD>
<TD nowrap align="left" valign="top">
    .4
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Consent of Grant Thornton
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    31
</TD>
<TD nowrap align="left" valign="top">
    .1
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Certification of the Chief Executive Officer pursuant to
    Section&#160;302 of the Sarbanes-Oxley Act of 2002
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    31
</TD>
<TD nowrap align="left" valign="top">
    .2
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Certification of the Chief Financial Officer pursuant to
    Section&#160;302 of the Sarbanes Oxley Act of 2002
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    32
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Certification of the Chief Executive Officer and Chief Financial
    Officer pursuant to Section&#160;906 of the Sarbanes-Oxley Act
    of 2002
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    99
</TD>
<TD nowrap align="left" valign="top">
    .1
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Report of Netherland, Sewell&#160;&#038; Associates, Inc.
    regarding the registrants reserves as of December&#160;31, 2009
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    99
</TD>
<TD nowrap align="left" valign="top">
    .2
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Report of Grant Thornton dated May&#160;9, 2008
</TD>
</TR>
<TR valign="bottom" style="line-height: 12pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#134;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    The Purchase and IPO Reorganization Agreement filed as
    Exhibit&#160;2.1, the Purchase and Sale Agreement filed as
    Exhibit&#160;2.3, the Asset Sale Agreement filed as
    Exhibit&#160;2.4, the Purchase and Sale Agreement filed as
    Exhibit&#160;2.5 and the Cooperative Agreement file as
    Exhibit&#160;10.4 omit certain of the schedule and exhibits to
    each of the Purchase and IPO Reorganization Agreement, Purchase
    and Sale Agreements, the Asset Sale Agreement and the
    Cooperative Agreement in accordance with Item&#160;601(b)(2) of
    <FONT style="white-space: nowrap">Regulation&#160;S-K.</FONT>
    A list briefly identifying the contents of all omitted schedules
    and exhibits is included with each of the Purchase and Sale
    Agreement, the Asset Sale Agreement and the Cooperative
    Agreement filed as Exhibit&#160;2.1, 2.3, 2.4, 2.5 and 10.4,
    respectively. Resolute agrees to furnish supplementally a copy
    of any omitted schedule or exhibit to the Securities and
    Exchange Commission upon request.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#134;&#134;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Portions of this exhibit have been omitted pursuant to a request
    for confidential treatment.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    #
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Management Contract, Compensation Plan or Agreement.
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
A-95
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">SIGNATURES</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Pursuant to the requirements of Section&#160;13 or 15(d) of the
    Securities Exchange Act of 1934, the registrant has duly caused
    this report to be signed on its behalf by the undersigned,
    thereunto duly authorized.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="38%">&nbsp;</TD> <!-- colindex=01 type=maindata -->
    <TD width="26%">&nbsp;</TD> <!-- colindex=02 type=gutter -->
    <TD width="36%">&nbsp;</TD> <!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<!-- TableOutputBody -->
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <B>RESOLUTE ENERGY CORPORATION</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    Dated: March 30, 2010
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>    By:&#160;</TD>
    <TD align="left">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;<DIV style="display:inline; text-align:left;"><B>/s/&#160;&#160;Nicholas
    J. Sutton</B></DIV>
</TD>
</TR>

</TABLE>

<DIV style="font-size: 2pt; margin-left: 3%; width: 50%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Nicholas J. Sutton, Chief Executive Officer and Director
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Pursuant to the requirements of the Securities Exchange Act of
    1934, this report has been signed below by the following persons
    on behalf of the registrant and in the capacities and on the
    dates indicated.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="3%">&nbsp;</TD>  <!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=02 type=gutter -->
    <TD width="27%">&nbsp;</TD> <!-- colindex=02 type=maindata -->
    <TD width="3%">&nbsp;</TD>  <!-- colindex=03 type=gutter -->
    <TD width="36%">&nbsp;</TD> <!-- colindex=03 type=maindata -->
    <TD width="3%">&nbsp;</TD>  <!-- colindex=04 type=gutter -->
    <TD width="27%">&nbsp;</TD> <!-- colindex=04 type=maindata -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD colspan="3" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Signature</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Title</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Date</B>
</TD>
</TR>
<TR style="line-height: 12pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="line-height: 12pt">
<TD colspan="3">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" valign="top">
    <DIV style="display:inline; text-align:left;"><B>/s/&#160;&#160;Nicholas
    J. Sutton</B></DIV><BR>
    <DIV style="font-size: 1pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>Nicholas
    J. Sutton
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Chief Executive Officer and Director (Principal Executive
    Officer)
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    March 30, 2010
</TD>
</TR>
<TR valign="bottom" style="line-height: 12pt">
<TD colspan="3">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" valign="top">
    <DIV style="display:inline; text-align:left;"><B>/s/&#160;&#160;James
    M. Piccone</B></DIV><BR>
    <DIV style="font-size: 1pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>James
    M. Piccone
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    President, General Counsel,<BR>
    Secretary and Director
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    March 30, 2010
</TD>
</TR>
<TR valign="bottom" style="line-height: 12pt">
<TD colspan="3">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" valign="top">
    <DIV style="display:inline; text-align:left;"><B>/s/&#160;&#160;Theodore
    Gazulis</B></DIV><BR>
    <DIV style="font-size: 1pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>Theodore
    Gazulis
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Senior Vice President and Chief Financial Officer (Principal
    Financial and<BR>
    Accounting Officer)
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    March 30, 2010
</TD>
</TR>
<TR valign="bottom" style="line-height: 12pt">
<TD colspan="3">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" valign="top">
    <DIV style="display:inline; text-align:left;"><B>/s/&#160;&#160;Richard
    L. Covington</B></DIV><BR>
    <DIV style="font-size: 1pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>Richard
    L. Covington
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Director
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    March 30, 2010
</TD>
</TR>
<TR valign="bottom" style="line-height: 12pt">
<TD colspan="3">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" valign="top">
    <DIV style="display:inline; text-align:left;"><B>/s/&#160;&#160;William
    H. Cunningham</B></DIV><BR>
    <DIV style="font-size: 1pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>William
    H. Cunningham
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Director
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    March 30, 2010
</TD>
</TR>
<TR valign="bottom" style="line-height: 12pt">
<TD colspan="3">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" valign="top">
    <DIV style="display:inline; text-align:left;"><B>/s/&#160;&#160;James
    E. Duffy</B></DIV><BR>
    <DIV style="font-size: 1pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>James
    E. Duffy
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Director
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    March 30, 2010
</TD>
</TR>
<TR valign="bottom" style="line-height: 12pt">
<TD colspan="3">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" valign="top">
    <DIV style="display:inline; text-align:left;"><B>/s/&#160;&#160;Kenneth
    A. Hersh</B></DIV><BR>
    <DIV style="font-size: 1pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>Kenneth
    A. Hersh
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Director
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    March 30, 2010
</TD>
</TR>
<TR valign="bottom" style="line-height: 12pt">
<TD colspan="3">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" valign="top">
    <DIV style="display:inline; text-align:left;"><B>/s/&#160;&#160;Thomas
    O. Hicks, Jr.</B></DIV><BR>
    <DIV style="font-size: 1pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>Thomas
    O. Hicks, Jr.
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Director
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    March 30, 2010
</TD>
</TR>
<TR valign="bottom" style="line-height: 12pt">
<TD colspan="3">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" valign="top">
    <DIV style="display:inline; text-align:left;"><B>/s/&#160;&#160;William
    J. Quinn</B></DIV><BR>
    <DIV style="font-size: 1pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>William
    J. Quinn
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Director
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    March 30, 2010
</TD>
</TR>
<TR valign="bottom" style="line-height: 12pt">
<TD colspan="3">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" valign="top">
    <DIV style="display:inline; text-align:left;"><B>/s/&#160;&#160;Robert
    M. Swartz</B></DIV><BR>
    <DIV style="font-size: 1pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>Robert
    M. Swartz
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Director
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    March 30, 2010
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <BR>
A-96
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">FINANCIAL
    STATEMENTS<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">INDEX TO
    FINANCIAL STATEMENTS</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="98%">&nbsp;</TD> <!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=02 type=gutter -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=02 type=quadleft -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=02 type=maindata -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=02 type=quadright -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<!-- TableOutputBody -->
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <B>RESOLUTE ENERGY CORPORATION</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 9pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <A HREF='#300'>Report of Independent Registered Public
    Accounting Firm</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">A-98</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <A HREF='#301'>Resolute Energy Corporation Consolidated Balance
    Sheets <BR>
    as of December&#160;31, 2009 and 2008</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">A-99</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <A HREF='#302'>Resolute Energy Corporation Consolidated
    Statements of Operations, <BR>
    for the years ended December&#160;31, 2009, 2008 and 2007</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">A-100</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <A HREF='#303'>Resolute Energy Corporation Consolidated
    Statements of Stockholders&#146; Equity <BR>
    for the years ended December&#160;31, 2009, 2008 and 2007</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">A-101</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <A HREF='#304'>Resolute Energy Corporation Statements of Cash
    Flows, <BR>
    for the years ended December&#160;31, 2009, 2008 and 2007</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">A-102</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <A HREF='#305'>Notes to Resolute Energy Corporation Consolidated
    Financial Statements</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">A-103</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 9pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <B>PREDECESSOR RESOLUTE</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 9pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <A HREF='#306'>Report of Independent Registered Public
    Accounting Firm</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">A-125</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <A HREF='#307'>Predecessor Resolute Combined Balance Sheet as of
    December&#160;31, 2008</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">A-126</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <A HREF='#308'>Predecessor Resolute Combined Statements of
    Operations, <BR>
    for the 267&#160;day period ended September&#160;24, 2009 and
    years ended December&#160;31, 2008 and 2007</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">A-127</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <A HREF='#309'>Predecessor Resolute Combined Statements of
    Shareholder&#146;s/Member&#146;s Equity <BR>
    for the 267&#160;day period ended September&#160;24, 2009 and
    years ended December&#160;31, 2008 and 2007</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">A-128</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <A HREF='#310'>Predecessor Resolute Combined Statements of Cash
    Flows, <BR>
    for the 267&#160;day period ended September&#160;24, 2009 and
    years ended December&#160;31, 2008 and 2007</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">A-129</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <A HREF='#311'>Notes to Predecessor Resolute Combined Financial
    Statements</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">A-130</TD>
<TD>&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

</DIV>

<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <BR>
A-97
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='300'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Report of
    Independent Registered Public Accounting Firm</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    To the Board of Directors and Stockholders of<BR>
    Resolute Energy Corporation
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    We have audited the accompanying consolidated balance sheets of
    Resolute Energy Corporation and subsidiaries (successor by
    merger to Hicks Acquisition Company&#160;I, Inc.) (the Company)
    as of December&#160;31, 2009 and 2008, and the related
    consolidated statements of operations, stockholders&#146;
    equity, and cash flows for each of the years in the
    <FONT style="white-space: nowrap">two-year</FONT>
    period then ended, and for the period from February&#160;26,
    2007 (inception) to December&#160;31, 2007. These consolidated
    financial statements are the responsibility of the
    Company&#146;s management. Our responsibility is to express an
    opinion on these consolidated financials statements based on our
    audits.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    We conducted our audits in accordance with the standards of the
    Public Company Accounting Oversight Board (United States). Those
    standards require that we plan and perform the audit to obtain
    reasonable assurance about whether the financial statements are
    free of material misstatement. An audit includes examining, on a
    test basis, evidence supporting the amounts and disclosures in
    the financial statements. An audit also includes assessing the
    accounting principles used and significant estimates made by
    management, as well as evaluating the overall financial
    statement presentation. We believe that our audits provide a
    reasonable basis for our opinion.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    In our opinion, the consolidated financial statements referred
    to above present fairly, in all material respects, the financial
    position of Resolute Energy Corporation and subsidiaries as of
    December&#160;31, 2009 and 2008, and the results of their
    operations and their cash flows for each of the years in the
    two-year period then ended, and for the period from
    February&#160;26, 2007 (inception) to December&#160;31, 2007 in
    conformity with U.S.&#160;generally accepted accounting
    principles.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <DIV style="display:inline; text-align:left;">/s/&#160;&#160;<FONT style="font-variant: SMALL-CAPS">KPMG
    LLP</FONT></DIV>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Denver, Colorado
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    March&#160;30, 2010
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <BR>
A-98
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">RESOLUTE ENERGY
    CORPORATION<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">


    <B><FONT style="font-family: Arial, Helvetica"><!-- XBRL,bs --><A name='301'>Consolidated
    Balance Sheets</A></FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
<B>(in thousands, except share amounts)</B>
</DIV>
<!-- XBRL,body -->

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 8pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="77%">&nbsp;</TD> <!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=02 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>    <!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=02 type=hang1 -->
    <TD width="2%">&nbsp;</TD>  <!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=03 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>    <!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>December&#160;31,</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="center" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <B>Assets</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Current assets:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Cash and cash equivalents
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    455
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    819
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Cash and cash equivalents held in trust
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    250,024
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Restricted cash
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    149
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Accounts receivable
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    27,047
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Marketable securities held in trust
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    290,117
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Deferred income taxes
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,050
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Derivative instruments
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,958
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Prepaid expenses and other current assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,781
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    68
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 34pt">
    Total current assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    43,440
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    541,028
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Property and equipment, at cost:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Oil and gas properties, full cost method of accounting
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 25pt">
    Unproved
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,306
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 25pt">
    Proved
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    634,383
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Other property and equipment
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,413
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Accumulated depletion, depreciation and amortization
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (11,323
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Net property and equipment
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    632,779
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Other assets:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Restricted cash
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12,965
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Derivative instruments
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,600
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Deferred income taxes
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    269
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Other assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    656
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,500
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Total assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    693,440
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    544,797
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 9pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="center" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <B>Liabilities and Stockholders&#146; Equity</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Current liabilities:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Accounts payable and accrued expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    42,508
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,903
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Derivative instruments
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20,360
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Deferred underwriters&#146; commission
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17,388
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 34pt">
    Total current liabilities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    62,868
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19,291
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Long term liabilities:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Long term debt
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    109,575
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Asset retirement obligations
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,217
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Derivative instruments
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    55,260
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Deferred income taxes
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    62,467
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Other noncurrent liabilities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    516
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Total liabilities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    299,903
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19,291
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 12pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Common stock, subject to possible redemption;
    16,559,999&#160;shares at $9.71 per share
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    160,798
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Deferred interest attributable to common stock subject to
    possible redemption
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,509
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Commitments and contingencies
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Stockholders&#146; equity:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Preferred stock, $0.0001&#160;par value; 1,000,000&#160;shares
    authorized; none issued or outstanding
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Common stock, $0.0001&#160;par value; 225,000,000&#160;shares
    authorized; issued and outstanding 53,154,883 and
    69,000,000&#160;shares (less 16,559,999&#160;shares subject to
    possible redemption) at December&#160;31, 2009 and
    December&#160;31, 2008, respectively
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Additional paid-in capital
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    432,650
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    357,999
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Retained earnings accumulated (deficit)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (39,118
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,195
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 34pt">
    Total stockholders&#146; equity
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    393,537
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    362,199
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Total liabilities and stockholders&#146; equity
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    693,440
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    544,797
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    See notes to consolidated financial statements
</DIV>
<!-- /XBRL,bs -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <BR>
A-99
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">RESOLUTE ENERGY
    CORPORATION<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">


    <B><FONT style="font-family: Arial, Helvetica"><!-- XBRL,op --><A name='302'>Consolidated
    Statements of Operations</A></FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
<B>(in thousands, except per share data)</B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL,body -->
<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="48%">&nbsp;</TD> <!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=02 type=lead -->
    <TD width="13%" align="right">&nbsp;</TD>   <!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>  <!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=03 type=lead -->
    <TD width="13%" align="right">&nbsp;</TD>   <!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>  <!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=04 type=lead -->
    <TD width="13%" align="right">&nbsp;</TD>   <!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>For the Period from<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom">
    <B>Year Ended<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>February&#160;26, 2007<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>December&#160;31,</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>to December&#160;31,</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Revenue:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Oil
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    37,528
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Gas
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,149
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Other
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    739
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 27pt">
    Total revenue
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    42,416
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Operating expenses:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Lease operating
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16,185
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Production and ad valorem taxes
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,807
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Depletion, depreciation, amortization, <BR>
    and asset retirement obligation accretion
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,541
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    General and administrative
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20,328
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,560
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,036
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Write-off of deferred acquisition costs
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,500
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 27pt">
    Total operating expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    57,361
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,560
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,036
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Loss from operations
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (14,945
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,560
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,036
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Other income (expense):
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Interest income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    776
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,601
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,154
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Interest expense
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,538
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Realized and unrealized losses on derivative instruments
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (49,514
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Other income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    91
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 27pt">
    Total other income (expense)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (50,185
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,601
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,154
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Income (loss) before income taxes
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (65,130
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,041
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,118
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Income tax benefit (expense)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19,887
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,054
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,401
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Net income (loss)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (45,243
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3,987
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,717
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 12pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Basic and diluted earnings (loss) per common share:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 22pt">
    Common stock, subject to redemption
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (0.16
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.09
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.06
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 22pt">
    Common stock
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (0.93
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.06
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.09
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Weighted average shares outstanding:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 22pt">
    Common stock, subject to redemption
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12,114
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16,560
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16,560
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 22pt">
    Common stock
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    46,394
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    45,105
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18,587
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    See notes to consolidated financial statements
</DIV>
<!-- /XBRL,op -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <BR>
A-100
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">RESOLUTE ENERGY
    CORPORATION<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">


    <B><FONT style="font-family: Arial, Helvetica"><!-- XBRL,se --><A name='303'>Consolidated
    Statements of Stockholders&#146; Equity</A></FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
<B>(in thousands)</B>
</DIV>
<!-- XBRL,body -->

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="52%">&nbsp;</TD> <!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=02 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>    <!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=02 type=hang1 -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=03 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>    <!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=03 type=hang1 -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=04 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>    <!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=04 type=hang1 -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=05 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>    <!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=05 type=hang1 -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=06 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>    <!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=06 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Additional<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Accumulated<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Common Stock</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Paid-in<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>(Deficit)/ Retained<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Stockholders&#146;<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Shares</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Amount</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Capital</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Earnings</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Equity</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Initial capital from founding stockholder for cash
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,500
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    24
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    25
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Stock dividend
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,300
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Sale of 55,200,000&#160;units, net of underwriter&#146;s <BR>
    discount and offering costs
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    55,200
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    511,771
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    511,777
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Proceeds subject to possible redemption <BR>
    of 16,559,999&#160;shares
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (160,796
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (160,798
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Proceeds from sale of warrants to Sponsor <BR>
    (defined in Notes)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Net income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,717
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,717
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Deferred interest attributable to common stock, <BR>
    subject to redemption
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,020
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,020
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Balance as of December&#160;31, 2007
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    69,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    357,999
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,697
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    359,701
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Net income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,987
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,987
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Deferred interest attributable to common stock, <BR>
    subject to redemption
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,489
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,489
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Balance as of December&#160;31, 2008
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    69,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    357,999
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,195
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    362,199
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Reclassification of common stock subject to <BR>
    possible redemption
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    160,796
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,510
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    163,308
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Common stock redeemed
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (11,592
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (112,557
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (580
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (113,138
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Purchase of common stock
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (7,503
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (73,345
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (73,346
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Cancellation of common stock previously issued <BR>
    to founding stockholder
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (7,335
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Redemption of 27,600,000 warrants
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (15,180
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (15,180
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Forgiveness of deferred underwriters&#146; commission
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,738
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,738
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Issuance of common stock for acquisition
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,200
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    88,779
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    88,780
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Issuance of earnout shares for acquisition
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,385
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,024
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,024
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Issuance of warrants for acquisition
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,202
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,202
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Equity based compensation
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,194
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,194
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Net loss
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (45,243
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (45,243
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Balance as of December&#160;31, 2009
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    53,155
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    5
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    432,650
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (39,118
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;393,537
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    See notes to consolidated financial statements
</DIV>
<!-- /XBRL,se -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <BR>
A-101
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">RESOLUTE ENERGY
    CORPORATION<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">


    <B><FONT style="font-family: Arial, Helvetica"><!-- XBRL,cf --><A name='304'>Consolidated
    Statements of Cash Flows<BR>
        </A></FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<B><FONT style="font-family: Arial, Helvetica">(in
    thousands)</FONT></B>
</DIV>
<!-- XBRL,body -->

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 7pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="63%">&nbsp;</TD> <!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=02 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>    <!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=02 type=hang1 -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=03 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>    <!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=03 type=hang1 -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=04 type=lead -->
    <TD width="13%" align="right">&nbsp;</TD>   <!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>For the Period from<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom">
    <B>Year Ended<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>February&#160;26, 2007<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>December&#160;31,</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>to December&#160;31,</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    Operating activities:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 14pt">
    Net income (loss)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;(45,243
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;3,987
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;2,717
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 14pt">
    Adjustments to reconcile net income (loss) to net cash provided
    by (used in) operating activities:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 21pt">
    Depletion, depreciation, amortization and asset retirement
    obligation accretion
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,541
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 21pt">
    Equity-based compensation
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,084
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 21pt">
    Write-off of deferred acquisition costs
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,500
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 21pt">
    Unrealized loss on derivative instruments
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    46,321
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 21pt">
    Deferred income taxes
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (19,813
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (115
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (154
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 21pt">
    Change in operating assets and liabilities, net of amount
    acquired:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 28pt">
    Accounts receivable
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (3,786
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 28pt">
    Other current assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (883
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    266
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (334
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 28pt">
    Accounts payable and accrued expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (4,848
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,054
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,818
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 28pt">
    Other current liabilities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (18
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 28pt">
    Accounts payable&#160;&#151; related party
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (19
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (53
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    117
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 35pt">
    Net cash provided by (used in) operating activities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (12,164
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,031
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,164
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    Investing activities:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 14pt">
    Acquisition of subsidiary, net of cash acquired
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (323,822
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 14pt">
    Decrease (increase) in cash and cash equivalents in trust
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    250,024
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (250,024
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 14pt">
    Purchase of marketable securities held in trust
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (249,654
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (541,302
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 14pt">
    Sales / maturities of marketable securities held in trust
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    539,771
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    251,184
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 14pt">
    Oil and gas exploration and development expenditures
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (6,640
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 14pt">
    Proceeds from sale of oil and gas properties
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    59
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 14pt">
    Purchase of other property and equipment
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (224
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 14pt">
    Settlement of notes receivable&#160;&#151; related parties
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    52
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 14pt">
    Payment of proposed acquisition costs
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (3,424
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 14pt">
    Other
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    421
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 35pt">
    Net cash provided by (used in) investing activities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    209,987
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,264
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (541,302
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    Financing activities:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 14pt">
    Payments due to Holdings
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,248
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 14pt">
    Proceeds from note payable&#160;&#151; related party
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    225
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 14pt">
    Payment on note payable&#160;&#151; related party
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (225
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 14pt">
    Proceeds from sale of units to sponsor
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    25
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 14pt">
    Proceeds from sale of warrants to initial founder
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 14pt">
    Proceeds from initial public offering net of underwriters
    discount and offering costs
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    529,165
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 14pt">
    Redemption of common stock
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (113,139
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 14pt">
    Purchase of common stock
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (73,346
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 14pt">
    Redemption of warrants
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (15,180
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 14pt">
    Payment of deferred underwriters&#146; commission
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (5,650
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 14pt">
    Proceeds from bank borrowings
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    53,376
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 14pt">
    Payments of bank borrowings
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (43,000
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 21pt">
    Net cash provided by (used in) financing activities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (198,187
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    536,190
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    Net increase (decrease) in cash and cash equivalents
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (364
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    767
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    52
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    Cash and cash equivalents at beginning of period
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    819
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    52
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    Cash and cash equivalents at end of period
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    455
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    819
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    52
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    Supplemental disclosures of cash flow information:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 14pt">
    Cash paid during the period for:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 21pt">
    Interest
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3,584
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 21pt">
    Income taxes
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,004
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,750
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    Supplemental schedule of non-cash investing and financing
    activities:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 14pt">
    Accrual of deferred underwriter&#146;s commission
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    17,388
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 14pt">
    Deferred acquisition costs included in accounts payable and
    accrued expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    76
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 14pt">
    Capital expenditures financed through current liabilities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,755
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 14pt">
    Issuance of common stock for acquisition
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    88,780
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 14pt">
    Issuance of warrants for acquisition
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3,202
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 14pt">
    Issuance of earnout shares for acquisition
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    10,024
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 14pt">
    Forgiveness of deferred underwriters&#146; commission
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    11,738
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    See notes to consolidated financial statements
</DIV>
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<P align="center" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <BR>
A-102
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->
<!-- XBRL,ns -->
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">RESOLUTE ENERGY
    CORPORATION</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <A name='305'><B>Notes To Consolidated Financial Statements</B></A>
</DIV>

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<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><U><FONT style="font-family: Arial, Helvetica">Note&#160;1&#160;&#151;
    Organization and Nature of Business</FONT></U></B>
</DIV>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Resolute Energy Corporation (&#147;Resolute&#148; or the
    &#147;Company&#148;), a Delaware corporation incorporated on
    July&#160;28, 2009, was formed to consummate a business
    combination with Hicks Acquisition Company&#160;I, Inc.
    (&#147;HACI&#148;), a Delaware corporation incorporated on
    February&#160;26, 2007. Resolute is an independent oil and gas
    company engaged in the acquisition, exploration, development,
    and production of oil, gas and natural gas liquids
    (&#147;NGL&#148;). The Company conducts all of its activities in
    the United States of America, principally in the Paradox Basin
    in southeastern Utah and the Powder River Basin in Wyoming.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    HACI was a blank check company that was formed to acquire
    through a merger, capital stock exchange, asset acquisition,
    stock purchase, reorganization or similar business combination,
    one or more businesses or assets. HACI&#146;s initial public
    offering (the &#147;Offering&#148;) was consummated on
    October&#160;3, 2007, and HACI received proceeds of
    approximately $529.1&#160;million. Upon the consummation of the
    Resolute Transaction, described below, $11.7&#160;million of
    deferred underwriters&#146; commission were forgiven and were
    recognized as additional paid in capital. HACI sold to the
    public 55,200,000&#160;units (one share and one warrant) at a
    price of $10.00 per unit, including 7,200,000&#160;units issued
    pursuant to the exercise of the underwriter&#146;s
    over-allotment option. Simultaneous with the consummation of the
    Offering, HACI consummated the private sale of 7,000,000
    warrants (the &#147;Sponsor Warrants&#148;) to HH-HACI, L.P., a
    Delaware limited partnership (the &#147;Sponsor&#148;), at a
    price of $1.00 per Sponsor Warrant, generating gross proceeds,
    before expenses, of $7.0&#160;million (the &#147;Private
    Placement&#148;). Net proceeds received from the consummation of
    both the Offering and Private Placement of Sponsor Warrants
    totaled approximately $536.1&#160;million, net of
    underwriter&#146;s commissions and offering costs. The net
    proceeds were placed in a trust account at JPMorgan Chase Bank,
    N.A. with Continental Stock Transfer&#160;&#038;
    Trust&#160;Company acting as trustee. HACI had neither engaged
    in any operations nor generated any operating revenue prior to
    the business combination with Resolute.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    On September&#160;25, 2009 (the &#147;Acquisition Date&#148;),
    HACI consummated a business combination under the terms of a
    Purchase and IPO Reorganization Agreement (&#147;Acquisition
    Agreement&#148;) with Resolute and Resolute Holdings Sub, LLC
    (&#147;Sub&#148;), whereby, through a series of transactions,
    HACI&#146;s stockholders collectively acquired a majority of the
    outstanding shares of Resolute common stock (the &#147;Resolute
    Transaction&#148;). Immediately prior to the consummation of the
    Resolute Transaction, Resolute owned, directly or indirectly,
    100% of the equity interests of Resolute Natural Resources
    Company, LLC (&#147;Resources&#148;), WYNR, LLC
    (&#147;WYNR&#148;), BWNR, LLC (&#147;BWNR&#148;), RNRC Holdings,
    Inc. (&#147;RNRC&#148;), and Resolute Wyoming, Inc.
    (&#147;RWI&#148;) (formerly known as Primary Natural Resources,
    Inc. (&#147;PNR&#148;)), and owned a 99.996% equity interest in
    Resolute Aneth, LLC (&#147;Aneth&#148;), (collectively
    &#147;Predecessor Resolute&#148;). The entities comprising
    Predecessor Resolute prior to the Resolute Transaction were
    wholly owned by Sub (except for Aneth, which was owned 99.996%),
    which in turn is a wholly owned subsidiary of Resolute Holdings,
    LLC (&#147;Holdings&#148;).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The Resolute Transaction was accounted for using the acquisition
    method, with HACI as the accounting acquirer, and resulted in a
    new basis of accounting reflecting the fair values of the
    Predecessor Resolute assets and liabilities at the Acquisition
    Date. Accordingly, the accompanying consolidated financial
    statements are presented on Resolute&#146;s new basis of
    accounting (see Note&#160;3 for details). HACI is the surviving
    entity and periods prior to September&#160;25, 2009 reflected in
    this report represent activity related to HACI&#146;s formation,
    its initial public offering and identifying and consummating a
    business combination. The operations of Predecessor Resolute
    have been incorporated beginning September&#160;25, 2009.
</DIV>
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<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><U><FONT style="font-family: Arial, Helvetica">Note&#160;2&#160;&#151;
    Summary of Significant Accounting Policies</FONT></U></B>
</DIV>
<!-- XBRL,body -->

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><U><FONT style="font-family: Arial, Helvetica">Basis of
    Presentation</FONT></U></I></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 2%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The consolidated financial statements include the historical
    accounts of HACI and, subsequent to the Acquisition Date,
    include Resolute and its subsidiaries, and have been prepared in
    accordance with accounting
</DIV>
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    <BR>
A-103
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL --><DIV style="margin-top: 0pt; font-size: 1pt">&nbsp;</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    principles generally accepted in the United States
    (&#147;GAAP&#148;). All significant intercompany transactions
    have been eliminated upon consolidation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    In connection with the preparation of the consolidated financial
    statements, Resolute evaluated subsequent events after the
    balance sheet date. Certain prior period amounts have been
    reclassified to conform to the current period presentation.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><U><FONT style="font-family: Arial, Helvetica">Assumptions,
    Judgments and Estimates</FONT></U></I></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The preparation of the consolidated financial statements in
    conformity with GAAP requires management to make various
    assumptions, judgments and estimates to determine the reported
    amounts of assets, liabilities, revenue and expenses, and in the
    disclosures of commitments and contingencies. Changes in these
    assumptions, judgments and estimates will occur as a result of
    the passage of time and the occurrence of future events.
    Accordingly, actual results could differ from amounts previously
    established.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Significant estimates with regard to the consolidated financial
    statements include the estimate of proved oil and gas reserve
    volumes and the related present value of estimated future net
    cash flows and the ceiling test applied to capitalized oil and
    gas properties, the estimated cost and timing related to asset
    retirement obligations, the estimated fair value of derivative
    assets and liabilities, the estimated expense for share based
    compensation and depletion, depreciation, and amortization.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><U><FONT style="font-family: Arial, Helvetica">Fair Value
    of Financial Instruments</FONT></U></I></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The carrying amount of Resolute&#146;s financial instruments,
    namely cash and cash equivalents, accounts receivable and
    accounts payable, approximate their fair value because of the
    short-term nature of these instruments. The long-term debt (see
    Note&#160;7)&#160;has a recorded value that approximates its
    fair market value. The fair value of derivative instruments (see
    Note&#160;11)&#160;is estimated based on market conditions in
    effect at the end of each reporting period.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><U><FONT style="font-family: Arial, Helvetica">Industry
    Segment and Geographic Information</FONT></U></I></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Resolute conducts operations in one industry segment, the crude
    oil, gas and NGL exploration and production industry. All of
    Resolute&#146;s operations and assets are located in the United
    States, and all of its revenue is attributable to domestic
    customers. Resolute considers gathering, processing and
    marketing functions as ancillary to its oil and gas producing
    activities, and therefore are not reported as a separate segment.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><U><FONT style="font-family: Arial, Helvetica">Cash, Cash
    Equivalents, and Marketable Securities</FONT></U></I></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    For purposes of reporting cash flows, Resolute considers all
    highly liquid investments with original maturities of three
    months or less at date of purchase to be cash equivalents.
    Resolute periodically maintains cash and cash equivalents in
    bank deposit accounts and money market funds which may be in
    excess of federally insured amounts. Resolute has not
    experienced any losses in such accounts and believes it is not
    exposed to any significant credit risk on such accounts.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Cash and cash equivalents held in trust are with JPMorgan Chase
    Bank, N.A., and Continental Stock Transfer&#160;&#038;
    Trust&#160;Company serves as the trustee. The Company considers
    all highly liquid investments placed in trust with original
    maturities of three months or less to be cash equivalents. The
    Company had $250.0&#160;million held in trust at
    December&#160;31, 2008.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Marketable securities held in trust were with JPMorgan Chase
    Bank, N.A., and Continental Stock Transfer&#160;&#038;
    Trust&#160;Company serves as the trustee. The marketable
    securities held in trust were invested in U.S.&#160;Treasury
    Bills with a maturity of 180&#160;days or less. The Company had
    $290.1&#160;million held in trust at December&#160;31, 2008.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Amounts held in trust were restricted as to use until
    consummation of an initial qualifying business combination.
</DIV>
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<P align="center" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <BR>
A-104
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL --><DIV style="margin-top: 0pt; font-size: 1pt">&nbsp;</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><U><FONT style="font-family: Arial, Helvetica">Accounts
    Receivable</FONT></U></I></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The Company&#146;s accounts receivable at December&#160;31,
    consists of the following (in thousands):
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="83%">&nbsp;</TD> <!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>  <!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=02 type=lead -->
    <TD width="13%" align="right">&nbsp;</TD>   <!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Accounts Receivable:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Trade receivables
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;25,500
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Derivative receivables
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    236
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Other receivables
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,311
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Total accounts receivable
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    27,047
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><U><FONT style="font-family: Arial, Helvetica">Concentration
    of Credit Risk</FONT></U></I></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Financial instruments that potentially subject Resolute to
    concentrations of credit risk consist primarily of trade,
    production and derivative settlement receivables. Resolute
    derived approximately 87% and 9% of its total 2009 revenue from
    Western and WGR Asset Holding Company, LLC, respectively. If
    Resolute was compelled to sell its crude oil to an alternative
    market, costs associated with the transportation of its
    production would increase, and such increase could materially
    and negatively affect its operations. The concentration of
    credit risk in the oil and gas industry affects the overall
    exposure to credit risk because customers may be similarly
    affected by changes in economic or other conditions. The
    creditworthiness of customers and other counterparties is
    subject to continuing review, including the use of master
    netting agreements, where appropriate. Commodity derivative
    contracts expose Resolute to the credit risk of non-performance
    by the counterparty to the contracts. This exposure is
    diversified among major investment grade financial institutions,
    all of which are financial institutions participating in
    Resolute&#146;s Credit Facility (see Note&#160;7).
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><U><FONT style="font-family: Arial, Helvetica">Oil and Gas
    Properties</FONT></U></I></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Resolute uses the full cost method of accounting for oil and gas
    producing activities. All costs incurred in the acquisition,
    exploration and development of properties, including costs of
    unsuccessful exploration, costs of surrendered and abandoned
    leaseholds, delay lease rentals and the fair value of estimated
    future costs of site restoration, dismantlement and abandonment
    activities, improved recovery systems and a portion of general
    and administrative expenses are capitalized on a country-wide
    basis (the &#147;cost center&#148;).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Resolute conducts tertiary recovery projects on certain of its
    oil and gas properties in order to recover additional
    hydrocarbons that are not recoverable from primary or secondary
    recovery methods. Under the full cost method, all development
    costs are capitalized at the time incurred. Development costs
    include charges associated with access to and preparation of
    well locations, drilling and equipping development wells, test
    wells, and service wells including injection wells, and
    acquiring, constructing, and installing production facilities
    and providing for improved recovery systems. Improved recovery
    systems include all related facility development costs and the
    cost of the acquisition of tertiary injectants, primarily
    purchased carbon dioxide
    (&#147;CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>&#148;).
    The development cost related to
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    purchases are incurred solely for the purpose of gaining access
    to incremental reserves not otherwise recoverable. The
    accumulation of injected
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>,
    in combination with additional purchased and recycled
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>,
    provides future economic value over the life of the project.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    In contrast, other costs related to the daily operation of the
    improved recovery systems are considered production costs and
    are expensed as incurred. These costs include, but are not
    limited to, compression, electricity, separation, re-injection
    of recovered
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    and water and reservoir pressure maintenance.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Capitalized general and administrative and operating costs
    include salaries, employee benefits, costs of consulting
    services and other specifically identifiable costs and do not
    include costs related to production operations, general
    corporate overhead or similar activities. Resolute capitalized
    general and administrative and operating costs related to its
    acquisition, exploration and development activities of
    $0.1&#160;million during 2009. No general and administrative and
    operating costs were capitalized during 2008 or 2007.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Investments in unproved properties are not depleted, pending
    determination of the existence of proved reserves. The
    Company&#146;s investments in unproved properties are related to
    exploration plays in the Black Warrior
</DIV>
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    <BR>
A-105
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Basin in Alabama and the Big Horn Basin in Wyoming. The Company
    expects to evaluate these locations for the existence of proved
    reserves in the next two to four years. Unproved properties are
    assessed at least annually to ascertain whether impairment has
    occurred. Unproved properties whose costs are individually
    significant are assessed individually by considering the primary
    lease terms of the properties, the holding period of the
    properties, and geographic and geologic data obtained relating
    to the properties. Where it is not practicable to assess
    individually the amount of impairment of properties for which
    costs are not individually significant, such properties are
    grouped for purposes of assessing impairment. The amount of
    impairment assessed is added to the costs to be amortized, or is
    reported as a period expense as appropriate. During 2009,
    Resolute transferred $3.9&#160;million in unproved property
    costs to the full cost pool.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    No gain or loss is recognized upon the sale or abandonment of
    undeveloped or producing oil and gas properties unless the sale
    represents a significant portion of oil and gas properties and
    the gain or loss significantly alters the relationship between
    the capitalized costs and proved oil reserves of the cost center.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Depletion and amortization of oil and gas properties is computed
    on the
    <FONT style="white-space: nowrap">unit-of-production</FONT>
    method based on proved reserves. Amortizable costs include
    estimates of asset retirement obligations and future development
    costs of proved reserves, including, but not limited to, costs
    to drill and equip development wells, constructing and
    installing production and processing facilities, and improved
    recovery systems, including the cost of required future
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>purchases.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Pursuant to full cost accounting rules, Resolute must perform a
    ceiling test each quarter on its proved oil and gas assets. The
    ceiling test provides that capitalized costs less related
    accumulated depletion and deferred income taxes for each cost
    center may not exceed the sum of (1)&#160;the present value of
    future net revenue from estimated production of proved oil and
    gas reserves using current prices, excluding the future cash
    outflows associated with settling asset retirement obligations
    that have been accrued on the balance sheet, and a discount
    factor of 10%; plus (2)&#160;the cost of properties not being
    amortized, if any; plus (3)&#160;the lower of cost or estimated
    fair value of unproved properties included in the costs being
    amortized, if any; less (4)&#160;income tax effects related to
    differences in the book and tax basis of oil and gas properties.
    Should the net capitalized costs for a cost center exceed the
    sum of the components noted above, an impairment charge would be
    recognized to the extent of the excess capitalized costs. There
    have been no provisions for impairment of oil and gas property
    costs for the periods ended December&#160;31, 2009, 2008 and
    2007, respectively.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The Company&#146;s full cost pool is solely comprised of assets
    attributable to the Resolute Transaction. In accordance with
    <FONT style="white-space: nowrap">Regulation&#160;S-X</FONT>
    <FONT style="white-space: nowrap">Article&#160;4-10</FONT>
    and rules for full cost accounting for proved oil and gas
    properties, Resolute performed a ceiling test at
    December&#160;31, 2009 using its year-end reserve estimates
    prepared in accordance with the recently promulgated SEC rules.
    Total capitalized costs exceeded the full cost ceiling by
    approximately $150&#160;million; however, no impairment was
    recognized at December&#160;31, 2009, as the Company requested
    and received an exemption from the Securities and Exchange
    Commission (the &#147;SEC&#148;) to exclude the Resolute
    Transaction from the full cost ceiling assessment for a period
    of twelve months following the acquisition, provided the Company
    can demonstrate that the fair value of the acquired properties
    exceeds the carrying value in the interim periods through
    June&#160;30, 2010. The request for exemption was made because
    the Company could demonstrate beyond a reasonable doubt that the
    fair value of the Resolute Transaction oil and gas properties
    exceed unamortized cost at the Acquisition Date and at
    December&#160;31, 2009.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    At the Acquisition Date, Resolute valued its oil and gas
    properties using NYMEX forward strip prices for a period of five
    years and then held prices flat thereafter. The Company also
    used various discount rates and other risk factors depending on
    the classification of reserves. Management believes this
    internal pricing model reflected the fair value of the assets
    acquired. Under full cost ceiling test rules, the commodity
    price utilized was equal to the trailing twelve-month unweighted
    arithmetic average of first day of the month prices resulting in
    an average NYMEX oil price of $61.18 per barrel of oil and an
    average Henry Hub spot market price for gas of $3.87 per MMBtu
    of gas, which may not be indicative of actual fair market values.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    While commodity prices have increased since September&#160;30,
    2009, the Company recognizes that due to the volatility
    associated with oil and natural gas prices, a downward trend
    could occur. If such a case were to occur and is deemed to be
    other than temporary, the Company would assess the Resolute
    Transaction properties for
</DIV>
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    <BR>
A-106
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    impairment during the requested exemption period. Further, if
    the Company cannot demonstrate that fair value exceeds the
    unamortized carrying costs during the exemption periods, the
    Company will recognize impairment.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><U><FONT style="font-family: Arial, Helvetica">Other
    Property and Equipment</FONT></U></I></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Other property and equipment are recorded at cost. Costs of
    renewals and improvements that substantially extend the useful
    lives of the assets are capitalized. Maintenance and repair
    costs which do not extend the useful lives of property and
    equipment are charged to expense as incurred. Depreciation and
    amortization is calculated using the straight-line method over
    the estimated useful lives of the assets. Office furniture,
    automobiles, and computer hardware and software are depreciated
    over three to five years. Field offices are depreciated over
    fifteen to twenty years. Leasehold improvements are depreciated,
    using the straight line method, over the shorter of the lease
    term or the useful life of the asset. When other property and
    equipment is sold or retired, the capitalized costs and related
    accumulated depreciation and amortization are removed from the
    accounts.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><U><FONT style="font-family: Arial, Helvetica">Impairment
    of Long-Lived Assets Other than Oil and Gas
    Properties</FONT></U></I></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Resolute evaluates long-lived assets for impairment or when
    indicators of possible impairment are present. Resolute performs
    an analysis of the anticipated undiscounted future net cash
    flows of the related long-lived assets and if the carrying value
    of the related asset exceeds the undiscounted cash flows, the
    carrying value is reduced to the assets&#146; fair value and an
    impairment loss is recorded against the long-lived asset. There
    have been no provisions for impairment recorded for the periods
    ended December&#160;31, 2009, 2008 and 2007.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><U><FONT style="font-family: Arial, Helvetica">Asset
    Retirement Obligation</FONT></U></I></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Asset retirement obligations relate to future costs associated
    with the plugging and abandonment of oil and gas wells, removal
    of equipment and facilities from leased acreage and returning
    such land to its original condition. The fair value of a
    liability for an asset retirement obligation is recorded in the
    period in which it is incurred and the cost of such liability is
    recorded as an increase in the carrying amount of the related
    long-lived asset by the same amount. The liability is accreted
    each period and the capitalized cost is depleted on a
    <FONT style="white-space: nowrap">units-of-production</FONT>
    basis as part of the full cost pool. Revisions to estimated
    retirement obligations result in adjustments to the related
    capitalized asset and corresponding liability.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The restricted cash of $13.0&#160;million located on the
    Company&#146;s consolidated balance sheet at December&#160;31,
    2009 in non-current other assets is legally restricted for the
    purpose of settling asset retirement obligations related to
    Predecessor Resolute&#146;s purchase of properties from a
    subsidiary of ExxonMobil Corporation and its affiliates
    (&#147;ExxonMobil Properties&#148;) (See Note&#160;13).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Resolute&#146;s estimated asset retirement obligation liability
    is based on estimated economic lives, estimates as to the cost
    to abandon the wells in the future, and federal and state
    regulatory requirements. The liability is discounted using a
    credit- adjusted risk-free rate estimated at the time the
    liability is incurred or revised. Revisions to the liability
    could occur due to changes in estimated abandonment costs or
    well economic lives, or if federal or state regulators enact new
    requirements regarding the abandonment of wells. Asset
    retirement obligations are valued utilizing Level&#160;3 fair
    value measurement inputs. See Note&#160;12.
</DIV>
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    <BR>
A-107
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL --><DIV style="margin-top: 0pt; font-size: 1pt">&nbsp;</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The following table provides a reconciliation of Resolute&#146;s
    asset retirement obligations at December&#160;31, (in thousands):
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="87%">&nbsp;</TD> <!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=02 type=lead -->
    <TD width="10%" align="right">&nbsp;</TD>   <!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Asset retirement obligations at beginning of period
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Liabilities assumed in acquisition of Predecessor Resolute
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,278
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Additional liability incurred
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Accretion expense
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    218
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Liabilities settled
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (58
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Revisions to previous estimates
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Asset retirement obligations at end of period
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,438
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Less current asset retirement obligations accrued in accounts
    payable and accrued expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,221
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Long-term asset retirement obligations
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    9,217
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">&#160;<I><U>Derivative
    Instruments</U></I></FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Financial Accounting Standards Board (&#147;FASB&#148;)
    Accounting Standards Codification (&#147;ASC&#148;) Topic 815,
    <I>Derivatives and Hedging</I>, requires recognition of all
    derivative instruments on the balance sheet as either assets or
    liabilities measured at fair value. Changes in the fair value of
    a derivative are recognized currently in earnings unless
    specific hedge accounting criteria are met. Gains and losses on
    derivative hedging instruments must be recorded in either other
    comprehensive income or current earnings, depending on the
    nature and designation of the instrument. Presently,
    Resolute&#146;s management has determined that the benefit of
    cash flow hedge accounting, which may allow for its derivative
    instruments to be reflected as cash flow hedges, is not
    commensurate with the administrative burden required to support
    that treatment. As a result, Resolute marks its derivative
    instruments to fair value on the consolidated balance sheets and
    recognizes the changes in fair market value in earnings. Gains
    and losses on derivative instruments reflected in the
    consolidated statements of operations incorporate both the
    realized and unrealized amounts.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Resolute enters into derivative contracts to manage its exposure
    to oil and gas price volatility. Derivative contracts may take
    the form of futures contracts, swaps or options. Realized and
    unrealized gains and losses related to commodity derivatives are
    recognized in other income (expense). Realized gains and losses
    are recognized in the period in which the related contract is
    settled. The cash flows from derivatives are reported as cash
    flows from operating activities unless the derivative contract
    is deemed to contain a financing element. Derivatives deemed to
    contain a financing element are reported as financing activities
    in the statement of cash flows.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><U><FONT style="font-family: Arial, Helvetica">Revenue
    Recognition</FONT></U></I></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Oil and gas revenue is recognized when production is sold to a
    purchaser at a fixed or determinable price, when delivery has
    occurred and title has transferred and the collectability of the
    revenue is probable. Oil and gas revenue is recorded using the
    sales method.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    RWI is party to three well suspension agreements (the
    &#147;Agreements&#148;). The counterparties to the Agreements
    from time to time may submit a request to RWI to suspend well
    operations or defer drilling plans on certain acreage under
    lease to RWI in exchange for non-refundable payments. Revenue is
    recognized for these payments over the expected development plan
    or until such time as the specified properties are released from
    suspension and RWI may proceed with exploration of these
    properties. During 2009, the Company recognized
    $0.2&#160;million in income related to the Agreements
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><U><FONT style="font-family: Arial, Helvetica">General and
    Administrative Expenses</FONT></U></I></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    General and administrative expenses are reported net of amounts
    capitalized to oil and gas properties and of reimbursements of
    overhead costs that are billed to working interest owners of the
    oil and gas properties operated by Resolute. In addition, the
    Company recorded $16.6&#160;million of transaction costs related
    to the Resolute Transaction for the year ended December&#160;31,
    2009 (see Note&#160;3). No transaction costs were recognized in
    2008 and 2007.
</DIV>
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<P align="center" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <BR>
A-108
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL --><DIV style="margin-top: 0pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->



<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><U><FONT style="font-family: Arial, Helvetica">Income
    Taxes</FONT></U></I></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Income taxes and uncertain tax positions are accounted for in
    accordance with FASB ASC Topic 740, <I>Accounting for Income
    Taxes</I>. Deferred income taxes are provided for the
    differences between the bases of assets and liabilities for
    financial reporting and income tax purposes. A valuation
    allowance is established when necessary to reduce deferred tax
    assets to the amount expected to be realized. Tax positions
    meeting the more-likely-than-not recognition threshold are
    measured pursuant to the guidance set forth FASB ASC Topic 740.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><U><FONT style="font-family: Arial, Helvetica">Accounting
    Standards Update</FONT></U></I></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    In June of 2009, the FASB established the ASC as the single
    source of authoritative GAAP for all non-governmental entities
    with the exception of authoritative guidance from the SEC. All
    other accounting literature is considered non-authoritative. The
    ASC changes the way the Company cites authoritative guidance
    within the Company&#146;s financial statements and notes to the
    financial statements. The ASC is effective for periods ending on
    or after September&#160;15, 2009, and did not have a material
    impact on the Company&#146;s consolidated financial statements.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Resolute adopted FASB ASC Topic 805, <I>Business Combinations,
    </I>on January&#160;1, 2009. This guidance establishes
    principles and requirements for how the acquirer of a business
    recognizes and measures in its financial statements the
    contingent and identifiable assets acquired, the liabilities
    assumed, and any noncontrolling interest in the acquiree. The
    nature and magnitude of the specific effects of this guidance on
    the consolidated financial statements will depend upon the
    nature, terms and size of the acquisitions consummated after the
    effective date. Resolute expensed approximately
    $3.5&#160;million of deferred acquisition costs in its 2009
    consolidated financial statements as the new guidance no longer
    allowed deferral of these costs.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    In January of 2010, the FASB issued additional guidance to
    improve disclosure requirements related to fair value
    measurements and disclosures. Specifically, this guidance
    requires disclosures about transfers in and out of Level&#160;1
    and 2 fair value measurements, activity in Level&#160;3 fair
    value measurements (See Note&#160;12 for Level&#160;1, 2 and 3
    definitions), greater desegregation of the amounts on the
    consolidated balance sheets that are subject to fair value
    measurements and additional disclosures about the valuation
    techniques and inputs used in fair value measurements. This
    guidance is effective for annual reporting periods beginning
    after December&#160;31, 2009, except for disclosure of
    Level&#160;3 fair value measurement roll forward activity, which
    is effective for annual reporting periods beginning after
    December&#160;15, 2010. The Company is currently assessing the
    impact this guidance will have on the consolidated financial
    statements.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    On December&#160;31, 2008, the SEC published the final rules and
    interpretations updating its oil and gas reporting requirements.
    Many of the revisions are updates to definitions in the existing
    oil and gas rules to make them consistent with the petroleum
    resource management system. This system, which was developed by
    several industry organizations, is a widely accepted standard
    for the management of petroleum resources. Key revisions include
    changes to the pricing used to estimate reserves, the ability to
    include nontraditional resources in reserves, the use of new
    technology for determining reserves, and permitting disclosure
    of probable and possible reserves. FASB ASC Topic 932 was
    updated in January of 2010 to align the oil and gas reserve
    estimation and disclosure requirements in the ASC with the
    SEC&#146;s oil and gas reporting requirements. The SEC will
    require companies to comply with the amended disclosure
    requirements for registration statements filed after
    January&#160;1, 2010, and for annual reports for fiscal years
    ending on or after December&#160;15, 2009. Early adoption is not
    permitted. Resolute adopted the requirements for the year ended
    December&#160;31, 2009 and the consolidated financial statements
    were impacted in the following manner:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="1%"></TD>
    <TD width="3%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    The price used in calculating reserves changed from a
    <FONT style="white-space: nowrap">single-day</FONT>
    closing price measured on the last day of the Company&#146;s
    fiscal year to a
    <FONT style="white-space: nowrap">12-month</FONT>
    average first of the month price for the previous twelve months
    as of the balance sheet date. This average price was utilized in
    the Company&#146;s depletion and ceiling test calculations.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    The notes to the consolidated financial statements include
    additional financial reporting disclosures.
</TD>
</TR>

</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <BR>
A-109
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL --><DIV style="margin-top: 0pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->
<!-- XBRL,n -->

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><U><FONT style="font-family: Arial, Helvetica">Note&#160;3&#160;&#151;
    </FONT></U></B>
</TD>
    <TD>
    <B><U><FONT style="font-family: Arial, Helvetica">Acquisitions
    and Divestitures</FONT></U></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><U><FONT style="font-family: Arial, Helvetica">Resolute
    Transaction</FONT></U></I></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    On September&#160;25, 2009, HACI completed the Resolute
    Transaction with Resolute, through which, in a series of
    transactions, HACI&#146;s stockholders collectively acquired a
    majority of the outstanding shares of Resolute common stock, and
    the Company acquired, directly or indirectly, 100% of the equity
    interests comprising Predecessor Resolute, with the exception of
    Aneth, in which the Company indirectly acquired a 99.996% equity
    interest. The total purchase price was allocated to the acquired
    assets and liabilities assumed of Predecessor Resolute based on
    their respective fair values as determined by management.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 2%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The total purchase price was comprised of the following (in
    thousands):
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="82%">&nbsp;</TD> <!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=02 type=lead -->
    <TD width="15%" align="right">&nbsp;</TD>   <!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <FONT style="font-size: 9pt">September&#160;25, 2009
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Cash consideration
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;325,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Company common stock
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    88,800
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Company common stock subject to forfeiture
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Fair value of warrants, net of payment to Sponsor of
    $1.2&#160;million
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,200
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Total purchase price
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    427,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The business combination was accounted for using the acquisition
    method, in which HACI was the accounting acquirer, and resulted
    in a new basis of accounting reflecting the fair values of the
    Predecessor Resolute assets acquired and liabilities assumed.
    The following table presents the preliminary allocation of the
    purchase price at September&#160;25, 2009, based on the
    estimated fair values of assets acquired and liabilities assumed
    (in thousands):
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="82%">&nbsp;</TD> <!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=02 type=lead -->
    <TD width="15%" align="right">&nbsp;</TD>   <!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <FONT style="font-size: 9pt">September&#160;25, 2009
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Current assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;33,500
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Oil and gas properties
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    633,600
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Other property and equipment
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,200
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Other assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18,400
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Debt assumed
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (99,200
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Deferred income tax liability
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (75,500
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Other liabilities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (86,000
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Total purchase price
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    427,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The fair value of acquired properties was determined based upon
    numerous inputs, many of which were unobservable (which are
    defined as Level&#160;3 inputs). The significant inputs used in
    estimating the fair value were: (1)&#160;NYMEX crude oil and
    natural gas futures prices (observable), (2)&#160;projections of
    the estimated quantities of oil and gas reserves,
    (3)&#160;projections regarding rates and timing of production,
    (4)&#160;projections regarding amounts and timing of future
    development and abandonment costs, (5)&#160;projections
    regarding the amounts and timing of operating costs and property
    taxes, (6)&#160;estimated risk adjusted discount rates and
    (7)&#160;estimated inflation rates. As a result of applying the
    above assumptions, the Company estimated the aggregate fair
    value of the oil and gas assets acquired at $622.5&#160;million
    for proved properties and $11.1&#160;million for unevaluated
    properties. Portions of the consideration paid were valued using
    a Black-Scholes model which is also a Level&#160;3 input. The
    fair value of the acquired current assets and current
    liabilities equaled their stated amounts due to their short-term
    maturities. The fair value of the debt assumed under the Credit
    Facility approximated its stated amount due to the variable
    interest rate grid and its May 2011 maturity date. The fair
    value of derivative assets and liabilities were determined
    consistent with the basis described in
    <I>Note&#160;12&#160;&#151; Fair Value Measurements. </I>There
    were no identifiable intangibles acquired and no goodwill was
    recognized as identifiable assets acquired and the liabilities
    assumed approximated the purchase price.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The Company has not yet submitted final tax returns for
    Predecessor Resolute for the period ended September&#160;24,
    2009. Any adjustments to the tax returns may impact the
    estimated fair value of the assets and liabilities acquired. Any
    adjustments will be reflected retrospectively.
</DIV>
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<P align="center" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <BR>
A-110
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL --><DIV style="margin-top: 0pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    In connection with the Resolute Transaction, HACI acquired an
    estimated 72.8% membership interest in Aneth in exchange for
    HACI&#146;s payment to Aneth of $325&#160;million (the
    &#147;HACI Contribution&#148;), which Aneth used to repay a
    portion of the debt outstanding under Aneth&#146;s credit
    facilities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Immediately following the repayment of debt, Sub contributed to
    the Company its interests in Predecessor Resolute in exchange
    for:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="7%"></TD>
    <TD width="5%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (i)&#160;
</TD>
    <TD align="left">
    9,200,000&#160;shares of Company common stock, 200,000 of which
    were issued to service providers (employees of Predecessor
    Resolute who became employees of Resolute upon consummation of
    the Resolute Transaction) in recognition of their services.
    100,000&#160;shares vested immediately on September&#160;25,
    2009 and the remaining 100,000&#160;shares will vest on the one
    year anniversary of the Acquisition Date, provided the recipient
    remains an employee of the Company;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (ii)&#160;
</TD>
    <TD align="left">
    4,600,000 new Company Founders Warrants, (&#147;New Founder
    Warrants&#148;) issued in exchange for Old Founder&#146;s
    Warrants (defined below) to purchase Company common stock with a
    strike price of $13.00, a trigger price of $13.75 and a five
    year term from the date of the Resolute Transaction;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (iii)&#160;
</TD>
    <TD align="left">
    1,385,000 Company earnout shares, which are shares of Company
    common stock (with voting rights) (&#147;Earnout Shares&#148;)
    that will be forfeited if the price of Company common stock does
    not exceed $15.00 per share for 20 trading days in any 30
    trading day period within five years from the date of the
    Resolute Transaction.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Immediately prior to the Resolute Transaction,
    7,335,000&#160;shares of common stock and 4,600,000 sponsor
    warrants of HACI that had been issued to the founder of HACI
    (&#147;Founder Shares&#148; and &#147;Old Founder
    Warrants,&#148; respectively) were cancelled and forfeited.
    Sponsor Warrants of 2,333,333 were sold to Sub by the sponsor in
    exchange for Sub&#146;s payment of $1,166,667 to the Sponsor.
    Sponsor Warrants were warrants to purchase the common stock of
    HACI held by the Sponsor that were exchanged in the Resolute
    Transaction for New Sponsor Warrants to purchase Company common
    stock with a strike price of $13.00 and a five year term.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Immediately following the HACI Contribution and simultaneously
    with Sub&#146;s contribution of Predecessor Resolute, Resolute
    Subsidiary Corporation, a wholly owned subsidiary of Resolute,
    merged with and into HACI, with HACI surviving. HACI continues
    as a wholly-owned subsidiary of Resolute and the outstanding
    shares of HACI common stock and outstanding HACI warrants,
    including outstanding Old Founder Warrants and Sponsor Warrants,
    were exchanged for Sub&#146;s contribution. After the Resolute
    Transaction, the former HACI stockholders and warrant holders
    have no direct equity ownership interest in HACI.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><U><FONT style="font-family: Arial, Helvetica">Pro Forma
    Financial Information</FONT></U></I></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The unaudited pro forma consolidated financial information in
    the table below summarizes the results of operations of the
    Company as though the Resolute Transaction had occurred as of
    the beginning of each period presented. The pro forma financial
    information is presented for informational purposes only and is
    not indicative of the results of operations that would have been
    achieved if the acquisition had taken place at the beginning of
    the earliest period presented or that may result in the future.
    The pro forma adjustments made are based on certain assumptions
    that Resolute believes are reasonable based on currently
    available information.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The unaudited pro forma financial information for the years
    ended December&#160;31, 2009 and 2008 combine the historical
    results of HACI and Predecessor Resolute. Additionally, the 2008
    period includes the pro forma results of a net profits
    overriding royalty interest (&#147;NPI&#148;) acquired by RWI on
    July&#160;31, 2008, as though the NPI had been acquired as of
    January&#160;1, 2008.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="68%">&nbsp;</TD> <!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=02 type=gutter -->
    <TD width="5%" align="right">&nbsp;</TD>    <!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=02 type=body -->
    <TD width="5%" align="left">&nbsp;</TD>     <!-- colindex=02 type=hang1 -->
    <TD width="9%">&nbsp;</TD>  <!-- colindex=03 type=gutter -->
    <TD width="5%" align="right">&nbsp;</TD>    <!-- colindex=03 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=03 type=body -->
    <TD width="5%" align="left">&nbsp;</TD>     <!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="7" align="center" valign="bottom">
    (In thousands, except per share amount)
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Total revenue
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;127,760
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;235,616
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Operating income (loss)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (26,558
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (176,175
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Net income (loss)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (64,827
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (53,444
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Basic and diluted net income (loss) per share
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
     (1.22
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (1.01
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

</DIV>
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<P align="center" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <BR>
A-111
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL --><DIV style="margin-top: 0pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->
<!-- XBRL,n -->

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="7%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><U><FONT style="font-family: Arial, Helvetica">Note&#160;4&#160;&#150;
    </FONT></U></B>
</TD>
    <TD>
    <B><U><FONT style="font-family: Arial, Helvetica">Earnings per
    Share</FONT></U></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The Company computes earnings per share using the two class
    method. Basic net income per share is computed using the
    weighted average number of common shares outstanding during the
    period. Diluted net income per share is computed using the
    weighted average number of common shares and, if dilutive,
    potential common shares outstanding during the period.
    Potentially dilutive shares consist of the incremental shares
    issuable under the outstanding warrants and earnout shares.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The treasury stock method is used to measure the dilutive impact
    of potentially warrants. When there is a loss, all potentially
    dilutive shares will be anti-dilutive. As such, there were no
    dilutive shares for the year ended December&#160;31, 2009 and
    therefore, the impact of 48,400,000 warrants and 3,250,000
    earnout shares outstanding for the year ended December&#160;31,
    2009, were not included in the calculation of diluted loss per
    share. In 2008 and 2007, 76,000,000 warrants were contingently
    issuable and were excluded from the calculation of diluted
    earnings per share.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The liquidation rights of the holders of the Company&#146;s
    common stock and common stock that were subject to redemption
    are identical, except with respect to redemption rights for
    dissenting shareholders in an acquisition by the Company. As a
    result, the undistributed earnings for each year are allocated
    based on the contractual participation rights of the common
    stock and common stock subject to redemption as if the earnings
    for the year had been distributed. The undistributed earnings
    are allocated to common stock subject to redemption based on
    their pro-rata right to income earned by the trust and, in 2009,
    their share of administrative expenses. Subsequent to the
    Resolute Transaction, no common stock subject to redemption
    remains outstanding.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The following table sets forth the computation of basic and
    diluted net income per share of common stock and common stock
    subject to redemption (in thousands except per share data):
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 8pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="40%">&nbsp;</TD> <!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=02 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>    <!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=02 type=hang1 -->
    <TD width="2%">&nbsp;</TD>  <!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=03 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>    <!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=03 type=hang1 -->
    <TD width="2%">&nbsp;</TD>  <!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=04 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>    <!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=04 type=hang1 -->
    <TD width="2%">&nbsp;</TD>  <!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=05 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>    <!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=05 type=hang1 -->
    <TD width="2%">&nbsp;</TD>  <!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=06 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>    <!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=06 type=hang1 -->
    <TD width="2%">&nbsp;</TD>  <!-- colindex=07 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=07 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>    <!-- colindex=07 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=07 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 1pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom" style="font-size: 1pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="font-size: 1pt; border-bottom: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="font-size: 1pt; border-bottom: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="font-size: 1pt; border-bottom: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Common<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Common<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Common<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Common<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Stock<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Common<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Stock<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Common<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Stock<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Stock<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Subject to<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Stock<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Subject to<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Stock<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Subject to<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Redemption</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Redemption</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Redemption</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Numerator:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
    Allocation of undistributed earnings (loss)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;(43,313
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;(1,930
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;2,498
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;1,489
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;1,697
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;1,020
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
    Denominator:
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
    Weighted average of issued shares outstanding
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    46,394
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12,114
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    45,105
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16,560
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18,587
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16,560
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
    Basic and diluted earnings per share
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (0.93
</TD>
<TD nowrap align="left" valign="bottom">
    )&#160;&#160;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (0.16
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.06
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.09
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.09
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.06
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    A summary of the activity associated with warrants during 2009,
    2008 and 2007 is as follows (in thousands):
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="79%">&nbsp;</TD> <!-- colindex=01 type=maindata -->
    <TD width="11%">&nbsp;</TD> <!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=02 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>    <!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>&#160;&#160;Warrants&#160;&#160;</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Warrants issued to founding stockholder
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;11,500
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Warrants issued through stock dividend
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,300
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Warrants issued through HACI Offering
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    55,200
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Sale of Sponsor Warrants
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Balance at December&#160;31, 2007 and 2008
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    76,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Redemption of warrants in Resolute Transaction
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (27,600
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Cancellation of Founder Warrants
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (4,600
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Issuance of new Founder Warrants
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,600
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Balance at December&#160;31, 2009
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    48,400
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Warrants entitle the holder to purchase one share of Company
    common stock at a price of $13.00&#160;per share and expire on
    September&#160;25, 2014.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <BR>
A-112
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL --><DIV style="margin-top: 0pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->
<!-- XBRL,n -->

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><U><FONT style="font-family: Arial, Helvetica">Note&#160;5&#160;&#151;
    </FONT></U></B>
</TD>
    <TD>
    <B><U><FONT style="font-family: Arial, Helvetica">Marketable
    Securities Held in Trust</FONT></U></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The carrying amount, including accrued interest, gross
    unrealized holding gains, gross unrealized holding losses, and
    fair value of
    <FONT style="white-space: nowrap">held-to-maturity</FONT>
    marketable securities by major security type and class of
    security are as follows (in thousands):
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="37%">&nbsp;</TD> <!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>  <!-- colindex=02 type=gutter -->
    <TD width="6%" align="right">&nbsp;</TD>    <!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=02 type=body -->
    <TD width="6%" align="left">&nbsp;</TD>     <!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>  <!-- colindex=03 type=gutter -->
    <TD width="6%" align="right">&nbsp;</TD>    <!-- colindex=03 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=03 type=body -->
    <TD width="6%" align="left">&nbsp;</TD>     <!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>  <!-- colindex=04 type=gutter -->
    <TD width="6%" align="right">&nbsp;</TD>    <!-- colindex=04 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=04 type=body -->
    <TD width="6%" align="left">&nbsp;</TD>     <!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>  <!-- colindex=05 type=gutter -->
    <TD width="6%" align="right">&nbsp;</TD>    <!-- colindex=05 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=05 type=body -->
    <TD width="6%" align="left">&nbsp;</TD>     <!-- colindex=05 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Carrying<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Gross Unrealized<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Gross Unrealized<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>December&#160;31, 2008</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Amount</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Holding Gains</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Holding (Losses)</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Fair value</B>
</DIV>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <FONT style="white-space: nowrap">Held-to-Maturity:</FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    U.S. Treasury Bills
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;290,117
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;290,117
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The treasury bills classified as
    <FONT style="white-space: nowrap">held-to-maturity</FONT>
    mature within one year. On September&#160;25, 2009, the
    marketable securities held in trust were distributed in
    connection with the Resolute Transaction (see Note&#160;3).
</DIV>
<!-- XBRL,n -->

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><U><FONT style="font-family: Arial, Helvetica">Note&#160;6&#160;&#151;
    </FONT></U></B>
</TD>
    <TD>
    <B><U><FONT style="font-family: Arial, Helvetica">Related Party
    Transactions</FONT></U></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    HACI agreed to pay up to $10,000 a month for office space and
    general and administrative services to Hicks Holdings Operating
    LLC (&#147;Hicks Holdings&#148;), an affiliate of HACI&#146;s
    founder and chairman of the board, Thomas O. Hicks. Services
    commenced after the effective date of the Offering and were
    terminated on the Acquisition Date due to the consummation of
    the Resolute Transaction. The Company expensed $0.1&#160;million
    during each of the periods ended December&#160;31, 2009, 2008
    and 2007 under this agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    During 2009, Resources carried a payable for payments received
    on behalf of affiliate, Holdings, for Holdings&#146;
    transactions not related to Resolute. Resources paid Holdings
    $1.3&#160;million in satisfaction of this payable during 2009.
</DIV>
<!-- XBRL,n -->

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><U><FONT style="font-family: Arial, Helvetica">Note&#160;7&#160;&#151;
    </FONT></U></B>
</TD>
    <TD>
    <B><U><FONT style="font-family: Arial, Helvetica">Long Term
    Debt</FONT></U></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Resolute&#146;s credit facility is with a syndicate of banks led
    by Wachovia Bank, National Association (the &#147;Credit
    Facility&#148;) with Aneth as the borrower. The Credit Facility
    specifies a maximum borrowing base as determined by the lenders.
    The determination of the borrowing base takes into consideration
    the estimated value of Resolute&#146;s oil and gas properties in
    accordance with the lenders&#146; customary practices for oil
    and gas loans. The borrowing base is re-determined
    semi-annually, and the amount available for borrowing could be
    increased or decreased as a result of such re-determinations.
    Under certain circumstances, either Resolute or the lenders may
    request an interim re-determination. As of December&#160;31,
    2009, the borrowing base was $240&#160;million and outstanding
    borrowings were $109.6&#160;million. Unused availability under
    the borrowing base as of December&#160;31, 2009 was
    $121.9&#160;million. The borrowing base availability has been
    reduced by $8.5&#160;million in conjunction with letters of
    credit issued to vendors at December&#160;31, 2009. The Credit
    Facility matures on April&#160;13, 2011 and, to the extent that
    the borrowing base, as adjusted from time to time, exceeds the
    outstanding balance, no repayments of principal are required
    prior to maturity.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The outstanding balance under the Credit Facility accrues
    interest, at Aneth&#146;s option, at either (a)&#160;the London
    Interbank Offered Rate, plus a margin which varies from 2.5% to
    3.5%, or (b)&#160;the Alternative Base Rate defined as the
    greater of (i)&#160;the Administrative Agent&#146;s Prime Rate,
    (ii)&#160;the Administrative Agent&#146;s Base CD rate plus 1%,
    or (iii)&#160;the Federal Funds Effective Rate plus 0.5%, plus a
    margin which varies from 1.0% to 2.0%. Each such margin is based
    on the level of utilization under the borrowing base. As of
    December&#160;31, 2009, the weighted average interest rate on
    the outstanding balance under the facility was 3.30%. The Credit
    Facility is collateralized by substantially all of the proved
    oil and gas assets of Aneth and RWI, and is guaranteed by
    Resolute and its subsidiaries other than Aneth.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The Credit Facility includes terms and covenants that place
    limitations on certain types of activities, the payment of
    dividends, and require satisfaction of certain financial tests.
    Resolute was in compliance with all terms and covenants of the
    Credit Facility at December&#160;31, 2009.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <BR>
A-113
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL --><DIV style="margin-top: 0pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    On March&#160;30, 2010, the Company entered into a Restated
    Credit Agreement (the &#147;Restated Agreement&#148;). Under the
    terms of the Restated Agreement, the borrowing base was
    increased from $240.0&#160;million to $260.0&#160;million and
    the maturity date was extended to March 2014. At Resolute&#146;s
    option, the outstanding balance under the Credit Facility
    accrues interest at either (a)&#160;the London Interbank Offered
    Rate, plus a margin which varies from 2.25% to 3.0% or
    (b)&#160;the Alternative Base Rate defined as the greater of
    (i)&#160;the Administrative Agent&#146;s Prime Rate,
    (ii)&#160;the Federal Funds Effective Rate plus 0.5%, or
    (iii)&#160;an adjusted London Interbank Offered Rate plus 1%,
    plus a margin which ranges from 1.25% to 2.0%.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    As of March&#160;30, 2010, Resolute had borrowings of
    $115.4&#160;million under the borrowing base, resulting in an
    unused availability of $136.1&#160;million.
</DIV>
<!-- XBRL,n -->

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><U><FONT style="font-family: Arial, Helvetica">Note&#160;8&#160;&#151;
    </FONT></U></B>
</TD>
    <TD>
    <B><U><FONT style="font-family: Arial, Helvetica">Income Taxes
    </FONT></U></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The following table summarizes the components of the provision
    for income taxes (in thousands):
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="66%">&nbsp;</TD> <!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=02 type=lead -->
    <TD width="9%" align="right">&nbsp;</TD>    <!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=02 type=hang1 -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=03 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>    <!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=03 type=hang1 -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=04 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>    <!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Current income tax benefit (expense)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    74
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (2,169
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (1,555
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Deferred income tax benefit
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19,813
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    115
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    154
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Total income tax benefit (expense)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;19,887
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;(2,054
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;(1,401
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The provision for income taxes for the periods ended
    December&#160;31, 2009, 2008 and 2007 differs from the amount
    that would be provided by applying the statutory
    U.S.&#160;federal income tax rate of 35% to income before income
    taxes. This difference relates primarily to state income taxes
    and estimated permanent differences as follows (in thousands):
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="66%">&nbsp;</TD> <!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=02 type=lead -->
    <TD width="9%" align="right">&nbsp;</TD>    <!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=02 type=hang1 -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=03 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>    <!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=03 type=hang1 -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=04 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>    <!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Expected statutory income tax benefit (expense)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;22,120
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;(2,054
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;(1,400
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    State income tax benefit
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,612
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Equity based compensation
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (322
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Non-deductible merger costs
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (3,615
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Other
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    92
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Total income tax benefit (expense)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    19,887
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (2,054
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (1,401
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The tax effects of temporary differences that give rise to
    significant portions of the deferred income tax assets and
    liabilities are presented below (in thousands):
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="81%">&nbsp;</TD> <!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=02 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>    <!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=02 type=hang1 -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=03 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>    <!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>December&#160;31,</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Current deferred income tax assets (liabilities):
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Derivative financial instruments
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;5,170
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Asset retirement obligation
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    968
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Other
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    912
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 27pt">
    Total current
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,050
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 12pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Long term deferred income tax assets (liabilities):
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Derivative financial instruments
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19,515
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Net operating loss carryovers
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,310
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Asset retirement obligation
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,414
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Startup and organization costs
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    253
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    249
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Deferred acquisition costs
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    45
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    41
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Property and equipment costs
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (92,249
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (21
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Other
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,755
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 27pt">
    Total long term
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (62,467
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    269
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Net deferred tax (liability) asset
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (55,417
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    269
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    As set forth in Note&#160;3, the Company acquired Predecessor
    Resolute&#146;s assets and liabilities in a partially tax-free
    transaction pursuant to Section&#160;351 of the Internal Revenue
    Code. Accordingly, the Company established a
</DIV>
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    <BR>
A-114
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    deferred tax liability of $75.5&#160;million as part of the
    acquisition accounting to give effect to the differing financial
    accounting and income tax bases of the acquired assets and
    liabilities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The Company has U.S.&#160;net operating loss carryforwards of
    $25.2&#160;million at December&#160;31, 2009, which will begin
    expiring in 2025. Of the $25.2&#160;million, $6.0&#160;million
    would not be available for use until 2011 and after.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The Company adopted the accounting for uncertain tax positions
    per FASB ASC Topic 740, <I>Accounting for Income Taxes</I>, from
    inception. This guidance prescribes a recognition threshold and
    measurement attribute for the financial statement recognition
    and measurement of a tax position taken or expected to be taken
    in a tax return. This guidance requires that the Company
    recognize in the consolidated financial statements, only those
    tax positions that are &#147;more-likely-than-not&#148; of being
    sustained, based on the technical merits of the position. As a
    result of the implementation of this guidance, the Company
    performed a comprehensive review of the Company&#146;s material
    tax positions. This guidance had no effect on the Company&#146;s
    financial position, cash flows or results of operations at for
    2009, 2008 or 2007 as the Company had no unrecognized tax
    benefits. The Company&#146;s policy is to recognize interest and
    penalties related to uncertain tax positions in income tax
    expense. The Company has no accrued interest or penalties
    related to uncertain tax positions as of December&#160;31, 2009
    or 2008.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The Company is subject to the following material taxing
    jurisdictions: U.S.&#160;federal, Colorado, Utah and the Navajo
    Nation. The tax years that remain open to examination by the
    Internal Revenue Service are the years 2006 through 2009. The
    tax years that remain open to examination by Colorado and Utah
    are 2005 through 2009. Resource&#146;s 2007 tax return is
    currently under examination in the U.S.&#160;federal
    jurisdiction.
</DIV>
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<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><U><FONT style="font-family: Arial, Helvetica">Note&#160;9&#160;&#151;
    </FONT></U></B>
</TD>
    <TD>
    <B><U><FONT style="font-family: Arial, Helvetica">Stockholders&#146;
    Equity and Equity Based Awards</FONT></U></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><U><FONT style="font-family: Arial, Helvetica">Preferred
    Stock</FONT></U></I></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The Company is authorized to issue up to 1,000,000&#160;shares
    of preferred stock, par value $0.0001 with such designations,
    voting and other rights and preferences as may be determined
    from time to time by the Board of Directors. No shares were
    issued and outstanding as of December&#160;31, 2009 or
    December&#160;31, 2008.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><U><FONT style="font-family: Arial, Helvetica">Common
    Stock</FONT></U></I></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The authorized common stock of the Company consists of
    225,000,000&#160;shares. The holders of the common shares are
    entitled to one vote for each share of common stock. In
    addition, the holders of the common stock are entitled to
    receive dividends when, as and if declared by the Board of
    Directors. At December&#160;31, 2009, the Company had
    53,154,883&#160;shares of common stock issued and outstanding.
    HACI had 69,000,000 common shares issued and outstanding at
    December&#160;31, 2008.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Of the 53,154,883&#160;shares of common stock outstanding at
    December&#160;31, 2009, 3,250,000 are classified as Earnout
    Shares. Earnout Shares are common stock of Resolute subject to
    forfeiture in the event that an earnout target of $15.00 per
    share is not met by September&#160;25, 2014. The Earnout Shares
    have voting rights and are transferable; however, they are not
    registered for resale and do not participate in dividends until
    the trigger price is met.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Holders of 30% of public common stock, less one share, had the
    right to vote against any acquisition proposal and demand
    conversion of their shares for a pro rata portion of cash and
    marketable securities held in trust, less certain adjustments.
    As a result, HACI classified 16,559,999 of the total 69,000,000
    common shares issued during 2007 as common stock, subject to
    possible redemption for $160.8&#160;million. The common stock
    subject to redemption participated in the net income of HACI.
    Income or loss attributable to common stock subject to
    redemption was considered in the calculation of earning per
    share and the deferred interest attributable to common stock
    subject to possible redemption was accrued. Upon consummation of
    the Resolute Transaction, the $160.8&#160;million temporary
    equity was reclassified to common stock and additional paid-in
    capital and 11,592,084&#160;shares were redeemed. The deferred
    interest attributable to the shares of common stock not redeemed
    of $1.9&#160;million was reclassified to stockholders&#146;
    equity.
</DIV>
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    <BR>
A-115
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><U><FONT style="font-family: Arial, Helvetica">Stock-Based
    Compensation </FONT></U></I></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The Company accounts for stock-based compensation in accordance
    with FASB ASC Topic 718, <I>Stock Compensation</I>.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    On July&#160;31, 2009, the Company adopted the 2009 Stock
    Incentive Performance Plan (the &#147;Incentive Plan&#148;),
    providing for long-term equity based awards intended as a means
    for the Company to attract, motivate, retain and reward
    directors, officers, employees and other eligible persons
    through the grant of awards and incentives for high levels of
    individual performance and improved financial performance of the
    Company. Equity-based awards are also intended to further align
    the interests of award recipients and the Company&#146;s
    stockholders. The Company&#146;s Board of Directors or one or
    more committees appointed by the Company&#146;s Board of
    Directors will administer the Incentive Plan. The maximum number
    of shares of Company common stock that may be issued pursuant to
    awards under the Incentive Plan is 2,657,744.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The Incentive Plan authorizes stock options, stock appreciation
    rights, restricted stock, restricted stock units, stock bonuses
    and other forms of awards that may be granted or denominated in
    Company common stock or units of Company common stock, as well
    as cash bonus awards. The Incentive Plan retains flexibility to
    offer competitive incentives and to tailor benefits to specific
    needs and circumstances. Any award may be paid or settled in
    cash at the Company&#146;s option. As of December&#160;31, 2009,
    no long-term equity based awards have been granted.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    On September&#160;25, 2009, the Company and Sub entered into a
    Retention Bonus Award Agreement calling for the award to
    employees of the Company of 200,000&#160;shares of Company
    common stock that would otherwise have been issued to Sub in the
    Resolute Transaction. Resolute accounts for these awards under
    the provisions of FASB ASC Topic 718. Fifty percent of each
    employee award was awarded without restriction and fifty percent
    of each employee award was granted contingent upon the employee
    remaining employed by the Company for one year following the
    closing of the Resolute Transaction. As of December&#160;31,
    2009, employees had forfeited 11,697&#160;shares under this
    agreement, leaving 88,303 unvested shares outstanding. The
    compensation expense to be recognized for the awards was
    measured based on the Company&#146;s traded stock price at the
    date of the Resolute Transaction. For the year ended
    December&#160;31, 2009, the Company recorded $1.1&#160;million
    of stock based compensation expense for this award, of which
    $0.9&#160;million was recorded in general and administrative
    expense and $0.2&#160;million was recorded in lease operating
    expense. The remaining expense will be recognized over the
    remaining vesting period ending on September&#160;25, 2010.
</DIV>
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<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><U><FONT style="font-family: Arial, Helvetica">Note&#160;10&#160;&#150;
    </FONT></U></B>
</TD>
    <TD>
    <B><U><FONT style="font-family: Arial, Helvetica">Employee
    Benefits</FONT></U></B>
</TD>
</TR>

</TABLE>
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<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The Company offers a variety of health and benefit programs to
    all employees, including medical, dental, vision, life insurance
    and disability insurance. The Company&#146;s executive officers
    are generally eligible to participate in these employee benefit
    plans on the same basis as the rest of the Company&#146;s
    employees. The Company offers a 401(k) plan for all eligible
    employees. For the year ended December&#160;31, 2009, the
    Company expensed $0.5&#160;million in connection with matching
    of employee contributions. No matching contributions were made
    in 2008 or 2007. Employee benefit plans may be modified or
    terminated at any time by the Company&#146;s Board of Directors.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    On October&#160;22, 2009, the Company&#146;s Board of Directors
    approved (i)&#160;cash awards to employees in the aggregate
    amount of approximately $1.5&#160;million, with 50% of each
    award to an employee to be paid currently and 50% to be paid one
    year from closing if the employee remains employed by the
    Company; (ii)&#160;the payment to each employee who had been
    subject to a salary reduction in 2009 a lump sum payment equal
    to the amount of the reduction, such payments aggregating to
    approximately $0.3&#160;million; and (iii)&#160;the payment of
    lump sum payments to employees approximately equal to the amount
    they would have received as matching 401(k) contributions for
    2008 had Predecessor Resolute made a matching contribution in
    accordance with past practice, such bonuses amounting to
    approximately $0.6&#160;million.
</DIV>
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    <BR>
A-116
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<!-- XBRL Pagebreak End -->



<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><U><FONT style="font-family: Arial, Helvetica">Time Vested
    Cash Awards</FONT></U></I></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Prior to the Resolute Transaction, certain employees of
    Predecessor Resolute hold time vested cash awards
    (&#147;Awards&#148;). All of the Awards bear simple interest of
    15% per annum commencing January&#160;1, 2008, and are payable
    in three installments, with the first installment paid on
    January&#160;1, 2009 and the remaining two installments payable
    on January&#160;1, 2010 and 2011. The Awards are accounted for
    as deferred compensation. The annual payments are paid
    contingent upon the employee&#146;s continued employment with
    Resolute and there is potential for forfeiture of the Awards.
    Accordingly, Resolute will accrue the Awards and related return
    for the respective year on an annual basis. For the year ended
    December&#160;31, 2009, $0.1&#160;million of compensation
    expense related to the Awards was recognized. The remaining
    amount to be paid at December&#160;31, 2009 for all Awards is
    $0.3&#160;million.
</DIV>
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<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><U><FONT style="font-family: Arial, Helvetica">Note&#160;11&#160;&#151;
    </FONT></U></B>
</TD>
    <TD>
    <B><U><FONT style="font-family: Arial, Helvetica">Derivative
    Instruments</FONT></U></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Effective January&#160;1, 2009, new authoritative accounting
    guidance regarding derivative instruments and hedging activities
    requires entities to provide greater transparency about how and
    why an entity uses derivative instruments, how derivative
    instruments and related hedged items are accounted for, and how
    derivative instruments and related hedged items affect an
    entity&#146;s financial position, results of operations, and
    cash flows.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Resolute enters into commodity derivative contracts to manage
    its exposure to oil and gas price volatility. Resolute has not
    elected to designate derivative instruments as cash flow hedges
    under the provisions of FASB ASC Topic 815. As a result, these
    derivative instruments are marked to market at the end of each
    reporting period and changes in the fair value are recorded in
    the accompanying consolidated statements of operations. Realized
    and unrealized gains and losses from Resolute&#146;s price risk
    management activities are recognized in other income (expense),
    with realized gains and losses recognized in the period in which
    the related production is sold. The cash flows from derivatives
    are reported as cash flows from operating activities unless the
    derivative contract is deemed to contain a financing element.
    Derivatives deemed to contain a financing element are reported
    as financing activities in the statement of cash flows.
    Commodity derivative contracts may take the form of futures
    contracts, swaps or options.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    As of December&#160;31, 2009, Resolute had entered into certain
    commodity swap contracts. The following table represents
    Resolute&#146;s commodity swaps through 2013:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="44%">&nbsp;</TD> <!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=02 type=lead -->
    <TD width="11%" align="right">&nbsp;</TD>   <!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=02 type=hang1 -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=03 type=lead -->
    <TD width="11%" align="right">&nbsp;</TD>   <!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=03 type=hang1 -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=04 type=gutter -->
    <TD width="13%">&nbsp;</TD> <!-- colindex=04 type=maindata -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=05 type=lead -->
    <TD width="11%" align="right">&nbsp;</TD>   <!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=05 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Oil (NYMEX<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Gas (NYMEX HH)<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>WTI) Weighted<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Weighted Average<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Average Hedge<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Hedge Price per<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Year</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Bbl per Day</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Price per Bbl</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>MMBtu per Day</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>MMBtu</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    2010
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,650
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    67.24
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    3,800
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;9.69
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    2011
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,250
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    68.26
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    2,750
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    9.32
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    2012
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,250
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    68.26
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    2,100
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    7.42
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    2013
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    60.47
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    1,900
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    7.40
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Resolute also uses basis swaps in connection with gas swaps in
    order to fix the price differential between the NYMEX Henry Hub
    price and the index price at which the gas production is sold.
    The table below sets forth Resolute&#146;s outstanding basis
    swaps as of December&#160;31, 2009.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="42%">&nbsp;</TD> <!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=02 type=gutter -->
    <TD width="11%">&nbsp;</TD> <!-- colindex=02 type=quadleft -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=02 type=maindata -->
    <TD width="11%">&nbsp;</TD> <!-- colindex=02 type=quadright -->
    <TD width="3%">&nbsp;</TD>  <!-- colindex=03 type=gutter -->
    <TD width="11%" align="right">&nbsp;</TD>   <!-- colindex=03 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>  <!-- colindex=04 type=gutter -->
    <TD width="6%" align="right">&nbsp;</TD>    <!-- colindex=04 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=04 type=body -->
    <TD width="6%" align="left">&nbsp;</TD>     <!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Weighted Average<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Hedged Price<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Differential per<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Year</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Index</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>MMBtu per Day</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>MMBtu</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    2010 &#150; 2013
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Rocky Mountain NWPL
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,800
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;2.10
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    As of December&#160;31, 2009, Resolute had entered into certain
    commodity collar contracts. The following table represents
    Resolute&#146;s commodity collars:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="40%">&nbsp;</TD> <!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=02 type=gutter -->
    <TD width="5%" align="right">&nbsp;</TD>    <!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=02 type=body -->
    <TD width="5%" align="left">&nbsp;</TD>     <!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>  <!-- colindex=03 type=gutter -->
    <TD width="7%" align="right">&nbsp;</TD>    <!-- colindex=03 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=03 type=body -->
    <TD width="7%" align="left">&nbsp;</TD>     <!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>  <!-- colindex=04 type=gutter -->
    <TD width="5%" align="right">&nbsp;</TD>    <!-- colindex=04 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=04 type=body -->
    <TD width="5%" align="left">&nbsp;</TD>     <!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>  <!-- colindex=05 type=gutter -->
    <TD width="6%" align="right">&nbsp;</TD>    <!-- colindex=05 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=05 type=body -->
    <TD width="6%" align="left">&nbsp;</TD>     <!-- colindex=05 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Gas (NYMEX HH)<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Oil (NYMEX WTI)<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Weighted Average<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Weighted Average<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>&#160;&#160;MMBtu per&#160;&#160;<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Hedge Price per<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Year</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>&#160;&#160;Bbl per Day&#160;&#160;</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Hedge Price per Bbl</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Day</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>MMBtu</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    2010
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    200
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    105.00-151.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <BR>
A-117
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL --><DIV style="margin-top: 0pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Resolute&#146;s derivative instruments are not designated and do
    not qualify for hedge accounting under the FASB ASC. For
    financial reporting purposes, Resolute does not offset the fair
    value amounts of derivative assets and liabilities with the same
    counterparty. See Note&#160;12 for the location and fair value
    amounts of Resolute&#146;s commodity derivative instruments
    reported in the consolidated balance sheets at December&#160;31,
    2009.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Because Resolute&#146;s derivative instruments are not
    designated and do not qualify for hedge accounting under the
    FASB ASC, the gains and losses are included in other income
    (expense) in the consolidated statements of operations. The
    table below summarizes the location and amount of commodity
    derivative instrument losses reported in the consolidated
    statements of operations (in thousands):
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="89%">&nbsp;</TD> <!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=02 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>    <!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Year Ended<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>December&#160;31,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Other income (expense):
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 27pt">
    Realized losses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (3,193
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 27pt">
    Unrealized losses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (46,321
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Total loss on derivative instruments
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;(49,514
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><U><FONT style="font-family: Arial, Helvetica">Credit Risk
    and Contingent Features in Derivative
    Instruments</FONT></U></I></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Resolute is exposed to credit risk to the extent of
    nonperformance by the counterparties in the derivative contracts
    discussed above. All counterparties are lenders under
    Resolute&#146;s Credit Facility. Accordingly, Resolute is not
    required to provide any credit support to its counterparties
    other than cross collateralization with the properties securing
    the Credit Facility. Resolute&#146;s derivative contracts are
    documented with industry standard contracts known as a Schedule
    to the Master Agreement and International Swaps and Derivative
    Association, Inc. Master Agreement (&#147;ISDA&#148;). Typical
    terms for the ISDAs include credit support requirements, cross
    default provisions, termination events, and set-off provisions.
    Resolute has set-off provisions with its lenders that, in the
    event of counterparty default, allow Resolute to set-off amounts
    owed under the Credit Facility or other general obligations
    against amounts owed for derivative contract liabilities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The maximum amount of loss in the event of all counterparties
    defaulting is $0 as of December&#160;31, 2009, due to the set
    off provisions noted above.
</DIV>
<!-- XBRL,n -->

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><U><FONT style="font-family: Arial, Helvetica">Note&#160;12&#160;&#151;
    Fair Value Measurements</FONT></U></B>
</DIV>
<!-- XBRL,body -->

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Resolute fully adopted this guidance as it relates to all
    nonfinancial assets and liabilities that are not recognized or
    disclosed on a recurring basis (e.g. those measured at fair
    value in a business combination, the initial recognition of
    asset retirement obligations, and impairments of goodwill and
    other long-lived assets) as of January&#160;1, 2009. The full
    adoption did not have a material impact on Resolute&#146;s
    consolidated financial statements or its disclosures.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    FASB ASC Topic 820<I>, Fair Value Measurements and Disclosures,
    </I>defines fair value as the price that would be received to
    sell an asset or paid to transfer a liability (an exit price) in
    an orderly transaction between market participants at the
    measurement date. The guidance establishes market or observable
    inputs as the preferred sources of values, followed by
    assumptions based on hypothetical transactions in the absence of
    market inputs. The guidance establishes a hierarchy for
    determining the fair values of assets and liabilities, based on
    the significance level of the following inputs:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    Level&#160;1&#160;&#150; Quoted prices in active markets for
    identical assets or liabilities.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    Level&#160;2&#160;&#150; Quoted prices in active markets for
    similar assets and liabilities, quoted prices for identical or
    similar instruments in markets that are not active and
    model-derived valuations whose inputs are observable or whose
    significant value drivers are observable.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    Level&#160;3&#160;&#150; Significant inputs to the valuation
    model are unobservable.
</TD>
</TR>

</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <BR>
A-118
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL --><DIV style="margin-top: 0pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    An asset or liability subject to the fair value requirements is
    categorized within the hierarchy based on the lowest level of
    input that is significant to the fair value measurement.
    Resolute&#146;s assessment of the significance of a particular
    input to the fair value measurement in its entirety requires
    judgment and considers factors specific to the asset or
    liability. Following is a description of the valuation
    methodologies used by Resolute as well as the general
    classification of such instruments pursuant to the hierarchy.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    As of December&#160;31, 2009, Resolute&#146;s commodity
    derivative instruments were required to be measured at fair
    value on a recurring basis. Resolute used the income approach in
    determining the fair value of its derivative instruments,
    utilizing present value techniques for valuing its swaps and
    basis swaps and option-pricing models for valuing its collars.
    Inputs to these valuation techniques include published forward
    index prices, volatilities, and credit risk considerations,
    including the incorporation of published interest rates and
    credit spreads. Substantially all of these inputs are observable
    in the marketplace throughout the full term of the contract, can
    be derived from observable data or are supported by observable
    levels at which transactions are executed in the marketplace and
    are therefore designated as Level&#160;2 within the valuation
    hierarchy.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The following is a listing of Resolute&#146;s assets and
    liabilities required to be measured at fair value on a recurring
    basis and where they are classified within the hierarchy as of
    December&#160;31, 2009 (in thousands):
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="56%">&nbsp;</TD> <!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=02 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>    <!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>  <!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=03 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>    <!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>  <!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=04 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>    <!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>  <!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=05 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>    <!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=05 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Description</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Level 1</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Level 2</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Level 3</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Total</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <B><U>Assets</U></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Current assets: derivative instruments
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    6,958
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    6,958
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Other assets: derivative instruments
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,600
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,600
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 45pt">
    Total
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    10,558
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    10,558
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <B><U>Liabilities</U></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Current liabilities: derivative instruments
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (20,360
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (20,360
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Long term liabilities: derivative instruments
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (55,260
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (55,260
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 45pt">
    Total
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;(75,620
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;(75,620
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

</DIV>
<!-- XBRL,n -->

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><U><FONT style="font-family: Arial, Helvetica">Note&#160;13&#160;&#151;
    Commitments and Contingencies</FONT></U></B>
</DIV>
<!-- XBRL,body -->

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><U><FONT style="font-family: Arial, Helvetica">CO</FONT></U><SUB style="font-size: 85%; vertical-align: text-bottom"><FONT style="font-family: Arial, Helvetica">2</FONT></SUB><U><FONT style="font-family: Arial, Helvetica">
    <FONT style="white-space: nowrap">Take-or-Pay</FONT>
    Agreements</FONT></U></I></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Resolute is party to two
    <FONT style="white-space: nowrap">take-or-pay</FONT>
    purchase agreements, each with a different supplier, under which
    Resolute has committed to buy specified volumes of
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>.
    The purchased
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    is for use in Resolute&#146;s enhanced tertiary recovery
    projects in Aneth Field. In each case, Resolute is obligated to
    purchase a minimum daily volume of
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    or pay for any deficiencies at the price in effect when delivery
    was to have occurred. The
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    volumes planned for use on the enhanced recovery projects exceed
    the minimum daily volumes provided in these
    <FONT style="white-space: nowrap">take-or-pay</FONT>
    purchase agreements. Therefore, Resolute expects to avoid any
    payments for deficiencies.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    One contract was effective July&#160;1, 2006, with a four year
    term. As of December&#160;31, 2009, future commitments under
    this purchase agreement amounted to approximately
    $3.0&#160;million in 2010, based on prices in effect at
    December&#160;31, 2009. The second contract was entered into on
    May&#160;25, 2005, and was amended on July&#160;1, 2007, and has
    a ten year term. Future commitments as of December&#160;31, 2009
    under this purchase agreement amounted to approximately
    $62.3&#160;million through June 2016 based on prices in effect
    on December&#160;31, 2009.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The annual minimum obligation by year is as follows (in
    thousands):
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="85%">&nbsp;</TD> <!-- colindex=01 type=maindata -->
    <TD width="5%">&nbsp;</TD>  <!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=02 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>    <!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    Purchase<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Year</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Commitments</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    2010
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    17,689
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    2011
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14,665
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    2012
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,477
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    2013
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,088
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    2014
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,924
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Thereafter
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,443
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Total
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;65,286
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <BR>
A-119
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL --><DIV style="margin-top: 0pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->



<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><U><FONT style="font-family: Arial, Helvetica">Crude
    Production Purchase Agreement</FONT></U></I></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Resolute sells all of its crude oil production from the Aneth
    field to a single customer, Western Refining Southwest, Inc.
    (&#147;Western&#148;), a subsidiary of Western Refining, Inc.
    Resolute and Western entered into a new contract on
    August&#160;27, 2009, effective September&#160;1, 2009. The new
    contract provides for a minimum price equal to the NYMEX price
    for crude oil less a fixed differential of $6.25 per Bbl. The
    contract provides for an initial term of one year and continuing
    <FONT style="white-space: nowrap">month-to-month</FONT>
    thereafter, with either party having the right to terminate
    after the initial term, upon ninety days written notice. The
    contract may also be terminated by Western after
    December&#160;31, 2009, upon sixty days written notice, if
    Western is not able to renew its
    <FONT style="white-space: nowrap">right-of-way</FONT>
    agreements with the Navajo Nation or if such
    <FONT style="white-space: nowrap">rights-of-way</FONT>
    are declared invalid and Western is prevented from using such
    <FONT style="white-space: nowrap">rights-of-way.</FONT>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><U><FONT style="font-family: Arial, Helvetica">Operating
    Leases</FONT></U></I></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    For 2009, 2008 and 2007,
    <FONT style="white-space: nowrap">month-to-month</FONT>
    office facilities rental payments charged to expense were
    approximately $0.3&#160;million, $0.1&#160;million and
    $0.1&#160;million, respectively. Future rental payments for
    office facilities under the terms of non-cancelable operating
    leases as of December&#160;31, 2009 were approximately
    $0.5&#160;million and $0.4&#160;million for the years ending
    December&#160;31, 2010 and 2011, respectively. As of
    December&#160;31, 2009, the Company does not have any office
    facility leases in effect for 2012 and beyond. In February 2010,
    the Company entered into an amended office lease agreement.
    Under this agreement the Company will incur future annual rental
    payments of an additional $0.1&#160;million through 2013.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The Company is also party to several field equipment and
    compressor leases used in the
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    project. Future rental payments under the terms of these leases
    amount to annual payments of $2.7&#160;million through 2014 with
    total lease obligations of $6.0&#160;million thereafter. Rental
    expense for 2009 was $0.5&#160;million. No rental expense was
    incurred under these leases in 2008 or 2007.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><U><FONT style="font-family: Arial, Helvetica">Escrow
    Funding Agreement</FONT></U></I></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Under the terms of Predecessor Resolute&#146;s purchase of the
    ExxonMobil Properties, Predecessor Resolute and Navajo Nation
    Oil and Gas Company (&#147;NNOG&#148;) were required to fund an
    escrow account sufficient to complete abandonment, well
    plugging, site restoration and related obligations arising from
    ownership of the acquired interests. The contribution net to
    Aneth&#146;s working interest, is included in other assets:
    restricted cash in the consolidated balance sheets of
    December&#160;31, 2009. Aneth is required to make additional
    deposits to the escrow account annually. Beginning in 2010 and
    continuing through 2016, Aneth must fund approximately
    $1.8&#160;million per year. In years after 2016, Aneth must fund
    additional payments averaging approximately $0.9&#160;million
    per year until 2031. Total contributions from the date of
    acquisition through 2031 will aggregate $26.9&#160;million.
    Annual interest earned in the escrow account becomes part of the
    balance and reduces the payment amount required for funding the
    escrow account each year. As of December&#160;31, 2009, Aneth
    has funded the 2009 annual contractual amount of approximately
    $1.8&#160;million required to meet its future obligation.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><U><FONT style="font-family: Arial, Helvetica">NNOG
    Purchase Options</FONT></U></I></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    In connection with Predecessor Resolute&#146;s acquisition of
    the ExxonMobil Properties and the acquisition from Chevron
    Corporation and its affiliates (&#147;Chevron&#148;) of 75% of
    Chevron&#146;s interest in Aneth Field (&#147;Chevron
    Properties&#148;) in 2005, pursuant to the terms of the
    Cooperative Agreement, Predecessor Resolute granted to NNOG
    three separate but substantially similar purchase options which
    became obligations of Resolute through the Resolute Transaction.
    Each purchase option entitles NNOG to purchase from Resolute up
    to 10% of Resolute&#146;s interest in each of the Chevron
    Properties and the ExxonMobil Properties. Each purchase option
    entitles NNOG to purchase, for a limited period of time, the
    applicable portion of Resolute&#146;s interest in the Chevron
    Properties or the ExxonMobil Properties, at Fair Market Value
    (as defined in the agreement), which is determined without
    giving effect to the existence of the Navajo Nation preferential
    purchase right or the fact that the properties are located
    within the Navajo Nation. Each option becomes exercisable based
    upon Resolute&#146;s achieving a certain multiple of payout of
    the relevant acquisition costs, subsequent capital costs and
    ongoing operating costs attributable to the applicable working
    interests. Revenue applicable to the determination of payout
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <BR>
A-120
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL --><DIV style="margin-top: 0pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    includes the effect of Resolute&#146;s hedging program. The
    multiples of payout that trigger the exercisability of the
    purchase option are 100%, 150% and 200%. The options are not
    exercisable prior to four years from the acquisition except in
    the case of a sale of such assets by, or a change of control of,
    Aneth. In that case, the first option for 10% would be
    accelerated and the other options would terminate. Assuming the
    purchase options are not accelerated due to a change of control
    of Aneth, Resolute expects that the initial payout associated
    with the purchase options granted will occur no sooner than 2013.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The following table demonstrates the maximum net undivided
    working interest in each of the Aneth Unit, the McElmo Creek
    Unit and the Ratherford Unit that NNOG could acquire upon
    exercising each of its purchase options under the Cooperative
    Agreement. The exercise by NNOG of its purchase options in full
    would not give it the right to remove Resolute as operator of
    any of the units.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="63%">&nbsp;</TD> <!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=02 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>    <!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>  <!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=03 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>    <!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>  <!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=04 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>    <!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>McElmo<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Ratherford<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Aneth Unit</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Creek Unit</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Unit</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Chevron Properties:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Option 1 (100% Payout)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.30%&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.50%&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.30%&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Option 2 (150% Payout)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.30%&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.50%&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.30%&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Option 3 (200% Payout)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.30%&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.50%&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.30%&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 27pt">
    Total
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15.90%&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4.50%&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.90%&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="63%">&nbsp;</TD> <!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=02 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>    <!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>  <!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=03 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>    <!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>  <!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=04 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>    <!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>McElmo<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Ratherford<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Aneth Unit</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Creek Unit</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Unit</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    ExxonMobil Properties:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Option 1 (100% Payout)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.75%&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.00%&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.60%&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Option 2 (150% Payout)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.75%&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.00%&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.60%&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Option 3 (200% Payout)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.75%&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.00%&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.60%&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 27pt">
    Total
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.25%&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18.00%&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16.80%&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

</DIV>
<!-- XBRL,n -->

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><U><FONT style="font-family: Arial, Helvetica">Note&#160;14&#160;&#151;
    </FONT></U></B>
</TD>
    <TD>
    <B><U><FONT style="font-family: Arial, Helvetica">Oil and Gas
    Producing Activities</FONT></U></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Costs incurred during 2009 related to oil and gas property
    acquisition, exploration and development activities, including
    the fair value of oil and gas properties acquired in the
    Resolute Transaction are summarized as follows (in thousands):
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="89%">&nbsp;</TD> <!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=02 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>    <!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Development costs*
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    7,989
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Exploration
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Acquisitions:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Proved
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    622,495
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Unproved
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,203
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Total
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;641,689
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="1%"></TD>
    <TD width="1%"></TD>
    <TD width="98%"></TD>
</TR>

<TR>
    <TD valign="top">
    <FONT style="font-size: 10pt">*
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 10pt">Includes $4.4&#160;million of
    acquired
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2.</SUB>
    </FONT></TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Net capitalized costs related to Resolute&#146;s oil and gas
    producing activities at December&#160;31, were as follows
    (in&#160;thousands):
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="89%">&nbsp;</TD> <!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=02 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>    <!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Proved oil and gas properties
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;634,383
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Unevaluated oil and gas properties, not subject to amortization
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,306
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Accumulated depletion, depreciation and amortization
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (11,173
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Oil and gas properties, net
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    630,516
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <BR>
A-121
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL --><DIV style="margin-top: 0pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->
<!-- XBRL,n -->

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><U><FONT style="font-family: Arial, Helvetica">Note&#160;15&#160;&#151;
    </FONT></U></B>
</TD>
    <TD>
    <B><U><FONT style="font-family: Arial, Helvetica">Supplemental
    Oil and Gas Information (unaudited)</FONT></U></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><U><FONT style="font-family: Arial, Helvetica">Reserve
    Engineering and Auditor Qualifications:</FONT></U></I></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Company reserves are prepared by, or under the direct
    supervision of, the Company&#146;s Reservoir Engineering Manager
    and are then reviewed internally by senior management and
    audited by a qualified independent auditor. The professional
    qualifications of the Reservoir Engineering Manager meet or
    exceed the qualification of reserve estimators and auditors as
    set forth by the Society of Petroleum Engineers. The Reservoir
    Engineering Manager has more than 27&#160;years of practical
    petroleum engineering and reserve estimation and evaluation
    experience as well as experience as a qualified reserve
    estimator and auditor.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The Company&#146;s reserve data is audited by Netherland,
    Sewell&#160;&#038; Associates, Inc. (&#147;NSAI&#148;), a
    worldwide leader of petroleum property analysis. Within NSAI,
    the technical person primarily responsible for auditing the
    Company&#146;s reserve estimates has been practicing consulting
    petroleum engineering at NSAI since 1997. Additionally, this
    person has more than 28&#160;years of practical experience in
    petroleum engineering, with more than 12&#160;years experience
    in the estimation and evaluation of reserves.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><U><FONT style="font-family: Arial, Helvetica">Oil and Gas
    Reserve Quantities:</FONT></U></I></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Resolute had no oil and gas reserves prior to the acquisition of
    Predecessor Resolute. Accordingly, the following table presents
    Resolute&#146;s estimated net proved oil and gas reserves and
    the present value of such estimated net proved reserves as of
    December&#160;31, 2009. The reserve data as of December&#160;31,
    2009 was prepared by Resolute and was audited by NSAI. Users of
    this information should be aware that the process of estimating
    quantities of proved oil and gas reserves is very complex,
    requiring significant subjective decisions to be made in the
    evaluation of available geological, engineering and economic
    data for each reservoir. The data for a given reservoir may also
    change substantially over time as a result of numerous factors,
    including, but not limited to, additional development activity,
    evolving production history and continual reassessment of the
    viability of production under varying economic conditions. As a
    result, revisions to existing reserves estimates may occur from
    time to time. Although every reasonable effort is made to ensure
    reserves estimates reported represent the most accurate
    assessments possible, the subjective decisions and variances in
    available data for various reservoirs make these estimates
    generally less precise than other estimates included in the
    financial statement disclosures.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Presented below is a summary of the changes in estimated
    reserves (in thousands):
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="63%">&nbsp;</TD> <!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=02 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>    <!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>  <!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=03 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>    <!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>  <!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=04 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>    <!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Oil<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Gas<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Oil Equivalent<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
&nbsp;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>(Bbl)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>(Mcf)(1)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>(Boe)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Purchases of minerals in place on September&#160;25, 2009
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    64,946
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    94,181
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    80,643
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Production
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (543
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (918
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (696
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Revisions of previous estimates (2)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (14,544
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (5,818
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (15,514
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Proved reserves as of December&#160;31, 2009:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    49,859
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    87,445
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    64,433
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Proved developed reserves:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    As of December&#160;31, 2009
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    30,895
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    24,256
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    34,938
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    1) </TD>
    <TD></TD>
    <TD valign="bottom">
    The gas column includes NGL volumes.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    2) </TD>
    <TD></TD>
    <TD valign="bottom">
    The negative revisions are primarily due to commodity pricing
    attributable to utilization of average first of month fiscal
    year commodity prices.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><U><FONT style="font-family: Arial, Helvetica">Standardized
    Measure of Discounted Future Net Cash Flows Relating to Proved
    Oil and Gas Reserves:</FONT></U></I></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The following summarizes the policies used in the preparation of
    the accompanying oil and gas reserves disclosures, standardized
    measures of discounted future net cash flows from proved oil and
    gas reserves and the reconciliations of standardized measures at
    December&#160;31, 2009. The information disclosed is an attempt
    to present the information in a manner comparable with industry
    peers.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <BR>
A-122
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL --><DIV style="margin-top: 0pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The information is based on estimates of proved reserves
    attributable to Resolute&#146;s interest in oil and gas
    properties as of December&#160;31, 2009. Due to the Resolute
    Transaction, only 2009 activity is presented. Proved reserves
    are estimated quantities of oil and gas that geological and
    engineering data demonstrate with reasonable certainty to be
    recoverable in future years from known reservoirs under existing
    economic and operating conditions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The standardized measure of discounted future net cash flows
    from production of proved reserves was developed as follows:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="1%"></TD>
    <TD width="4%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    1)&#160;&#160;
</TD>
    <TD align="left">
    Estimates were made of quantities of proved reserves and future
    periods during which they are expected to be produced based on
    year-end economic conditions.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    2)&#160;&#160;
</TD>
    <TD align="left">
    The estimated future cash flows was compiled by applying average
    annual prices of crude oil and gas relating to Resolute&#146;s
    proved reserves to the year-end quantities of those reserves.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    3)&#160;&#160;
</TD>
    <TD align="left">
    The future cash flows were reduced by estimated production
    costs, costs to develop and produce the proved reserves and
    abandonment costs, all based on year-end economic conditions.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    4)&#160;&#160;
</TD>
    <TD align="left">
    Future income tax expenses were based on year-end statutory tax
    rates giving effect to the remaining tax basis in the oil and
    gas properties, other deductions, credits and allowances
    relating to Resolute&#146;s proved oil and natural gas reserves.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    5)&#160;&#160;
</TD>
    <TD align="left">
    Future net cash flows were discounted to present value by
    applying a discount rate of 10%.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The standardized measure of discounted future net cash flows
    does not purport, nor should it be interpreted, to present the
    fair value of Resolute&#146;s oil and gas reserves. An estimate
    of fair value would also take into account, among other things,
    the recovery of reserves not presently classified as proved,
    anticipated future changes in prices and costs and a discount
    factor more representative of the time value of money and the
    risks inherent in reserve estimates. The following summary sets
    forth Resolute&#146;s future net cash flows relating to proved
    oil and gas reserves based on the standardized measure
    prescribed by FASB ASC Topic 932:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="85%">&nbsp;</TD> <!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=02 type=lead -->
    <TD width="12%" align="right">&nbsp;</TD>   <!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>December&#160;31,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
&nbsp;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>(in thousands)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Future cash inflows
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3,056,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Future production costs
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,483,000
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Future development costs
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (432,000
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Future income taxes
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (290,000
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Future net cash flows
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    851,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    10% annual discount for estimated timing of cash flows
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (490,000
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Standardized measure of discounted future net cash flows
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;361,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The principal sources of change in the standardized measure of
    discounted future net cash flows are:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="85%">&nbsp;</TD> <!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=02 type=lead -->
    <TD width="12%" align="right">&nbsp;</TD>   <!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>(in thousands)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Standardized measure, beginning of year
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Sales of oil and gas produced, net of production costs
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (22,000
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Net changes in prices and production costs
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (288,000
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Purchase of minerals in place
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    555,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Previously estimated development costs incurred during the year
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Changes in estimated future development costs
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    43,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Revisions of previous quantity estimates
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (131,000
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Accretion of discount
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Net change in income taxes
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    122,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Changes in timing and other
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    63,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Standardized measure, end of year
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;361,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <BR>
A-123
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL --><DIV style="margin-top: 0pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->
<!-- XBRL,n -->

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><U><FONT style="font-family: Arial, Helvetica">Note&#160;16&#160;&#151;
    </FONT></U></B>
</TD>
    <TD>
    <B><U><FONT style="font-family: Arial, Helvetica">Quarterly
    Financial Data (unaudited)</FONT></U></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The following is a summary of the unaudited financial data for
    each quarter for the years ended December&#160;31, 2009 and 2008
    (in thousands except per share data):
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="53%">&nbsp;</TD> <!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=02 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>    <!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>  <!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=03 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>    <!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>  <!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=04 type=lead -->
    <TD width="9%" align="right">&nbsp;</TD>    <!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>  <!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=05 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>    <!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=05 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="14" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Three Months Ended</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>March&#160;31,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>June&#160;30,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>September&#160;30,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>December&#160;31<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Year Ended December&#160;31, 2009:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Revenue
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;&#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;2,270
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;40,146
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Income (loss) from operations
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;(3,761
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;(253
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;(11,224
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;293
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Net loss
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,209
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (79
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (21,406
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (21,549
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Basic and diluted earnings (loss) per common share:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Common stock, subject to redemption
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.01
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (0.13
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Common stock
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (0.05
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (0.00
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (0.43
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (0.43
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Weighted average shares outstanding:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Common stock, subject to redemption
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16,560
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16,560
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15,480
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Common stock
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    45,105
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    45,105
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    45,418
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    49,905 <BR>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<!-- TableOutputHead -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="14" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Three Months Ended</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>March&#160;31,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>June&#160;30,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>September&#160;30,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>December&#160;31,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Loss from operations
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (324
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (348
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (366
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (522
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Net income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,699
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    812
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,027
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    449
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Basic and diluted earnings (loss) per common share:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Common stock, subject to redemption
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.03
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.02
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.02
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.01
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Common stock
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.02
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.01
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.01
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.01
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Weighted average shares outstanding:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Common stock, subject to redemption
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16,560
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16,560
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16,560
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16,560
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Common stock
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    45,105
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    45,105
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    45,105
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    45,105
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

</DIV>
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<P align="center" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <BR>
A-124
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->
<!-- /XBRL,ns -->

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">


    <FONT style="font-family: Arial, Helvetica">To the Managing
    Members of<BR>
    <A name='306'>Resolute Natural Resources Company, LLC, Resolute
    Aneth, LLC, WYNR, LLC, and BWNR, LLC
   </A> </FONT>
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    and
</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    To the Board of Directors of RNRC Holdings, Inc. and Resolute
    Wyoming, Inc
</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Denver, Colorado
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    We have audited the accompanying combined balance sheet of
    Resolute Natural Resources Company, LLC and related combined
    companies as of December&#160;31, 2008, and the related combined
    statements of operations, shareholder&#146;s/member&#146;s
    equity (deficit), and cash flows for the period from
    January&#160;1, 2009 to September&#160;24, 2009, and the years
    ended December&#160;31, 2008 and 2007. The combined financial
    statements include the accounts of Resolute Natural Resources
    Company, LLC and five related companies, Resolute Aneth, LLC,
    WYNR, LLC, BWNR, LLC, RNRC Holdings, Inc. and Resolute Wyoming,
    Inc. These companies are under common ownership and common
    management. These combined financial statements are the
    responsibility of the companies&#146; management. Our
    responsibility is to express an opinion on the combined
    financial statements based on our audits. The combined financial
    statements give retrospective effect to a percentage of the
    acquisition of Resolute Wyoming, Inc. as discussed in
    Note&#160;2 to the combined financial statements. We did not
    audit the balance sheet of Resolute Wyoming, Inc. as of
    December&#160;31, 2007 or the related statements of operations,
    shareholder&#146;s equity and cash flows of Resolute Wyoming,
    Inc. for the year ended December&#160;31, 2007, which statements
    reflect total assets constituting 19% of combined total assets
    as of December&#160;31, 2007, and total revenues constituting
    18% of combined total revenues for the year ended
    December&#160;31, 2007. Those statements were audited by other
    auditors whose report has been furnished to us, and our opinion,
    insofar as it relates to the amounts included for Resolute
    Wyoming, Inc., is based solely on the report of the other
    auditors.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    We conducted our audits in accordance with the standards of the
    Public Company Accounting Oversight Board (United States). Those
    standards require that we plan and perform the audit to obtain
    reasonable assurance about whether the financial statements are
    free of material misstatement. The companies are not required to
    have, nor were we engaged to perform, an audit of their internal
    control over financial reporting. Our audits included
    consideration of internal control over financial reporting as a
    basis for designing audit procedures that are appropriate in the
    circumstances, but not for the purpose of expressing an opinion
    on the effectiveness of the companies&#146; internal control
    over financial reporting. Accordingly, we express no such
    opinion. An audit also includes examining, on a test basis,
    evidence supporting the amounts and disclosures in the financial
    statements, assessing the accounting principles used and
    significant estimates made by management, as well as evaluating
    the overall financial statement presentation. We believe that
    our audits and the report of the other auditors provide a
    reasonable basis for our opinion.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    In our opinion, based on our audits and the report of the other
    auditors, the combined financial statements referred to above
    present fairly, in all material respects, the combined financial
    position of Resolute Natural Resources Company, LLC and related
    companies at December&#160;31, 2008 and the combined results of
    their operations and combined cash flows for the period from
    January&#160;1, 2009 to September&#160;24, 2009, and each of the
    years ended December&#160;31, 2008 and 2007, in conformity with
    accounting principles generally accepted in the United States of
    America.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    As discussed in Note&#160;2 to the combined financial
    statements, the combined financial statements have been
    retrospectively adjusted for the change in accounting for
    noncontrolling interests.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 49%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    /s/ Deloitte&#160;&#038; Touche LLP
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 49%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 49%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Denver, Colorado<BR>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 49%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    March&#160;29, 2010
</DIV>
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<P align="center" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <BR>
A-125
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">RESOLUTE NATURAL
    RESOURCES COMPANY, LLC,<BR>
    RESOLUTE ANETH, LLC, WYNR, LLC, BWNR, LLC,<BR>
    RESOLUTE WYOMING, INC.,<BR>
    RNRC HOLDINGS, INC.</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<!-- XBRL,bs -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <A name='307'><B> Combined Balance Sheet</B></A>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <B>(in thousands, except share amounts)</B>
</DIV>


<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL,body -->
<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 6pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="86%">&nbsp;</TD> <!-- colindex=01 type=maindata -->
    <TD width="4%">&nbsp;</TD>  <!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=02 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>    <!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>December&#160;31,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -6pt; margin-left: 6pt">
    <B>Assets</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -6pt; margin-left: 6pt">
    Current assets:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 13pt">
    Cash and cash equivalents
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,935
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 13pt">
    Restricted cash
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    149
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -6pt; margin-left: 6pt">
    Accounts receivable:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 13pt">
    Trade receivables
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14,680
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 13pt">
    Derivative receivable
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,839
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 13pt">
    Other receivables
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,134
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -6pt; margin-left: 6pt">
    Derivative instruments
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19,017
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -6pt; margin-left: 6pt">
    Prepaid expenses and other current assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,195
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 34pt">
    Total current assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    43,949
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -6pt; margin-left: 6pt">
    Property and equipment, at cost:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 13pt">
    Oil and gas properties, full cost method of accounting
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 27pt">
    Unproved
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12,724
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 27pt">
    Proved
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    348,058
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 27pt">
    Accumulated depletion and amortization
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (97,726
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 34pt">
    Net oil and gas properties
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    263,056
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 13pt">
    Other property and equipment
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,682
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 13pt">
    Accumulated depreciation
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,075
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 20pt">
    Net other property and equipment
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,607
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 34pt">
    Net property and equipment
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    265,663
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -6pt; margin-left: 6pt">
    Other assets:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 13pt">
    Restricted cash
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,210
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 13pt">
    Notes receivable&#160;&#150; affiliated entities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    65
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 13pt">
    Deferred financing costs, net
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,403
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 13pt">
    Derivative instruments
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18,114
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 13pt">
    Deferred income taxes
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14,705
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 13pt">
    Other noncurrent assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    738
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 34pt">
    Total other assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    51,235
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -6pt; margin-left: 6pt">
    Total assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    360,847
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 9pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -6pt; margin-left: 6pt">
    <B>Liabilities and Shareholder&#146;s/Member&#146;s Equity
    (Deficit)</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -6pt; margin-left: 6pt">
    Current liabilities:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 13pt">
    Accounts payable and accrued expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    46,169
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 13pt">
    Accounts payable&#160;&#150; Holdings
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,316
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 13pt">
    Asset retirement obligations
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,713
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 13pt">
    Derivative instruments
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,141
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 13pt">
    Deferred income taxes
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,913
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 13pt">
    Contingent tax liability
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    532
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 13pt">
    Other current liabilities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    817
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 34pt">
    Total current liabilities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    56,601
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -6pt; margin-left: 6pt">
    Noncurrent liabilities:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 13pt">
    Long term debt
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    421,150
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 13pt">
    Asset retirement obligations
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,115
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 13pt">
    Derivative instruments
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20,193
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 13pt">
    Other noncurrent liabilities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    457
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 34pt">
    Total long term liabilities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    449,915
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -6pt; margin-left: 6pt">
    Total liabilities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    506,516
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -6pt; margin-left: 6pt">
    Commitments and contingencies
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -6pt; margin-left: 6pt">
    Shareholder&#146;s/member&#146;s equity (deficit):
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 13pt">
    RNRC common stock, $0.01&#160;par value, 1,000&#160;shares
    authorized and issued
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 13pt">
    RWI common stock, $1.00&#160;par value, 1,000&#160;shares
    authorized and issued
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 13pt">
    Additional paid-in capital
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37,594
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 13pt">
    Accumulated deficit
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (29,436
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 13pt">
    Shareholder&#146;s/member&#146;s deficit
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (153,828
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 34pt">
    Total Resolute shareholder&#146;s/member&#146;s deficit
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (145,669
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -6pt; margin-left: 6pt">
    Total liabilities and shareholder&#146;s/member&#146;s deficit
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;360,847
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    See notes to combined financial statements
</DIV>
<!-- /XBRL,bs -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <BR>
A-126
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">RESOLUTE NATURAL
    RESOURCES COMPANY, LLC,<BR>
    RESOLUTE ANETH, LLC, WYNR, LLC, BWNR, LLC,<BR>
    RESOLUTE WYOMING, INC.,<BR>
    RNRC HOLDINGS, INC.</FONT></B>
</DIV>

<A name='308'>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica"><!-- XBRL,op -->Combined
    Statements of Operations<BR>
    (in thousands)</FONT></B>
</DIV>
</A>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL,body -->
<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="60%">&nbsp;</TD> <!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=02 type=lead -->
    <TD width="10%" align="right">&nbsp;</TD>   <!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>  <!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=03 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>    <!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>  <!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=04 type=lead -->
    <TD width="9%" align="right">&nbsp;</TD>    <!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>For the 267 Day<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Period Ended<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>September&#160;24,</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>December&#160;31,</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Revenue:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 22pt">
    Oil
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    72,655
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    193,535
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    148,431
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 22pt">
    Gas
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,183
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    29,376
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19,592
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 22pt">
    Other
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,506
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,261
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,320
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 36pt">
    Total revenue
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    85,344
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    229,172
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    173,343
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Operating expenses:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 22pt">
    Lease operating
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    46,771
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    85,990
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    66,731
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 22pt">
    Depletion, depreciation, amortization, and asset retirement
    obligation accretion
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    21,925
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    50,335
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    27,790
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 22pt">
    Impairment of proved properties
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13,295
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    245,027
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 22pt">
    General and administrative
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,076
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20,211
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    40,273
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 36pt">
    Total operating expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    90,067
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    401,563
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    134,794
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    (Loss) income from operations
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (4,723
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (172,391
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    38,549
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Other income (expense):
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 22pt">
    Interest expense
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (18,416
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (33,139
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (35,898
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    (Loss) gain on derivative instruments
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (23,519
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    96,032
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (106,228
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 22pt">
    Other income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    47
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    832
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    905
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 36pt">
    Total other (expense) income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (41,888
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    63,725
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (141,221
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Loss before income taxes
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (46,611
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (108,666
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (102,672
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Income tax benefit (expense)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,019
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18,247
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,740
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Net loss
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (41,592
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (90,419
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (104,412
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 36pt">
    Less: net loss (income) attributable to the noncontrolling
    interest
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    177
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (409
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Net loss attributable to Predecessor Resolute
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;(41,592
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;(90,242
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;(104,821
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    See notes to combined financial statements
</DIV>
<!-- /XBRL,op -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <BR>
A-127
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">RESOLUTE NATURAL
    RESOURCES COMPANY, LLC<BR>
    RESOLUTE ANETH, LLC<BR>
    WYNR, LLC<BR>
    BWNR, LLC<BR>
    RESOLUTE WYOMING, INC.<BR>
    RNRC HOLDINGS, INC.</FONT></B>
</DIV>

<A name='309'>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica"><!-- XBRL,in -->Combined
    Statements of Shareholder&#146;s/Member&#146;s Equity
    (Deficit)<BR>
    (in thousands, except for shares)</FONT></B>
</DIV>
</A>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL,body -->
<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 8pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="34%">&nbsp;</TD> <!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=02 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>    <!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=02 type=hang1 -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=03 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>    <!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=03 type=hang1 -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=04 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>    <!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=04 type=hang1 -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=05 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>    <!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=05 type=hang1 -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=06 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>    <!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=06 type=hang1 -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=07 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=07 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>    <!-- colindex=07 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=07 type=hang1 -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=08 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=08 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>    <!-- colindex=08 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=08 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Total<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Additional<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Member&#146;s<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Shareholder&#146;s/<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Common Stock</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Paid-in<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Accumulated<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Equity<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Noncontrolling<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Member&#146;s<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Shares</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Amount</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Capital</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Deficit</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>(Deficit)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Interest</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Equity (Deficit)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Balances at January&#160;1, 2007
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    26,248
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (5,656
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    70,944
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,695
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    94,232
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Distributions
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (100,006
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (100,006
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Adoption of ASC 740 uncertainty provision
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (478
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (478
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Equity-based compensation
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    36,517
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    36,517
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Net income (loss)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,823
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (107,644
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    409
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (104,412
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Balances at December&#160;31, 2007
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    26,248
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (3,311
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (100,189
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,104
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (74,147
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Capital contributions
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15,909
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,227
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20,136
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Distributions
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (15
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (9,224
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (9,239
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Acquisition of noncontrolling interest
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,981
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    945
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,927
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Equity-based compensation
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,160
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,840
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,999
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Issuance of common stock
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Resources conversion to LLC
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,000
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (10,705
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,705
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Net loss
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (37,760
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (52,482
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (177
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (90,419
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Balances at December&#160;31, 2008
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37,594
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (29,436
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (153,828
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (145,669
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Capital contributions
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    125
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    125
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Distributions
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (125
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (125
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Equity-based compensation
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,818
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,818
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Net loss
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (8,257
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (33,335
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (41,592
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Balances at September&#160;24, 2009
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;2,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;1
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;37,594
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;(37,693
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;(184,345
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;(184,443
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    See notes to combined financial statements
</DIV>
<!-- /XBRL,in -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <BR>
A-128
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">RESOLUTE NATURAL
    RESOURCES COMPANY, LLC<BR>
    RESOLUTE ANETH, LLC<BR>
    WYNR, LLC<BR>
    BWNR, LLC<BR>
    RESOLUTE WYOMING, INC.<BR>
    RNRC HOLDINGS, INC.</FONT></B>
</DIV>
<!-- XBRL,cf -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">


    <A name='310'><B><FONT style="font-family: Arial, Helvetica">Combined
    Statements of Cash Flows<BR>
    (in thousands)</FONT></B></A>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL,body -->
<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 6pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="69%">&nbsp;</TD> <!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=02 type=lead -->
    <TD width="10%" align="right">&nbsp;</TD>   <!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=02 type=hang1 -->
    <TD width="2%">&nbsp;</TD>  <!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=03 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>    <!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=03 type=hang1 -->
    <TD width="2%">&nbsp;</TD>  <!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=04 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>    <!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>For the 267 Day<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Period Ended<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>September&#160;24,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>December&#160;31,</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -6pt; margin-left: 6pt">
    Operating activities:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 16pt">
    Net loss
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (41,592
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (90,419
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (104,412
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 16pt">
    Adjustments to reconcile net loss to net cash provided (used) by
    operating activities:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 26pt">
    Depletion, depreciation and amortization
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    21,244
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    49,503
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    27,159
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 26pt">
    Amortization and write-off of deferred financing costs
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,809
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,481
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    956
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 26pt">
    Write-off of deferred offering costs
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,480
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 26pt">
    Deferred income taxes
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (4,732
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (14,540
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,554
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 26pt">
    Equity-based compensation
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,818
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,878
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    34,533
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 26pt">
    Unrealized loss (gain) on derivative instruments
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    25,458
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (120,573
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    101,495
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 26pt">
    Accretion of asset retirement obligations
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    681
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    832
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    631
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 26pt">
    Impairment of proved properties
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13,295
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    245,027
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 26pt">
    Loss on sale of other property and equipment
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 26pt">
    Other
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (14
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (16
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (373
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 26pt">
    Change in operating assets and liabilities:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -6pt; margin-left: 32pt">
    Accounts receivable
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (630
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    28,244
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (13,690
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -6pt; margin-left: 32pt">
    Other current assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    365
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,003
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (207
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -6pt; margin-left: 32pt">
    Accounts payable and accrued expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (4,546
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (16,027
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    24,963
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -6pt; margin-left: 32pt">
    Other current liabilities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,172
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    729
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -6pt; margin-left: 32pt">
    Accounts payable&#160;&#151; Holdings
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (56
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (223
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,180
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 39pt">
    Net cash provided by operating activities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12,939
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    97,379
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    73,789
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -6pt; margin-left: 6pt">
    Investing activities:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 16pt">
    Acquisition of oil and gas properties from ExxonMobil
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (7,934
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 16pt">
    Acquisition, exploration and development expenditures
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (12,904
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (62,042
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (86,353
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 16pt">
    Proceeds from sale of oil and gas properties
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    218
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,141
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    543
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 16pt">
    Proceeds from sale of property and equipment
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    25
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 16pt">
    Purchase of other property and equipment
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (66
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (582
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (871
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 16pt">
    Other long-term assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,453
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 16pt">
    Notes receivable&#160;&#151; affiliated entities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,070
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 16pt">
    Increase in restricted cash
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,751
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,483
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,538
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 16pt">
    Other
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    63
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (150
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 39pt">
    Net cash used for investing activities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (14,423
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (61,021
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (97,596
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -6pt; margin-left: 6pt">
    Financing activities:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 16pt">
    Deferred offering costs
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,979
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 16pt">
    Deferred financing costs
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,823
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (3,599
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,726
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 16pt">
    Proceeds from bank borrowings
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    95,670
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    274,099
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    264,350
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 16pt">
    Payment of bank borrowings
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (93,120
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (312,061
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (137,550
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 16pt">
    Capital contributions
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    125
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,273
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 16pt">
    Capital distributions
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (125
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (9,224
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (100,006
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 39pt">
    Net cash provided (used) by financing activities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    727
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (41,512
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    22,089
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -6pt; margin-left: 6pt">
    Net decrease in cash and cash equivalents
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (757
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (5,154
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,718
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -6pt; margin-left: 6pt">
    Cash and cash equivalents at beginning of year
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,935
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,089
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,807
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -6pt; margin-left: 6pt">
    Cash and cash equivalents at end of year
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,178
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,935
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    7,089
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -6pt; margin-left: 6pt">
    Supplemental disclosures of cash flow information:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 16pt">
    Cash paid during the year for:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -6pt; margin-left: 32pt">
    Interest
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    20,211
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    30,987
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    33,067
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -6pt; margin-left: 32pt">
    Income taxes
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    20
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -6pt; margin-left: 6pt">
    Supplemental schedule of non-cash investing and financing
    activities:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -6pt; margin-left: 19pt">
    Increase to asset retirement obligations
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,641
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,603
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    328
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -6pt; margin-left: 19pt">
    Increase to oil and gas properties through capitalized
    equity-based compensation
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    122
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,983
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -6pt; margin-left: 19pt">
    Capital expenditures financed through current liabilities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    987
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,181
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3,546
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -6pt; margin-left: 19pt">
    Capital distributions
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (15
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -6pt; margin-left: 19pt">
    Capital contributions
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    10,863
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -6pt; margin-left: 19pt">
    Acquisition of ExxonMobil properties:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 26pt">
    Increase to accrued purchase price payable, net of accrued
    purchase price receivable
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;&#160;1,111
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <FONT style="font-size: 8pt">See notes to combined financial
    statements
    </FONT>
</DIV>
<!-- /XBRL,cf -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <BR>
A-129
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">RESOLUTE NATURAL
    RESOURCES COMPANY, LLC<BR>
    RESOLUTE ANETH, LLC<BR>
    WYNR, LLC<BR>
    BWNR, LLC<BR>
    RESOLUTE WYOMING, INC.<BR>
    RNRC HOLDINGS, INC.</FONT></B>
</DIV>

<A name='311'>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Notes to Combined
    Financial Statements</FONT></B>
</DIV>
</A>
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><U><FONT style="font-family: Arial, Helvetica">Note&#160;1&#160;&#151;
    Description of the Companies and Business</FONT></U></B>
</DIV>
<!-- XBRL,body -->

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Resolute Natural Resources Company, LLC (&#147;Resources&#148;),
    previously a Delaware corporation incorporated on
    January&#160;22, 2004 and converted to a limited liability
    company on September&#160;30, 2008, Resolute Aneth, LLC
    (&#147;Aneth&#148;), a Delaware limited liability company
    established on November&#160;12, 2004, WYNR, LLC
    (&#147;WYNR&#148;), a Delaware limited liability company
    established on August&#160;25, 2005, BWNR, LLC
    (&#147;BWNR&#148;), a Delaware limited liability company
    established on August&#160;19, 2005, RNRC Holdings, Inc.
    (&#147;RNRC&#148;), a Delaware corporation incorporated on
    September&#160;19, 2008 and Resolute Wyoming, Inc.
    (&#147;RWI&#148;) (formerly Primary Natural Resources, Inc.
    (&#147;PNR&#148;)), a Delaware corporation incorporated on
    November&#160;21, 2003 (the change of name to RWI was effective
    September&#160;29, 2008) (together, &#147;Predecessor
    Resolute&#148; or the &#147;Companies&#148;) are engaged in the
    acquisition, exploration, development, and production of oil,
    gas and natural gas liquids (&#147;NGL&#148;), primarily in the
    Paradox Basin in southeastern Utah and the Powder River Basin in
    Wyoming. The Companies are wholly owned subsidiaries of Resolute
    Holdings Sub, LLC (&#147;Sub&#148;), which in turn is a wholly
    owned subsidiary of Resolute Holdings, LLC
    (&#147;Holdings&#148;).
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>


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    <TD width="92%"></TD>
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<TR valign="top">
    <TD>
    <B><U><FONT style="font-family: Arial, Helvetica">Note&#160;2&#160;&#151;
    </FONT></U></B>
</TD>
    <TD>
    <B><U><FONT style="font-family: Arial, Helvetica">Basis of
    Presentation and Significant Accounting Policies</FONT></U></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>


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    <B><I><U><FONT style="font-family: Arial, Helvetica">Basis of
    Presentation</FONT></U></I></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The accompanying combined financial statements of Predecessor
    Resolute have been prepared in accordance with accounting
    principles generally accepted in the United States of America
    (&#147;GAAP&#148;). The 2009, 2008 and 2007 combined financial
    statements include the accounts of Resources and the five
    related companies: Aneth, WYNR, BWNR, RNRC and RWI. The
    conversion of Resources to an LLC and the formation of RNRC had
    no impact on the comparability of the combined financial
    statements. These companies are under common ownership and
    common management. All intercompany balances and transactions
    have been eliminated in combination.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    On July&#160;31, 2008, Predecessor Resolute acquired RWI. 87.23%
    of the acquisition of RWI was accounted for as a combination of
    entities under common control, which is similar to the pooling
    of interests method of accounting for business combinations.
    Accordingly, the combined financial statements give
    retrospective effect to these transactions, and therefore,
    Predecessor Resolute&#146;s results from January&#160;1, 2008,
    through July&#160;31, 2008, include 87.23% of the operations of
    RWI. The remaining 12.77% of the acquisition of RWI was
    accounted for using the purchase method. Accordingly, the
    accompanying combined financial statements reflect the 12.77% as
    not owned until the acquisition on July&#160;31, 2008.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    On September&#160;25, 2009 (the &#147;Acquisition Date&#148;),
    Hicks Acquisition Company&#160;I, Inc. (&#147;HACI&#148;)
    consummated a business combination under the terms of a Purchase
    and IPO Reorganization Agreement (the &#147;Acquisition
    Agreement&#148;) with Resolute Energy Corporation
    (&#147;Resolute&#148;), pursuant to which, through a series of
    transactions, HACI&#146;s stockholders collectively acquired a
    majority of the outstanding equity of the Companies (the
    &#147;Resolute Transaction&#148;), and Resolute owns, directly
    or indirectly, 100% of the equity interests of Resources, WYNR,
    BWNR, RNRC, and RWI, and indirectly owns a 99.996% equity
    interest in Aneth. References to 2009 in these Notes relate to
    the 267&#160;day period ended September&#160;24, 2009, unless
    otherwise specified.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Subsequent to the issuance of the unaudited combined interim
    financial statements included in
    <FONT style="white-space: nowrap">Form&#160;10-Q</FONT>
    for the quarterly period ended September&#160;30, 2009 of
    Resolute Energy Corporation, management identified a
    classification error in the statement of cash flows for the
    period ended September&#160;24, 2009. The error relates to
</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    the recording of a routine
    <FONT style="white-space: nowrap">end-of-period</FONT>
    adjustment made to changes in &#147;accounts payable and accrued
    expenses&#148; in the operating activities section in order to
    exclude any unpaid liabilities incurred during the period to
    acquire assets. The accompanying statement of cash flows for the
    period ended September&#160;24, 2009 has been restated,
    resulting in a $2.8&#160;million increase in cash flows provided
    by operating activities and cash flows used in investing
    activities, respectively.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><U><FONT style="font-family: Arial, Helvetica">Assumptions,
    Judgments, and Estimates</FONT></U></I></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The preparation of the combined financial statements in
    conformity with GAAP requires management to make various
    assumptions, judgments and estimates to determine the reported
    amounts of assets, liabilities, revenue and expenses, and in the
    disclosures of commitments and contingencies. Changes in these
    assumptions, judgments and estimates will occur as a result of
    the passage of time and the occurrence of future events.
    Accordingly, actual results could differ from amounts previously
    established.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Significant estimates with regard to the combined financial
    statements include the estimated carrying value of unproved
    properties, the estimate of proved oil and gas reserve volumes
    and the related present value of estimated future net cash flows
    and the ceiling test applied to capitalized oil and gas
    properties, the estimated cost and timing related to asset
    retirement obligations, the estimated fair value of derivative
    assets and liabilities, the estimated expense for equity based
    compensation and depletion, depreciation, and amortization.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><U><FONT style="font-family: Arial, Helvetica">Fair Value
    of Financial Instruments</FONT></U></I></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The carrying amount of Predecessor Resolute&#146;s financial
    instruments, namely cash and cash equivalents, accounts
    receivable and accounts payable, approximate their fair value
    because of the short-term nature of these instruments. The fair
    value to the notes receivable and payable approximate their fair
    market value. The long-term debt has a recorded value that
    approximates its fair market value since its variable interest
    rate is tied to current market rates.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><U><FONT style="font-family: Arial, Helvetica">Cash
    Equivalents</FONT></U></I></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    For purposes of reporting cash flows, Predecessor Resolute
    considers all highly liquid investments with original maturities
    of three months or less at date of purchase to be cash
    equivalents. Predecessor Resolute periodically maintains cash
    and cash equivalents in bank deposit accounts and money market
    funds which may be in excess of federally insured amounts.
    Predecessor Resolute has not experienced any losses in such
    accounts and believes it is not exposed to any significant
    credit risk on such accounts.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><U><FONT style="font-family: Arial, Helvetica">Concentration
    of Credit Risk</FONT></U></I></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Financial instruments that potentially subject Predecessor
    Resolute to concentrations of credit risk consist primarily of
    trade and production receivables. Predecessor Resolute derived
    81% and 13% of its total 2009 revenue from Western Refining,
    Inc. and WGR Asset Holding Company, LLC, respectively.
    Predecessor Resolute derived 80% and 11% of its 2008 and 2007
    revenue from Western Refining, Inc, and WGR Asset Holding
    Company, LLC, respectively. The concentration of credit risk in
    a single industry affects the overall exposure to credit risk
    because customers may be similarly affected by changes in
    economic or other conditions. The creditworthiness of customers
    and other counterparties is subject to continuing review,
    including the use of master netting agreements, where
    appropriate. Commodity derivative contracts expose Predecessor
    Resolute to the credit risk of non-performance by the
    counterparty to the contracts. This exposure is diversified
    among major investment grade financial institutions, each of
    which is a financial institution participating in Predecessor
    Resolute&#146;s bank credit agreement. As of December&#160;31,
    2008, Predecessor Resolute recorded an allowance for doubtful
    accounts of $0.7&#160;million.
</DIV>
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    <BR>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><U><FONT style="font-family: Arial, Helvetica">Oil and Gas
    Properties</FONT></U></I></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Predecessor Resolute uses the full cost method of accounting for
    oil and gas producing activities. All costs incurred in the
    acquisition, exploration and development of properties,
    including costs of unsuccessful exploration, costs of
    surrendered and abandoned leaseholds, delay lease rentals and
    the fair value of estimated future costs of site restoration,
    dismantlement and abandonment activities, improved recovery
    systems and a portion of general and administrative expenses are
    capitalized within the cost center.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Predecessor Resolute conducts tertiary recovery projects on
    certain of its oil and gas properties in order to recover
    additional hydrocarbons that are not recoverable from primary or
    secondary recovery methods. Under the full cost method, all
    development costs are capitalized at the time incurred.
    Development costs include charges associated with access to and
    preparation of well locations, drilling and equipping
    development wells, test wells, and service wells including
    injection wells; acquiring, constructing, and installing
    production facilities and providing for improved recovery
    systems. Improved recovery systems include all related facility
    development costs and the cost of the acquisition of tertiary
    injectants, primarily purchased
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>.
    The development cost related to
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    purchases are incurred solely for the purpose of gaining access
    to incremental reserves not otherwise recoverable. The
    accumulation of injected
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>,
    in combination with additional purchased and recycled
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>,
    provide future economic value over the life of the project.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    In contrast, other costs related to the daily operation of the
    improved recovery systems are considered production costs and
    are expensed as incurred. These costs include, but are not
    limited to, compression, electricity, separation, re-injection
    of recovered
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    and water. Costs incurred to maintain reservoir pressure are
    also expensed as incurred.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Capitalized general and administrative and operating costs
    include salaries, employee benefits, costs of consulting
    services and other specifically identifiable costs and do not
    include costs related to production operations, general
    corporate overhead or similar activities. Predecessor Resolute
    capitalized general and administrative and operating costs of
    $0.3&#160;million, $1.6&#160;million and $3.5&#160;million
    related to its acquisition, exploration and development
    activities in 2009, 2008 and 2007, respectively.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Investments in unproved properties are not depleted, pending
    determination of the existence of proved reserves. Unproved
    properties are assessed periodically to ascertain whether
    impairment has occurred. Unproved properties whose costs are
    individually significant are assessed individually by
    considering the primary lease terms of the properties, the
    holding period of the properties, and geographic and geologic
    data obtained relating to the properties. Where it is not
    practicable to assess individually the amount of impairment of
    properties for which costs are not individually significant,
    such properties are grouped for purposes of assessing
    impairment. The amount of impairment assessed is added to the
    costs to be amortized, or is reported as a period expense as
    appropriate.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Pursuant to full cost accounting rules, Predecessor Resolute
    must perform a ceiling test each quarter on its proved oil and
    gas assets. The ceiling test provides that capitalized costs
    less related accumulated depletion and deferred income taxes for
    each cost center may not exceed the sum of (1)&#160;the present
    value of future net revenue from estimated production of proved
    oil and gas reserves using current prices, excluding the future
    cash outflows associated with settling asset retirement
    obligations that have been accrued on the balance sheet, and a
    discount factor of 10%; plus (2)&#160;the cost of properties not
    being amortized, if any; plus (3)&#160;the lower of cost or
    estimated fair value of unproved properties included in the
    costs being amortized, if any; less (4)&#160;income tax effects
    related to differences in the book and tax basis of oil and gas
    properties. Should the net capitalized costs for a cost center
    exceed the sum of the components noted above, an impairment
    charge would be recognized to the extent of the excess
    capitalized costs. As a result of this limitation on capitalized
    costs, the accompanying combined financial statements include a
    provision for an impairment of oil and gas property cost in 2009
    and 2008 of $13.3&#160;million and $245.0&#160;million,
    respectively. No provisions for impairment were booked in 2007.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    No gain or loss is recognized upon the sale or abandonment of
    undeveloped or producing oil and gas properties unless the sale
    represents a significant portion of oil and gas properties and
    the gain or loss significantly alters the relationship between
    the capitalized costs and proved oil reserves of the cost center.
</DIV>
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    <BR>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Depletion and amortization of oil and gas properties is computed
    on the
    <FONT style="white-space: nowrap">unit-of-production</FONT>
    method based on proved reserves. Amortizable costs include
    estimates of asset retirement obligations and future development
    costs of proved reserves, including, but not limited to, costs
    to drill and equip development wells, constructing and
    installing production and processing facilities, and improved
    recovery systems, including the cost of required future
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>purchases.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><U><FONT style="font-family: Arial, Helvetica">Other
    Property and Equipment</FONT></U></I></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Other property and equipment are recorded at cost. Costs of
    renewals and improvements that substantially extend the useful
    lives of the assets are capitalized. Maintenance and repair
    costs which do not extend the useful lives of property and
    equipment are charged to expense as incurred. Depreciation and
    amortization is calculated using the straight-line method over
    the estimated useful lives of the assets. Office furniture,
    automobiles, and computer hardware and software are depreciated
    from three to five years. Field offices are depreciated from
    fifteen to twenty years. Leasehold improvements are depreciated,
    using the straight line method, over the shorter of the lease
    term or the useful life of the asset. When other property and
    equipment is sold or retired, the capitalized costs and related
    accumulated depreciation and amortization are removed from the
    accounts.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><U><FONT style="font-family: Arial, Helvetica">Asset
    Retirement Obligations</FONT></U></I></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Asset retirement obligations relate to future costs associated
    with the plugging and abandonment of oil and gas wells, removal
    of equipment and facilities from leased acreage and returning
    such land to its original condition. The fair value of a
    liability for an asset retirement obligation is recorded in the
    period in which it is incurred and the cost of such liability
    increases the carrying amount of the related long-lived asset by
    the same amount. The liability is accreted each period and the
    capitalized cost is depleted on a
    <FONT style="white-space: nowrap">units-of-production</FONT>
    basis as part of the full cost pool. Revisions to estimated
    asset retirement obligations result in adjustments to the
    related capitalized asset and corresponding liability. See
    Note&#160;4.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><U><FONT style="font-family: Arial, Helvetica">Impairment
    of Long-Lived Assets</FONT></U></I></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    For non-oil and gas properties, Predecessor Resolute follows
    Financial Accounting Standards Board (&#147;FASB&#148;)
    Accounting Standards Codifications (&#147;ASC&#148;) Topic 360,
    <I>Property Plant and Equipment, </I>which requires impairment
    losses to be recorded on long-lived assets used in operations
    when indicators of impairment are present and the undiscounted
    cash flows estimated to be generated by those assets are less
    than the carrying amount of such assets. In the evaluation of
    the fair value and future benefits of long-lived assets,
    Predecessor Resolute performs an analysis of the anticipated
    undiscounted future net cash flows of the related long-lived
    assets. If the carrying value of the related asset exceeds the
    undiscounted cash flows, the carrying value is reduced to its
    fair value. Other than the full cost ceiling test impairment
    discussed in the oil and gas properties accounting policy, there
    were no provisions for impairment in 2009, 2008 and 2007.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><U><FONT style="font-family: Arial, Helvetica">Deferred
    Financing Costs</FONT></U></I></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Deferred financing costs are amortized over the estimated lives
    of the related obligations or, in certain circumstances,
    accelerated if the obligation is refinanced. The unamortized
    balance of these costs was approximately $6.4&#160;million as of
    December&#160;31, 2008.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><U><FONT style="font-family: Arial, Helvetica">Derivative
    Instruments</FONT></U></I></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Predecessor Resolute enters into derivative contracts to manage
    its exposure to oil and gas price volatility. Derivative
    contracts may take the form of futures contracts, swaps or
    options. Realized and unrealized gains and losses related to
    commodity derivatives are recognized in other income (expense).
    Realized gains and losses are recognized in the period in which
    the related contract is settled. The cash flows from derivatives
    are reported as cash flows from operating activities unless the
    derivative contract is deemed to contain a financing element.
</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Derivatives deemed to contain a financing element are reported
    as financing activities in the statement of cash flows.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Predecessor Resolute recognizes all derivative instruments on
    the balance sheet as either assets or liabilities measured at
    fair value. Changes in the fair value of a derivative are
    recognized currently in earnings unless specific hedge
    accounting criteria are met. Gains and losses on derivative
    hedging instruments are recorded in current earnings, depending
    on the nature and designation of the instrument. Presently,
    Predecessor Resolute&#146;s management has determined that the
    benefit of the financial statement presentation which may allow
    for its derivative instruments to be reflected as cash flow
    hedges is not commensurate with the administrative burden
    required to support that treatment. As a result, Predecessor
    Resolute marked its derivative instruments to fair value during
    2009, 2008 and 2007 and recognized the changes in fair market
    value in earnings. The gain or loss on derivative instruments
    reflected in the combined statement of operations incorporate
    both the realized and unrealized amounts.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><U><FONT style="font-family: Arial, Helvetica">Revenue
    Recognition</FONT></U></I></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Oil revenue is recognized when production is sold to a purchaser
    at a fixed or determinable price, when delivery has occurred and
    title has transferred and if the collectability of the revenue
    is probable. Gas revenue is recorded using the sales method.
    Under this method, Predecessor Resolute recognizes revenue based
    on actual volumes of gas sold to purchasers. Predecessor
    Resolute and other joint interest owners may sell more or less
    than their entitlement share of the volumes produced. A
    liability is recorded and the revenue is deferred if Predecessor
    Resolute&#146;s excess sales of gas volumes exceed its estimated
    remaining recoverable reserves. Resolute had no significant gas
    imbalances at December&#160;31, 2008.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    RWI is party to a twenty year Well Suspension Agreement (the
    &#147;Agreement&#148;) with Thunder Basin Coal Company, LLC and
    Ark Land Company (collectively &#147;TBCC&#148;). The initial
    term of the agreement does not exceed 20&#160;years from
    October&#160;1, 2006. However, both RWI or TBCC have the option
    to extend the agreement 10&#160;years beyond the expiration of
    the initial term. Under the agreement, TBCC will pay RWI
    $2.6&#160;million in exchange for suspension of well operations
    or deferral of drilling plans by RWI on certain acreage under
    lease to RWI. The non-refundable payment is payable to RWI in
    three installments over a period of three years beginning
    January&#160;1, 2008. Revenue is recognized over TBCC&#146;s
    expected development plan or until such time the specified
    properties are released from suspension and RWI may proceed with
    exploration of these properties. RWI recognized revenue related
    to the Agreement of $0.5&#160;million, $0.4&#160;million and
    $0.4&#160;million in other revenue during 2009, 2008 and 2007,
    respectively.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    RWI is party to two additional well suspension agreements (the
    &#147;Agreements&#148;). The counterparties to these Agreements
    from time to time may submit a request to RWI to suspend well
    operations or defer drilling plans on certain acreage under
    lease to RWI in exchange for non-refundable payments. Revenue is
    recognized for these payments over the expected development plan
    or until such time the specified properties are released from
    suspension and RWI may proceed with exploration of these
    properties. During 2009, the Company recognized
    $0.1&#160;million in income related to the Agreements.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><U><FONT style="font-family: Arial, Helvetica">General and
    Administrative Expenses</FONT></U></I></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    General and administrative expenses are reported net of
    reimbursements of overhead costs that are allocated to working
    interest owners of the oil and gas properties operated by
    Predecessor Resolute.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><U><FONT style="font-family: Arial, Helvetica">Income
    Taxes</FONT></U></I></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Income taxes are provided based on earnings reported for tax
    return purposes in addition to a provision for deferred income
    taxes. RNRC and RWI use the asset and liability method of
    accounting for deferred income taxes. Under this method,
    deferred tax assets and liabilities are determined by applying
    the enacted statutory tax rates in effect at the end of a
    reporting period to the cumulative temporary differences between
    the tax bases of assets and liabilities and their reported
    amounts in the combined financial statements. The effect on
    deferred taxes for a change in tax rates is recognized in income
    in the period that includes the enactment date. A
</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    valuation allowance for deferred tax assets is established when
    it is more likely than not that some portion of the benefit from
    deferred tax assets will not be realized. Effective
    January&#160;1, 2007, Resources (prior to converting to an
    LLC)&#160;and RWI adopted the uncertainty provision of FASB ASC
    Topic 740, <I>Accounting for Income Taxes</I>. In accordance
    with this guidance, Resources (prior to converting to an LLC),
    RNRC and RWI income tax positions must meet a
    more-likely-than-not recognition threshold to be recognized, and
    any potential accrued interest and penalties related to
    unrecognized tax benefits are recognized within interest expense
    and general and administrative expenses, respectively.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Aneth, WYNR, BWNR and Resources are limited liability companies.
    As limited liability companies, Aneth, WYNR, BWNR and Resources
    (subsequent to converting to an LLC)&#160;are tax flow-through
    entities and, therefore, the related tax obligation, if any, is
    borne by the owners.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><U><FONT style="font-family: Arial, Helvetica">Industry
    Segment and Geographic Information</FONT></U></I></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    At September&#160;24, 2009, Predecessor Resolute conducted
    operations in one industry segment, that being the crude oil,
    gas and natural gas liquids exploration and production industry.
    Predecessor Resolute considers gathering, processing and
    marketing functions as ancillary to its oil and gas producing
    activities, and therefore are not reported as a separate
    segment. All of Predecessor Resolute&#146;s operations and
    assets are located in the United States, and all of its revenue
    is attributable to domestic customers.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><U><FONT style="font-family: Arial, Helvetica">Change in
    Accounting Principle</FONT></U></I></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    In June 2006, the FASB issued guidance which creates a single
    model to address accounting for uncertainty in tax positions.
    Specifically, the pronouncement prescribes a recognition
    threshold and a measurement attribute for the financial
    statement recognition and measurement of a tax position taken or
    expected to be taken in a tax return. The guidance also focuses
    on derecognition, classification, interest and penalties,
    accounting in interim periods, disclosure and transition of
    certain tax positions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Resources and RWI adopted this guidance on January&#160;1, 2007
    and RNRC adopted this guidance on September&#160;30, 2008. As a
    result of the implementation of this guidance, Resources
    recognized a $0.5&#160;million increase in the liability for
    unrecognized tax benefits, which was accounted for as a
    reduction to the January&#160;1, 2007 balance of retained
    earnings and a corresponding increase in other long-term
    liabilities. There was no impact related to RWI and RNRC&#146;s
    adoption of this guidance.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><U><FONT style="font-family: Arial, Helvetica">Accounting
    Standards Update</FONT></U></I></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Predecessor Resolute adopted Financial Accounting Standards
    Board (&#147;FASB&#148;) Accounting Standards Codification
    (&#147;ASC&#148;) Topic 805, <I>Business Combinations </I>on
    January&#160;1, 2009. FASB ASC Topic 805 establishes principles
    and requirements for how the acquirer of a business recognizes
    and measures in its financial statements the contingent and
    identifiable assets acquired, the liabilities assumed, and any
    noncontrolling interest in the acquiree. The statement also
    provides guidance for recognizing and measuring the goodwill
    acquired in the business combination and determines what
    information to disclose to enable users of the financial
    statement to evaluate the nature and financial effects of the
    business combination. FASB ASC Topic 805 is effective for
    financial statements issued for fiscal years beginning after
    December&#160;15, 2008. The nature and magnitude of the specific
    effects of FASB ASC Topic 805 on the combined financial
    statements will depend upon the nature, terms and size of the
    acquisitions consummated after the effective date. There have
    not been any acquisitions since adoption.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    In April 2009, the FASB issued ASC Topic
    <FONT style="white-space: nowrap">825-10-65-1,</FONT>
    <I>Interim Disclosures about Fair Value of Financial Instruments
    </I>which requires disclosures about the fair value of financial
    instruments for interim reporting periods of publicly traded
    companies as well as in annual financial statements. FASB ASC
    Topic
    <FONT style="white-space: nowrap">825-10-65-1</FONT>
    is effective for interim and annual reporting periods ending
    after June&#160;15, 2009. The adoption of this pronouncement did
    not have an impact on Predecessor Resolute&#146;s combined
    financial statements, other than additional disclosures.
</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    In April 2009, the FASB issued ASC
    <FONT style="white-space: nowrap">820-10-65-4,</FONT>
    <I>Determining Fair Value When the Volume or Level of Activity
    for the Asset or Liability Have Significantly Decreased and
    Identifying Transactions That Are Not Orderly</I>. FASB ASC
    Topic
    <FONT style="white-space: nowrap">820-10-65-4</FONT>
    provides additional guidance for estimating fair value when the
    volume and level of activity for the asset or liability have
    significantly decreased and requires that companies provide
    interim and annual disclosures of the inputs and valuation
    technique(s) used to measure fair value. FASB ASC Topic
    <FONT style="white-space: nowrap">820-10-65-4</FONT>
    is effective for interim and annual reporting periods ending
    after June&#160;15, 2009 and is to be applied prospectively. The
    adoption of this pronouncement did not have an impact on
    Predecessor Resolute&#146;s combined financial statements.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Predecessor Resolute adopted FASB ASC Topic
    <FONT style="white-space: nowrap">810-10-65-1,</FONT>
    <I>Noncontrolling Interests in Consolidated Financial
    Statements&#160;&#151; an amendment to Accounting Research
    Bulletin (&#147;ARB&#148;) No.&#160;51</I>, on January&#160;1,
    2009. FASB ASC Topic
    <FONT style="white-space: nowrap">810-10-65-1</FONT>
    changed the accounting and reporting requirements for minority
    interests, which are now characterized as noncontrolling
    interests and are classified as a component of equity in the
    accompanying combined balance sheet. FASB ASC Topic
    <FONT style="white-space: nowrap">810-10-65-1</FONT>
    requires retroactive adoption of the presentation and disclosure
    requirements for existing noncontrolling interests, with all
    other requirements applied prospectively. Accordingly,
    Predecessor Resolute has reclassified net income attributable to
    noncontrolling interests on the combined statements of
    operations, to below net income for all periods presented.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    In March 2008, the FASB issued ASC Topic
    <FONT style="white-space: nowrap">815-10-65,</FONT>
    <I>Disclosures about Derivative Instruments and Hedging
    Activities&#160;&#151; An Amendment of FASB Statement 133</I>.
    FASB ASC Topic
    <FONT style="white-space: nowrap">815-10-65</FONT>
    enhances required disclosures regarding derivatives and hedging
    activities, including enhanced disclosures regarding:
    (a)&#160;how an entity uses derivative instruments; (b)&#160;how
    derivative instruments and related hedged items are accounted
    for under the derivatives and hedging Topic of the ASC, and
    (c)&#160;how derivative instruments and related hedged items
    affect an entity&#146;s financial position, financial
    performance, and cash flows. Predecessor Resolute adopted this
    pronouncement as of January&#160;1, 2009 (see Note&#160;10).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Predecessor Resolute adopted FASB ASC Topic 855, <I>Subsequent
    Events </I>on April&#160;1, 2009, which established general
    standards of accounting for and disclosures of events that occur
    after the balance sheet date but before financial statements are
    issued or are available to be issued. The adoption of this
    pronouncement did not have a material impact on Predecessor
    Resolute&#146;s combined financial statements.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Predecessor Resolute adopted FASB ASC Topic
    <FONT style="white-space: nowrap">105-10-65-1,</FONT>
    <I>The &#147;FASB Accounting Standards Codification&#148; and
    the Hierarchy of Generally Accepted Accounting Principles </I>on
    July&#160;1, 2009. This pronouncement is effective for financial
    statements for interim or annual reporting periods ending after
    September&#160;15, 2009. This pronouncement established only two
    levels of GAAP, authoritative and nonauthoritative. The ASC was
    not intended to change or alter existing GAAP, and it therefore
    did not have any impact on Predecessor Resolute&#146;s combined
    financial statements, other than to modify certain existing
    disclosures. The ASC is the source of authoritative,
    nongovernmental GAAP, except for rules and interpretive releases
    of the SEC, which are sources of authoritative GAAP for SEC
    registrants. All other nongrandfathered, non-SEC accounting
    literature not included in the ASC is considered
    nonauthoritative.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>


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    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><U><FONT style="font-family: Arial, Helvetica">Note&#160;3&#160;&#151;
    </FONT></U></B>
</TD>
    <TD>
    <B><U><FONT style="font-family: Arial, Helvetica">Acquisitions</FONT></U></B>
</TD>
</TR>

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<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><U><FONT style="font-family: Arial, Helvetica">ExxonMobil
    Acquisition</FONT></U></I></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    On April&#160;14, 2006, Aneth acquired from Exxon Mobil
    Corporation and its affiliates (&#147;ExxonMobil&#148;) 75% of
    the ExxonMobil interests in Aneth Field, (the &#147;ExxonMobil
    Properties&#148;) along with various other related assets,
    including ExxonMobil&#146;s interest in the Aneth gas
    compression facility, its interest in a
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">
    2</SUB> pipeline which serves the field, and office facilities
    in Cortez, Colorado.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Under the terms of the Purchase and Sale Agreement for the
    ExxonMobil Properties, Predecessor Resolute and Navajo Nation
    Oil and Gas Company (&#147;NNOG&#148;) were required to fund an
    escrow account sufficient to complete abandonment, well
    plugging, site restoration and related obligations arising from
    ownership of the acquired interests. The contribution required
    at the date of acquisition of $10.0&#160;million, or
    $7.5&#160;million net to Aneth&#146;s interest, is included in
    restricted cash in the combined balance sheet as of
    December&#160;31, 2008. Aneth is required to make additional
    deposits to the escrow account annually. Beginning in 2007 and
    continuing through
</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    2016, Aneth must fund approximately $1.8&#160;million annually.
    As of September&#160;24, 2009, Aneth had funded this annual
    obligation. In years after 2016, Aneth must fund additional
    payments averaging approximately $0.9&#160;million until 2031.
    Total contributions from the date of acquisition through 2031
    will aggregate $53.4&#160;million, or $40.0&#160;million net to
    the Aneth interest. Annual interest earned in the escrow account
    becomes part of the balance and reduces the payment amount
    required for funding the escrow account each year. As of
    December&#160;31, 2008 Aneth has funded the 2008 annual
    contractual amount required to meet its future obligation,
    approximately $1.8&#160;million.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><U><FONT style="font-family: Arial, Helvetica">Net Profits
    Overriding Royalty Interest Contribution</FONT></U></I></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    On July&#160;31, 2008 Predecessor Resolute entered into an asset
    contribution agreement with NGP-VII Income Co-Investment
    Opportunities, LLC (&#147;NGP Co-Invest&#148;), whereby NGP
    Co-Invest contributed a certain overriding net profits royalty
    interests (&#147;NPI&#148;) in oil and gas properties of RWI to
    Holdings for a total of 2,184,445 common units (value of
    $19.7&#160;million) as consideration.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    On July&#160;31, 2008, RWI acquired the contributed NPI from
    Holdings for $19.4&#160;million and allocated the
    $19.4&#160;million to oil and gas properties after normal
    purchase price adjustments. The acquisition of the NPI was
    funded with $15.4&#160;million cash and a note payable to
    Holdings. On December&#160;31, 2008, Holdings contributed the
    note receivable and accrued interest in the amount of
    $4.1&#160;million to Aneth.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><U><FONT style="font-family: Arial, Helvetica">Primary
    Natural Resources Acquisition</FONT></U></I></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    On July&#160;31, 2008, Holdings completed the acquisition of PNR
    (a Natural Gas Partners, VII, L.P. (&#147;NGP VII&#148;)
    portfolio company). Upon closing, Holdings paid, as
    consideration, a total of 8,286,985 common units (value of
    $74.8&#160;million) and $15.4&#160;million in cash. NGP VII owns
    a significant equity position in Holdings.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The majority of the acquisition of PNR was accounted for as a
    combination of entities under common control, which is similar
    to the pooling of interests method of accounting for business
    combinations. Accordingly, the combined financial statements
    give retrospective effect to these transactions, and therefore,
    Predecessor Resolute&#146;s results from January&#160;1, 2007
    through July&#160;31, 2008, include 87.23% of the operations of
    RWI. Accordingly, the accompanying combined financial statements
    reflect the 12.77% not owned by Predecessor Resolute as a
    noncontrolling interest for results from January&#160;1, 2007,
    through July&#160;31, 2008.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The remaining portion of the acquisition of RWI not under common
    control, was accounted for using the purchase method in
    accordance with SFAS&#160;No.&#160;141, <I>Business
    Combinations, </I>which was subsequently revised by FASB ASC
    Topic 805. 12.77% of the purchase price was allocated to
    acquired assets and liabilities based on their respective fair
    value as determined by management. The purchase price allocation
    is set forth below (in thousands).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="89%">&nbsp;</TD> <!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=02 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>    <!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>December&#160;31,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Purchase price
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    11,553
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Current assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,849
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Long term assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,890
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Oil and gas properties
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18,427
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Liabilities assumed
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (10,613
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    &#160;Total purchase price allocation
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;11,553
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The following table presents the pro forma operating results for
    years ended December&#160;31, 2008 and 2007. The years ended
    December&#160;31, 2008 and 2007 give effect as if the
    acquisition of PNR had occurred January&#160;1, 2007. The pro
    forma results shown below are not necessarily indicative of the
    operating results that would have occurred if the transaction
    had occurred on such date. The pro forma adjustments made are
    based on certain
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <BR>
A-137
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    assumptions that Predecessor Resolute believes are reasonable
    based on currently available information (unaudited; in
    thousands):
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="78%">&nbsp;</TD> <!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=02 type=gutter -->
    <TD width="4%" align="right">&nbsp;</TD>    <!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=02 type=body -->
    <TD width="4%" align="left">&nbsp;</TD>     <!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>  <!-- colindex=03 type=gutter -->
    <TD width="4%" align="right">&nbsp;</TD>    <!-- colindex=03 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=03 type=body -->
    <TD width="4%" align="left">&nbsp;</TD>     <!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="7" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>December&#160;31,</B>
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Total revenue
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;229,172
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;173,343
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Net income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (90,419
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (104,412
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>


<!-- XBRL,n -->
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="7%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><U><FONT style="font-family: Arial, Helvetica">Note&#160;4&#151;</FONT></U></B>
</TD>
    <TD>
    <B><U><FONT style="font-family: Arial, Helvetica">Asset
    Retirement Obligations</FONT></U></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Predecessor Resolute&#146;s estimated asset retirement
    obligation liability is based on estimated economic lives,
    estimates as to the cost to abandon the wells in the future, and
    federal and state regulatory requirements. The liability is
    discounted using a credit-adjusted risk-free rate estimated at
    the time the liability is incurred or revised. The
    credit-adjusted risk-free rates used to discount Predecessor
    Resolute&#146;s abandonment liabilities range from 3.90% to
    13.50%. Revisions to the liability could occur due to changes in
    estimated abandonment costs or well economic lives, or if
    federal or state regulators enact new requirements regarding the
    abandonment of wells.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The following table provides a reconciliation of Predecessor
    Resolute&#146;s asset retirement obligation (in thousands):
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="68%">&nbsp;</TD> <!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=02 type=lead -->
    <TD width="9%" align="right">&nbsp;</TD>    <!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>  <!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=03 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>    <!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>  <!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=04 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>    <!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Period Ended<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>September&#160;24,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>December&#160;31,</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Asset retirement obligations at beginning of period
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    9,828
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    8,445
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    8,866
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Accretion expense
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    681
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    832
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    631
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Additional liability incurred
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    275
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    148
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Liabilities settled
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,337
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (220
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (749
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Revisions to previous estimates
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,641
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    496
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (451
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Asset retirement obligations at end of period
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,813
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,828
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,445
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Less current asset retirement obligations
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,565
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,713
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,072
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Long-term asset retirement obligations
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;9,248
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;8,115
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;7,373
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>


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<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><U><FONT style="font-family: Arial, Helvetica">Note&#160;5&#151;Related
    Party Transactions</FONT></U></B>
</DIV>
<!-- XBRL,body -->

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    On April&#160;1, 2005, Holdings entered into a joint venture
    arrangement with Wachovia Investment Holdings, LLC
    (&#147;Wachovia Investment&#148;) to form an oil and gas
    marketing and trading company, Odyssey Energy Services, LLC
    (&#147;Odyssey&#148;), allocating profits and losses 40% to
    Holdings and 60% to Wachovia Investment. Holdings made an
    initial capital contribution of $2.0&#160;million, and agreed to
    be responsible for up to a total of $10.0&#160;million of
    additional capital to cover certain potential liabilities.
    Holdings borrowed $2.0&#160;million from Resources, which loan
    was evidenced by a note. Terms of the note included annual
    payment of interest at a rate of 4.09%. Interest income
    recognized on the note was $0.1&#160;million in both 2008 and
    2007. This note was paid in full on September&#160;30, 2008.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Resources has received payments due Holdings for Holdings&#146;
    transactions not related to Predecessor Resolute. Such payments
    have not yet been reimbursed to Holdings. These payables are
    reflected on the combined balance sheet as &#147;Accounts
    payable&#160;&#151; Holdings&#148; and carried a balance of
    approximately $1.3&#160;million at December&#160;31, 2008.
</DIV>
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<P align="center" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <BR>
A-138
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->


<!-- XBRL,n -->
<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><U><FONT style="font-family: Arial, Helvetica">Note&#160;6&#151;Long
    Term Debt</FONT></U></B>
</DIV>
<!-- XBRL,body -->

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Long term debt and current portion of long term debt consisted
    of the following (in thousands):
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="89%">&nbsp;</TD> <!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=02 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>    <!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>December&#160;31,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <U>Credit agreements:</U>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    First Lien Facility
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    196,150
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Second Lien Facility
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    225,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Total long term debt
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    421,150
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Less: current portion of long term debt
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Long term debt
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;421,150
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><U><FONT style="font-family: Arial, Helvetica">First Lien
    Facility</FONT></U></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Predecessor Resolute&#146;s credit facility is with a syndicate
    of banks led by Wachovia Bank, National Association (the
    &#147;First Lien Facility&#148;) with Aneth as the borrower. The
    First Lien Facility specifies a maximum borrowing base as
    determined by the lenders. The determination of the borrowing
    base takes into consideration the estimated value of Predecessor
    Resolute&#146;s oil and gas properties in accordance with the
    lenders&#146; customary practices for oil and gas loans. The
    borrowing base is redetermined semi-annually, and the amount
    available for borrowing could be increased or decreased as a
    result of such redeterminations. As of September&#160;24, 2009,
    the borrowing base was $240.0&#160;million and the unused
    availability under the borrowing base was $32.8&#160;million. As
    of December&#160;31, 2008 the borrowing base was
    $284.0&#160;million and unused availability under the borrowing
    base was $77.8&#160;million. The First Lien Facility matures on
    April&#160;13, 2011 and, to the extent that the borrowing base,
    as adjusted from time to time, exceeds the outstanding balance,
    no repayments of principal are required prior to maturity. On
    May&#160;12, 2009, Predecessor Resolute entered into the Fourth
    Amendment to the Amended and Restated First Lien Credit Facility
    (&#147;Fourth Amendment&#148;) to redetermine its borrowing base
    and interest rates, and to amend its Maximum Leverage Ratio
    covenant (effective March&#160;31, 2009). Under the terms of the
    Fourth Amendment, at Aneth&#146;s option, the outstanding
    balance under the First Lien Facility accrues interest at either
    (a)&#160;the London Interbank Offered Rate, plus a margin which
    varies from 2.5% to 3.5%, or (b)&#160;the Alternative Base Rate
    defined as the greater of (i)&#160;the Administrative
    Agent&#146;s Prime Rate, (ii)&#160;the Administrative
    Agent&#146;s Base CD rate plus 1%, or (iii)&#160;the Federal
    Funds Effective Rate plus 0.5%, plus a margin which varies from
    1.0% to 2.0%. Each such margin is based on the level of
    utilization under the borrowing base. On July&#160;28, 2009,
    Resolute entered into the Fifth Amendment to the Amended and
    Restated First Lien Credit Facility (&#147;Fifth
    Amendment&#148;) to amend its Current Ratio covenant. Under the
    terms of the Fifth Amendment, the Current Ratio covenant was not
    applicable for the quarters ended March&#160;31, 2009 and
    June&#160;30, 2009. On September&#160;17, 2009, Predecessor
    Resolute entered into the Sixth Amendment to the Amended and
    Restated First Lien Credit Facility to amend certain terms and
    sections in the agreement in order to allow for the Resolute
    Transaction. As of September&#160;24, 2009 and December&#160;31,
    2008, the weighted average interest rate on the outstanding
    balance under the facility was approximately 4.0% and 5.0%,
    respectively. The First Lien Facility is collateralized by
    substantially all of the proved oil and gas assets of Aneth and
    RWI, and is guaranteed by all of the companies other than Aneth.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The First Lien Facility includes terms and covenants that place
    limitations on certain types of activities, the payment of
    dividends, and require satisfaction of certain financial tests.
    Predecessor Resolute was in compliance with all terms and
    covenants of the First Lien Facility at December&#160;31, 2008.
    Predecessor Resolute was not in compliance with the First Lien
    Facility June&#160;30, 2009 Maximum Leverage Ratio covenant. The
    Company entered into a waiver agreement with its First Lien
    Facility lenders on August&#160;27, 2009, whereby the
    requirement to comply with the Maximum Leverage Ratio covenant
    for the period ended June&#160;30, 2009 had been waived until
    the earlier to occur of (a)&#160;October&#160;15, 2009 or
    (b)&#160;the Early Termination Date, defined as the date on
    which the lenders notify Predecessor Resolute that it has
    determined in its sole discretion that a material condition to
    the merger between Predecessor Resolute and HACI is unlikely to
    be satisfied by October&#160;15, 2009 (&#147;Waiver Termination
    Date&#148;). Upon the Waiver Termination Date, the Maximum
    Leverage Ratio shall be calculated using the outstanding debt
    amount as of the Waiver Termination Date. The terms of the
    waiver allowed Predecessor Resolute to remain in compliance with
    the Maximum Leverage Ratio covenant at June&#160;30, 2009 and
</DIV>
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<P align="center" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <BR>
A-139
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    September&#160;24, 2009. Predecessor Resolute was in compliance
    with all other terms and covenants of the First Lien Facility at
    September&#160;24, 2009.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    On September&#160;25, 2009, Resolute repaid $99.5&#160;million
    outstanding under the First Lien Facility with cash received
    from the Resolute Transaction.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><U><FONT style="font-family: Arial, Helvetica">Second Lien
    Facility</FONT></U></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Predecessor Resolute&#146;s term loan was with a group of
    lenders, with Wilmington Trust&#160;FSB as the agent (the
    &#147;Second Lien Facility&#148;) and with Aneth as the
    borrower. The Second Lien Facility carries a borrowing base of
    $225.0&#160;million which was fully utilized at
    September&#160;24, 2009 and December&#160;31, 2008. Balances
    outstanding under the Second Lien Facility accrue interest at
    either (a)&#160;the adjusted London Interbank Offered Rate plus
    the applicable margin of 4.5%, or (b)&#160;the greater of
    (i)&#160;the Administrative Agent&#146;s Prime Rate,
    (ii)&#160;the Administrative Agent&#146;s Base CD rate plus 1%,
    or (iii)&#160;the Alternative Base Rate, plus the applicable
    margin of 3.5%. The Second Lien Facility was collateralized by
    substantially all of the proved oil and gas assets of Aneth and
    RWI, and was guaranteed by all of the companies other than
    Aneth. The claim of the Second Lien Facility lenders on the
    collateral was explicitly subordinated to the claim of the First
    Lien Facility lenders. As of September&#160;24, 2009 and
    December&#160;31, 2008, the weighted average interest rate on
    the outstanding balance under the facility was approximately
    5.0% and 7.7%, respectively.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The Second Lien Facility included terms and covenants that
    placed limitations on certain types of activities, the payment
    of dividends, and require satisfaction of certain financial
    tests. Predecessor Resolute was in compliance with all terms and
    covenants of the Second Lien Facility at December&#160;31, 2008.
    On August&#160;28, 2009, Aneth gave notice to the lenders that
    it was in default of the Maximum Leverage Ratio covenant
    (calculated as the ratio of debt to trailing four quarter
    EBITDA), as measured at June&#160;30, 2009. On September&#160;1,
    2009, lenders under the Second Lien Credit Facility declared the
    loan in default and accelerated the indebtedness. As a result of
    the declaration of default on September&#160;1, 2009, default
    interest of an additional 2% per annum was imposed and the
    Company was prohibited from utilizing the Eurodollar interest
    option in future borrowings under the facility.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    On September&#160;25, 2009, Resolute repaid all amounts
    outstanding under the Second Lien Facility with cash received
    from the Resolute Transaction.
</DIV>

<DIV style="margin-top: 10pt; font-size: 1pt">&nbsp;</DIV>


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<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><U><FONT style="font-family: Arial, Helvetica">Note&#160;7&#151;Income
    Taxes </FONT></U></B>
</DIV>
<!-- XBRL,body -->

<DIV style="margin-top: 10pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Resources (prior to September&#160;30, 2008), RNRC and RWI
    recognize deferred tax assets and liabilities for the expected
    future tax consequences of events that have been included in the
    combined financial statements or tax returns. Deferred tax
    assets and liabilities are determined based on the differences
    between the financial statement and tax basis of assets and
    liabilities using the enacted tax rates in effect for the year
    in which the differences are expected to reverse. The
    measurement of deferred tax assets is reduced, if necessary, by
    the amount of any tax benefits that are not expected to be
    realized based on available evidence. Resources (subsequent to
    September&#160;30, 2008), Aneth, BWNR and WYNR are pass-through
    entities for federal and state income tax purposes. As such,
    neither current nor deferred income taxes are recognized by
    these entities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Significant components of Predecessor Resolute&#146;s deferred
    tax assets (liabilities) are as follows (in thousands):
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="89%">&nbsp;</TD> <!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=02 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>    <!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>December&#160;31,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Current:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 13pt">
    Derivative financial instruments
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (4,913
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Total current
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (4,913
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Long Term:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 13pt">
    Property and equipment
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,673
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 13pt">
    Asset retirement obligation
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    173
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 13pt">
    Federal tax credit carryovers
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    60
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 13pt">
    Net operating loss carryforward
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,799
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 27pt">
    Total long term
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14,705
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Net deferred tax asset
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;9,792
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <BR>
A-140
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The provision for income taxes is as follows (in thousands):
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="65%">&nbsp;</TD> <!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=02 type=lead -->
    <TD width="9%" align="right">&nbsp;</TD>    <!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>  <!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=03 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>    <!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>  <!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=04 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>    <!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Period Ended<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>September&#160;24,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>December&#160;31,</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Current income tax expense:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 13pt">
    Federal
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (19
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (35
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 13pt">
    State
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (104
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Deferred income tax benefit (expense)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,123
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18,266
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,655
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Valuation allowance
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (50
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Total income tax benefit (expense)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;5,019
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;18,247
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;(1,740
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Income tax expense (benefit) differed from amounts that would
    result from applying the U.S.&#160;statutory income tax rate to
    income before taxes as follows (in thousands):
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="68%">&nbsp;</TD> <!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=02 type=lead -->
    <TD width="9%" align="right">&nbsp;</TD>    <!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>  <!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=03 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>    <!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>  <!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=04 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>    <!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Period Ended<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>September&#160;24,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>December&#160;31,</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    U.S. statutory income tax (benefit) expense
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;(4,626
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (19,732
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;1,626
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    State income tax (benefit) expense
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (104
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (265
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    55
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Share base compensation
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,456
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Change in valuation allowance
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    50
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Other
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (289
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    294
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Total tax (benefit) expense*
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (5,019
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (18,247
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,740
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="1%"></TD>
    <TD width="1%"></TD>
    <TD width="98%"></TD>
</TR>

<TR>
    <TD valign="top">
    * </TD>
    <TD></TD>
    <TD valign="bottom">
    Tax expense (benefit) is calculated based on taxable income of
    RNRC and RWI, which are taxable entities. Aneth, Sub, BWNR and
    WYNR are pass-through entities for federal and state income tax
    purposes. As such, neither current nor deferred income taxes are
    recognized by these entities.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    As of September&#160;24, 2009 and December&#160;31, 2008, RNRC
    had no regular tax loss carryforward. As of September&#160;24,
    2009 and December&#160;31, 2008, RWI had regular tax loss
    carryforwards of $11.3&#160;million and $10.6&#160;million,
    respectively.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Resources and RWI adopted the uncertainty provisions of FASB ASC
    Topic 740, <I>Accounting for Income Taxes, </I>on
    January&#160;1, 2007 and RNRC adopted the uncertainty provisions
    of FASB ASC Topic 740 on September&#160;30, 2008. As a result of
    the implementation of this guidance, Resources recognized
    approximately $0.5&#160;million, including accrued interest and
    penalties of $0.1&#160;million, as a contingent liability and an
    increase to the January&#160;1, 2007 balance of accumulated
    deficit. As of December&#160;31, 2008 the total contingent
    income tax liabilities and accrued interest was approximately
    $0.5&#160;million and is reflected in current liabilities in the
    combined balance sheet in &#147;Contingent tax liability.&#148;
    During 2009, the previously unrecognized tax benefit in the
    amount of $0.4&#160;million related to the uncertain tax
    position was recognized. Previously accrued interest and
    penalties were also reversed. This recognition and reversal
    resulted from the expiration of the applicable statute of
    limitations on September&#160;15, 2009.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Resources (prior to September&#160;30, 2008), RNRC and RWI
    recognize interest and penalties related to uncertain tax
    positions in interest expense and general and administrative
    expense, respectively. RWI and RNRC had no uncertain tax
    positions. Resources and RWI file income tax returns in the
    U.S.&#160;federal jurisdiction and various states.
    Resource&#146;s 2007 tax return is currently under examination
    in the U.S.&#160;Federal jurisdiction. Furthermore, Resources
    and RWI&#146;s tax years of 2006 and forward are subject to
    examination by the federal and state taxing authorities.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <BR>
A-141
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The following table summarizes the activity during the years
    related to the liability for unrecognized tax benefits (in
    thousands):
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="89%">&nbsp;</TD> <!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=02 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>    <!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Balance at January&#160;1, 2007
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    386
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Increases in unrecognized tax benefits
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Decreases in unrecognized tax benefits
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Balance at December&#160;31, 2007
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    386
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Increases in unrecognized tax benefits
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Decreases in unrecognized tax benefits
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Balance at December&#160;31, 2008
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    386
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Increases in unrecognized tax benefits
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Decreases in unrecognized tax benefits
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (386
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Balance at September&#160;24, 2009
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;&#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>


<!-- XBRL,n -->
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><U><FONT style="font-family: Arial, Helvetica">Note&#160;8&#160;&#151;
    </FONT></U></B>
</TD>
    <TD>
    <B><U><FONT style="font-family: Arial, Helvetica">Shareholder&#146;s/Member&#146;s
    Equity and Equity Based Awards</FONT></U></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><U><FONT style="font-family: Arial, Helvetica">Common
    Stock</FONT></U></I></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    At September&#160;24, 2009 and December&#160;31, 2008, RNRC and
    RWI each had 1,000&#160;shares of common stock, par value $0.01
    and $1.00 per share, authorized, issued and outstanding,
    respectively.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><U><FONT style="font-family: Arial, Helvetica">Member&#146;s
    Equity</FONT></U></I></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    At September&#160;24, 2009 and December&#160;31, 2008,
    member&#146;s equity included Aneth, WYNR, BWNR and Resources.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><U><FONT style="font-family: Arial, Helvetica">Incentive
    Interests</FONT></U></I></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: Arial, Helvetica">Resources</FONT></I>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    &#147;Incentive Units&#148; were granted by Holdings to certain
    of its members who were also officers, as well as to other
    employees of Resources. The Incentive Units were intended to be
    compensation for services provided to Resources. The original
    terms of the five tiers of Incentive Units are as follows.
    Tier&#160;I units vest ratably over three years, but are subject
    to forfeiture if payout is not realized. Tier&#160;I payout is
    realized at the return of members&#146; invested capital and a
    specified rate of return. Tiers&#160;II through V vest upon
    certain specified multiples of cash payout. Incentive Units are
    forfeited if an employee of Predecessor Resolute is either
    terminated for cause or resigns as an employee. Any Incentive
    Units that are forfeited by an individual employee revert to the
    founding senior managers of Predecessor Resolute and, therefore,
    the number of Tier&#160;II through V Incentive Units is not
    expected to change.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    On June&#160;27, 2007, Holdings made a capital distribution of
    $100&#160;million to its equity owners from the proceeds of the
    Second Lien Facility. This distribution caused both the
    Tier&#160;I payout to be realized and the Tier&#160;I Incentive
    Units to vest. As a result of the distribution, management
    determined that it was probable that Tiers II-V incentive unit
    payouts would be achieved.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Predecessor Resolute recorded $2.8&#160;million,
    $3.7&#160;million and $34.5&#160;million of equity based
    compensation expense in general and administrative expense in
    the combined statements of operations for 2009, 2008, and 2007,
    respectively. An additional $0.1&#160;million and
    $2.0&#160;million of equity compensation expense was capitalized
    and recorded in oil and gas properties during 2008 and 2007,
    respectively. No equity compensation expense was capitalized in
    2009.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Predecessor Resolute amortizes the estimated fair value of the
    Incentive Units over the remaining estimated vesting period
    using the straight-line method. The estimated weighted average
    fair value remaining of the Incentive Units was calculated using
    a discounted future net cash flows model. No Incentive Units
    vested during 2009 and 2008. In 2007, 11.6&#160;million
    Incentive Units vested.
</DIV>
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<P align="center" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <BR>
A-142
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    At December&#160;31, 2008, there were 17,797,801 incentive units
    outstanding, of which 6,190,539 were not vested and have a
    weighted average grant date fair value of $2.08 per unit. There
    were no grants or forfeitures during 2009, 2008 and 2007.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Total unrecognized compensation cost related to Predecessor
    Resolute&#146;s non-vested Incentive Units totaled
    $5.3&#160;million and $8.1&#160;million as of September&#160;24,
    2009 and December&#160;31, 2008, respectively. Total
    unrecognized compensation cost related to Predecessor
    Resolute&#146;s non-vested Incentive Units as of
    September&#160;24, 2009 is expected to be recognized over
    weighted-average periods of 0.75&#160;years, 1.75&#160;years,
    2.75&#160;years and 2.75&#160;years for the Tier&#160;II,
    Tier&#160;III, Tier&#160;IV and Tier&#160;V Incentive Units,
    respectively.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 1%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: Arial, Helvetica">Resolute Wyoming,
    Inc.</FONT></I>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The Primary Natural Resources Holdings, LLC (&#147;PNRH&#148;)
    Operating Agreement (the &#147;Operating Agreement&#148;)
    provided for the issuance of up to 900,000 &#147;PNRH Incentive
    Interests,&#148; consisting of 844,000 Incentive Units and
    56,000 Incentive Options. PNR was wholly owned by PNRH prior to
    the PNR acquisition. There were two categories for Incentive
    Units, described as Tier&#160;I and Tier&#160;II. There was one
    category for Incentive Options described as Tier&#160;I.
    Tier&#160;I Incentive Units received preferential payout over
    Tier&#160;II. Of the 844,000 Incentive Units, 484,000 and
    360,000 were classified as Tier&#160;I and Tier&#160;II,
    respectively. Holders of Incentive Units were entitled to cash
    distributions following the sale, merger or other transaction
    involving the stock or assets of PNR after the recovery of
    capital contributions plus a rate of return, specified as payout
    levels in the Operating Agreement. The 844,000 Tier&#160;I and
    Tier&#160;II Incentive Units were granted in January 2004 to
    certain members of PNR&#146;s management.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Due to the acquisition of PNR on July&#160;31, 2008, the
    performance criteria related to the PNRH Incentive Interests was
    achieved and the Incentive Interests fully vested. As a result,
    $4.2&#160;million of equity based compensation expense was
    recorded in general and administrative expense in 2008. No
    further equity based compensation expense will be recorded
    related to these Incentive Interests.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><U><FONT style="font-family: Arial, Helvetica">Equity
    Appreciation Rights</FONT></U></I></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    In November 2006 and May 2008, 2,500,000 and 3,000,000 Equity
    Appreciation Rights (&#147;EARs&#148;) were authorized,
    respectively. The EARs are periodically granted by Sub to
    certain of Predecessor Resolute&#146;s employees. The EARs
    represent contract rights to a certain portion of future
    distributions of cash by Sub.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Upon consummation of the Acquisition Agreement on
    September&#160;25, 2009 the EARs plan was cancelled. Predecessor
    Resolute has not assigned any value or recognized any share
    based compensation expense related to the EARs because no
    distributions were made in respect of such EARs prior to the
    plan termination.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    On May&#160;29, 2008, Resources, on behalf of Sub, entered into
    Agreements with several employees permitting those employees to
    make an offer to exchange for cash some or all of the EARs
    issued in 2007 and prior under the EARs Plan, dated
    November&#160;27, 2006. The participant could elect to offer to
    exchange all or any portion of their EARs for time vested cash
    awards equal to $2.00 per unit plus simple interest of 15% per
    annum, effective January&#160;1, 2008. During 2008, a total of
    395,000&#160;units were exchanged from employees under this
    agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Also on May&#160;29, 2008, Resources, on behalf of Sub, granted
    incentive awards allowing employees to elect to receive a
    certain number of EARs or an amount of time vested cash awards
    of $1.00 per unit plus simple interest of 15% per annum,
    effective January&#160;1, 2008. During 2008, a total of
    1,659,000 EARs were granted and 213,700 time vested cash award
    units were issued.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    All of the cash awards are payable in three installments on
    January&#160;1, 2009, 2010 and 2011. Compensation expense
    related to the time vested cash awards of $0.2&#160;million,
    $0.5&#160;million and $0 was recognized, during 2009, 2008 and
    2007, respectively. The time vested cash awards are accounted
    for as deferred compensation. The annual payments are paid based
    on the employee&#146;s tenure with Resources and there is
    potential for forfeiture of the time vested payment, therefore
    Predecessor Resolute will accrue for each time vested payment
    and related return for the respective year on an annual basis.
</DIV>
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<P align="center" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <BR>
A-143
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    A summary of the activity associated with the EARs plan during
    2007, 2008 and 2009 is as follows:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="89%">&nbsp;</TD> <!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=02 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>    <!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>EARs</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    January&#160;1, 2007
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,487,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Granted
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    581,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    December&#160;31, 2007
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,068,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Granted
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,659,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Forfeited
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (256,000
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Purchased
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (395,000
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    December&#160;31, 2008
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,076,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Forfeited
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (113,000
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    September&#160;24, 2009
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;2,963,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The EARs plan was terminated on September&#160;25, 2009, and all
    outstanding EARs were cancelled due to the Resolute Transaction.
    The time vested cash awards were not terminated.
</DIV>

<DIV style="margin-top: 10pt; font-size: 1pt">&nbsp;</DIV>


<!-- XBRL,n -->
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><U><FONT style="font-family: Arial, Helvetica">Note&#160;9&#160;&#151;
    </FONT></U></B>
</TD>
    <TD>
    <B><U><FONT style="font-family: Arial, Helvetica">Defined
    Contribution Plan</FONT></U></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->

<DIV style="margin-top: 10pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Predecessor Resolute offers a 401(k) plan for all eligible
    employees. For the periods ended September&#160;24, 2009 and
    December&#160;31, 2008 and 2007, Predecessor Resolute
    contributed $0, $0.2&#160;million and $0.8&#160;million
    respectively, in connection with matching of employee
    contributions made in 2009, 2008 and 2007, respectively.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>


<!-- XBRL,n -->
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><U><FONT style="font-family: Arial, Helvetica">Note&#160;10&#160;&#151;
    </FONT></U></B>
</TD>
    <TD>
    <B><U><FONT style="font-family: Arial, Helvetica">Derivative
    Instruments</FONT></U></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Predecessor Resolute enters into commodity derivative contracts
    to manage its exposure to oil and gas price volatility.
    Predecessor Resolute has not elected to designate derivative
    instruments as cash flow hedges under the provisions of FASB ASC
    Topic 815, <I>Derivatives and Hedging</I>. As a result, these
    derivative instruments are marked to market at the end of each
    reporting period and changes in the fair value are recorded in
    the accompanying combined statements of operations. Realized and
    unrealized gains and losses from Predecessor Resolute&#146;s
    price risk management activities are recognized in other income
    (expense), with realized gains and losses recognized in the
    period in which the related production is sold. The cash flows
    from derivatives are reported as cash flows from operating
    activities unless the derivative contract is deemed to contain a
    financing element. Derivatives deemed to contain a financing
    element are reported as financing activities in the statement of
    cash flows. Commodity derivative contracts may take the form of
    futures contracts, swaps or options.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    As of September&#160;24, 2009, Predecessor Resolute had entered
    into certain commodity swap contracts. The following table
    represents Predecessor Resolute&#146;s commodity swaps with
    respect to its estimated oil and gas production from proved
    developed producing properties through 2013:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="46%">&nbsp;</TD> <!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=02 type=gutter -->
    <TD width="4%" align="right">&nbsp;</TD>    <!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=02 type=body -->
    <TD width="4%" align="left">&nbsp;</TD>     <!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>  <!-- colindex=03 type=gutter -->
    <TD width="7%" align="right">&nbsp;</TD>    <!-- colindex=03 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=03 type=body -->
    <TD width="7%" align="left">&nbsp;</TD>     <!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>  <!-- colindex=04 type=gutter -->
    <TD width="3%" align="right">&nbsp;</TD>    <!-- colindex=04 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=04 type=body -->
    <TD width="3%" align="left">&nbsp;</TD>     <!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>  <!-- colindex=05 type=gutter -->
    <TD width="6%" align="right">&nbsp;</TD>    <!-- colindex=05 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=05 type=body -->
    <TD width="6%" align="left">&nbsp;</TD>     <!-- colindex=05 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Gas (NYMEX HH)<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Oil (NYMEX WTI)<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Weighted Average<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Weighted Average<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>MMBtu per<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Hedge Price per<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Year</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Bbl per Day</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Hedge Price per Bbl</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Day</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>MMBtu</B>
</DIV>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    2009
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,900
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;62.75
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,800
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;9.93
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    2010
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,650
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    67.24
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,800
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    9.69
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    2011
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,250
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    68.26
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,750
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    9.32
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    2012
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,250
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    68.26
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,100
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    7.42
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    2013
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    60.47
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,900
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    7.40
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Predecessor Resolute also uses basis swaps in connection with
    gas swaps in order to fix the price differential between the
    NYMEX Henry Hub price and the index price at which the gas
    production is sold. The table below sets forth Predecessor
    Resolute&#146;s outstanding basis swaps as of September&#160;24,
    2009.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="59%">&nbsp;</TD> <!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=02 type=gutter -->
    <TD width="14%">&nbsp;</TD> <!-- colindex=02 type=maindata -->
    <TD width="3%">&nbsp;</TD>  <!-- colindex=03 type=gutter -->
    <TD width="3%" align="right">&nbsp;</TD>    <!-- colindex=03 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=03 type=body -->
    <TD width="3%" align="left">&nbsp;</TD>     <!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>  <!-- colindex=04 type=gutter -->
    <TD width="6%" align="right">&nbsp;</TD>    <!-- colindex=04 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=04 type=body -->
    <TD width="6%" align="left">&nbsp;</TD>     <!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Weighted Average<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Hedged Price<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>MMBtu per <BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Differential per<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Year</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Index</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Day</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>MMBtu</B>
</DIV>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    2009 &#150; 2013
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    Rocky Mountain <BR>
    NWPL
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,800
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;2.10
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <BR>
A-144
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    As of September&#160;24, 2009, Predecessor Resolute had entered
    into certain commodity collar contracts. The following table
    represents Predecessor Resolute&#146;s commodity collars with
    respect to its estimated oil and gas production from proved
    developed producing properties:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="42%">&nbsp;</TD> <!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=02 type=gutter -->
    <TD width="4%" align="right">&nbsp;</TD>    <!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=02 type=body -->
    <TD width="4%" align="left">&nbsp;</TD>     <!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>  <!-- colindex=03 type=gutter -->
    <TD width="8%" align="right">&nbsp;</TD>    <!-- colindex=03 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=03 type=body -->
    <TD width="8%" align="left">&nbsp;</TD>     <!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>  <!-- colindex=04 type=gutter -->
    <TD width="3%" align="right">&nbsp;</TD>    <!-- colindex=04 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=04 type=body -->
    <TD width="3%" align="left">&nbsp;</TD>     <!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>  <!-- colindex=05 type=gutter -->
    <TD width="7%" align="right">&nbsp;</TD>    <!-- colindex=05 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=05 type=body -->
    <TD width="7%" align="left">&nbsp;</TD>     <!-- colindex=05 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Gas (NYMEX HH)<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Oil (NYMEX WTI)<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Weighted Average<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Weighted Average<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>MMBtu per <BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Hedge Price per<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Year</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Bbl per Day</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Hedge Price per Bbl</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Day</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>MMBtu</B>
</DIV>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    2009
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    250
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;105.00-151.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,288
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;5.00-9.35
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    2010
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    200
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    105.00-151.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    For financial reporting purposes, Predecessor Resolute does not
    offset the fair value amounts of derivative assets and
    liabilities with the same counterparty. The table below
    summarizes the location and fair value amounts of Predecessor
    Resolute&#146;s commodity derivative instruments reported in the
    combined balance sheet (in thousands):
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="89%">&nbsp;</TD> <!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=02 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>    <!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>December&#160;31,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <U>Assets:</U>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 27pt">
    Current assets: derivative instruments
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    19,017
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 27pt">
    Other assets: derivative instruments
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18,114
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 13pt">
    Total assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37,131
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <U>Liabilities:</U>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 27pt">
    Current liabilities: derivative instruments
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,141
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 27pt">
    Noncurrent liabilities: derivative instruments
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (20,193
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 13pt">
    Total liabilities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (21,334
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Net derivative fair value
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;15,797
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Because Predecessor Resolute&#146;s derivative instruments are
    not designated and do not qualify as hedging instruments under
    FASB ASC Topic 815, the gains and losses are included in other
    income (expense) in the combined statements of operations. The
    table below summarizes the location and amount of commodity
    derivative instrument gains and losses reported in the combined
    statements of operations for the periods presented below (in
    thousands):
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="62%">&nbsp;</TD> <!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=02 type=lead -->
    <TD width="9%" align="right">&nbsp;</TD>    <!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>  <!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=03 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>    <!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>  <!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=04 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>    <!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Period Ended<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>September&#160;24,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>December&#160;31,</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Other income (expense)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 27pt">
    Realized (losses) gains
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,939
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;120,573
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (101,495
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 27pt">
    Unrealized gains (losses)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (25,458
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (24,541
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,470
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 27pt">
    Amortization of commodity derivative premiums
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,263
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Total: gain (loss) on derivative instruments
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;(23,519
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;96,032
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;(106,228
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><U><FONT style="font-family: Arial, Helvetica">Credit Risk
    and Contingent Features in Derivative
    Instruments</FONT></U></I></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Predecessor Resolute is exposed to credit risk to the extent of
    nonperformance by the counterparties in the derivative contracts
    discussed above. With the exception of one contract, all
    counterparties are also lenders under Predecessor
    Resolute&#146;s First Lien Facility. For these contracts,
    Predecessor Resolute is not required to provide any credit
    support to its counterparties other than cross collateralization
    with the properties securing the First Lien Facility. The
    counterparty that is not among Predecessor Resolute&#146;s
    lenders is a multinational energy company with a corporate
    credit rating of AA as classified by Standard and Poor&#146;s.
    Predecessor Resolute&#146;s derivative contracts are documented
    with industry standard contracts known as a Schedule to the
    Master Agreement and International Swaps and Derivative
    Association, Inc. Master Agreement (&#147;ISDA&#148;). Typical
    terms for the ISDAs include credit support requirements, cross
    default provisions, termination events, and set-off provisions.
    Predecessor Resolute has set-off provisions with its lenders
    that, in the event of counterparty default, allow Predecessor
    Resolute to set-off amounts owed under the First Lien Facility
    or other general obligations against amounts owed for derivative
    contract liabilities.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <BR>
A-145
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The maximum amount of loss in the event of all counterparties
    defaulting is $0.3&#160;million as of September&#160;24, 2009,
    after netting any amounts payable by Predecessor Resolute to its
    counterparties.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    See Note&#160;11 for further discussion of derivative
    instruments.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>


<!-- XBRL,n -->
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><U><FONT style="font-family: Arial, Helvetica">Note&#160;11&#160;&#151;
    </FONT></U></B>
</TD>
    <TD>
    <B><U><FONT style="font-family: Arial, Helvetica">Fair Value
    Measurements</FONT></U></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    FASB ASC Topic 820<I>, Fair Value Measurements and Disclosures
    </I>clarifies the definition of fair value, establishes a
    framework for measuring fair value, and expands disclosures
    about fair value measurements. During 2008, Predecessor Resolute
    elected to not apply FASB ASC Topic 820 to nonrecurring fair
    value measurements of nonfinancial assets and nonfinancial
    liabilities, including nonfinancial long-lived assets measured
    at fair value for an impairment assessment and asset retirement
    obligations initially measured at fair value.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Predecessor Resolute fully adopted FASB ASC Topic 820 as it
    relates to all nonfinancial assets and liabilities that are not
    recognized or disclosed on a recurring basis (e.g. those
    measured at fair value in a business combination, the initial
    recognition of asset retirement obligations, and impairments of
    goodwill and other long-lived assets) as of January&#160;1,
    2009. The full adoption did not have a material impact on
    Predecessor Resolute&#146;s combined financial statements or its
    disclosures.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    FASB ASC Topic 820 defines fair value as the price that would be
    received to sell an asset or paid to transfer a liability (an
    exact price) in an orderly transaction between market
    participants at the measurement date. The statement establishes
    market or observable inputs as the preferred sources of values,
    followed by assumptions based on hypothetical transactions in
    the absence of market inputs. The statement establishes a
    hierarchy for grouping these assets and liabilities, based on
    the significance level of the following inputs:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    Level&#160;1&#160;&#150; Quoted prices in active markets for
    identical assets or liabilities.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    Level&#160;2&#160;&#150; Quoted prices in active markets for
    similar assets and liabilities, quoted prices for identical or
    similar instruments in markets that are not active and
    model-derived valuations whose inputs are observable or whose
    significant value drivers are observable.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    Level&#160;3&#160;&#150; Significant inputs to the valuation
    model are unobservable.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    An asset or liability subject to the fair value requirements is
    categorized within the hierarchy based on the lowest level of
    input that is significant to the fair value measurement.
    Predecessor Resolute&#146;s assessment of the significance of a
    particular input to the fair value measurement in its entirety
    requires judgment and considers factors specific to the asset or
    liability. Following is a description of the valuation
    methodologies used by Predecessor Resolute as well as the
    general classification of such instruments pursuant to the
    hierarchy.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    As of September&#160;24, 2009 and December&#160;31, 2008,
    Predecessor Resolute&#146;s commodity derivative instruments
    were required to be measured at fair value. Predecessor Resolute
    used the income approach in determining the fair value of its
    derivative instruments, utilizing present value techniques for
    valuing its swaps and basis swaps and option-pricing models for
    valuing its collars. Inputs to these valuation techniques
    include published forward index prices, volatilities, and credit
    risk considerations, including the incorporation of published
    interest rates and credit spreads. Substantially all of these
    inputs are observable in the marketplace throughout the full
    term of the contract, can be derived from observable data or are
    supported by observable levels at which transactions are
    executed in the marketplace and are therefore designated as
    Level&#160;2 within the valuation hierarchy.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <BR>
A-146
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The following is a listing of Predecessor Resolute&#146;s assets
    and liabilities required to be measured at fair value on a
    recurring basis and where they are classified within the
    hierarchy as of December&#160;31, 2008 (in thousands):
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="55%">&nbsp;</TD> <!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=02 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>    <!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>  <!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=03 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>    <!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>  <!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=04 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>    <!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>  <!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=05 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>    <!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=05 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>December&#160;31,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Description</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Level 1</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Level 2</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Level 3</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>2008</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <B>Assets:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Current portion of commodity derivative assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;19,017
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;19,017
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Non-current portion of commodity derivative assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18,114
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18,114
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Total
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    37,131
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    37,131
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <B>Liabilities:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Current portion of commodity derivative liabilities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (1,141
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (1,141
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Non-current portion of commodity derivative liabilities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (20,193
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (20,193
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Total
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (21,334
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (21,334
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>


<!-- XBRL,n -->
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><U><FONT style="font-family: Arial, Helvetica">Note&#160;12&#160;&#150;
    </FONT></U></B>
</TD>
    <TD>
    <B><U><FONT style="font-family: Arial, Helvetica">Commitments
    and Contingencies</FONT></U></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><U><FONT style="font-family: Arial, Helvetica">CO</FONT></U><SUB style="font-size: 85%; vertical-align: text-bottom"><FONT style="font-family: Arial, Helvetica">2</FONT></SUB><U><FONT style="font-family: Arial, Helvetica">
    <FONT style="white-space: nowrap">Take-or-Pay</FONT>
    Agreements </FONT></U></I></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Resolute entered into two
    <FONT style="white-space: nowrap">take-or-pay</FONT>
    purchase agreements, each with a different supplier, under which
    Resolute has committed to buy specified volumes of
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>.
    The purchased
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    is for use in Resolute&#146;s enhanced tertiary recovery
    projects in Aneth Field. In each case, Resolute is obligated to
    purchase a minimum daily volume of
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    or pay for any deficiencies at the price in effect when delivery
    was to have occurred. The
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>volumes
    planned for use on the enhanced recovery projects exceed the
    minimum daily volumes provided in this
    <FONT style="white-space: nowrap">take-or-pay</FONT>
    purchase agreement. Therefore, Resolute expects to avoid any
    payments for deficiencies. Predecessor Resolute acquired
    $8.9&#160;million of
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    during the period ended September&#160;24, 2009.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    One contract was effective July&#160;1, 2006, with a four year
    term. As of December&#160;31, 2008, future commitments under
    this purchase agreement amounted to approximately
    $1.9&#160;million in 2009 and $1.9&#160;million for 2010, based
    on prices in effect at December&#160;31, 2008. The second
    contract was entered into on May&#160;25, 2005, and was amended
    on July&#160;1, 2007, and had a ten year term. Future
    commitments under this purchase agreement amounted to
    approximately $27.8&#160;million through June 2016 based on
    prices in effect on December&#160;31, 2008. The annual minimum
    obligation by year is as follows (in thousands):
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="82%">&nbsp;</TD> <!-- colindex=01 type=maindata -->
    <TD width="5%">&nbsp;</TD>  <!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=02 type=lead -->
    <TD width="11%" align="right">&nbsp;</TD>   <!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Year</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Commitments</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    (millions)
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    2009
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    8.4
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    2010
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.9
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    2011
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    2012
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.9
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    2013
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.8
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Thereafter
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.5
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Total
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;31.5
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><U><FONT style="font-family: Arial, Helvetica">Operating
    Leases</FONT></U></I></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    For the period ended September&#160;24, 2009, and the years
    ended December&#160;31, 2008 and 2007,
    <FONT style="white-space: nowrap">month-to-month</FONT>
    office facilities rental payments charged to expense under the
    terms of non-cancelable operating leases was approximately
    $0.5&#160;million, $1.0&#160;million and $0.8&#160;million,
    respectively. Future rental payments for office facilities under
    the remaining terms of non-cancelable operating leases as of
    December&#160;31, 2008 were approximately $410,000, $460,000,
    $399,000, $0 and $0 for the years ending December&#160;31, 2009,
    2010, 2011, 2012 and 2013.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Predecessor Resolute is also party to several field equipment
    and compressor leases used in the
    CO<SUB style="font-size: 85%; vertical-align: text-bottom">2</SUB>
    project. Rental expense for these leases for 2009, 2008 and 2007
    was $1.3&#160;million, $1.3&#160;million and $0.1&#160;million,
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <BR>
A-147
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    respectively. Future payments under these leases as of
    December&#160;31, 2008 were approximately $1.4&#160;million in
    2009, $2.7&#160;million from 2010 through 2013 and
    $8.5&#160;million thereafter.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><U><FONT style="font-family: Arial, Helvetica">Escrow
    Funding Agreement</FONT></U></I></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Under the terms of Predecessor Resolute&#146;s purchase of the
    ExxonMobil Properties, Predecessor Resolute and Navajo Nation
    Oil and Gas Company were required to fund an escrow account
    sufficient to complete abandonment, well plugging, site
    restoration and related obligations arising from ownership of
    the acquired interests. The contribution net to Aneth&#146;s
    working interest is approximately $1.8&#160;million per year
    until 2016. In years after 2016, Aneth must fund approximately
    $0.9&#160;million per year until 2031. Escrow funding payments
    are included in other assets: restricted cash in the combined
    balance sheet of December&#160;31, 2008. As of December&#160;31,
    2008, Aneth had funded the 2008 annual contractual amount of
    approximately $1.8&#160;million required to meet its future
    obligation.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><U><FONT style="font-family: Arial, Helvetica">NNOG
    Purchase Options.</FONT></U></I></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    In connection with acquisition of the ExxonMobil Properties and
    the acquisition from Chevron Corporation and its affiliates
    (&#147;Chevron&#148;) of 75% of Chevron&#146;s interest in Aneth
    Field (&#147;Chevron Properties&#148;) in 2005, pursuant to the
    terms of the Cooperative Agreement, Predecessor Resolute granted
    to NNOG three separate but substantially similar purchase
    options. Each purchase option entitles NNOG to purchase from
    Predecessor Resolute up to 10% of Predecessor Resolute&#146;s
    interest in the Chevron Properties and the ExxonMobil
    Properties. Each purchase option entitles NNOG to purchase, for
    a limited period of time, the applicable portion of Predecessor
    Resolute&#146;s interest in the Chevron Properties and the
    ExxonMobil Properties, at Fair Market Value (as defined in the
    agreement), which is determined without giving effect to the
    existence of the Navajo Nation preferential purchase right or
    the fact that the properties are located within the Navajo
    Nation. Each option becomes exercisable based upon Predecessor
    Resolute&#146;s achieving a certain multiple of payout of the
    relevant acquisition costs, subsequent capital costs and ongoing
    operating costs attributable to the applicable working
    interests. Revenue applicable to the determination of payout
    includes the effect of Predecessor Resolute&#146;s hedging
    program. The options are not exercisable prior to four years
    from the acquisition except in the case of a sale of such assets
    by, or a change of control of, Aneth. In that case, the first
    option for 10% would be accelerated and the other options would
    terminate. Assuming the purchase options are not accelerated due
    to a change of control of Aneth, Predecessor Resolute expects
    that the initial payout associated with the purchase options
    granted will occur no sooner than 2013.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The following table demonstrates the maximum net undivided
    working interest in each of the Aneth Unit, the McElmo Creek
    Unit and the Ratherford Unit that NNOG could acquire upon
    exercising each of its purchase options under the Cooperative
    Agreement. The exercise by NNOG of its purchase options in full
    would not give it the right to remove Predecessor Resolute as
    operator of any of the units.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="60%">&nbsp;</TD> <!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=02 type=lead -->
    <TD width="9%" align="right">&nbsp;</TD>    <!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>  <!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=03 type=lead -->
    <TD width="9%" align="right">&nbsp;</TD>    <!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>  <!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=04 type=lead -->
    <TD width="9%" align="right">&nbsp;</TD>    <!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>McElmo<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Ratherford<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Aneth Unit</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Creek Unit</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Unit</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Chevron Properties:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Option 1 (100% Payout)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.30%
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.50%
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.30%
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Option 2 (150% Payout)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.30%
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.50%
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.30%
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Option 3 (200% Payout)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.30%
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.50%
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.30%
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 27pt">
    Total
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;15.90%
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;4.50%
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;0.90%
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="60%">&nbsp;</TD> <!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=02 type=lead -->
    <TD width="9%" align="right">&nbsp;</TD>    <!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>  <!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=03 type=lead -->
    <TD width="9%" align="right">&nbsp;</TD>    <!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>  <!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=04 type=lead -->
    <TD width="9%" align="right">&nbsp;</TD>    <!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>McElmo<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Ratherford<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Aneth Unit</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Creek Unit</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Unit</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    ExxonMobil Properties:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Option 1 (100% Payout)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.75%
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.00%
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.60%
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Option 2 (150% Payout)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.75%
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.00%
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.60%
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Option 3 (200% Payout)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;0.75%
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;6.00%
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;5.60%
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 27pt">
    Total
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.25%
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18.00%
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16.80%
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <BR>
A-148
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->



<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><U><FONT style="font-family: Arial, Helvetica">Crude
    Production Purchase Agreement</FONT></U></I></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Predecessor Resolute sells all of its crude oil production from
    the Aneth field to a single customer, Western Refining
    Southwest, Inc. (&#147;Western&#148;), a subsidiary of Western
    Refining, Inc. Predecessor Resolute and Western entered into a
    new contract on August&#160;27, 2009, effective
    September&#160;1, 2009. The new contract provides for a minimum
    price equal to the NYMEX price for crude oil less a fixed
    differential of $6.25 per Bbl. The contract provides for an
    initial term of one year and continuing
    <FONT style="white-space: nowrap">month-to-month</FONT>
    thereafter, with either party having the right to terminate
    after the initial term, upon ninety days written notice. The
    contract may also be terminated by Western after
    December&#160;31, 2009, upon sixty days written notice, if
    Western is not able to renew its
    <FONT style="white-space: nowrap">right-of-way</FONT>
    agreements with the Navajo Nation or if such
    <FONT style="white-space: nowrap">rights-of-way</FONT>
    are declared invalid and Western is prevented from using such
    <FONT style="white-space: nowrap">rights-of-way.</FONT>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>


<!-- XBRL,n -->
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><U><FONT style="font-family: Arial, Helvetica">Note&#160;13&#160;&#150;
    </FONT></U></B>
</TD>
    <TD>
    <B><U><FONT style="font-family: Arial, Helvetica">Oil And Gas
    Producing Activities</FONT></U></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Costs incurred in oil and gas property acquisition, exploration
    and development activities are summarized as follows (in
    thousands):
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="51%">&nbsp;</TD> <!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=02 type=lead -->
    <TD width="12%" align="right">&nbsp;</TD>   <!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>  <!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=03 type=lead -->
    <TD width="12%" align="right">&nbsp;</TD>   <!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>  <!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=04 type=lead -->
    <TD width="12%" align="right">&nbsp;</TD>   <!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Period Ended <BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>September&#160;24,</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>December&#160;31,</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Development costs
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    15,018
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    52,331
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    78,430
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Exploration
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    239
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,677
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Acquisitions:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Proved
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    209
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19,448
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,045
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Unproved
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    113
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    344
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    510
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Total
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;15,350
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;72,362
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;91,662
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Net capitalized costs related to Resolute&#146;s oil and gas
    producing activities were as follows (in thousands):
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="80%">&nbsp;</TD> <!-- colindex=01 type=maindata -->
    <TD width="5%">&nbsp;</TD>  <!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=02 type=lead -->
    <TD width="13%" align="right">&nbsp;</TD>   <!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>December&#160;31,</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Proved oil and gas properties
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    348,058
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Unevaluated oil and gas properties, not subject to amortization
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12,724
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Accumulated depletion, depreciation and amortization
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (97,726
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Oil and gas properties, net
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;263,056
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>


<!-- XBRL,n -->
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><U><FONT style="font-family: Arial, Helvetica">Note&#160;14&#160;&#151;
    </FONT></U></B>
</TD>
    <TD>
    <B><U><FONT style="font-family: Arial, Helvetica">Supplemental
    Oil and Gas Information (unaudited)</FONT></U></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><U><FONT style="font-family: Arial, Helvetica">Oil and Gas
    Reserve Quantities:</FONT></U></I></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The following table presents our estimated net proved oil and
    gas reserves and the present value of such estimated net proved
    reserves as of September&#160;24, 2009, December&#160;31, 2008,
    and 2007. The reserve data as of December&#160;31, 2008 and 2007
    were prepared by Predecessor Resolute and 100&#160;percent and
    90&#160;percent, respectively, were audited by Netherland,
    Sewell&#160;&#038; Associates, Inc., independent petroleum
    engineers. Users of this information should be aware that the
    process of estimating quantities of proved oil and gas reserves
    is very complex, requiring significant subjective decisions to
    be made in the evaluation of available geological, engineering
    and economic data for each reservoir. The data for a given
    reservoir may also change substantially over time as a result of
    numerous factors, including, but not limited to, additional
    development activity, evolving production history and continual
    reassessment of the viability of production under varying
    economic conditions. As a result, revisions to existing reserves
    estimates may occur from time to time. Although every reasonable
    effort is made to ensure reserves estimates reported represent
    the most accurate assessments possible, the
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <BR>
A-149
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    subjective decisions and variances in available data for various
    reservoirs make these estimates generally less precise than
    other estimates included in the financial statement disclosure.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Presented below is a summary of the changes in estimated
    reserves (in thousands):
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="54%">&nbsp;</TD> <!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=02 type=lead -->
    <TD width="11%" align="right">&nbsp;</TD>   <!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>  <!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=03 type=lead -->
    <TD width="11%" align="right">&nbsp;</TD>   <!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>  <!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=04 type=lead -->
    <TD width="11%" align="right">&nbsp;</TD>   <!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>(3)<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Oil<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Oil<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Gas<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Equivilant<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>(Bbl)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>(Mcf)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>(Boe)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Proved reserves as of January&#160;1, 2007:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    92,301
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    51,761
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    100,928
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Production
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,127
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (3,175
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,656
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Extensions, discoveries and other additions
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    208
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    611
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    310
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Improved recovery
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,427
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    635
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,533
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Revisions of previous estimates (1)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (14,239
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (25,351
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (18,464
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Proved reserves as of December&#160;31, 2007:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    78,570
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    24,481
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    82,651
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Purchases of minerals in place
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    212
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,240
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    752
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Production
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,049
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (4,029
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,721
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Extensions, discoveries and other additions
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Revisions of previous estimates (2)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (30,375
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (5,911
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (31,360
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Proved reserves as of December&#160;31, 2008:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    46,370
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17,781
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    49,334
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Production
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,464
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,971
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,959
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Extensions, discoveries and other additions
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,154
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17,113
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,007
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Revisions of previous estimates (2)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    23,881
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20,278
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    27,261
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Proved reserves as of September&#160;24, 2009
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    71,941
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    52,201
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    80,643
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Proved developed reserves:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    As of December&#160;31, 2007
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    40,481
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    22,135
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    44,170
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    As of December&#160;31, 2008
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    28,760
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17,949
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    31,751
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    As of September&#160;24, 2009
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;46,105
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;17,675
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;49,050
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    1) </TD>
    <TD></TD>
    <TD valign="bottom">
    The oil revision is due to a reduction in the anticipated
    performance of the Aneth field, Aneth drilling program and the
    tertiary recovery, all amounting to approximately 35% of the
    total. The majority of the remaining oil revision and the gas
    revision are attributable to performance of the Wyoming
    properties, all of which are partially offset by an increase in
    product pricing.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    2) </TD>
    <TD></TD>
    <TD valign="bottom">
    The oil and gas revisions are attributable to the changes in
    prices of oil and gas.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    3) </TD>
    <TD></TD>
    <TD valign="bottom">
    Includes NGL volumes.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><U><FONT style="font-family: Arial, Helvetica">Standardized
    Measure of Discounted Future Net Cash Flows Relating to Proved
    Oil and Gas Reserves:</FONT></U></I></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The following summarizes the policies used in the preparation of
    the accompanying oil and gas reserves disclosures, standardized
    measures of discounted future net cash flows from proved oil and
    gas reserves and the reconciliations of standardized measures
    from year to year. The information disclosed is an attempt to
    present the information in a manner comparable with industry
    peers.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The information is based on estimates of proved reserves
    attributable to Predecessor Resolute&#146;s interest in oil and
    gas properties as of September&#160;24, 2009 and
    December&#160;31, 2008 and 2007. Proved reserves are estimated
    quantities of oil and gas that geological and engineering data
    demonstrate with reasonable certainty to be recoverable in
    future years from known reservoirs under existing economic and
    operating conditions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The standardized measure of discounted future net cash flows
    from production of proved reserves was developed as follows:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    1)&#160;&#160;
</TD>
    <TD align="left">
    Estimates were made of quantities of proved reserves and future
    periods during which they are expected to be produced based on
    year-end economic conditions.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    2)&#160;&#160;
</TD>
    <TD align="left">
    The estimated future cash flows was compiled by applying
    year-end prices of crude oil and gas relating to Resolute&#146;s
    proved reserves to the year-end quantities of those reserves.
</TD>
</TR>

</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <BR>
A-150
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    3)&#160;&#160;
</TD>
    <TD align="left">
    The future cash flows were reduced by estimated production
    costs, costs to develop and produce the proved reserves and
    abandonment costs, all based on year-end economic conditions.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    4)&#160;&#160;
</TD>
    <TD align="left">
    Future income tax expenses were based on year-end statutory tax
    rates giving effect to the remaining tax basis in the oil and
    gas properties, other deductions, credits and allowances
    relating to Predecessor Resolute&#146;s proved oil and natural
    gas reserves.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    5)&#160;&#160;
</TD>
    <TD align="left">
    Future net cash flows were discounted to present value by
    applying a discount rate of 10%.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The standardized measure of discounted future net cash flows
    does not purport, nor should it be interpreted, to present the
    fair value of Predecessor Resolute&#146;s oil and gas reserves.
    An estimate of fair value would also take into account, among
    other things, the recovery of reserves not presently classified
    as proved, anticipated future changes in prices and costs and a
    discount factor more representative of the time value of money
    and the risks inherent in reserve estimates.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The following summary sets forth Resolute&#146;s future net cash
    flows relating to proved oil and gas reserves based on the
    standardized measure prescribed by FASB ASC Topic 932,
    <I>Extractive Activities&#160;&#151; Oil and Gas</I>:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="55%">&nbsp;</TD> <!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=02 type=lead -->
    <TD width="13%" align="right">&nbsp;</TD>   <!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>  <!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=03 type=lead -->
    <TD width="10%" align="right">&nbsp;</TD>   <!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>  <!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=04 type=lead -->
    <TD width="9%" align="right">&nbsp;</TD>    <!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Period Ended<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>December&#160;31,</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>September&#160;24, 2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" align="center" valign="bottom">
    (in thousands)
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Future cash inflows
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    4,476,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,821,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    7,040,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Future production costs
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,663,000
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (994,000
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,282,000
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Future development costs
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (555,000
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (265,000
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (561,000
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Future income taxes (1)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (10,000
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (4,000
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (70,000
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Future net cash flows
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,248,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    558,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,127,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    10% annual discount for estimating timing of cash flows
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,462,000
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (310,000
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,501,000
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Standardized measure of discounted future net cash flows
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;786,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;248,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;1,626,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    (1) </TD>
    <TD></TD>
    <TD valign="bottom">
    Future income taxes are related to RWI&#146;s oil and gas
    properties. Aneth is a pass through entity, therefore, there are
    no future income taxes associated with its oil and gas
    properties.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 1%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The principal sources of change in the standardized measure of
    discounted future net cash flows are:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="60%">&nbsp;</TD> <!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=02 type=lead -->
    <TD width="9%" align="right">&nbsp;</TD>    <!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>  <!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=03 type=lead -->
    <TD width="9%" align="right">&nbsp;</TD>    <!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>  <!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>    <!-- colindex=04 type=lead -->
    <TD width="9%" align="right">&nbsp;</TD>    <!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>September&#160;24,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>December&#160;31,</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" align="center" valign="bottom">
    (in thousands)
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Standardized measure, beginning of year
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;248,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;1,626,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;1,235,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Sales of oil and gas produced, net of production costs
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (33,000
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (147,000
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (99,000
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Net changes in prices and production costs
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    319,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,432,000
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    711,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Extensions, discoveries and other, including infill reserves in
    an existing proved field, net of production costs
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Improved recoveries
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    52,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Purchase of minerals in place
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    24,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Previously estimated development cost incurred during the year
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    45,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    88,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Changes in estimated future development costs
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (151,000
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    163,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (222,000
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Revisions of previous quantity estimates
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    352,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (230,000
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (419,000
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Accretion of discount
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    164,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    123,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Net change in income taxes
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (3,000
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    35,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    88,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Changes in timing and other
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    62,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Standardized measure, end of period
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    786,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    248,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,626,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

</DIV>
<!-- /XBRL,ns -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <BR>
A-151
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>PART II</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>INFORMATION NOT REQUIRED IN PROSPECTUS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;13. Other Expenses Of Issuance And Distribution</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The expenses payable by us in connection with the offering described in this
registration statement were as follows:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR></TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SEC registration fee</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Accounting fees and expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">55,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Legal fees and expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Printing expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Transfer agent fees and expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Miscellaneous fees and expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right">101,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;14. Indemnification Of Directors And Officers</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under Section&nbsp;145 of the Delaware General Corporation Law (the &#147;DGCL&#148;), the Company has broad
powers to indemnify its directors and officers against liabilities they may incur in such
capacities, including liabilities under the Securities Act. The Company&#146;s Amended and Restated
Certificate of Incorporation, as amended, and Amended and Restated Bylaws include provisions to
(i)&nbsp;eliminate the personal liability of its directors and officers for monetary damages resulting
from breaches of their fiduciary duty to the extent permitted by Section&nbsp;102(b)(7) of the DGCL, and
(ii)&nbsp;require the Company to indemnify its directors and officers to the fullest extent permitted by
Section&nbsp;145 of the DGCL, including circumstances in which indemnification is otherwise
discretionary. Pursuant to Section&nbsp;145 of the DGCL, a corporation generally has the power to
indemnify its present and former directors, officers, employees and agents against expenses
incurred by them in connection with any suit to which they are or are threatened to be made, a
party by reason of their serving in such positions so long as they acted in good faith and in a
manner they reasonably believed to be in or not opposed to, the best interests of the corporation
and with respect to any criminal action, they had no reasonable cause to believe their conduct was
unlawful.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, pursuant to the Section&nbsp;102(b)(7) of the DGCL, each director will continue to be
subject to liability for (1)&nbsp;breach of loyalty to the Company or its stockholders, (2)&nbsp;acts or
omissions not in good faith or which involve intentional misconduct or a knowing violation of law,
(3)&nbsp;any transaction from which the director derived an improper personal benefit or (4)&nbsp;any payment
of unlawful dividends or an unlawful stock repurchase or redemption. The provision also does not
affect a director&#146;s responsibilities under any other law, such as federal securities laws or state
or federal environmental laws.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In accordance with Section&nbsp;102(b)(7) of the DGCL, Section&nbsp;8.1 of the Company&#146;s charter
provides that no director shall be personally liable to the Company or any of its stockholders for
monetary damages resulting from breaches of their fiduciary duty as directors, except to the extent
such limitation on or exemption from liability is not permitted under the DGCL. The effect of this
provision of the Company&#146;s charter is to eliminate the Company&#146;s rights and those of its
stockholders (through stockholders&#146; derivative suits on the Company&#146;s behalf) to recover monetary
damages against a director
for breach of the fiduciary duty of care as a director, including breaches resulting from
negligent or grossly negligent behavior, except as restricted by Section&nbsp;102(b)(7) of the DGCL.
However, this provision does not limit or eliminate the Company&#146;s rights or the rights of any
stockholder to seek non-monetary relief, such as an injunction or rescission, in the event of a
breach of a director&#146;s duty of care.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the DGCL is amended to authorize corporate action further eliminating or limiting the
liability of directors, then, in accordance with the Company&#146;s charter, the liability of the
Company&#146;s directors to the Company or its stockholders
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->II-1<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">will be eliminated or limited to the fullest
extent authorized by the DGCL, as so amended. Any repeal or amendment of provisions of the
Company&#146;s charter limiting or eliminating the liability of directors, whether by the Company&#146;s
stockholders or by changes in law, or the adoption of any other provisions inconsistent therewith,
will (unless otherwise required by law) be prospective only, except to the extent such amendment or
change in law permits the Company to further limit or eliminate the liability of directors on a
retroactive basis.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;145(a) of the DGCL empowers a corporation to indemnify any director, officer, employee
or agent, or former director, officer, employee or agent, who was or is a party or is threatened to
be made a party to any threatened, pending or completed action, suit or proceeding, whether civil,
criminal, administrative or investigative (other than an action by or in the right of the
corporation) by reason of his service as a director, officer, employee or agent of the corporation,
or his service, at the corporation&#146;s request, as a director, officer, employee or agent of another
corporation or enterprise, against expenses (including attorneys&#146; fees), judgments, fines and
amounts paid in settlement actually and reasonably incurred by such person in connection with such
action, suit or proceeding provided that such director or officer acted in good faith and in a
manner reasonably believed to be in or not opposed to the best interests of the corporation, and,
with respect to any criminal action or proceeding, provided that such director or officer had no
reasonable cause to believe his conduct was unlawful.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;145(b) of the DGCL empowers a corporation to indemnify any person who was or is a
party or is threatened to be made a party to any threatened, pending or completed action or suit by
or in the right of the corporation to procure a judgment in its favor by reason of the fact that
such person is or was a director, officer, employee or agent of the corporation, or is or was
serving at the request of the corporation as a director, officer, employee or agent of another
enterprise, against expenses (including attorneys&#146; fees) actually and reasonably incurred in
connection with the defense or settlement of such action or suit provided that such director or
officer acted in good faith and in a manner he reasonably believed to be in or not opposed to the
best interests of the corporation, except that no indemnification may be made in respect of any
claim, issue or matter as to which such director or officer shall have been adjudged to be liable
to the corporation unless and only to the extent that the Delaware Court of Chancery or the court
in which such action or suit was brought shall determine upon application that, despite the
adjudication of liability but in view of all the circumstances of the case, such director or
officer is fairly and reasonably entitled to indemnity for such expenses which the court shall deem
proper.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;145 of the DGCL further provides that to the extent a director or officer of a
corporation has been successful in the defense of any action, suit or proceeding referred to in
Section 145(a) or Section 145(b) of the DGCL or in the defense of any claim, issue or matter
therein, he shall be indemnified against expenses (including attorneys&#146; fees) actually and
reasonably incurred by him in connection therewith, provided that indemnification provided for by
Section&nbsp;145 of the DGCL or granted pursuant thereto shall not be deemed exclusive of any other
rights to which the indemnified party may be entitled, and empowers the corporation to purchase and
maintain insurance on behalf of a director or officer of the corporation against any liability
asserted against him or incurred by him in any such
capacity or arising out of his status as such whether or not the corporation would have the
power to indemnify him against such liabilities under Section&nbsp;145 of the DGCL.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company has entered into indemnification agreements with all of its directors and
executive officers. Under these agreements, the Company will indemnify its directors and executive
officers against amounts actually and reasonably incurred in connection with actual or threatened
proceedings if any of them may be made a party because of their role as a director or officer. The
Company is obligated to pay these amounts only if the officer or director acted in good faith and
in a manner that he or she reasonably believed to be in or not opposed to the Company&#146;s best
interests. For any criminal proceedings, the Company is obligated to pay these amounts only if the
officer or director had no reasonable cause to believe his or her conduct was unlawful. The
indemnification agreements also set forth procedures that will apply in the event of a claim for
indemnification thereunder.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company maintains insurance coverage for the purpose of providing indemnification benefits
in certain circumstances.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->II-2<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;15. Recent Sales Of Unregistered Securities</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;None.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;16. Exhibit&nbsp;Index</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="6%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="92%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Exhibit</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>No.</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Description</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">2.1&#134;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Purchase and IPO Reorganization Agreement, dated as of August&nbsp;2, 2009, among
Hicks Acquisition Company I, Inc., Resolute Energy Corporation, Resolute
Subsidiary Corporation., Resolute Holdings, LLC, Resolute Holdings Sub, LLC,
Resolute Aneth, LLC and HH-HACI, L.P. (incorporated by reference to <I>Annex A</I>
to the Registration Statement in Form&nbsp;S-4 filed on August&nbsp;6, 2009 (File No.
333-161076) (the &#147;Initial S-4&#148;))</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">2.2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Letter Agreement amending Purchase and IPO Reorganization Agreement, dated
as of September&nbsp;9, 2009, among Hicks Acquisition Company I, Inc., Resolute
Energy Corporation, Resolute Subsidiary Corporation., Resolute Holdings,
LLC, Resolute Holdings Sub, LLC, Resolute Aneth, LLC and HH-HACI, L.P.
(incorporated by reference to <I>Annex A </I>to the Initial S-4)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">2.3
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Purchase and Sale Agreement between Exxon Mobil Corporation, ExxonMobil Oil
Corporation, Mobil Exploration and Producing North America Inc., Mobil
Producing Texas &#038; New Mexico Inc. and Mobil Exploration &#038; Producing U.S.
Inc. and Resolute Aneth, LLC &#151; 75% and Navajo Nation Oil and Gas Company &#151;
25% dated January&nbsp;1, 2005 (incorporated by reference to Exhibit&nbsp;2.2 to the
Initial S-4)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">2.4&#134;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Asset Sale Agreement Aneth Unit, Rutherford Unit and McElmo Creek Unit,
San Juan County, Utah between Chevron U.S.A. Inc. (as seller) and Resolute
Natural Resources Company and Navajo Nation Oil and Gas Company, Inc. (as
buyer) dated October&nbsp;22, 2004 (incorporated by reference to Exhibit&nbsp;2.3 to
the Initial S-4)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">2.5&#134;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Stock Purchase Agreement dated June&nbsp;24, 2008, between Primary Natural
Resources, Inc. (as seller) and Resolute Acquisition Company, LLC (as buyer)
(incorporated by reference to Exhibit&nbsp;2.4 to the Initial S-4)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">3.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Amended and Restated Certificate of Incorporation of Resolute Energy
Corporation, filed September&nbsp;25, 2009 (incorporated by reference to Exhibit
3.1 of the Annual Report on Form&nbsp;10-K filed on March&nbsp;30, 2010)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">3.2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Amended and Restated Bylaws of Resolute Energy Corporation (incorporated by
reference to Exhibit&nbsp;3.2 of the Annual Report on Form&nbsp;10-K filed on March
30, 2010)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Warrant Agreement between Resolute Energy Corporation and Continental Stock
Transfer and Trust Company dated September&nbsp;25, 2009 (incorporated by
reference to <I>Annex D </I>to the Initial S-4)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Registration Rights Agreement dated September&nbsp;25, 2009, among Resolute
Energy Corporation and certain holders (incorporated by reference to Exhibit
4.4 to Amendment No.&nbsp;2 to the Initial S-4 filed on September&nbsp;8, 2009)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">5.1*
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Opinion of Davis Graham &#038; Stubbs LLP regarding the validity of the securities</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Second Amended and Restated Credit Agreement dated March&nbsp;30, 2010, between
Resolute Energy Corporation as Borrower and certain of its Subsidiaries as
Guarantors, Wells Fargo Bank, National Association, as Administrative Agent,
Bank of Montreal as Syndication Agent, Deutsche Bank Securities Inc., UBS
Securities LLC and Union Bank, N.A. as Co-Documentation Agents, and The
Lenders Party Hereto, Wells Fargo Securities, LLC and BMO Capital Markets as
Joint Bookrunners and Joint Lead Arrangers (incorporated by reference to
Exhibit&nbsp;10.1 of the Annual Report on Form&nbsp;10-K filed on March&nbsp;30, 2010)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.2#
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2009 Performance Incentive Plan (incorporated by reference to Exhibit&nbsp;10.7
to Amendment No.&nbsp;1 to the Initial S-4 filed on August&nbsp;31, 2009)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.3#
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Indemnification Agreement between Resolute Energy Corporation and
each executive officer and independent director of the Company (incorporated
by reference to Exhibit&nbsp;10.7 to Amendment No.&nbsp;1. to the Initial S-4 filed on
August&nbsp;31, 2009)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.4&#134;&#134;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Cooperative Agreement between Resolute Natural Resources Company and
Navajo Nation Oil and Gas Company dated October&nbsp;22, 2004 (incorporated by
reference to Exhibit&nbsp;9 to the Initial S-4)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.5&#134;&#134;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">First Amendment of Cooperative Agreement between Resolute Aneth, LLC
and Navajo Nation Oil and Gas Company, Inc. dated October&nbsp;21, 2005
(incorporated by reference to Exhibit&nbsp;10.10 to the Initial S-4)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->II-3<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="6%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="92%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Exhibit</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>No.</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Description</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.6&#134;&#134;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Carbon Dioxide Sale and Purchase Agreement by and between ExxonMobil
Gas &#038; Power Marketing Company (a division of Exxon Mobil Corporation), as
agent for Mobil Producing Texas &#038; New Mexico, Inc. (Seller) and Resolute
Aneth, LLC (Buyer) dated July&nbsp;1, 2006, as amended July&nbsp;21, 2006
(incorporated by reference to Exhibit&nbsp;10.11 to Amendment No.&nbsp;1 to the
Initial S-4 filed on August&nbsp;31, 2009)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.7&#134;&#134;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Product Sale and Purchase Contract by and between Resolute Natural
Resources Company (Buyer) and Kinder Morgan CO<SUB style="FONT-size: 85%; vertical-align: text-bottom">2</SUB> Company, L.P.
(Seller) dated July&nbsp;1, 2007, as amended October&nbsp;1, 2007 and January&nbsp;1, 2009
(incorporated by reference to Exhibit&nbsp;10.12 to Amendment No.&nbsp;1 to the
Initial S-4 filed on August&nbsp;31, 2009)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.8
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Gas Sales and Purchase Contract &#151; Conventional &#038; Residue Gas dated April&nbsp;12,
1995, between Rim Offshore, Inc., as producer, and Western Gas Resources,
Inc., as processor (Contract #6690), as amended July&nbsp;27, 2006 and March&nbsp;6,
2009 (incorporated by reference to Exhibit&nbsp;10.13 to Amendment No.&nbsp;1 to the
Initial S-4 filed on August&nbsp;31, 2009)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.9
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Consent Decree, entered into June&nbsp;2005, relating to alleged violations of
the federal Clean Air Act (incorporated by reference to Exhibit&nbsp;10.16 to the
Initial S-4)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.10
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Consent Decree, entered into August&nbsp;2004, relating to alleged violations of
the federal Clean Water Act (incorporated by reference to Exhibit&nbsp;10.17 to
the Initial S-4)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.11
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Crude Oil Purchase Agreement dated August&nbsp;27, 2009 between Western Refining
Southwest, Inc., as purchaser, and Resolute Natural Resources Company, as
seller (incorporated by reference to Exhibit&nbsp;10.18 to Amendment No.&nbsp;1 to the
Initial S-4 filed on August&nbsp;31, 2009)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.12
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Retention Award Agreement between Resolute Energy Corporation and
certain award recipients (incorporated by reference to Exhibit&nbsp;10.19 to
Amendment No.&nbsp;2 to the Initial S-4 filed on September&nbsp;8, 2009)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.13
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Restricted Stock Award Agreement for Non-employee Directors
(incorporated by reference to Exhibit&nbsp;10.13 of the Annual Report on Form
10-K filed on March&nbsp;30, 2010)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.14#
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Confidentiality and Non Compete Agreement among Resolute Holdings,
LLC and certain employees dated as of January&nbsp;23, 2004.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">21.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">List of Subsidiaries of Resolute Energy Corporation (incorporated by
reference to Exhibit&nbsp;21 of the Annual Report on Form&nbsp;10-K filed on March&nbsp;30,
2010)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">23.1*
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Consent of Deloitte &#038; Touche LLP</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">23.2*
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Consent of KPMG LLP</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">23.3*
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Consent of Grant Thornton</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">23.4*
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Consent of Netherland, Sewell &#038; Associates, Inc.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">23.5*
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Consent of Davis Graham &#038; Stubbs LLP (included in Exhibit&nbsp;5.1)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">24.1*
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Powers of Attorney (included on signature page)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">99.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Report of Netherland, Sewell &#038; Associates, Inc. regarding the registrant&#146;s
reserves as of December&nbsp;31, 2009 (incorporated by reference to Exhibit&nbsp;99.1
of the Annual Report on Form&nbsp;10-K filed on March&nbsp;30, 2010)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">99.2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Report of Grant Thornton dated May&nbsp;9, 2008 (incorporated by reference to
Exhibit&nbsp;99.2 of the Annual Report on Form&nbsp;10-K filed on March&nbsp;30, 2010)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">*</TD>
    <TD>&nbsp;</TD>
    <TD>Filed herewith.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">&#134;</TD>
    <TD>&nbsp;</TD>
    <TD>The Purchase and IPO Reorganization Agreement filed as Exhibit&nbsp;2.1, the Purchase and
Sale Agreement filed as Exhibit&nbsp;2.3, the Asset Sale Agreement filed as Exhibit&nbsp;2.4,
the Purchase and Sale Agreement filed as Exhibit&nbsp;2.5 and the Cooperative Agreement
filed as Exhibit&nbsp;10.4 omit certain of the schedules and exhibits to each of the
Purchase and IPO Reorganization Agreement, Purchase and Sale Agreements, the Asset
Sale Agreement and the Cooperative Agreement in accordance with Item&nbsp;601(b)(2) of
Regulation&nbsp;S-K. A list briefly identifying the contents of all omitted scheduled and
exhibits is included with each of the Purchase and Sale Agreement, the Asset Sale
Agreement and the Cooperative Agreement filed as Exhibit&nbsp;2.1, 2.3, 2.4, 2.5 and
10.4, respectively. Resolute agrees to furnish supplementally a copy of any omitted
schedule or exhibits to the Securities and Exchange Commission upon request.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">&#134;&#134;</TD>
    <TD>&nbsp;</TD>
    <TD>Confidential treatment has been granted for portions of this exhibit.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">#</TD>
    <TD>&nbsp;</TD>
    <TD>Management contract, compensation plan or agreement.</TD>
</TR>

</TABLE>



<P align="center" style="font-size: 10pt"><!-- Folio -->II-4<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;17. Undertakings</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)&nbsp;The undersigned registrant hereby undertakes:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;To file, during any period in which offers or sales are being made, a post-effective
amendment to this registration statement:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;To include any prospectus required by Section&nbsp;10(a)(3) of the Securities Act of 1933;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;To reflect in the prospectus any facts or events arising after the effective date of the
registration statement (or the most recent post-effective amendment thereof) which, individually or
in the aggregate, represent a fundamental change in the information set forth in the registration
statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered
(if the total dollar value of securities offered would not exceed that which was registered) and
any deviation from the low or high end of the estimated maximum offering range may be reflected in
the form of prospectus filed with the Commission pursuant to Rule 424(b) if, in the aggregate, the
changes in volume and price represent no more than a 20&nbsp;percent change in the maximum aggregate
offering price set forth in the &#147;Calculation of Registration Fee&#148; table in the effective
registration statement;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;To include any material information with respect to the plan of distribution not
previously disclosed in the registration statement or any material change to such information in
the registration statement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;That, for the purpose of determining any liability under the Securities Act of 1933, each
such post-effective amendment shall be deemed to be a new registration statement relating to the
securities offered therein, and the offering of such securities at that time shall be deemed to be
the initial bona fide offering thereof.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;To remove from registration by means of a post-effective amendment any of the securities
being registered which remain unsold at the termination of the offering.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)&nbsp;For the purpose of determining liability under the Securities Act of 1933 to any
purchaser, if the registrant is subject to Rule&nbsp;430C, each prospectus filed pursuant to Rule 424(b)
as part of a registration statement relating to an offering, other than registration statements
relying on Rule&nbsp;430B or other than prospectuses filed in reliance on Rule&nbsp;430A, shall be deemed to
be part of and included in the registration statement as of the date it is first used after
effectiveness. Provided, however, that no statement made in a registration statement or prospectus
that is part of the registration statement or made in a document incorporated or deemed
incorporated by reference into the registration statement or prospectus that is part of the
registration statement will, as to the purchaser with a time of contract of sale prior to such
first use, supersede or modify any statement that was made in the registration statement or
prospectus that was part of the registration statement or made in any such document immediately
prior to such date of first use.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)&nbsp;Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be
permitted to directors, officers and controlling persons of the registrant pursuant to the
foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the
Securities and Exchange Commission such indemnification is against public policy as expressed in
the Securities Act of 1933 and is, therefore, unenforceable. In the event that a claim for
indemnification against such liabilities (other than the payment by the registrant of expenses
incurred or paid by a director, officer or controlling person of the registrant in the successful
defense of any action, suit or proceeding) is asserted by such director, officer or controlling
person in connection with the securities being registered, the registrant will, unless in the
opinion of its counsel the matter has been settled by controlling precedent, submit to a court of
appropriate jurisdiction the question whether such indemnification by it is against public policy
as expressed in the Securities Act of 1933 and will be governed by the final adjudication of such
issue.
</DIV>




<P align="center" style="font-size: 10pt"><!-- Folio -->II-5<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SIGNATURES</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities Act, the registrant has duly caused this
registration statement to be signed on its behalf by the undersigned, thereunto duly authorized, in
the City of Denver, State of Colorado, on April&nbsp;16, 2010.
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="58%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="36%">&nbsp;</TD>
</TR>
<TR></TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">RESOLUTE ENERGY CORPORATION</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ James M. Piccone</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Name: James M. Piccone</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Title: President, Secretary and General Counsel</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>POWER OF ATTORNEY</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each person whose signature appears below appoints James M. Piccone, Nicholas J. Sutton and
Theodore Gazulis, and each of them, his true and lawful attorney-in-fact and agent with full power
of substitution and re-substitution, for him/her and in his name, place and stead, in any and all
capacities to sign any or all amendments (including, without limitation, post-effective amendments)
to this Registration Statement, any related Registration Statement filed pursuant to Rule 462(b)
under the Securities Act of 1933 and any or all pre- or post-effective amendments thereto, and to
file the same, with all exhibits thereto, and all other documents in connection therewith, with the
Securities and Exchange Commission, granting unto said attorney-in-fact and agent, full power and
authority to do and perform each and every act and thing requisite and necessary to be done in and
about the premises, as fully for all intents and purposes as he or she might or could do in person,
hereby ratifying and confirming that said attorney-in-fact and agent, or any substitute or
substitutes for him, may lawfully do or cause to be done by virtue hereof.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities Act of 1933, this registration statement has
been signed by the following persons in the capacities and on the dates indicated.
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="20%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Signature</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Title</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Date</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ Nicholas J. Sutton
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Nicholas J. Sutton
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Chief Executive Officer
(Principal Executive
Officer) and Director
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">April&nbsp;16, 2010</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ Theodore Gazulis
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Theodore Gazulis
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Vice President of
Finance, Chief Financial
Officer and Treasurer
(Principal Financial and
Accounting Officer)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">April&nbsp;16, 2010</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ James M. Piccone
<DIV style="width: 100%; border-bottom: 1px solid #000000; FONT-size: 1px">&nbsp;</DIV>
James M. Piccone
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">President and Director
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">April&nbsp;16, 2010</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ Kenneth A. Hersh
<DIV style="width: 100%; border-bottom: 1px solid #000000; FONT-size: 1px">&nbsp;</DIV>
Kenneth A. Hersh
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">April&nbsp;16, 2010</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ Richard L. Covington
<DIV style="width: 100%; border-bottom: 1px solid #000000; FONT-size: 1px">&nbsp;</DIV>
Richard L. Covington
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">April&nbsp;16, 2010</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ William J. Quinn
<DIV style="width: 100%; border-bottom: 1px solid #000000; FONT-size: 1px">&nbsp;</DIV>
William J. Quinn
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">April&nbsp;16, 2010</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ William H. Cunningham
<DIV style="width: 100%; border-bottom: 1px solid #000000; FONT-size: 1px">&nbsp;</DIV>
William H. Cunningham
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">April&nbsp;16, 2010</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ Thomas O. Hicks, Jr.
<DIV style="width: 100%; border-bottom: 1px solid #000000; FONT-size: 1px">&nbsp;</DIV>
Thomas O. Hicks, Jr.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">April&nbsp;16, 2010</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ Robert M. Swartz
<DIV style="width: 100%; border-bottom: 1px solid #000000; FONT-size: 1px">&nbsp;</DIV>
Robert M. Swartz
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">April&nbsp;16, 2010</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ James E. Duffy
<DIV style="width: 100%; border-bottom: 1px solid #000000; FONT-size: 1px">&nbsp;</DIV>
James E. Duffy
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">April&nbsp;16, 2010</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->II-6<!-- /Folio -->
</DIV>

</BODY>
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sv1
Table of Contents
As filed with the Securities and Exchange Commission on April 16, 2010
File No. 333-
UNITED STATES SECURITIES AND
EXCHANGE COMMISSION
Washington, D.C. 20549
Form S-1
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933
RESOLUTE ENERGY CORPORATION
(Exact name of registrant as specified in its charter)
Delaware
1311
27-0659371
(State or other jurisdiction of
(Primary Standard Industrial
(I.R.S. Employer
incorporation or organization)
Classification Code Number)
Identification Number)
James M. Piccone
1675 Broadway, Suite 1950
1675 Broadway, Suite 1950
Denver, Colorado 80202
Denver, Colorado 80202
303-534-4600 (Phone)
303-534-4600 (Phone)
(Address, including zip code, and telephone number, including
(Address, including zip code, and telephone number,
area code, of registrant's principal executive offices)
including area code, of agent for service)
Copies to
:
Ronald R. Levine, II
Davis Graham & Stubbs LLP
1550 Seventeenth Street, Suite 500
Denver, Colorado 80202
303-892-9400 (Phone)
303-892-7400 (Fax)
Approximate date of commencement of proposed sale to the public: As soon as
practicable after the effective date of this registration statement.
If any of the securities being registered on this Form are to be offered on a delayed
or continuous basis pursuant to Rule 415 under the Securities Act of 1933 check the
following box.
þ
If this Form is filed to register additional securities for an offering pursuant to
Rule 462(b) under the Securities Act, please check the following box and list the Securities
Act registration statement number of the earlier effective registration statement for the
same offering.
o
If this Form is a post-effective amendment filed pursuant to Rule 462(c) under the
Securities Act, check the following box and list the Securities Act registration statement
number of the earlier effective registration statement for the same offering.
o
If this Form is a post-effective amendment filed pursuant to Rule 462(d) under the
Securities Act, check the following box and list the Securities Act registration statement
number of the earlier effective registration statement for the same offering.
o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated
filer, a non-accelerated filer, or a smaller reporting company. See the definitions of "large
accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the
Exchange Act. (Check one):
Large accelerated filer
o
Accelerated filer
o
Non-accelerated filer
þ
Smaller reporting company
o
(Do not check if a smaller reporting company)
CALCULATION OF REGISTRATION FEE
Proposed Maximum
Proposed Maximum
Title of Each Class of Securities to be
Amount to be
Offering Price per
Aggregate
Amount of
Registered
Registered
Security(1)
Offering Price
Registration Fee
Common Stock, par value $0.0001 per share
27,600,000 shares(1)(3)
$13.00
$358,800,000
(4)
$—
(4)
Common Stock, par value $0.0001 per share
20,800,000 shares(2)(3)
$13.00
$270,400,000
(4)
$—
(4)
(1)
Issuable upon exercise of 27,600,000 outstanding Public Warrants.
(2)
Issuable upon exercise of the 7,000,000 outstanding Sponsor's Warrants and
13,800,000 outstanding Founder's Warrants.
(3)
In accordance with Rule 416 under the Securities Act of 1933, as amended
(the "Securities Act"), there shall be deemed to be registered hereunder such
additional securities as may be issued to prevent dilution or as resulting from
stock splits, stock dividends and similar transactions.
(4)
These shares were originally registered in Registration Statement
No. 333-161076 on Form S-4, declared effective by the Securities and Exchange
Commission on September 14, 2009. All filing fees payable in connection with the
registration of the shares of common stock issuable on exercise of the Warrants
were previously paid in connection with the filing of Registration Statement
No. 333-161076.
The Registrant hereby amends this Registration Statement on such date or
dates as may be necessary to delay its effective date until the Registrant shall
file a further amendment which specifically states that this Registration Statement
shall thereafter become effective in accordance with Section 8(a) of the Securities
Act, or until the Registration Statement shall become effective on such date as the
Commission, acting pursuant to said Section 8(a), may determine.
Table of Contents
Explanatory Note
This registration statement supersedes and replaces in its entirety the proxy
statement/prospectus dated September 14, 2009, as supplemented on September 23, 2009, November 24,
2009, March 15, 2010 and April 12, 2010, that were filed with the Securities and Exchange Commission
pursuant to Rule 424(b)(3) on such dates under Registration Statement No. 333-161076 (the "Original
Registration Statement"). This Registration Statement on Form S-1 contains an updated prospectus
relating to shares of common stock issuable upon exercise of the Public Warrants,
Sponsor's Warrants and Founder's Warrants (collectively,
the "Warrants") registered in the
Original Registration Statement. All filing fees payable in connection with the registration of
the shares of common stock issuable on exercise of Warrants were previously paid in connection with
the filing of the Original Registration Statement.
Table of Contents
The information in this preliminary prospectus is not complete and may be changed. We may not
sell these securities until the registration statement filed with the Securities and Exchange
Commission is effective. This preliminary prospectus is not an offer to sell securities and is not
soliciting an offer to buy these securities.
Subject to Completion, Dated April 16, 2010
PROSPECTUS
RESOLUTE ENERGY CORPORATION
This prospectus relates to the issuance by us of 48,400,000 shares of our common stock,
par value $0.0001 per share, of Resolute Energy Corporation, a Delaware corporation (the
"Company"), of which:
•
27,600,000 shares (the "Public Warrant Shares") are issuable upon the
exercise of outstanding Warrants issued to the public (the "Public Warrants");
•
7,000,000 shares (the "Sponsor Warrant Shares") are issuable upon the
exercise of outstanding Warrants held by certain persons (the "Sponsor's Warrants");
and
•
13,800,000 shares (the "Founder Warrant Shares") are issuable upon the
exercise of 13,800,000 outstanding Warrants held by certain persons (the "Founder's
Warrants" and, together with the Public Warrants and the Sponsor's Warrants, the
"Warrants").
The
Warrants were all issued on September 25, 2009
pursuant to a prospectus dated September 14, 2009.
Each Warrant entitles the holder to purchase one share of our common stock. In order to obtain
the shares, the holders of the Warrants must pay an exercise price of $13.00 per share, subject to
adjustment. Warrants expire on September 25, 2014. Founder's Warrants are not currently
exercisable, and will become exercisable only if the trading price of our common stock exceeds
certain specified thresholds.
Our common stock and Public Warrants began trading on the New York Stock Exchange on
September 28, 2009, and are listed on the NYSE under the symbols "REN" and "RENWS". On April 12,
2010, the closing price of the Public Warrants was $2.90 per Warrant and the closing price of the
common stock was $13.19 per share.
Investing in our securities involves a high degree of risk. See "Risk Factors" beginning on
page 10 of this prospectus and on Page A-34 of the Form 10-K attached as Appendix A hereto for a
discussion of information that should be considered in connection with an investment in our
securities.
Neither the Securities and Exchange Commission nor any state securities commission has
approved or disapproved of these securities or determined if this prospectus is truthful or
complete. Any representation to the contrary is a criminal offense.
The date of this prospectus is       , 2010.
TABLE OF CONTENTS
Page
PROSPECTUS SUMMARY
2
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
8
RISK FACTORS
10
CAPITALIZATION
11
MARKET PRICE FOR OUR COMMON STOCK AND RELATED STOCKHOLDER MATTERS
12
USE OF PROCEEDS
13
PLAN OF DISTRIBUTION
14
DESCRIPTION OF SECURITIES
15
MATERIAL U.S. FEDERAL INCOME TAX CONSEQUENCES
21
LEGAL MATTERS
25
EXPERTS
25
WHERE YOU CAN FIND MORE INFORMATION
26
APPENDIX A: FORM 10-K FOR YEAR ENDED DECEMBER 31, 2009
A-1
EX-5.1
EX-23.1
EX-23.2
EX-23.3
EX-23.4
i
Table of Contents
PROSPECTUS SUMMARY
This summary highlights information contained in this prospectus, including in our Form 10-K
for the year ended December 31, 2009 (the "Form 10-K"), which is Appendix A to this prospectus and
forms a part hereof. This summary does not contain all of the information important to you. You
should read this entire prospectus carefully, including the Form 10-K. See "Risk Factors"
beginning on page 10 hereof and on Page 29 in our Form 10-K.
Company Overview
We are an independent oil and gas company engaged in the exploration, exploitation and
development of oil and gas properties located in Utah, Wyoming, North Dakota and, to a lesser
extent, properties in Alabama and Oklahoma. Approximately 90% of our revenue is generated from the
sale of oil production. Our main focus is on increasing reserves and production from our properties
located in Utah ("Aneth Field Properties") and from Hilight Field and related properties in
Wyoming, ("Wyoming Properties"), while improving efficiency and controlling costs in our
operations. We have completed a number of exploitation projects that have increased our proved
developed reserve base, and have plans for additional expansion and enhancement projects. We plan
to further expand our reserve base through a focused acquisition strategy by looking to acquire
properties that have upside potential through development drilling and exploitation projects and
through the acquisition, exploration and exploitation of acreage that appears to contain relatively
low risk and repeatable drilling opportunities. Also, we seek to reduce the effect of short-term
commodity price fluctuations on our cash flow through the use of various derivative instruments.
Our largest asset, constituting 93% of our proved reserves, is our ownership of working
interests in Greater Aneth Field ("Aneth Field"), a mature, long-lived oil producing field located
in the Paradox Basin on the Navajo Reservation in southeast Utah. We own a majority of the working
interests in, and are the operator of, three federal production units covering approximately
43,000 gross acres. These are the Aneth Unit, in which we own a 62% working interest, the McElmo
Creek Unit, in which we own a 75% working interest, and the Ratherford Unit, in which we own a 59%
working interest. As of December 31, 2009, we had interests in, and operated 399 gross (262 net)
active producing wells and 334 gross (218 net) active water and CO
2
injection wells on
our Aneth Field Properties. The crude oil produced from the Aneth Field Properties is generally
characterized as light, sweet crude oil that is highly desired as a refinery blending feedstock.
We were incorporated on July 28, 2009, to consummate a business combination with Hicks
Acquisition Company I, Inc. ("HACI"), a Delaware corporation incorporated on February 26, 2007.
HACI was formed to acquire through a merger, capital stock exchange, asset acquisition, stock
purchase, reorganization or similar business combination, one or more businesses or assets. HACI's
initial public offering was consummated on October 3, 2007. HACI had neither engaged in any
operations nor generated any operating revenue prior to the business combination with us.
On September 25, 2009 (the "Acquisition Date"), we consummated a business combination with
HACI (the "Resolute Transaction") under the terms of a Purchase and IPO Reorganization Agreement,
dated as of August 2, 2009 ("Acquisition Agreement") among the Company, HACI, Resolute Holdings
Sub, LLC, Resolute Subsidiary Corporation, Resolute Aneth, LLC, Resolute Holdings, LLC and HH HACI,
L.P., as amended. As a result of the Resolute Transaction, HACI became a wholly owned subsidiary
of the Company. In addition, the Company owned, directly or indirectly, prior to the Resolute
Transaction, and continues to own after the Resolute Transaction, 100% of the equity interests of
Resolute Natural Resources Company, LLC ("Resources"), WYNR, LLC ("WYNR"), BWNR, LLC
("BWNR"), RNRC Holdings, Inc. ("RNRC"), and Resolute Wyoming, Inc. ("RWI") (formerly known as
Primary Natural Resources, Inc. ("PNR")), and a 99.996% equity interest in Resolute Aneth, LLC
("Aneth"), (collectively, Resources, WYNR, BWNR, RNRC, Aneth and RWI are referred to as
"Predecessor Resolute"). The entities comprising Predecessor Resolute prior to the Resolute
Transaction were wholly-owned by Resolute Holdings Sub, LLC (except for Aneth, which was 99.996%
owned by Resolute Holdings Sub, LLC), which in turn is a wholly-owned subsidiary of Resolute
Holdings, LLC ("Holdings"). Under generally accepted accounting principles, HACI was the
accounting acquirer in the Resolute Transaction.
As used in this prospectus, unless otherwise indicated, references to "we," "us," "our,"
"Resolute" and the "Company" refer to Resolute Energy Corporation for periods prior to and
following the consummation of the Resolute Transaction. The terms HACI and Predecessor Resolute
are used to refer to the respective entities for periods prior to the consummation of the Resolute
Transaction.
Our principal executive offices are located at 1675 Broadway, Suite 1950, Denver, Colorado
80202 and our telephone number is 303-534-4600.
2
Table of Contents
THE OFFERING
Shares Offered by the Company
48,400,000 shares of common stock, of which:
•
27,600,000 shares of common stock
are issuable upon exercise of 27,600,000
outstanding Public Warrants;
•
7,000,000 shares of common stock
are issuable upon the exercise of 7,000,000
outstanding Sponsor's Warrants; and
•
13,800,000 shares of common stock
are issuable upon the exercise of
13,800,000 outstanding Founder's Warrants.
Warrants:
Warrant Exercise Price
$13.00 per share. Founder's Warrants and
Sponsor's Warrants may be exercised on a
"cashless exercise" basis.
Warrant Expiration Date
September 25, 2014
Warrant Exercise Period
The Public Warrants and Sponsor's Warrants
became exercisable on issuance on September
25, 2009. Founder's Warrants will not be
exercisable until the trading price of the
common stock exceeds $13.75 for any 20 days
within a 30 trading day period.
Limitations on Exercise
The Warrants will only be exercisable if a
registration statement relating to the
common stock issuable upon exercise is
effective and current.
Redemption
We may redeem the outstanding Warrants
(excluding any Founder's Warrants or
Sponsor's Warrants held by certain
affiliates of the Company or HACI):
—
in whole and not in part,
—
at a price of $.01 per Warrant at any
time while the Warrants are exercisable,
—
upon a minimum of 30 days' prior written
notice of redemption, and
—
if, and only if, the last reported sales
price of our common stock equals or exceeds
$18.00 per share for any 20 trading days
within a 30 trading day period ending three
business days before we send the notice of
redemption.
If the foregoing conditions are satisfied
and we issue a notice of redemption, each
Warrant holder can exercise his, her or its
Warrant prior to the scheduled redemption
date.
3
Table of Contents
Common Stock Outstanding as
of April 12, 2010
53,160,375 shares
(1)
Common Stock to be
Outstanding Assuming
Exercise of All of the
Warrants
101,560,375 shares
(1)(2)
Use of Proceeds
Resolute will receive up to an aggregate of
approximately $629.2 million from the
exercise of the Warrants, if they are
exercised in full.
2
Resolute
expects that any net proceeds from the
exercise of the Warrants will be used for
general corporate purposes and to fund
working capital.
NYSE Trading Symbols:
Common Stock
REN
Public Warrants
REN WS
The Sponsor's Warrants and Founder's
Warrants contain terms that are different
from the Public Warrants and bear legends
to distinguish them from the Public
Warrants. Accordingly, they do not trade
on the New York Stock Exchange.
Risk Factors
Investing in our common stock involves a
high degree of risk. You should carefully
read and consider the information set forth
under the heading "Risk Factors" beginning
on page 10 of this prospectus and on
page 29 of the Form 10-K and all other
information in this prospectus before
investing in our common stock.
1
Includes 3,250,000 shares (the "Earnout
Shares") that are subject to forfeiture in the event that the price of our
common stock does not reach $15.00 per share for 20 days in any 30 trading day
period prior to September 25, 2014.
2
Assumes no holders of Founder's Warrants
or Sponsor's Warrants elected to exercise their Warrants on a "cashless
exercise" basis. If all such holders elected cashless exercise, based on the stock
price of $13.19 on April 12, 2010, the number of outstanding shares of common
stock would be 81,059, 996 and the proceeds to Resolute
 would be $358.8
million.
4
Table of Contents
SELECTED FINANCIAL DATA
Resolute
The following table presents Resolute's selected pro forma statement of operations for the year ended December  31, 2009, and selected historical financial data for the years ended
December 31, 2009 and 2008 and for the period from inception in 2007 to December 31, 2007. The selected   pro forma statement of operations for the year ended December  31, 2009, are derived from the Unaudited Pro Forma Financial Information included herein. The
historical consolidated balance sheet and statement of operations information are derived from Resolute's audited
consolidated financial statements included in the Form 10-K, which is Appendix A to this prospectus. HACI was
the accounting acquirer and, accordingly, the historical financial data below reflects HACI since
its inception in 2007. Results of oil and gas operations are reflected from the date of the
Resolute Transaction in September 2009. Future results may differ substantially from historical
results because of changes in oil and gas prices, production increases or declines and other
factors. This information should be read in conjunction with the consolidated financial statements
and notes thereto and
"Item 7 Management's Discussion and Analysis of Financial Condition and
Results of Operations"
presented in the Form 10-K. The discussion in Item 7 of the Form 10-K
regarding the Resolute Transaction affects the comparability of the information provided in this
Selected Financial Data.
Year Ended
For the period from
February 26, 2007 to
Pro Forma
December 31,
December 31,
2009
2009
2008
2007
(in thousands, except per share data)
Statement of Operation Data:
Revenue
$
127,760
$
42,416
$
—
$
—
Operating expenses
(154,318
)
(57,361
)
(1,560
)
(1,036
)
Loss from operations
(26,558
)
(14,945
)
(1,560
)
(1,036
)
Other (expense) income
(77,166
)
(50,185
)
7,601
5,154
(Loss) income before taxes
(103,724
)
(65,130
)
6,041
4,118
Income tax benefit (expense)
38,897
19,887
(2,054
)
(1,401
)
Net (loss) income
(64,827
)
(45,243
)
3,987
2,717
Basic and diluted (loss) earnings per share:
Common stock, subject to redemption
—
$
(0.16
)
$
0.09
$
0.06
Common stock
$
(1.30
)
$
(0.93
)
$
0.06
$
0.09
Weighted average shares outstanding:
Common stock, subject to redemption
—
12,114
16,560
16,560
Common stock
49,905
46,394
45,105
18,587
Selected Cash Flow Data:
Net cash (used in) provided by operating activities
$
(12,164
)
$
3,031
$
5,164
Net cash provided by (used in) investing activities
209,987
(2,264
)
(541,302
)
Net cash (used in) provided by financing activities
(198,187
)
—
536,190
As of December 31,
2009
2008
(In thousands)
Balance Sheet Data:
Total assets
$
693,440
$
544,797
Long term debt
109,575
—
Total liabilities
299,903
19,291
Shareholders' equity
393,537
362,199
Predecessor Resolute
The following table presents Predecessor Resolute's selected financial data for the 267
day period ended September 24, 2009, and for the years ended December 31, 2008, 2007, 2006, and
2005. The combined historical financial data for the 2009 period and for the years ended December
31, 2008, 2007, and 2006, have been derived from the audited combined financial statements of
Predecessor Resolute. The historical financial data of Predecessor Resolute for the year ended
December 31, 2005, has been derived by combining the audited consolidated and combined financial
statements of the predecessor entities.
For the 267 Day
Period Ended
September 24,
December 31,
2009
2008
2007
2006
2005
(in thousands)
Revenue
$
85,344
$
229,172
$
173,343
$
130,478
$
53,466
Operating expenses
46,771
85,990
66,731
54,640
20,320
(Loss) income from operations
(4,723
)
(172,391
)
38,549
53,051
21,977
Other (expense) income
(41,888
)
63,725
(141,221
)
(7,009
)
(34,113
)
(Loss) Income before income taxes
(46,611
)
(108,666
)
(102,672
)
46,042
(12,136
)
Income tax benefit (expense)
5,019
18,247
(1,740
)
(3,312
)
(4,084
)
Net (loss) Income
(41,592
)
(90,419
)
(104,412
)
42,730
(16,220
)
Net loss (Income)
attributable to the
noncontrolling interest
—
177
(409
)
(715
)
(55
)
Net (loss) Income attributable to
Predecessor Resolute
(41,592
)
(90,242
)
(104,821
)
42,015
(16,275
)
5
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UNAUDITED PRO FORMA FINANCIAL INFORMATION
The following unaudited pro forma condensed
consolidated statement of operations for the year ended December 31, 2009 has been derived by the
application of pro forma adjustments to the historical consolidated and combined financial
statements of Resolute and Predecessor Resolute to reflect the Resolute Transaction
as if the Resolute Transaction had been completed on January 1, 2009. The column labeled "Pro
Forma" provides data that is compiled according to the requirements for pro forma presentation
contained in Regulation S-X. The adjustments are annotated in the information below.
The unaudited pro forma
condensed consolidated statement of operations for the year ended December 31, 2009 does not include any adjustments for cost
savings that are anticipated to be realized from the elimination of historical operating expenses
of HACI. Since its inception, HACI's efforts were limited to organizational activities, activities
relating to its initial public offering, activities relating to identifying and evaluating
prospective acquisition candidates, and activities relating to general corporate matters.
The unaudited pro forma
condensed consolidated statement of operations for the year ended December 31, 2009 should not necessarily be considered indicative
of actual results that would have been achieved had the Resolute Transaction been consummated on the date
 indicated and does not purport to indicate results of operations as of any future
date or for any future period. The unaudited pro forma condensed
consolidated statement of operations for the year ended December 31, 2009 should be read
together with the historical financial statements of Resolute and Predecessor Resolute and
"
Management's Discussion and Analysis of Financial Condition and Results of Operations of Resolute
"
and "
Management's Discussion and Analysis of Financial Condition and Results of Operations of
Predecessor Resolute
" included in the Form 10-K, which is attached hereto as Appendix A.
Unaudited Pro Forma Condensed Consolidated Statement of Operations
For the Year Ended December 31, 2009
Predecessor
Pro
Resolute
Resolute
Adjustments
Forma
(in thousands except per share data)
Total revenue
$
42,416
$
85,344
$
—
$
127,760
Operating expenses
21,992
46,771
—
68,763
Depletion, depreciation, amortization and
asset retirement obligation accretion
11,541
21,925
6,890
a
40,356
Impairment of proved properties
—
13,295
—
13,295
Write off of deferred acquisition costs
3,500
—
—
3,500
General and administrative expenses
20,328
8,076
—
28,404
Total operating expenses
57,361
90,067
6,890
154,318
Income (loss) from operations
(14,945
)
(4,723
)
(6,890
)
(26,558
)
Other income (expense):
Interest income (expense)
(762
)
(18,416
)
14,907
b
(4,271
)
(Loss) gain on derivative instruments
(49,514
)
(23,519
)
—
(73,033
)
Other income (expense)
91
47
—
138
Total other income (expense)
(50,185
)
(41,888
)
14,907
(77,166
)
Income (loss) before taxes
(65,130
)
(46,611
)
8,017
(103,724
)
Income tax (expense) benefit
19,887
5,019
13,991
c
38,897
Net income (loss)
$
(45,243
)
$
(41,592
)
$
22,008
$
(64,827
)
Basic and
diluted earnings (loss) per share:
Common stock, subject to redemption
$
(0.16
)
—
Common stock
$
(0.93
)
$
(1.30
)
Weighted
average shares outstanding:
Common stock, subject to redemption
12,114
—
Common stock
46,394
49,905
6
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Adjustments to Unaudited Pro Forma
Condensed Consolidated Statement of Operations
for the Year Ended December 31, 2009
a. Represents the increase in depletion, depreciation, amortization and accretion computed on
a unit of production basis following the allocation of the excess of the aggregate purchase price
consideration over the historical book value of Predecessor Resolute to proved oil and gas
properties, as if the Resolute Transaction had been consummated on January 1, 2009.
b. Represents reduced interest income and interest expense resulting from the repayment of
Predecessor Resolute's $225.0 million second lien term loan and a $99.5 million partial repayment
of Resolute's revolving credit facility as if the repayments occurred on January 1, 2009.
c. Assumes an effective tax rate of 37.5% on income (loss) before income taxes.
This reflects both the federal and state statutory income taxes rates
that were in effect during the periods presented.
7
Table of Contents
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This prospectus contains "forward-looking statements" as that term is defined in the Private
Securities Litigation Reform Act of 1995. The use of any statements containing the words
"anticipate," "intend," "believe," "estimate," "project," "expect," "plan," "should" or similar
expressions are intended to identify such statements. Forward-looking statements included in this
report relate to, among other things, expected future production, expenses and cash flows in 2010,
the nature, timing and results of capital expenditure projects, amounts of future capital
expenditures, our future debt levels and liquidity and future compliance with covenants under our
revolving credit facility, whether conditions to exercise of Founder's Warrants will be satisfied
and the extent to which Warrants will be exercised. Although we believe that the expectations
reflected in such forward-looking statements are reasonable, those expectations may prove to be
incorrect. All forward-looking statements speak only as of the date made. All subsequent written
and oral forward-looking statements attributable to us, or persons acting on our behalf, are
expressly qualified in their entirety by the cautionary statements. Except as required by law, we
undertake no obligation to update any forward-looking statement. Factors that could cause actual
results to differ materially from our expectations include, among others, those factors referenced
in the "Part I— Item 1A. Risk Factors" section of our Form 10-K for the year ended December 31,
2009, and such things as:
•
volatility of oil and gas prices, including reductions in prices that would adversely
affect our revenue, income, cash flow from operations, liquidity and reserves;
•
a continuation of, or further deterioration in, currently adverse conditions in global
credit markets and in economic conditions generally;
•
discovery, estimation, development and our ability to replace oil and gas reserves;
•
our future cash flow, liquidity and financial position of the Company;
•
the success of our business and financial strategy, hedging strategies and plans of the
Company;
•
the amount, nature and timing of our capital expenditures, including future development
costs;
•
a lack of available capital and financing;
•
the effectiveness and results of our CO
2
flood program;
•
the success of the development plan and production from our Aneth Field Properties;
•
the timing and amount of future production of oil and gas;
•
exploratory drilling in the Bakken trend of the Williston Basin;
•
volatility of stock prices generally and in the oil and gas industry, and in the price
of our common stock;
•
availability of drilling and production equipment;
•
success of refracs scheduled in the Muddy formation;
•
commencement of activities in the Big Horn Basin;
•
inaccuracy in reserve estimates and expected production rates;
•
our operating costs and other expenses;
•
the success in marketing oil and gas;
•
competition in the oil and gas industry;
•
uninsured or underinsured losses in, or operational problems affecting, our operations;
•
the impact and costs related to compliance with or changes in laws or regulations
governing our oil and natural gas operations;
•
our relationship with the Navajo Nation and Navajo Nation Oil and Gas, as well as the
timing of when certain purchase rights held by Navajo Nation Oil and Gas become
exercisable;
•
the impact of weather and the occurrence of disasters, such as fires, floods and other
events and natural disasters;
•
environmental liabilities;
•
expected increase in capacity due to additional pumps in the McElmo Creek pipeline;
•
anticipated CO
2
supply to be sourced from Kinder Morgan;
8
Table of Contents
•
risks related to our level of indebtedness;
•
developments in oil-producing and gas-producing countries;
•
the success of strategic plans, expectations and objectives of our future operations;
•
loss of senior management or technical personnel;
•
acquisitions and other business opportunities (or the lack thereof) that may be
presented to and pursued by us;
•
risk factors discussed or referenced in this prospectus; and
•
other factors, many of which are beyond our control.
9
Table of Contents
RISK FACTORS
An investment in our securities involves a high degree of risk. You should carefully consider
and evaluate all of the information contained in this prospectus and in the Form 10-K before you
decide to purchase our common stock. In particular, you should carefully consider and evaluate the
risks and uncertainties described in "Part I— Item 1A. Risk Factors" on Page 29 of our Form 10-K,
which appears as Appendix A in this prospectus. Any of the risks and uncertainties set forth
therein and below could materially and adversely affect our business, results of operations and
financial condition, which in turn could materially and adversely affect the trading price of our
common stock. As a result, you could lose all or part of your investment.
Offers or availability for resale of a substantial number of shares of our common stock may
cause the price of our common stock to decline.
If after the effectiveness of the registration statement of which this prospectus forms a
part, our warrant holders exercise outstanding Warrants and sell substantial amounts of our common
stock in the public market, or if our stockholders resell substantial amounts of our common stock
pursuant to a registration statement or upon the expiration of any statutory holding period under
Rule 144 or Rule 145 under the Securities Act of 1933, as amended (the "Securities Act"), such resales could
create a circumstance commonly referred to as an "overhang" and in anticipation of which the market
price of our common stock could fall. The existence of an overhang, whether or not sales have
occurred or are occurring, also could make it more difficult for us to raise additional financing
through the sale of equity or equity-related securities in the future at a time and price that we
deem reasonable or appropriate.
Registration rights held by certain of our stockholders may have an adverse effect on the
market price of our common stock.
Under a Registration Rights Agreement entered into in connection with the Resolute
Transaction, holders of registrable securities have the right to demand registration under the
Securities Act of all or a portion of their registrable securities subject to amount and time
limitations. Holders of the registrable securities may demand four registrations. Additionally,
whenever (i) we propose to register any of our securities under the Securities Act and (ii) the
method we select would permit the registration of registrable securities, holders of registrable
securities have the right to request the inclusion of their registrable securities in such
registration. The resale of these shares in the public market upon exercise of the registration
rights described above could adversely affect the market price of our common stock or impact our
ability to raise additional equity capital. Parties to the Registration Rights Agreement have
right to request registration of (i) shares representing approximately 25% of our outstanding common stock at
March 31, 2010, and (ii) an additional 20,800,000 shares purchasable on exercise of outstanding
warrants.
We may choose to redeem our outstanding Public Warrants at a time that is
disadvantageous to the Warrant holders.
We may redeem the Public Warrants at any time in whole and not in part,
at a price of $0.01 per warrant, upon a minimum of 30 days' prior written notice of redemption, if and only if the last sales price of our
common stock equals or exceeds $18.00 per share (the "Trigger Price") for any 20-trading days within a 30-trading day period ending three
business days before we send the notice of redemption.  If the Trigger Price is exceeded and the redemption notice given, the redemption
may proceed even if the stock price falls below the $18.00 Trigger Price during the period prior to redemption.  Redemption of the Public
Warrants could force the Warrant holders (1) to exercise the Warrants and pay the exercise price therefor at a time when it may be
disadvantageous for the holders to do so, (2) to sell the Warrants at the then current market price when they might otherwise wish to
hold the Warrants or (3) to accept the nominal redemption price which is likely to be substantially less than the market value of the
Warrants.
Exercise of outstanding Warrants would result in dilution to our stockholders
and might have an adverse effect on the market price of our common stock.
An aggregate of 27,600,000 Public Warrants and 13,800,000 Sponsor's Warrants
are currently exercisable at an exercise price of $13.00 per share.  These warrants would only be exercised if the market price of our
common stock exceeds the $13.00 per share exercise price.  Exercise of these warrants at such time will result in dilution to our
stockholders, which could cause the market price of our common stock to decline.
Delaware law and our amended and restated charter documents may impede or
discourage a takeover that our stockholders may consider favorable.
Our amended and restated charter and bylaws have provisions that may deter, delay or prevent a
third party from acquiring us. These provisions include:
•
limitations on the ability of stockholders to amend our charter documents,
including stockholder supermajority voting requirements;
•
the inability of stockholders to act by written consent or to call special
meetings;
•
a classified board of directors with staggered three-year terms;
•
the authority of our board of directors to issue, without stockholder
approval, up to 1,000,000 shares of preferred stock with such terms as the board of
directors may determine and to issue additional shares of our common stock; and
•
advance notice procedures with respect to stockholder proposals and the
nomination of candidates for election as directors.
These provisions could have the effect of delaying, deferring or preventing a change in
control, discourage others from making tender offers for our shares, lower the market price of our
stock or impede the ability of our stockholders to change our management, even if such a change
would be beneficial to our stockholders.
10
Table of Contents
CAPITALIZATION
The following table sets forth our cash and cash equivalents and capitalization as of
December 31, 2009.
You should read this table in conjunction with the "
Management's Discussion and Analysis of
Financial Condition and Results of Operations
" and the consolidated financial statements and the related notes
thereto contained in our Form 10-K for the year ended December 31, 2009, which is attached as
Appendix A hereto:
December 31,
2009
(In thousands,
except share data)
Cash and cash equivalents
$
455
Long-term debt:
Total long-term debt
$
109,575
Stockholders' equity:
Common stock, $0.0001 par value: 225,000,000 shares
authorized; 53,154,883 shares issued and outstanding
5
Preferred stock, $0.0001 par value, 1,000,000 shares
authorized; no shares issued and outstanding
—
Additional paid-in capital
432,650
Retained earnings accumulated (deficit)
(39,118
)
Total stockholders' equity
393,537
Total capitalization
$
503,112
11
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MARKET PRICE FOR OUR COMMON STOCK AND RELATED STOCKHOLDER MATTERS
Our common stock and Public Warrants began trading on the NYSE on September 28, 2009, and are
listed on the NYSE under the symbols "REN" and "RENWS". The closing prices of our common stock and
Public Warrants on the NYSE on April 12, 2010 were $13.19 per share and $2.90 per Warrant.
The following sets forth the high and low closing sales price of our
common stock and Warrants, as reported on the NYSE for the periods shown:
Common Stock
Warrants
High
Low
High
Low
2010
Second Quarter (through April 12, 2010)
$
13.19
$
12.33
$
2.92
$
2.59
First Quarter
$
12.38
$
10.56
$
2.53
$
1.87
2009
Fourth Quarter
11.79
10.12
2.38
1.40
Third Quarter (September 28 – September 30)
10.60
9.72
1.65
1.00
12
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USE OF PROCEEDS
We will receive up to an aggregate of approximately $629.2 million from the exercise of the
Warrants, if they are exercised in full, assuming no holders of Founder's Warrants or Sponsor's
Warrants elected to exercise their Warrants on a  "cashless exercise" basis. If all such holders elected
cashless exercise, based on the stock price of $13.19 on April 12, 2010, we would receive proceeds
of $358.8 million.
We expect that any net proceeds from the exercise of the Warrants will be used for general
corporate purposes, including possible acquisitions, and to fund working capital. There can be no
assurance that the holders of Warrants will exercise any or all of them.
13
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PLAN OF DISTRIBUTION
We are registering the shares of common stock underlying the Warrants originally issued in the
Resolute Transaction that are issuable upon the exercise of such Warrants by the holders thereof.
The Warrants may be exercised at the offices of the Warrant Agent, Continental Stock Transfer &
Trust Company, with the exercise form on the reverse of the Warrant certificate completed and
executed as indicated, accompanied by full payment of the exercise price, by certified check
payable to us, for the number of Warrants being exercised.
Alternatively, if "cashless exercise" is available, the
exercise form would indicate that such method of exercise was being
elected.
 Promptly upon receipt of the notice of
exercise together with full payment of the Warrant price, the Warrant Agent will deliver to the
holder the shares of common stock being purchased. We do not know if or when the Warrants will be
exercised. We also do not know whether any of the shares acquired upon exercise will be sold.
If the shares of
common stock issuable on exercise of the Founder's Warrants or Sponsor's Warrants are considered as having been acquired "in
connection with" the Resolute Transaction for purposes of Rule 145 of the Securities Act, the resale of such shares by affiliates would be
restricted under that rule until September 25, 2010, unless the resale were registered under the Securities Act.  We do not believe
the shares were so acquired because the acquisition of common stock upon the exercise of the Founder's Warrants and Sponsor's Warrants
requires an investment decision that is separate and distinct from the investment decision made to receive the Warrants in the Resolute
Transaction.  However, the SEC could take a different position, and
each holder of Founder's Warrants or Sponsor's Warrants
that is an  affiliate should seek
the advice of its counsel regarding the ability to resell the stock received on exercise of such Warrants prior to September 25, 2010.
14
Table of Contents
DESCRIPTION OF SECURITIES
Common Stock
Authorized and Outstanding
We are authorized to issue up to 225,000,000 shares of common stock, par value $0.0001 per
share, of which 53,160,375 shares are outstanding as of April 12, 2010.
Voting
Holders of our common stock (including earnout shares) each have one vote per share. Our
directors are elected by the vote of a plurality of the common stock represented in person or by
proxy at such meeting and entitled to vote on the election of directors. A majority of the
outstanding shares of common stock constitute a quorum. There is no cumulative voting with respect
to the election of directors, with the result that the holders of more than 50% of the shares voted
for the election of directors can elect all of the directors.
Upon our dissolution, our stockholders will be entitled to receive pro rata all assets
remaining available for distribution to stockholders after payment of all liabilities and provision
for the liquidation of any shares of preferred stock with preferential liquidation rights, if any,
at the time outstanding. Our common stockholders have no conversion, preemptive or other
subscription rights and there are no sinking fund or redemption provisions applicable to the common
stock.
Earnout Shares
Earnout shares are common stock subject to forfeiture in the event that the earnout trigger
price of $15.00 per share for any 20 trading days in any 30 trading day period is not met by
September 25, 2014. The earnout shares have voting rights and are transferable; however, they are
not registered for resale and have no economic rights until the trigger price is met.
Earnout shares bear a restrictive legend that states that such shares are subject to
forfeiture in the event that the trigger price earnout target of $15.00 per share is not met by
September 25, 2014, and other restrictions as set forth in the Purchase and IPO Reorganization
Agreement dated as of August 2, 2009 among HACI Resolute, Resolute
Subsidiary Corporation, Resolute Aneth, LLC, Resolute Holdings, LLC, Resolute Holdings Sub, LLC,
and HH-HACI, L.P.
Dividends
The Delaware General Corporation Law permits a corporation to declare and pay dividends out of
"surplus" or, if there is no "surplus," out of its net profits for the fiscal year in which the
dividend is declared and/or the preceding fiscal year. "Surplus" is defined as the excess of the
net assets of the corporation over the amount determined to be the capital of the corporation by
the board of directors. The capital of the corporation is typically calculated to be (and cannot be
less than) the aggregate par value of all issued shares of capital stock. Net assets equals the
fair value of the total assets minus total liabilities. The DGCL also provides that dividends may
not be paid out of net profits if, after the payment of the dividend, capital is less than the
capital represented by the outstanding stock of all classes having a preference upon the
distribution of assets.
Declaration and payment of any dividend are subject to the discretion of the our board of
directors, except in the case of the Earnout Shares, which are subject to forfeiture and will not
have
dividend participation rights unless the common stock trading price target of $15.00 is exceeded for any 20
trading days in any 30 day period prior to September 25, 2014. The time and amount of
dividends will be dependent upon the our financial condition, operations, cash requirements and
availability, debt repayment obligations, capital expenditure needs and restrictions in our debt
instruments, industry trends, the provisions of Delaware law affecting the payment of
distributions to stockholders and other factors.
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There
 are no restrictions in our certificate of incorporation or bylaws that prevent us from
declaring dividends on our common stock; however, we are currently prohibited from declaring
dividends under our amended revolving credit facility. We have not declared any dividends and do
not plan to declare any dividends in the foreseeable future.
Preferred Stock
We are authorized to issue up to 1,000,000 shares of preferred stock, par value $0.0001 per
share. No shares of preferred stock are outstanding as of the date of this prospectus.
Warrants
There are currently three types of Warrants outstanding: (1) Public Warrants, (2) Founder's
Warrants, and (3) Sponsor's Warrants. The terms of the Founder's Warrants and Sponsor's Warrants
are identical to the terms of the Public Warrants except as described below.
As of April 12, 2010, there were 27,600,000 Public Warrants, 13,800,000 Founder's Warrants and
7,000,000 Sponsor's Warrants outstanding.
Each type of Warrant entitles the holder to purchase one share of our common stock at a price
of $13.00 per share, subject to adjustment and the limitations discussed below, at any time until September 25,
2014. However, the Warrants will be exercisable only if a registration statement  relating to the
common stock issuable upon exercise of the Warrants is effective and current.
At any time while the Warrants are exercisable and there is an effective registration
statement covering the shares of common stock issuable upon exercise of the Warrants available and
current throughout the 30-day redemption period, we may call the outstanding Warrants (except as
described below with respect to the Founder's Warrants and the Sponsor's Warrants) for redemption:
•
in whole and not in part;
•
at a price of $0.01 per Warrant;
•
upon a minimum of 30 days' prior written notice of redemption (the 30-day
redemption period) to each Warrantholder; and
•
if, and only if, the closing sale price of our common stock equals or
exceeds $18.00 per share for any 20 trading days within a 30 trading day period ending
on the third business day prior to the notice of redemption to Warrantholders.
If the foregoing conditions are satisfied and we issue a notice of redemption of the Warrants,
each Warrantholder will be entitled to exercise its Warrant prior to the scheduled redemption date.
However, the price of our common stock may fall below the $18.00 redemption trigger price as well
as the $13.00 Warrant exercise price after the redemption notice is issued.
The exercise price and number of shares of common stock issuable on exercise of the Warrants
may be adjusted in certain circumstances, including in the event of a stock dividend, stock split,
extraordinary dividend, or our recapitalization, reorganization, merger or consolidation. However,
the exercise price and number of shares of our common stock issuable upon exercise of the Warrants
will not be adjusted for issuances of common stock at a price below the Warrant exercise price.
The Warrants were issued in registered form under a Warrant agreement dated September 25,
2009, between Continental Stock Transfer & Trust Company, as Warrant agent, and the Company. You
should review a copy of the Warrant Agreement, included as Exhibit 4.1 to our Form 10-K and to the
registration statement of which this prospectus is a part (the "Warrant Agreement"), for a complete
description of the terms and conditions applicable to the Warrants.
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The Warrants may be exercised upon surrender of the Warrant certificate on or prior to the
expiration date at the offices of the Warrant agent, with the exercise form on the reverse side of
the Warrant certificate completed and executed as indicated, accompanied by full payment of the
exercise price (or on a cashless basis, if applicable), by certified or official bank check payable
to Resolute Energy Corporation, for the number of Warrants being exercised. The Warrant holders do
not have any rights or privileges as holders of common stock and any voting rights until they
exercise their Warrants and receive shares of common stock. After the issuance of shares of common
stock upon exercise of the Warrants, each holder will be entitled to one vote for each share held
of record on all matters to be voted on by stockholders.
No Warrants will be exercisable unless at the time of exercise a prospectus relating to our
common stock issuable upon exercise of the Warrants is current and the common stock has been
registered or qualified or deemed to be exempt under the securities laws of the state of residence
of the holder of the Warrants. The terms of the Warrant agreement require us to use our best
efforts to effectuate and maintain the effectiveness of a registration statement covering such
shares and maintain a current prospectus relating to common stock issuable upon exercise of the
Warrants until the expiration of the Warrants. However, no assurances can be provided that we will
be able to do so, and if the condition is not met, holders will be unable to exercise their
Warrants and we would not be required to settle any such Warrant exercise. If the prospectus
relating to the common stock issuable upon the exercise of the Warrants is not current or if the
common stock is not qualified or exempt from qualification in the jurisdictions in which the
holders of the Warrants reside, we will not be required to net cash settle or cash settle the
Warrant exercise, the Warrants may have no value, the market for the Warrants may be limited and
the Warrants may expire worthless.
No fractional shares will be issued upon exercise of the Warrants. If, upon exercise of the
Warrants, a holder would be entitled to receive a fractional interest in a share, we would, upon
exercise, round up to the nearest whole number the number of shares of common stock to be issued to
the Warrant holder.
Founder's Warrants and Sponsor's Warrants
Founder's Warrants
The terms of the Founder's Warrants are identical to the terms of the Public Warrants except
that the Founder's Warrants:
•
are not redeemable so long as they are held by the Initial Stockholders
(as defined below), Resolute Holdings, LLC or their Permitted Transferees (as defined
below);
•
may not be exercised unless and until the last sale price of our common
stock exceeds $13.75 for any 20 days within any 30 trading day period prior to
September 25, 2014; and
•
may be exercised at the option of the holder on a cashless basis.
If the Founder's Warrants are held by holders other than William H. Cunningham, William A.
Montgomery, Brian Mulroney and William F. Quinn (the "Initial Stockholders"), HH-HACI, L.P.,
Resolute Holdings, LLC, or their Permitted Transferees, the Founder's Warrants will be redeemable
by Resolute and exercisable by the holders on the same basis as the Public Warrants.
"Permitted Transferees" are (A) (i) the Company's
officers or directors or any affiliates or
family members of any of the Company's officers or directors, or (ii) any affiliates or partners of
HH-HACI, L.P. or their partners, affiliates or family members, or (iii) Resolute Holdings, LLC or
its members, directors and officers or their partners, affiliates or family members; (B) in the
case of an Initial Stockholder, a member of the Initial Stockholder's immediate family or a trust,
the beneficiary of which is a member of the Initial Stockholder's immediate family, an affiliate of
the Initial Stockholder or a charitable organization; (C) any transferee receiving Founder's
Warrants or Sponsor's Warrants upon the death of an Initial Stockholder by virtue of the laws of
descent and distribution; (D) any transferee receiving Founder's Warrants or Sponsor's Warrants
upon dissolution of HH-HACI, L.P. by virtue of the laws of the state of Delaware or
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HH-HACI, L.P.'s
limited partnership agreement; or (E) in the case of an Initial Stockholder, any transferee
receiving Founder's Warrants or Sponsor's Warrants pursuant to a qualified domestic relations
order.
While the Founder's Warrants were registered under the Securities Act, they will continue to
bear a restrictive legend that states that such Warrants are subject to restrictions including that
they are not exercisable until the closing price of our common stock exceeds $13.75 for any 20 days
within any 30 day trading period, and that the Founder's Warrants are subject to certain other
terms that apply so long as the Founder's Warrants are held by the Initial Stockholders or
Permitted Transferees. The Founder's Warrants were issued pursuant to the Warrant Agreement.
Sponsor's Warrants
The terms of the Sponsor's Warrants will be identical to the terms of the Public Warrants
except that the Sponsor's Warrants:
•
will not be redeemable so long as they are held by HH-HACI, L.P., Resolute
Holdings, LLC or their Permitted Transferees (as defined above); and
•
may be exercised at the option of the holder on a cashless basis.
If the Sponsor's Warrants are held by holders other than HH-HACI, L.P., Resolute Holdings, LLC
or their Permitted Transferees (the "Sponsor Warrant Holders"), the Sponsor's Warrants will be
redeemable by us and exercisable by the holders on the same basis as the Public Warrants.
While the Sponsor's Warrants were registered under the Securities Act, they will continue to
bear a restrictive legend that states that such Warrants are subject to certain other terms that
apply so long as they are held by the Sponsor Warrant Holders. The Sponsor's Warrants were issued
pursuant to the Warrant Agreement.
Transfer Agent
Our transfer agent and registrar for our common stock and Warrants Agent for our Warrants is
Continental Stock Transfer & Trust Company.
Registration Rights Agreement
On September 25, 2009, in connection with the closing of the Resolute Transaction, the Company
entered into a registration rights agreement (the "Registration Rights Agreement") with HH-HACI,
L.P., Thomas O. Hicks, Resolute Holdings, LLC, Natural Gas Partners VII, L.P., NGP-VII Income
Co-Investment Opportunities, L.P. Nicholas Sutton, James Piccone, Richard Betz, Dale Cantwell,
Theodore Gazulis, Janet Pasque, Kenneth Hersh, Richard Covington, William Quinn, William
Cunningham, Thomas Hicks, Jr. and Robert Swartz (the "Holders"). Pursuant to the Registration
Rights Agreement, the Holders are entitled to registration rights, subject to certain limitations,
with respect to shares of the Company's Common Stock, Earnout Shares, Founder's Warrants (including
the shares of Common Stock issuable upon the exercise of such Founder's Warrants ), and Sponsor's
Warrants (including the shares of Common Stock issuable upon the exercise of such Sponsor's
Warrants) (collectively, the "Registrable Securities") received in the Resolute Transaction and
pursuant to distributions made to respective members or partners by HH-HACI, L.P. and Resolute
Holdings, LLC . Each of two groups of Holders (the Hicks Registration Rights Holders and the REC
Registration Rights Holders) is entitled to require the Company, on two occasions, to register
under the Securities Act of 1933, as amended (the "Securities Act") the Registrable Securities
("Demand Registration Rights"). The Company shall not be required to (y) effect a Demand
Registration unless the aggregate offering price to the public in the offering is expected to be at
least $10.0 million or (z) file a Registration Statement with respect to a Demand Registration
within one hundred and eighty (180) days of the completion of any underwritten offering of the
Company's securities. The Holders may elect to exercise Demand Registration Rights at any time
after March 25, 2010, 180 days following the consummation of the Resolute Transaction.
In addition, the Holders may request registration on a Shelf Registration Statement, provided
that the Company is not obligated to effect such a request (i) through an underwritten offering,
(ii) where it is not eligible to use Form S-3 or
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(iii) where the aggregate price to the public is
less than $5.0 million. Registrations on Shelf Registration Statements shall not be counted as a
Demand Registration subject to the limitations set forth above except in the case of an
underwritten offering. The Holders also have certain "piggyback" registration rights on
registration statements filed by the Company. The demand and piggyback registration rights are
subject to certain customary conditions and limitations, including the right of the underwriters to
limit the number of securities included in any underwritten offering.
Rights under the Registration Rights Agreement are assignable by holders of Registrable
Securities in conjunction with permitted transfers of Registrable Securities.
The Company will bear the expenses incurred in connection with the filing of any such
registration statements, including all reasonable expenses incurred in performing its obligations
under the Registration Rights Agreement. The Holders will pay the underwriting commissions and fees
associated with the sale of their respective securities in any underwritten offering. The preceding
summary of the Registration Rights Agreement is qualified in its entirety by reference to the
complete text of the agreement, which is filed as an exhibit to the Registration Statement of which
this prospectus forms a part.
Anti-takeover Effects of Certain Provisions of the Resolute's Charter and Bylaws
Some provisions of our charter and our bylaws contain provisions that could make it more
difficult to acquire the Company by means of a merger, tender offer, proxy contest or otherwise, or
to remove our incumbent officers and directors. These provisions, summarized below, are expected
to discourage coercive takeover practices and inadequate takeover bids. These provisions are also
designed to encourage persons seeking to acquire control of the Company to first negotiate with our
board of directors. We believe that the benefits of increasing our potential ability
to negotiate with the proponent of an unfriendly or unsolicited proposal to acquire or restructure
the Company outweigh the disadvantages of discouraging such proposals because negotiation of such
proposals could result in an improvement of their terms.
Undesignated preferred stock
The ability to authorize and issue undesignated preferred stock may enable our board of
directors to render more difficult or discourage an attempt to change control of the Company by
means of a merger, tender offer, proxy contest or otherwise. For example, if in the due exercise of
its fiduciary obligations, the board of directors were to determine that a takeover proposal is not
in our best interest, the board of directors could cause shares of preferred stock to be issued
without stockholder approval in one or more private offerings or other transactions that might
dilute the voting or other rights of the proposed acquirer or insurgent stockholder or stockholder
group.
Classified board of directors
Our charter provides for a board of directors divided into three classes and serving
staggered, three-year terms. Approximately one-third of our board of directors are elected each
year. This classified board of directors provision could discourage a third party from making a
tender offer for our shares of capital stock or attempting to obtain control of the Company. It
could also delay stockholders who do not agree with the policies of the board of directors from
removing a majority of the board of directors for two years.
Removal of director
Our charter provides that members of our board of directors may only be removed by the
affirmative vote of holders of at least a majority of the voting power of all then outstanding
shares of capital stock entitled to vote generally in the election of directors, voting together as
a single class.
Stockholder meetings
Our charter and bylaws provide that a special meeting of stockholders may be called only by
the chairman of the board, the chief executive officer, the president or by a resolution adopted by
a majority of the whole board of directors of the Company.
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Requirements for advance notification of stockholder nominations and proposals
Our bylaws establish advance notice procedures with respect to stockholder proposals and the
nomination of candidates for election as directors, other than nominations made by or at the
direction of the board of directors.
Stockholder action by written consent
Our charter and bylaws provide that, except as may otherwise be provided with respect to the
rights of the holders of preferred stock, no action that is required or permitted to be taken by
the Company's stockholders at any annual or special meeting may be effected by written consent of
stockholders in lieu of a meeting of stockholders. This provision, which may not be amended except
by the affirmative vote of at least 66
2
/
3
% of the voting power of all then outstanding shares of
capital stock entitled to vote generally in the election of directors, voting together as a single
class, makes it difficult for stockholders to initiate or effect an action by written consent that
is opposed by our board of directors.
Amendment of the bylaws
Under Delaware law, the power to adopt, amend or repeal bylaws is conferred upon the
stockholders. A corporation may, however, in its certificate of incorporation also confer upon the
board of directors the power to adopt, amend or repeal its bylaws. Our charter and bylaws grant our
board the power to adopt, amend and repeal our bylaws at any regular or special meeting of the
board on the affirmative vote of a majority of the directors then in office. The Company's
stockholders may adopt, amend or repeal the Company's bylaws but only at any regular or special
meeting of stockholders by an affirmative vote of holders of at least 66
2
/
3
% of the voting power of
all then outstanding shares of capital stock of the Company entitled to vote generally in the
election of directors, voting together as a single class.
Amendment of the certificate of incorporation
Our charter provides that, in addition to any other vote that may be required by law or any
preferred stock designation, the affirmative vote of the holders of at least 66
2
/
3
% of the voting
power of all then outstanding shares of capital stock of the Company entitled to vote generally in
the election of directors, voting together as a single class, is required to amend, alter or
repeal, or adopt any provision as part of the Company's charter inconsistent with the current provisions of
the Company's charter dealing with the board of directors, bylaws, meetings of the Company's
stockholders or amendment of the Company's charter.
The provisions of our certificate of incorporation and bylaws could have the effect of
discouraging others from attempting hostile takeovers and, as a consequence, they may also inhibit
temporary fluctuations in the market price of our common stock that often result from actual or
rumored hostile takeover attempts. These provisions may also have the effect of preventing changes
in our management. It is possible that these provisions could make it more difficult to
accomplish transactions which stockholders may otherwise deem to be in their best interests.
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MATERIAL U.S. FEDERAL INCOME TAX CONSEQUENCES
The following is a summary of the material U.S. Federal income tax consequences to
U.S. holders and non-U.S. holders (each defined below) regarding (1) the exercise of Warrants for shares
of our common stock, and (2) the acquisition, ownership and disposition of shares of our common stock obtained upon the exercise of a Warrant.
For purposes of this discussion, a U.S. holder is a beneficial owner of  shares of our
common stock or Warrants exercisable for shares of our common stock who is:
•
an individual who is a citizen or resident of the United States;
•
a corporation (or other entity taxed as a corporation for U.S. Federal
income tax purposes) created or organized in or under the laws of the United States,
any state thereof or the District of Columbia;
•
an estate the income of which is subject to U.S. Federal income taxation
regardless of its source; or
•
a trust if (i) a court within the United States is able to exercise
primary supervision over the administration of the trust and one or more U.S. persons
have the authority to control all substantial decisions of the trust, or (ii) it has in
effect a valid election to be treated as a U.S. person.
For purposes of this discussion, a non-U.S. holder is a beneficial owner of shares of our
common stock or Warrants exercisable for shares of our common stock that is not a U.S. holder.
This section is based on current provisions of the Code, current and proposed Treasury
regulations promulgated thereunder, and administrative and judicial decisions as of the date
hereof, all of which are subject to change, possibly on a retroactive basis.
Changes in these authorities may cause the tax consequences to vary substantially from the
consequences described below. This summary is not binding on the IRS, and the IRS is not precluded
from adopting a contrary position.
This section does not purport to be a comprehensive description of all of the tax
considerations that may be relevant to each holder of shares of our common stock or Warrants
exercisable for shares of our common stock. This section does not address all aspects of
U.S. Federal income taxation that may be relevant to any particular investor based on such
investor's individual circumstances. In particular, this section considers only U.S. holders and
non-U.S. holders that hold shares of our common stock or Warrants exercisable for shares of our
common stock as capital assets and does not address the potential application of the alternative
minimum tax or the U.S. Federal income tax consequences to investors that are subject to special
treatment, including:
•
broker-dealers;
•
insurance companies;
•
taxpayers who have elected mark-to-market accounting;
•
tax-exempt organizations;
•
regulated investment companies;
•
real estate investment trusts;
•
financial institutions or "financial services entities;"
•
taxpayers who hold shares of our common stock or Warrants exercisable for
shares of our common stock as part of a straddle, hedge, conversion transaction or
other integrated transaction;
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•
controlled foreign corporations;
•
passive foreign investment companies;
•
certain expatriates or former long-term residents of the United States;
and
•
U.S. holders whose functional currency is not the U.S. dollar.
The following does not address any aspect of U.S. Federal gift or estate tax laws, or state,
local or non-U.S. tax laws. In addition, the section does not consider the tax treatment of
entities taxable as partnerships for U.S. Federal income tax purposes or other pass-through
entities or persons who hold shares of our common stock or Warrants exercisable for shares of our
common stock through such entities. Prospective investors are urged to consult their tax advisors
regarding the specific tax consequences to them of the acquisition, ownership or disposition of
shares of our common stock or Warrants exercisable for shares of our common stock in light of their
particular circumstances.
Tax Consequences of Owning Shares of Our Common Stock and Warrants Exercisable for Shares
of Common Stock
U.S. Holders
Exercise or Lapse of a Warrant
A U.S. holder generally will not recognize gain or loss upon the exercise of a Warrant
exercisable for shares of our common stock, other than cashless exercise addressed below. Shares
of our common stock acquired pursuant to the exercise of such a Warrant will have a tax basis equal
to the U.S. holder's adjusted tax basis in the Warrant increased by the exercise price paid to
exercise the Warrant. The holding period of such shares of our common stock will begin on the date
following the date of exercise of the Warrant (or possibly the date of exercise).
The tax consequences of a cashless exercise of a Warrant are not clear under current tax law.
A cashless exercise may be tax-free, either because the exercise is not a gain realization event or
because the exercise is treated as a recapitalization for U.S. federal income tax purposes. In
either tax-free situation, the basis in the shares of our common stock received would equal the
basis in the Warrant. If the cashless exercise were treated as a recapitalization, the holding
period of the shares of our common stock would include the holding period of the Warrant. If the
cashless exercise were otherwise treated as not being a gain realization event, the holding period
in the shares of our common stock would likely be treated as commencing on the date following the
date of exercise (or possibly on the date of exercise) of the Warrant.
Alternatively,
it is also possible that a cashless exercise could be treated as a taxable exchange in which
gain or loss would be recognized. In such event, a U.S. holder could
be deemed to have exchanged for cash equal to their fair market
value, a number of
Warrants equal to the number of shares of our common stock having a value equal to the exercise
price for the total number of Warrants to be exercised. U.S. holders would recognize capital gain
or loss in an amount equal to the difference between the fair market value of the shares of our
common stock represented by the Warrants deemed surrendered and its tax basis in the Warrants
deemed surrendered. In this case, the tax basis in the shares of our common stock received would
equal the sum of the fair market value of the shares of our common stock represented by the
Warrants deemed surrendered and the tax basis in the Warrants exercised. The holding period for the
shares of our common stock would commence on the date following the date of exercise (or possibly
on the date of exercise) of the Warrant.
Due to the absence of authority on the U.S. federal income tax treatment of a cashless
exercise, there can be no assurance which, if any, of the alternative tax consequences and holding
periods described above would be adopted by the IRS or a court of law. Accordingly, U.S. Holders
should consult their tax advisors regarding the tax consequences of a cashless exercise.
If a Warrant is allowed to lapse unexercised, a U.S. holder will have a capital loss equal to
such holder's tax basis in the Warrant. Such loss will be long term if the Warrant has been held
for more than one year.
Dividends and Other Distributions on Shares of Common Stock
Distributions on shares of our common stock
received upon exercise of a Warrant will constitute dividends for U.S. Federal
income tax purposes to the extent paid from the Company's current or accumulated earnings and
profits, as determined under U.S. Federal income tax principles. If a distribution exceeds the
Company's current or accumulated earnings and profits, the excess will be treated first as a
tax-free return of capital and will reduce (but not below zero) the U.S. holder's adjusted tax
basis in the common stock, and any remaining excess will be treated as capital gain from a sale or
exchange of the shares of common stock, subject to the tax treatment described below in
"
Disposition of Shares of our Common Stock or Warrants
."
Dividends received by a corporate U.S. holder generally will qualify for the dividends
received deduction if the requisite holding period is satisfied. With certain exceptions, and
provided certain holding period requirements are met, dividends received by a non-corporate
U.S. holder generally will constitute "qualified dividends" that will be subject to tax at the
maximum tax rate accorded to long-term capital gains for tax years beginning on or before December 31, 2010,
after which the rate applicable to dividends is currently scheduled to change to the tax rate
generally then applicable to ordinary income.
Surtax on Unearned Income
For tax years
beginning after December 31, 2012, a 3.8% surtax called the Unearned Income Medicare Contribution, would be placed on net investment
income of a taxpayer earning over $200,000 ($250,000 for a joint
return). Net investment income would be interest, dividends, royalties,
rents, gross income from a trade or business involving passive
activities, and net gain from a disposition of property
(other than property held in a trade or business). Net investment income would be reduced by properly allocable deductions to such income.
Disposition of Shares of Our Common Stock or Warrants
Upon the sale, exchange, redemption or other disposition of Warrants or shares of our common
stock received upon exercise of a Warrant, a U.S. holder will recognize gain or loss in an amount equal to the difference between the
amount realized on the sale, exchange or other disposition of the Warrants or shares of our common
stock and the U.S. holder's adjusted tax basis in such Warrants or stock. Generally, such gain or
loss will be capital gain or loss. Any such capital gain or loss will be long-term capital gain or loss if
the U.S. holder's holding period for the shares or Warrants exceeds one year, and will otherwise be short-term
capital gain or loss.
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Tax Rates Applicable to Ordinary Income and Capital Gains
Ordinary income and short-term capital gains of non-corporate U.S. holders
is generally taxable, for tax years beginning on or before December 31, 2010, at rates of up to 35%. For tax years beginning after
December 31, 2010, the maximum rate for non-corporate U.S. holders on ordinary income and short-term capital gains is scheduled to
increase to 39.6%. Long-term capital gains of non-corporate U.S.
holders are currently subject to a reduced maximum rate of 15% for tax
years beginning on or before December 31, 2010. After December 31, 2010, the maximum long-term capital gains rate is scheduled to increase
to 20%. The deductibility of capital losses is subject to limitations.
Adjustment to Exercise Price
Under Section 305 of the Code, if certain adjustments are made (or not made) to the number of
shares to be issued upon the exercise of a Warrant or to the Warrant's exercise price, a
U.S. holder may be deemed to have received a constructive distribution, which could result in the
inclusion of dividend income.
Non-U.S. Holders
Exercise or Lapse of a Warrant
The U.S. Federal income tax treatment of a non-U.S. holder's exercise or lapse of a Warrant
generally will correspond to the U.S. Federal income tax treatment of the exercise or lapse of a
Warrant by a U.S. holder, as described under "
U.S. Holders — Exercise or Lapse of a Warrant
" above.
However, capital loss recognized by a non-U.S. Holder on lapse of a warrant will generally be taken
into account for U.S. income tax purposes only in the circumstances described under "
— Disposition
of Our Common Stock or Warrants.
"
Dividends and Other Distributions on Shares of our Common Stock
In general, any distributions made to a non-U.S. holder of shares of our common stock
received upon exercise of a Warrant (and any
constructive distributions a non-U.S. holder may be deemed to receive, see "
U.S. Holders —
Adjustment to Exercise Price
"), to the extent paid out of current or accumulated earnings and
profits of the Company (as determined under U.S. Federal income tax principles), will constitute
dividends for U.S. Federal income tax purposes. Provided such dividends are not effectively
connected with the non-U.S. holder's conduct of a trade or business within the United States, such
dividends generally will be subject to withholding of U.S. Federal income tax at a 30% rate or such
lower rate as may be specified by an applicable income tax treaty.
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Any distribution not constituting a dividend will be treated first as a tax-free return of
capital and will reduce (but not below zero) the non-U.S. holder's adjusted tax basis in its shares
of our common stock and any remaining excess will be treated as gain realized from the sale or
other disposition of the common stock, as described under
"
— Disposition of our Common Stock or
Warrants
" below.
Dividends paid to a non-U.S. holder that are effectively connected with such non-U.S. holder's
conduct of a trade or business within the United States generally will not be subject to
U.S. withholding tax, provided such non-U.S. holder complies with certain certification and
disclosure requirements (usually by providing an IRS Form W-8ECI). Instead, such dividends
generally will be subject to U.S. Federal income tax at the same graduated individual or corporate
rates applicable to U.S. holders. If the non-U.S. holder is a corporation, dividends that are
effectively connected income may also be subject to a "branch profits tax" at a rate of 30% or such
lower rate as may be specified by an applicable income tax treaty.
A non-U.S. holder who wishes to claim the benefit of an applicable treaty rate for dividends
will be required (a) to complete IRS Form W-8BEN (or other applicable form) and certify under
penalty of perjury that such holder is not a United States person as defined under the Code and is
eligible for treaty benefits or (b) if the Company Common Stock is held through certain foreign
intermediaries, to satisfy the relevant certification requirements of applicable U.S. Treasury
regulations.
A non-U.S. holder eligible for a reduced rate of U.S. Federal withholding tax pursuant to an
income tax treaty may obtain a refund of any excess amounts withheld by filing an appropriate claim
for refund with the IRS.
Disposition of our Common Stock or Warrants
A non-U.S. holder generally will not be subject to U.S. Federal income or withholding tax in
respect of gain recognized on a sale, exchange or other disposition of shares of our common stock received upon exercise of a Warrant
or Warrants exercisable for shares of our common stock (including redemption of such warrants)
unless:
•
the gain is effectively connected with the conduct of a trade or business
by the non-U.S. holder within the United States;
•
the non-U.S. holder is an individual who is present in the United States
for 183 days or more in the taxable year of disposition and certain other conditions
are met; or
•
the Company is or has been a "United States real property holding
corporation" for U.S. Federal income tax purposes at any time during the shorter of the
five-year period ending on the date of disposition or the period that the
non-U.S. holder held shares of our common stock or Warrants exercisable for shares of
our common stock and, in the case where shares of our common stock are regularly traded
on an established securities market, the non-U.S. holder has owned, directly or
indirectly, more than 5% of shares of our common stock at any time within the shorter
of the five-year period preceding a disposition of shares of our common stock or such
non-U.S. holder's holding period for the shares of our common stock (or, in the case of
a disposition of Warrants exercisable for shares of our common stock, the
non-U.S. holder owned warrants exercisable for shares of our common stock that is
regularly traded on an established securities market and that had a fair market value
on the date they were acquired that was greater than the fair market value on that date
of 5% of such shares of our common stock).
24
Table of Contents
Unless an applicable treaty provides otherwise, gain described in the first bullet point above
will be subject to tax at generally applicable U.S. Federal income tax rates. Any gain described in
the first bullet point above of a non-U.S. holder that is a foreign corporation may also be subject
to an additional "branch profits tax" at a 30% rate or such lower rate as may be specified by an
applicable income tax treaty. Gain described in the second bullet point above (which may be offset
by U.S. source capital losses) will be subject to a flat 30% U.S. Federal income tax.
With respect to the third bullet point above, there can be no assurance that shares of our
common stock will be treated as regularly traded on an established securities market. The Company
believes that it will be a "United States real property holding corporation" for U.S. Federal
income tax purposes. Any capital gain described in the third bullet point will generally be subject to the
same maximum tax rates that are applicable to U.S. holders.
Information Reporting and Back-up Withholding
A U.S. holder may be subject to information reporting requirements with respect to dividends
paid on shares of our common stock, and on the proceeds from the sale, exchange or disposition of
shares of our common stock or warrants exercisable for shares of our common stock. In addition, a
U.S. holder may be subject to back-up withholding (currently at 28%) on dividends paid on common
shares, and on the proceeds from the sale, exchange or other disposition of shares of our common
stock or Warrants exercisable for shares of our common stock unless the U.S. holder provides
certain identifying information, such as a duly executed IRS Form W-9 certifying that he, she, or
it is not subject to backup withholding or appropriate W-8, or otherwise establishes an exemption.
Back-up withholding is not an additional tax and the amount of any back-up withholding will be
allowable as a credit against a U.S. holder's U.S. Federal income tax liability and may entitle
such holder to a refund, provided that certain required information is timely furnished to the IRS.
In general, a non-U.S. holder will not be subject to information reporting and backup withholding.
However, a non-U.S. holder may be required to establish an exemption from information reporting and
backup withholding by certifying the non-U.S. holder's non-U.S. status on Form W-8BEN. Holders are
urged to consult their own tax advisors regarding the application of the information reporting and backup withholding rules to them.
LEGAL MATTERS
The validity of the shares of our common stock offered hereby will be passed upon for us by
Davis Graham & Stubbs LLP, Denver, Colorado.
EXPERTS
The consolidated
financial statements of Resolute Energy Corporation as of December 31, 2009 and 2008, and for each of the years in the two-year period then
ended, and for the period from February 26, 2007 (inception) to December 31, 2007, have been included herein in reliance upon the report
of KPMG LLP, independent registered public accounting firm, incorporated herein, and upon the authority of said firm as experts in
accounting and auditing.
The combined balance
sheet of Resolute Natural Resources Company, LLC, Resolute Aneth, LLC, WYNR, LLC, BWNR, LLC, RNRC Holdings, Inc. and Resolute Wyoming, Inc.
as of December 31, 2008 and the related combined statements of operations, shareholder's/member's equity (deficit), and cash flows for the
period from January 1, 2009 to September 24, 2009, and the years ended December 31, 2008 and 2007 (with the exception of Resolute Wyoming,
Inc. for the year ended December 31, 2007) have been audited by Deloitte & Touche LLP, independent registered public accounting firm, as
stated in their report dated March 29, 2010 appearing in our Annual
Report on Form 10-K for the year ended December 31, 2009 attached
as Appendix A hereto (which report expresses an unqualified opinion on the financial statements and
includes an explanatory paragraph relating to the retrospective adjustment for the change in accounting for non controlling interests as
described in Note 2).  The 2007 financial statements of Resolute Wyoming Inc. not presented separately herein have been audited by Grant Thorton
LLP. Such financial statements are included in reliance upon the report of such firm given
upon their authority as experts in auditing and accounting. All of the foregoing firms are independent public accounting firms.
The financial statements of Resolute Wyoming, Inc., formerly Primary Natural Resources, Inc.,
as of December 31, 2007 and for the year then ended (not presented
separately herein) have been audited by Grant Thornton LLP, independent registered public
accountants, as indicated in their report with respect
25
Table of Contents
thereto. The report of Grant Thornton LLP is
included as an exhibit to the registration statement of which this prospectus forms a part in
reliance upon the authority of said firm as experts in auditing and accounting in giving said
report.
Estimates of historical oil and natural gas reserves and related information of the Company as
of December 31, 2009, December 31, 2008 and December 31, 2007 included in the Form 10-K attached as
Appendix A hereto are based upon engineering studies prepared by the Company and audited by
Netherland, Sewell & Associates, Inc., independent petroleum engineers. Such estimates and related
information have been so included in reliance upon the authority of such firm as experts in such
matters.
WHERE YOU CAN FIND MORE INFORMATION
We file annual, quarterly and special reports, proxy statements and other information with the
SEC. You may read and copy any document that we file at the Public Reference Room of the SEC at 100
F Street, N.E., Washington, D.C. 20549. You may obtain information on the operation of the Public
Reference Room by calling the SEC at 1-800-SEC-0330. In addition, the SEC maintains an internet
website that contains reports, proxy statements and other information about issuers, like us, that
file electronically with the SEC. The address of that site is www.sec.gov.
These filings and other documents are available and may be accessed on our website at
www.resolutenergy.com. You may request a copy of these filings at no cost, by writing or calling
Resolute Energy Corporation, Attention: Secretary, 1675 Broadway, Suite 1950 Denver, CO,
303-534-4600.
We make our website content available for information purposes only. It should not be relied
upon for investment purposes, nor is it incorporated by reference in this prospectus.
26
Table of Contents
APPENDIX A
ANNUAL REPORT ON FORM 10-K
FOR THE FISCAL YEAR ENDED DECEMBER 31, 2009
A-1
Table of Contents
UNITED STATES SECURITIES AND
    EXCHANGE COMMISSION
Washington, D. C.
    20549
FORM 10-K
þ
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF
    THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31,
    2009
OR
o
TRANSITION REPORT PURSUANT TO SECTION 13 OR
    15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period
    from     to
Commission File
No. 001-34464
RESOLUTE ENERGY
    CORPORATION
(Exact Name of Registrant as Specified in its Charter)
Delaware
27-0659371
(State or other Jurisdiction of
    Incorporation or Organization)
(I.R.S. Employer Identification
    Number)
1675 Broadway, Suite 1950
    Denver, CO
80202
(Address of Principal Executive
    Offices)
(Zip Code)
(303) 534-4600
(Registrant's telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of Each Class
Name of Exchange on Which
    Registered
Common Stock, par value $0.0001 per share
New York Stock Exchange
Warrants, each exercisable for one share of Common Stock
New York Stock Exchange
Securities registered pursuant to Section 12(g) of the Act:
None
Indicate by check mark if the registrant is a well-known
    seasoned issuer, as defined in Rule 405 of the Securities
    Act Yes
o
No
þ
Indicate by check mark if the registrant is not required to file
    reports pursuant to Section 13 or Section 15 of the
    Exchange Act Yes
o
No
þ
Indicate by check mark whether the registrant (1) has filed
    all reports required to be filed by Section 13 or 15(d) of
    the Securities Exchange Act of 1934 during the preceding
    12 months (or for such shorter period that the registrant
    was required to file such reports), and (2) has been
    subject to such filing requirements for the past
    90 days. Yes
þ
No
o
Indicate by check mark whether the registrant has submitted
    electronically and posted on its corporate Web site, if any,
    every Interactive Data File required to be submitted and posted
    pursuant to Rule 405 of
Regulation S-T
(§ 232.405 of this chapter) during the preceding
    12 months (or for such shorter period that the registrant
    was required to submit and post such
    files). Yes
o
No
o
Indicate by check mark if delinquent filers pursuant to
    item 405 of
Regulation S-K
(§ 229.405 of this chapter) is not contained herein,
    and will not be contained, to the best of the registrant's
    knowledge, indefinite proxy or information statements
    incorporated by reference in Part III of this
Form 10-K
or any amendment to this
Form 10-K.
o
Indicate by check mark whether the registrant is a large
    accelerated filer, an accelerated filer, a non-accelerated
    filer, or a smaller reporting company. See the definitions of
    "large accelerated filer," "accelerated
    filer" and "smaller reporting company" in Rule
12b-2
of the
    Exchange Act. (Check one):
Large accelerated filer
o
Accelerated
    filer
o
Non-accelerated filer
þ
Smaller reporting
    company
o
(Do not check if a smaller reporting company)
Indicate by check mark whether the registrant is a shell company
    (as defined in
Rule 12b-2
of the Exchange
    Act). Yes
o
No
þ
The aggregate market value of registrant's common stock
    held by non-affiliates on June 30, 2009, computed by
    reference to the price at which the common stock was last sold
    as posted on the New York Stock Exchange, was $ N/A. (The
    Registrant became subject to reporting requirements of the
    Exchange Act in September 2009, and therefore is not able to
    provide information about the market value as of the end of the
    second quarter of 2009.)
As of March 29, 2010, 53,160,375 shares of the
    Registrant's $0.0001 par value Common Stock were
    outstanding.
A-2
Table of Contents
CAUTIONARY
    NOTE REGARDING FORWARD-LOOKING STATEMENTS
This Annual Report on
Form 10-K
contains "forward-looking statements" as that term is
    defined in the Private Securities Litigation Reform Act of 1995.
    The use of any statements containing the words
    "anticipate," "intend," "believe,"
    "estimate," "project," "expect,"
    "plan," "should" or similar expressions are
    intended to identify such statements. Forward-looking statements
    included in this report relate to, among other things, expected
    future production, expenses and cash flows in 2010, the nature,
    timing and results of capital expenditure projects, amounts of
    future capital expenditures, our future debt levels and
    liquidity and future compliance with covenants under our
    revolving credit facility. Although we believe that the
    expectations reflected in such forward-looking statements are
    reasonable, those expectations may prove to be incorrect.
    Disclosure of important factors that could cause actual results
    to differ materially from our expectations, or cautionary
    statements, are included under the heading "Risk
    Factors" in this report and our Registration Statement on
Form S-4,
as amended (Registration
No. 333-161076).
All forward-looking statements speak only as of the date made.
    All subsequent written and oral forward-looking statements
    attributable to us, or persons acting on our behalf, are
    expressly qualified in their entirety by the cautionary
    statements. Except as required by law, we undertake no
    obligation to update any forward-looking statement. Factors that
    could cause actual results to differ materially from our
    expectations include, among others, those factors referenced in
    the "Risk Factors" section of this report and our
    Registration Statement on
Form S-4,
as amended, and such things as:
•
volatility of oil and gas prices, including reductions in prices
    that would adversely affect our revenue, income, cash flow from
    operations, liquidity and reserves;
•
a continuation of, or further deterioration in, currently
    adverse conditions in global credit markets and in economic
    conditions generally;
•
discovery, estimation, development and our ability to replace
    oil and gas reserves;
•
our future cash flow, liquidity and financial position of the
    Company;
•
the success of our business and financial strategy, hedging
    strategies and plans of the Company;
•
the amount, nature and timing of our capital expenditures,
    including future development costs;
•
a lack of available capital and financing;
•
the effectiveness and results of our
    CO
2
flood program;
•
the success of the development plan and production from our
    Aneth Field Properties;
•
the timing and amount of future production of oil and gas;
•
exploratory drilling in the Bakken trend of the Williston Basin;
•
availability of drilling and production equipment;
•
success of refracs scheduled in the Muddy formation;
•
commencement of activities in the Big Horn Basin;
•
inaccuracy in reserve estimates and expected production rates;
•
our operating costs and other expenses;
•
the success in marketing oil and gas;
•
competition in the oil and gas industry;
•
uninsured or underinsured losses in, or operational problems
    affecting, our operations;
•
the impact and costs related to compliance with or changes in
    laws or regulations governing our oil and natural gas operations;
A-3
Table of Contents
•
our relationship with the Navajo Nation and Navajo Nation Oil
    and Gas, as well as the timing of when certain purchase rights
    held by Navajo Nation Oil and Gas become exercisable;
•
the impact of weather and the occurrence of disasters, such as
    fires, floods and other events and natural disasters;
•
environmental liabilities;
•
expected increase in capacity due to additional pumps in the
    McElmo Creek pipeline;
•
anticipated
    CO
2
supply to be sourced from Kinder Morgan;
•
risks related to our level of indebtedness;
•
developments in oil-producing and gas-producing countries;
•
the success of strategic plans, expectations and objectives of
    our future operations;
•
loss of senior management or technical personnel;
•
acquisitions and other business opportunities (or the lack
    thereof) that may be presented to and pursued by us;
•
risk factors discussed or referenced in this report; and
•
other factors, many of which are beyond our control.
A-4
Table of Contents
TABLE OF
    CONTENTS
PART I --
Item 1. and 2.
Business and Properties
A-6
Item 1A.
Risk Factors
A-34
Item 3.
Legal Proceedings
A-50
Item 4.
Submission of Matters to a Vote of Security
    Holders
A-50
PART II --
Item 5.
Market for Registrant's Common Equity,
    Related Stockholder Matters and Issuer Purchases of Equity
    Securities
A-51
Item 6.
Selected Financial Data
A-53
Item 7.
Management's Discussion and Analysis of
    Financial Condition and Results of Operations
A-54
Item 7A.
Quantitative and Qualitative Disclosures About
    Market Risk
A-69
Item 8.
Financial Statements and Supplementary Data
A-70
Item 9.
Changes in and Disagreements with Accountants on
    Accounting and Financial Disclosure
A-70
Item 9A.
Controls and Procedures
A-70
Item 9B.
Other Information
A-70
PART III --
Item 10.
Directors, Executive Officers and Corporate
    Governance
A-71
Item 11.
Executive Compensation
A-78
Item 12.
Security Ownership of Certain Beneficial Owners
    and Management and Related Stockholder Matters
A-88
Item 13.
Certain Relationships and Related Transactions
    and Director Independence
A-92
Item 14.
Principal Accounting Fees and Services
A-93
PART IV --
Item 15.
Exhibits, Financial Statement Schedules
A-94
A-5
Table of Contents
PART I
Item 1. and
    2. BUSINESS AND PROPERTIES
RESOLUTE'S
    BUSINESS
Resolute Energy Corporation ("Resolute" or the
    "Company"), a Delaware corporation incorporated on
    July 28, 2009, was formed to consummate a business
    combination with Hicks Acquisition Company I, Inc.
    ("HACI"), a Delaware corporation incorporated on
    February 26, 2007. HACI was a blank check company that was
    formed to acquire through a merger, capital stock exchange,
    asset acquisition, stock purchase, reorganization or similar
    business combination, one or more businesses or assets.
    HACI's initial public offering (the "Offering")
    was consummated on October 3, 2007. HACI had not engaged in
    any operations or generated any operating revenue prior to the
    business combination with Resolute.
On September 25, 2009 (the "Acquisition Date"),
    HACI consummated a business combination under the terms of a
    Purchase and IPO Reorganization Agreement ("Acquisition
    Agreement") with Resolute and Resolute Holdings Sub, LLC
    ("Sub"), whereby, through a series of transactions,
    HACI's stockholders collectively acquired a majority of the
    outstanding shares of Resolute common stock (the "Resolute
    Transaction"). As a result of the Resolute Transaction,
    Resolute owned, directly or indirectly, 100% of the equity
    interests of Resolute Natural Resources Company, LLC
    ("Resources"), WYNR, LLC ("WYNR"), BWNR, LLC
    ("BWNR"), RNRC Holdings, Inc. ("RNRC"), and
    Resolute Wyoming, Inc. ("RWI") (formerly known as
    Primary Natural Resources, Inc. ("PNR")), and owned a
    99.996% equity interest in Resolute Aneth, LLC
    ("Aneth"), (collectively "Predecessor
    Resolute"). The entities comprising Predecessor Resolute
    prior to the Resolute Transaction were wholly owned by Sub
    (except for Aneth, which was 99.996% owned by Sub), which in
    turn is a wholly-owned subsidiary of Resolute Holdings, LLC
    ("Holdings"). Under generally accepted accounting
    principles, HACI was the accounting acquirer.
Resolute is an independent oil and gas company engaged in the
    exploration, exploitation and development of its oil and gas
    properties located in Utah, Wyoming, North Dakota and, to a
    lesser extent, properties in Alabama and Oklahoma. Approximately
    90% of Resolute's revenue is generated from the sale of oil
    production. Resolute's main focus is on increasing reserves
    and production from its properties located in Utah (its
    "Aneth Field Properties") and from Hilight Field and
    related properties in Wyoming, ("Wyoming Properties"),
    while improving efficiency and controlling costs in its
    operations. Resolute believes that significantly more oil can be
    recovered from its Aneth Field Properties through industry
    standard secondary and tertiary recovery techniques. Resolute
    has completed a number of exploitation projects that have
    increased its proved developed reserve base, and it has plans
    for additional expansion and enhancement projects. In its
    Wyoming Properties, Resolute has identified 36 exploitation
    opportunities similar to those successfully completed by the
    previous operator. Resolute plans to further expand its reserve
    base through a focused acquisition strategy by looking to
    acquire properties that have upside potential through
    development drilling and exploitation projects and through the
    acquisition, exploration and exploitation of acreage that
    appears to contain relatively low risk and repeatable drilling
    opportunities. Also, Resolute seeks to reduce the effect of
    short-term commodity price fluctuations on its cash flow through
    the use of various derivative instruments.
Resolute's largest asset, constituting 93% of its proved
    reserves, is its ownership of working interests in Greater Aneth
    Field ("Aneth Field"), a mature, long-lived oil
    producing field located in the Paradox Basin on the Navajo
    Reservation in southeast Utah. Resolute owns a majority of the
    working interests in, and is the operator of, three federal
    production units covering approximately 43,000 gross acres.
    These are the Aneth Unit, in which Resolute owns a 62% working
    interest, the McElmo Creek Unit, in which Resolute owns a 75%
    working interest, and the Ratherford Unit, in which Resolute
    owns a 59% working interest. As of December 31, 2009,
    Resolute had interests in, and operated 399 gross (262 net)
    active producing wells and 334 gross (218 net) active water
    and
    CO
2
injection wells on its Aneth Field Properties. The crude oil
    produced from the Aneth Field Properties is generally
    characterized as light, sweet crude oil that is highly desired
    as a refinery blending feedstock.
Resolute's Wyoming Properties are largely located in the
    Powder River Basin of Wyoming and constitute approximately 7% of
    Resolute's net proved reserves. Hilight Field, anchoring
    the Wyoming production and reserves, produces oil and gas from
    the Muddy formation. Shallow coalbed methane ("CBM")
    production also
A-6
Table of Contents
comes from this area. Resolute also owns properties in eastern
    Wyoming and Oklahoma that produce oil and gas. As of
    December 31, 2009, the Wyoming Properties consisted of
    466 gross (420 net) active wells and Resolute operates all
    but 6 gross (1 net) wells. In addition, Resolute holds
    exploration leasehold rights in Wyoming's Big Horn Basin
    and Alabama's Black Warrior Basin.
In March 2010, Resolute acquired a 45% working interest in
    approximately 61,000 gross (42,000 net leasehold)
    acres in Williams County, North Dakota. This undeveloped
    leasehold is located within the Bakken shale trend of the
    Williston Basin. Although the Middle Bakken formation will be
    the primary objective, secondary objectives include the Three
    Forks, Madison and Red River formations. Resolute expects to
    participate in drilling at least three horizontal wells in this
    area during 2010.
As of December 31, 2009, Resolute's estimated net
    proved reserves were approximately 64.4 MMBoe, of which
    approximately 35% were proved developed producing reserves and
    approximately 77% were oil. The pre-tax
PV-10
of
    Resolute's net proved reserves at December 31, 2009,
    was $479.9 million and the standardized measure of its
    estimated net proved reserves as of December 31, 2009, was
    $361.0 million. For additional information about the
    calculation of Resolutes's
PV-10
and
    its standardized measure, please read "
Business and
    Properties — Estimated Net Proved Reserves
."
    The following table sets forth summary information attributable
    to Resolute's estimated net proved reserves that is derived
    from its December 31, 2009, reserve report which was
    developed by Resolute and audited by Netherland,
    Sewell & Associates, Inc. ("NSAI"),
    independent petroleum engineers. Reserves and production
    information is as follows.
Estimated Net Proved Reserves as of December 31, 2009
Average Net
(MMBoe)
Daily
Proved
Proved
Production
Developed
Developed
Proved Undeveloped
Total
(Boe per day)
Producing
Non-Producing
CO
2
Drilling
Total
Proved
(1)
Aneth Field Properties
19.6
10.6
29.4
0.1
29.5
59.7
5,424
Wyoming Properties
2.7
2.0
—
—
—
4.7
2,013
Total
22.3
12.6
29.4
0.1
29.5
64.4
7,437
Future operating costs ($/Boe)(2)
$
25.35
$
13.45
$
9.91
$
12.97
$
9.92
$
15.96
—
Future production taxes ($/Boe)(3)
$
7.65
$
7.04
$
6.31
$
7.37
$
6.31
$
6.92
—
Future PUD development costs (in millions)(4)
—
—
$
310.2
$
1.6
$
311.8
—
—
Future PUD development costs ($/Boe)(5)
—
—
$
10.57
$
11.17
$
10.57
—
—
1)
For the year ended
    December 31, 2009.
2)
Determined by dividing
    Resolute's estimated future operating costs as of
    December 31, 2009, by total estimated net proved reserves
    as of December 31, 2009, for each reserve category.
3)
Determined by dividing
    Resolute's estimated future production taxes as of
    December 31, 2009, by total estimated net proved reserves
    as of December 31, 2009, for each reserve category.
4)
Future development costs include
    costs incurred in connection with the initiation, extension and
    expansion of
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2
flood projects, including
    CO
2
purchases, drilling of development wells, upgrades to field
    infrastructure, workovers of producing wells and recompletion of
    existing wells into new producing zones.
5)
Determined by dividing
    Resolute's estimated total future development costs related
    to reserves classified as proved undeveloped by total estimated
    net proved undeveloped reserves as of December 31, 2009.
Resolute's
    Business Strategies
Bring Proved Developed Non-Producing and Proved Undeveloped
    Reserves into Production.
At December 31, 2009,
    Resolute had estimated net proved reserves of approximately
    42.1 MMBoe that were classified as proved developed
    non-producing and proved undeveloped. An estimated
    40.0 MMBoe, or 95% of those reserves, are attributable to
    recoveries associated with expansions, extensions and processing
    of the tertiary recovery
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2
floods that are currently in operation on Resolute's Aneth
    Field Properties. Predecessor Resolute and Resolute incurred
    approximately $21.9 million of capital expenditures related
    to the Aneth Field Properties during 2009, and Resolute expects
    to incur an additional $377.4 million of capital
    expenditures over the next 28 years (including purchases of
    CO
2
),
    in connection with bringing those incremental reserves
    attributable to Resolute's
    CO
2
flood projects into production. Resolute's current plan
    anticipates approximately $162 million of these future
    capital expenditures will be incurred from 2010 through 2012.
A-7
Table of Contents
Increase Production and Improve Efficiency of Operations on
    Resolute's Existing Properties.
Resolute's
    management team has experience in managing operationally
    intensive oil and gas properties. As the operator of the Aneth
    Field Properties, Resolute has the ability to directly manage
    its costs, control the timing of its exploitation activities and
    effectively implement programs to increase production and
    improve the efficiency of its operations. For example,
    Predecessor Resolute initiated a program to actively work with
    vendors to reduce labor and material costs. Predecessor Resolute
    also conducted a proprietary
3-D
seismic
    survey of the Aneth Unit in 2007, which is the first
3-D
seismic
    survey covering Aneth Field. Resolute expects that the data
    obtained from this seismic survey will provide information to
    enable it to more efficiently develop and improve the recovery
    from its Aneth Field Properties. In addition, soon after
    Predecessor Resolute acquired properties from Chevron and from
    ExxonMobil and became the operator of the Aneth, McElmo Creek
    and Ratherford Units, Predecessor Resolute undertook a program
    of repair and maintenance of those producing assets. As a result
    of these efforts, Resolute has seen a reduction in the well
    workover costs. Also, because Resolute is the operator of three
    federal units in Aneth Field, it has been able to assemble a
    critical mass of employees and projects and allocate its
    resources across a broader area in a more efficient manner than
    was previously the case when each unit had a different operator.
Pursue Acquisitions of Properties with Development
    Potential.
From inception, Predecessor Resolute's
    goal was to grow its reserve base through a focused acquisition
    strategy. It completed three significant acquisitions, two in
    Utah and one in Wyoming. Substantially all of its Aneth Field
    Properties were acquired through significant purchases in
    November 2004 and April 2006. Predecessor Resolute then acquired
    its Wyoming Properties in July 2008. Resolute looks to acquire
    similar producing properties in the onshore United States that
    have upside potential through relatively low-risk development
    drilling and exploitation projects. It believes its knowledge of
    various operating areas, strong management and staff and solid
    industry relationships will allow it to find, capitalize on and
    integrate strategic acquisition opportunities in various areas.
Acquire and Explore Properties in Oil Prone
    Areas.
Resolute recently acquired leasehold interests
    in the Williston Basin that are prospective for oil production
    in the Middle Bakken formation as well as other formations.
    Resolute intends to explore these properties and to acquire,
    explore and develop other properties in areas of the United
    States that are prospective for production of oil or natural gas
    liquids ("NGL").
Reduce Commodity Price Risk through
    Hedging.
Resolute seeks to reduce the effect of
    short-term commodity price fluctuations and achieve less
    volatile and more predictable cash flows through the use of
    various derivative instruments such as swaps, puts, calls and
    collars. Resolute expects to continue to use these financial
    arrangements to reduce its commodity price risk. As of
    December 31, 2009, Resolute had in place oil and gas swaps,
    oil and gas collars and a gas basis hedge. These included oil
    swaps covering approximately 75% of its anticipated 2010 oil
    production at a weighted average price of $67.24 per Bbl, oil
    collars covering approximately 4% of its anticipated 2010 oil
    production with a floor of $105.00 per Bbl and ceiling of
    $151.00 per Bbl, gas swaps covering approximately 73% of its
    anticipated 2010 gas production at a weighted average price of
    $9.69 per MMBtu, and a CIG gas basis hedge priced at $2.10 per
    MMBtu covering approximately 34% of its anticipated 2010 gas
    production. Additional instruments are also in place for future
    years and are summarized in the table below.
Oil Swap
Oil (NYMEX WTI)
Collar
Volumes
Weighted Average
Volumes
Floor
Ceiling
Year
Bbl per Day
Hedge Price per Bbl
Bbl per Day
Price
Price
2010
3,650
$
67.24
200
$
105.00
$
151.00
2011
3,250
$
68.26
—
—
—
2012
3,250
$
68.26
—
—
—
2013
2,000
$
60.47
—
—
—
Gas
Basis Hedges
Swap
Swap
Volumes
Gas
Volumes
MMBtu
(Henry Hub)
MMBtu
Swap
Year
per Day
Swap Price
per Day
Price
2010
3,800
$
9.69
1,800
$
2.10
2011
2,750
$
9.32
1,800
$
2.10
2012
2,100
$
7.42
1,800
$
2.10
2013
1,900
$
7.40
1,800
$
2.10
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Table of Contents
Competitive
    Strengths
A High Quality Base of Long-Lived Oil Producing
    Properties.
The Aneth Field Properties have several
    characteristics that Resolute believes will provide a stable
    production platform with which to fund its development and
    growth activities:
•
The properties are expected to have a long productive life. As
    of December 31, 2009, the proved developed producing
    reserves had a
reserves-to-production
ratio of approximately 10 years and the total proved
    reserves had a
reserves-to-production
ratio of 31 years.
•
The light, sweet crude oil produced from its Aneth Field
    Properties is more attractive to refineries than the heavy or
    sour crude oil found in many areas, including the Permian Basin.
Properties with Significant Low-Risk and Low-Cost Development
    Opportunities.
As of December 31, 2009,
    approximately 42.1 MMBoe, or 65% of Resolute's
    estimated net proved reserves, were classified as proved
    developed non-producing or proved undeveloped. An estimated
    40.0 MMBoe, or 95% of those reserves, are attributable to
    recoveries associated with expansions, extensions and processing
    of the tertiary recovery
    CO
2
floods that are currently in operation on Resolute's Aneth
    Field Properties. Resolute's current development plan for
    its Aneth Field Properties indicates that in six years the daily
    production rate, on a Boe basis, should be double the average
    production rate achieved during the twelve months ended
    December 31, 2009. After that, Resolute expects the
    production rate to remain relatively stable for approximately
    four years and then begin a natural decline. Resolute believes
    these development projects, particularly its planned
    CO
2
flood projects, are relatively low risk compared to other
    conventional drilling-focused exploration and production
    activities, in large part because of the successful results of
    the McElmo Creek Unit
    CO
2
flood program that has been in operation since 1985 and because
    of the observed response from the
    CO
2
flood expansion Resolute has undertaken in the Aneth Unit.
    Following the initiation of the
    CO
2
flood project in the McElmo Creek Unit in 1985, oil production
    from the unit increased by approximately 30% over a thirteen
    year period (approximately 22% as a result of the
    CO
2
flood project and approximately 8% as a result of 24 newly
    drilled wells). Production then returned to a state of natural
    decline in 1998. Because of similar geological characteristics
    across Resolute's Aneth Field Properties, Resolute expects
    to achieve analogous incremental reserves in Aneth Unit as were
    seen in McElmo Creek Unit,, but at accelerated production rates,
    due to the higher rate of
    CO
2
injection
    in Resolute's Aneth Unit project.
Operating Control Over the Resolute
    Properties.
Resolute is the operator of the Aneth,
    McElmo Creek and Ratherford Units. As a result of having a
    critical mass of employees and projects and operating control
    across the three federal units encompassing approximately
    43,000 acres, it has the ability to utilize its employees
    on a prioritized basis. Because Resolute is the operator of all
    of its Aneth Field Properties, it believes it can attract
    contract services, materials and equipment from a broader market
    and negotiate more favorable terms than would otherwise be
    available. Resolute also has the ability to control the timing,
    scope and costs of development projects undertaken in its Aneth
    Field Properties. Resolute also operates Hilight Field and most
    of its other Wyoming Properties.
Experienced Management Team with Operational, Transactional
    and Financial Experience in the Energy Industry.
With
    an average industry work experience of more than 25 years,
    the senior management team of Resolute has considerable
    experience in acquiring, exploring, exploiting, developing and
    operating oil and gas properties, particularly in operationally
    intensive oil and gas fields. Five members of its senior
    management who formed Holdings in 2004 previously worked
    together as part of the senior management team of HS Resources,
    Inc., an independent oil and gas company that was listed on the
    New York Stock Exchange and primarily operated in the
    Denver-Julesburg Basin in northeast Colorado. HS Resources
    conducted resource development programs, managed and enhanced a
    gas gathering and processing system and built a hydrocarbon
    physical marketing and transportation business. Its development
    activities included drilling new wells, deepening wells and
    recompleting and refracturing existing wells to add reserves and
    enhance production. HS Resources also had an active program of
    acquiring producing properties and properties with development
    potential. HS Resources was acquired by Kerr-McGee Corporation
    in 2001.
A-9
Table of Contents
Aneth
    Field
Aneth Field, located in San Juan County, Utah, was
    discovered by Texaco in 1956 and was subsequently developed by
    several large integrated oil companies. It is the largest oil
    field in the Paradox Basin. Resolute's Aneth Field
    Properties cover approximately 43,000 acres and during the
    twelve months ended December 31, 2009, gross production
    from the Aneth Field Properties averaged 9,188 barrels of
    oil per day.
The primary producing horizon in Aneth Field is the
    Pennsylvanian-age Desert Creek formation, which is a
    carbonate algal-mound formation with average depth of
    approximately 5,525 feet. While there is some reservoir
    heterogeneity in Aneth Field, development of the reserves
    generally has been accomplished with well-tested methodologies,
    including drilling and infilling vertical wells, horizontal
    drilling, waterflood activities and
    CO
2
flooding. For administrative, organizational and operational
    reasons, in 1961 Aneth Field was divided into four separate
    federal production units to facilitate efficient development of
    the field and recovery of reserves. The three units that
    Resolute operates, the Aneth Unit, the McElmo Creek Unit and the
    Ratherford Unit, which constitute Resolute's Aneth Field
    Properties, possess substantially similar geologic and operating
    characteristics.
Predecessor Resolute acquired its Aneth Field Properties
    primarily through two significant acquisitions. In November
    2004, it acquired a 53% operating working interest in the Aneth
    Unit, a 15% non-operating working interest in the McElmo Creek
    Unit and a 3% non-operating working interest in the Ratherford
    Unit ("Chevron Properties"). In the April 2006
    acquisition, it acquired an additional 7.5% non-operating
    working interest in the Aneth Unit, a 60% operating working
    interest in the McElmo Creek Unit and a 56% operating working
    interest in the Ratherford Unit ( "ExxonMobil
    Properties").
Predecessor Resolute acquired its Aneth Field Properties in
    connection with its strategic alliance with Navajo Nation Oil
    and Gas Company, Inc., (" NNOG"), an oil and gas
    company owned by the Navajo Nation. NNOG maintains a minority
    interest in each of the Chevron Properties and the ExxonMobil
    Properties and possesses options to purchase additional minority
    interests in those properties from Resolute under certain
    circumstances. Please read "—
Relationship
    with the Navajo Nation
."
Aneth Unit.
During the twelve months ended
    December 31, 2009, Aneth Unit production averaged
    approximately 3,115 barrels of oil per day (gross) from
    162 gross (100 net) active producing wells. Resolute
    operated 150 gross (93 net) active injection wells in the
    Aneth Unit. Since the discovery of oil at the site in 1956, the
    Aneth Unit has produced a total of approximately 153 MMBbl
    of oil. The Aneth Unit was originally developed with vertical
    wells drilled on
80-acre
spacing and was infill drilled to
40-acre
spacing in the 1970s. Since unitization in 1961, the unit has
    been under waterflood. Between 1994 and 1998, an affiliate of
    Texaco operated the Aneth Unit and drilled 43 multi-lateral
    horizontal wells (23 producers and 20 injectors). Most of these
    horizontal wells were utilized to create a horizontal waterflood
    pattern on the eastern side of the unit. In 1998, the injectors
    in two square miles of the Aneth Unit were converted to a
    water-alternating-gas
    CO
2
pilot project to assess the possibility of a field-wide
    CO
2
injection flood program. The multi-lateral horizontal wells and
    the pilot
    CO
2
program were successful in increasing production rate and adding
    reserves, however, the pilot
    CO
2
program was never expanded into a unit-wide program. Predecessor
    Resolute became operator of the Aneth Unit on December 1,
    2004, and has been successful in reducing the decline rate such
    that the average daily gross oil production from the Aneth Unit
    as a whole has remained relatively constant since the time of
    acquisition.
McElmo Creek Unit.
During the twelve months ended
    December 31, 2009, McElmo Creek Unit production averaged
    approximately 3,649 barrels of oil per day (gross) from
    140 gross (105 net) active producing wells. Resolute
    operated 107 gross (80 net) active injection wells on the
    McElmo Creek Unit. Since its discovery, the McElmo Creek Unit
    has produced a total of approximately 163 MMBbl of oil. The
    McElmo Creek Unit has been under waterflood since the early
    1960s and prior operators commenced infill drilling to
40-acre
spacing during the 1970s. A stabilized oil production decline
    trend was established for the waterflood over approximately
    seven years prior to the initiation of a
    CO
2
flood program in 1985. Following the initiation of the
    CO
2
flood project in the McElmo Creek Unit in 1985, oil production
    from the unit increased by approximately 30% over a 13 year
    period (approximately 22% as a result of the
    CO
2
flood project and approximately 8% as a result of 24 newly
    drilled wells). Production then returned to a state of natural
    decline in 1998. Prior to Predecessor Resolute's
    acquisition of the ExxonMobil Properties, the McElmo Creek Unit
    was operated by ExxonMobil. Predecessor Resolute became operator
    of the McElmo Creek Unit on June 1, 2006, and was
    successful in increasing the average daily
A-10
Table of Contents
gross production rate. This was due to a number of factors,
    including its efforts to return wells to operation, improve
    artificial lift capacity at producing wells, improve compressor
    run times, increase production from new horizontal drilling,
    reduce freeze problems in the winter months and increase
    CO
2
injection.
Ratherford Unit.
During the twelve months ended
    December 31, 2009, Ratherford Unit production averaged
    approximately 2,424 barrels of oil per day (gross) from
    97 gross (57 net) active producing wells. Resolute operated
    77 gross (45 net) active injection wells on the Ratherford
    Unit. Since discovery, the Ratherford Unit has produced a total
    of approximately 102 MMBbl of oil. The core of the
    Ratherford Unit has been developed with horizontal wells, while
    the edges of the unit have been developed with vertical wells.
    Predecessor Resolute became operator of the Ratherford Unit on
    June 1, 2006, and was successful in increasing the average
    daily gross production rate. This increase in production
    resulted from a number of factors, including its efforts to
    improve artificial lift capacity at producing wells, increase
    production from new horizontal drillings, return wells to
    operation and increase water injection resulting from injection
    well cleanouts.
Wyoming
    Properties
Resolute's Wyoming Properties consist of three units in
    Hilight Field, minor
non-unitized
Muddy formation production in the Hilight area,
non-unitized
CBM production in the Hilight area and twelve other small fields
    in Wyoming. Resolute also owns interests in two small fields in
    Oklahoma. All but one of the Wyoming Properties are operated by
    Resolute.
Hilight Field consists of the Jayson Unit, the Grady Unit, the
    Central Hilight Unit, and the South Hilight Unit. Resolute has
    an 82.7% working interest in Jayson, an 82.5% working interest
    in the Grady Unit and a 98.5% working interest in Central
    Hilight Unit. The Jayson, Grady and Central Hilight Units cover
    an area of almost 50,000 acres, and are operated by
    Resolute. Hilight Field was discovered by Inexco Oil Company in
    1969, was developed on
160-acre
spacing, unitized in
1971-1972
and underwent waterflood between 1972 and the mid-1990s. As of
    December 31, 2009, there were 144 active producing wells,
    and cumulative production through December 31, 2009, from
    Resolute's three operated units was 68.3 MMBbl of oil
    and 150.0 Bcf of gas. Average daily gross production for
    the twelve months ending December 31, 2009, was
    215 Bbl of oil per day and 10,258 Mcf of gas per day.
    Net proved reserves assigned to these properties as of
    December 31, 2009, were 4.4 MMBoe. Muddy formation
    sandstones form the main reservoir in the field. Average depth
    to the Muddy formation is approximately 9,100 ft. Minor
    production also comes from the Upper Cretaceous Niobrara, Upper
    Cretaceous Turner, and Pennsylvanian Minnelusa reservoirs.
    Recent activity includes 21 infill wells, including three
    horizontal laterals drilled by the prior operator in 2006 and
    2007, and five Muddy re-stimulation, or refrac projects. Future
    activity may include the continuation of the infill and refrac
    programs, new drilling to extend the field boundaries, and
    exploration for unconventional oil from the overlying Niobrara
    and Mowry shales.
Resolute's CBM production in the Hilight area comes from
    263 producing wells. Average daily gross production for the
    twelve months ending December 31, 2009, was 2,900 Mcf
    per day. Although it varies from well to well, Resolute has an
    average of approximately 91% working interest in its Hilight
    area CBM properties. No net proved reserves were attributable to
    these wells as of December 31, 2009, The Wyodak-Anderson
    coals of the Paleocene Fort Union formation are the
    reservoir for this shallow gas reserve. Average depth to the
    reservoir is less than 500 feet. Recent activity by the
    prior operator includes seventeen wells that were drilled to
    extend the central portion of the field to the east. Since
    Predecessor Resolute took over operations, the CBM field has
    undergone downsizing and reconfiguration in an attempt to find
    the most economic balance between lease operating expenses and
    production.
Resolute also has working interests in twelve small fields in
    Wyoming and two in Oklahoma. Currently, Resolute operates wells
    in Campbell, Carbon, Natrona and Crook counties, Wyoming, and
    Dewey and Woodward counties, Oklahoma. During the twelve months
    ending December 31, 2009, these properties produced an
    average of approximately 299 barrels of oil per day from
    52 gross (34 net) active producing wells. In addition,
    there are 5 gross (3 net) active water injection wells. Net
    proved reserves assigned to these properties as of
    December 31, 2009, were 311 MBoe.
A-11
Table of Contents
Exploration
    Properties
Big Horn Basin Properties.
Predecessor Resolute
    developed a grassroots exploration concept in early 2005 to
    target an unconventional oil resource in the Mowry shale of the
    Big Horn Basin in northwest Wyoming. Since that time, the Mowry
    shale has become an emerging oil play over a larger area in
    northern Wyoming and southern Montana. Predecessor Resolute
    began leasing in June 2005 and it has acquired 82,133 gross
    (70,811 net) acres in the play with more than 99% of its leased
    properties having at least five years remaining on the lease
    term. Predecessor Resolute entered into an area of mutual
    interest agreement effective November 1, 2006, with
    Fidelity Exploration and Production Company
    ("Fidelity") covering acreage in the southeast part of
    the basin where 22,644 gross acres were jointly acquired on
    a
50-50
basis. That agreement has expired, but the acreage remains
    subject to a joint operating agreement for its remaining term.
    Resolute has not yet commenced development of this asset.
Black Warrior Basin Properties.
In mid-2005,
    Predecessor Resolute initiated an exploration program in the
    Black Warrior Basin of northwest Alabama that targeted
    unconventional gas resources in the Devonian Chattanooga shale,
    the Mississippian Floyd shale, and the Pennsylvanian Pottsville
    coals. Approximately 39,500 net acres are currently leased.
    Predecessor Resolute drilled a vertical well in April 2007 that
    penetrated all three objectives and was cased without a
    completion attempt. It later entered into a participation
    agreement with Huber Energy LLC ("Huber"), effective
    June 26, 2008, under which Huber can earn an interest in
    the acreage by incurring all costs on specific development
    activities. Huber re-entered Resolute's vertical well and
    completed the Chattanooga shale and recovered gas, but at
    uneconomic rates. The well is currently shut-in. Huber acquired
    proprietary
2-D
seismic
    data in July 2009 for risk reduction on potential future
    operational activities targeting the Chattanooga and Floyd
    shales. Huber is also undertaking permitting activities for a
    potential CBM pilot program on the leasehold. The Pottsville
    formation has been producing CBM from adjacent areas since the
    early 1980s.
Recently
    Announced Activities
Williston Basin Properties.
In March 2010, Resolute
    acquired a 45% working interest in approximately
    61,000 gross (42,000 net leasehold) acres in Williams
    County, North Dakota. This undeveloped leasehold is located
    within the Bakken shale trend of the Williston Basin. Although
    the Middle Bakken formation will be the primary objective,
    secondary objectives include the Three Forks, Madison and Red
    River formations. For 2010, Resolute has allocated approximately
    $25 million for acreage acquisition, drilling and
    completion activities in this area, and expects to participate
    in drilling at least three horizontal wells during 2010.
Oil Recovery
    Overview
When an oil field is first produced, the oil typically is
    recovered as a result of natural pressure within the producing
    formation. The only natural force present to move the crude oil
    through the reservoir rock to the wellbore is the pressure
    differential between the higher pressure in the rock formation
    and the lower pressure in the wellbore. Various types of pumps
    are often used to reduce pressure in the wellbore, increasing
    the pressure differential. At the same time, there are many
    factors that act to impede the flow of crude oil, depending on
    the nature of the formation and fluid properties, such as
    pressure, permeability, viscosity and water saturation. This
    stage of production, referred to as "primary
    recovery," recovers only a small fraction of the crude oil
    originally in place in a producing formation.
Many, but not all, oil fields are amenable to assistance from a
    waterflood, a form of "secondary recovery," which is
    used to maintain reservoir pressure and to help sweep oil to the
    wellbore. In a waterflood, some of the wells are used to inject
    water into the reservoir while other wells are used to produce
    the fluid. As the waterflood matures, the fluid produced
    contains increasing amounts of water and decreasing amounts of
    oil. Surface equipment is used to separate the oil from the
    water, with the oil going to pipelines or holding tanks for sale
    and the water being recycled to the injection facilities.
    Primary recovery followed by secondary recovery usually produces
    between 15% and 40% of the crude oil originally in place in a
    producing formation.
A third stage of oil recovery is called "tertiary
    recovery" or "enhanced oil recovery",
    ("EOR"). In addition to maintaining reservoir
    pressure, this type of recovery seeks to alter the properties of
    the oil in ways that facilitate
A-12
Table of Contents
production. The three major types of tertiary recovery are
    chemical flooding, thermal recovery (such as a steamflood) and
    miscible displacement involving
    CO
2
or hydrocarbon injection.
In a
    CO
2
flood,
    CO
2
is liquefied under high pressure and injected into the
    reservoir. The
    CO
2
then swells the oil in a way that increases the mobilization of
    bypassed oil while also reducing the oil's viscosity. The
    lighter components of the oil vaporize into the
    CO
2
while the
    CO
2
also condenses into the oil. In this manner, the two fluids
    become miscible, mixing to form a homogeneous fluid that is
    mobile and has lower viscosity and lower interfacial tension,
    thus facilitating the migration of oil and gas to the producer
    wells.
Miscible
    CO
2
flooding was first commercially successful with Chevron's
    1972 miscible
    CO
2
flood in the SACROC field in Scurry County, Texas. According to
    the Oil & Gas Journal's 2008 Worldwide EOR
    Survey, there were 105 miscible
    CO
2
projects in the United States (with an additional sixteen
    miscible
    CO
2
projects in the planning stages) that produced an estimated
    249,700 barrels of oil per day during 2008. In addition to
    Resolute's projects in its Aneth Field Properties,
    CO
2
projects are located in Texas, Oklahoma, New Mexico, Colorado,
    Wyoming, Michigan and Mississippi. Four companies, Occidental
    Petroleum, Kinder Morgan, Amerada Hess and Chevron, are
    responsible for the majority of the estimated daily production
    from these
    CO
2
projects.
Planned Operating
    and Development Activities
Resolute has prepared a development program for its Aneth Field
    Properties that includes
    CO
2
flooding, field infrastructure enhancements, recompletions,
    workovers of producing and injection wells, infill drilling and
    waterflood enhancement. The application of each of these
    activities and technologies has been successfully established in
    various locations within the Aneth Field Properties, and the
    development plans have been designed to enhance or extend
    projects that were tested or initiated by the previous operators
    but were never fully completed due to such factors as lack of
    fieldwide operatorship and lower commodity prices. Resolute
    believes that its close working relationship with NNOG and the
    Navajo Nation will enhance its ability to advance development of
    its Aneth Field Properties.
CO
2
Floods.
A major component of planned activity over
    the next several years involves extensions and expansions of the
    CO
2
floods initiated by the major oil companies, first in the McElmo
    Creek Unit in 1985 and then in the Aneth Unit in 1998. The
    McElmo Creek Unit
    CO
2
flood is virtually unit-wide, whereas the Aneth Unit
    CO
2
flood was limited to a pilot project covering approximately two
    square miles in the northeast corner of that unit.
The Aneth and McElmo Creek Units exhibit similar geologic
    characteristics. As a result, Resolute expects its Aneth Unit
    CO
2
flood to achieve results analogous to those achieved in the
    McElmo Creek
    CO
2
flood program, adjusted for operating and timing differences.
    Therefore, Resolute has modeled its estimate of increased
    incremental proved developed non-producing and proved
    undeveloped reserves based upon the results achieved in the
    McElmo Creek Unit
    CO
2
flood. It also has modeled its projection of increased rate of
    oil production based upon the oil production response of the
    McElmo Creek Unit as a function of the injection of
    CO
2
.
    The oil production rate response is related to the rate at which
    CO
2
is injected. The McElmo Creek
    CO
2
project was initiated in 1985 with a relatively low rate of
    CO
2
injection, and therefore experienced an oil production rate
    response that was lower than what might have been achieved had
    CO
2
been injected at a higher rate. Resolute estimates that the rate
    of oil production will increase faster at the Aneth Unit than
    the production response experienced at the McElmo Creek Unit
    because of Resolute's plan to inject
    CO
2
volumes at a greater rate at the Aneth Unit than at the McElmo
    Creek Unit.
Aneth Unit.
Construction activities and costs
    associated with phases 1, 2 and 3 of the Aneth Unit
    CO
2
expansion project, covering the western portion of the Aneth
    Unit, are now substantially complete. Initial
    CO
2
injection began in July 2007 and oil response has been observed
    in all three active phases. Phase 4 construction is scheduled to
    begin during the fourth quarter of 2010 and injection of
    CO
2
is expected to commence in the second quarter of 2011 with
    significant production response estimated in 2012.
McElmo Creek Unit.
Resolute plans to expand the
    existing
    CO
2
flood project into a segment of the Desert Creek zone that has
    not yet been
    CO
2
flooded. It performed well under waterflood and was abandoned by
    a prior operator after it reached a prior economic limit of
    water cut and before the existing
    CO
2
flood was implemented.
A-13
Table of Contents
This segment is expected to perform well under
    CO
2
flood. Additional waterflood reserves will also be recovered as
    the waterflood will be effectively restarted in conjunction with
    the start of the
    CO
2
flood.
Ratherford Unit.
The geology and, except for the
    prevalence of horizontal wells, the overall operations of the
    Ratherford Unit are fundamentally the same as the other two
    units, including an extensive waterflood of the Desert Creek
    reservoir. Resolute is evaluating future plans to include a
    CO
2
flood of this unit.
The following table sets forth, as of December 31, 2009,
    Resolute's estimate of the future capital expenditures, net
    to its interest, for construction, well work and other costs and
    for purchases of
    CO
2
required to implement its
    CO
2
flood projects in two of the units of its Aneth Field Properties
    through 2038. The following table also sets forth the estimated
    net proved developed non-producing and proved undeveloped
    reserves included in Resolute's reserve report as of
    December 31, 2009, which Resolute anticipates will be
    produced as a result of these projects. Resolute and Predecessor
    Resolute incurred $21.9 million of capital expenditures
    related to the Aneth Field Properties during 2009, and Resolute
    expects to incur an additional $377.4 million of capital
    expenditures over the next 28 years (including purchases of
    CO
2
),
    in connection with bringing into production those incremental
    proved developed non-producing and proved undeveloped reserves
    attributable to its
    CO
2
flood project. Resolute has entered into two
    CO
2
purchase contracts for a substantial portion of the
    CO
2
it expects to use in connection with its
    CO
2
flood projects. In order to further these
    CO
2
flood projects, it expects to incur approximately
    $162 million of these future capital expenditures from 2010
    through 2012.
Estimated
Estimated
Estimated
Future
Estimated
Future Total
Estimated
Future
Capital
Future
    CO
2
Capital
Reserves
Development
Expenditures
Purchases
Expenditures
(MMBoe)
Cost ($/Boe)
(in millions, except as otherwise indicated)
Aneth Unit — Phases 1, 2 and 3
$
8.6
$
58.6
$
67.2
10.6
$
6.34
Aneth Unit — Phase 4 and Plant
84.3
108.1
192.4
16.3
11.80
McElmo Creek Unit – DC IIC and Plant
50.8
67.0
117.8
13.1
8.99
Total
$
143.7
$
233.7
$
377.4
40.0
$
9.44
As Resolute advances its
    CO
2
projects, the injected
    CO
2
will displace an increasing portion of the water currently being
    injected in the waterflood operation. Resolute will need to
    safely dispose of that water, and, to that end, has drilled a
    water disposal well with four horizontal laterals. Engineering
    studies have indicated that this initial well should be able to
    handle most of the incremental water production. To protect
    against the possibility that the first water disposal well might
    become incapable of handling all volumes of water to be disposed
    of, Resolute is presently in the process of securing permits to
    drill a second water disposal well to handle any excess water
    disposal needs. This well could be ready for water disposal by
    the second quarter of 2011.
The success of Resolute's
    CO
2
projects also depends on acquiring adequate amounts of
    CO
2
.
    Resolute has entered into two
    CO
2
purchase contracts that provide a significant portion of the
    anticipated
    CO
2
required through 2016 to pursue
    CO
2
projects and to continue its existing
    CO
2
floods. Resolute estimates that, as of December 31, 2009
    and through 2016, it will need gross aggregate volumes of
    CO
2
of approximately 177.7 Bcf, or approximately 115.6 Bcf
    net to its working interest. As of December 31, 2009, it
    had gross aggregate volumes of approximately 108.7 Bcf
    committed to it under the two contracts noted above.
One of these contracts is with ExxonMobil Gas & Power
    Marketing Company ("EMGP"). The price per Mcf of
    CO
2
under this contract is 1.4% of the price of West Texas
    Intermediate crude oil. The volume Resolute is allowed to take
    and that EMGP is required to deliver is 20,000 Mcf per day,
    or approximately 3.6 Bcf over the six months remaining on
    the contract from January 1, 2010. Resolute is obligated to
    take or if not taken, pay for 80% of this volume on a monthly
    basis, with limited
make-up
rights for volumes not taken. Resolute also has the right to
    resell any
    CO
2
it is obligated to take under this contract but that it is not
    able to use. Resolute has the right to take delivery into either
    the McElmo Creek Pipeline (which would be for its own use) or
    into Kinder Morgan's Cortez Pipeline (which would occur if
    it were reselling the
    CO
2
).
    The contract term runs until June 30, 2010, and it will not
    be renewed. As of December 31, 2009, Resolute had made
    payments of $0.3 million under this contract for
    0.4 MMcf of
    CO
2
for which it had not yet taken delivery.
A-14
Table of Contents
The second contract for the purchase of
    CO
2
is with Kinder Morgan
    CO
2
Company, L.P ("Kinder Morgan"). This gas is also
    delivered from the McElmo Dome field. The price per Mcf of
    CO
2
under this contract is 1.75% of the price of West Texas
    Intermediate crude oil, and the contract runs through
    December 31, 2016. This contract has a variable schedule of
    committed contract quantities intended to make available the
    expected requirements of Phases 1, 2, 3 and 4 of Resolute's
    Aneth Unit
    CO
2
project as well as the requirements of its expansion project in
    the McElmo Creek Unit, less the volumes expected to be provided
    under its EMGP contract. The Kinder Morgan contract maximum
    daily quantities range from a high of approximately
    41,000 Mcf per day in 2010, declining to approximately
    6,000 Mcf per day during 2016, the last year of the
    contract. The aggregate total contract quantity over the term of
    the contract for these projects is approximately 63.6 Bcf.
    Resolute has the option to increase the total contract volume by
    approximately 41.5 Bcf between 2011 and 2016. Following the
    termination of the EMGP contract in June 2010, all of
    Resolute's supply of
    CO
2
is expected to be under the Kinder Morgan contract.
Resolute is required to take, or pay for if not taken, 75% of
    the total of the maximum daily quantities for each month during
    the term of the Kinder Morgan contract. There are
make-up
provisions allowing any
take-or-pay
payments it makes to be applied against future purchases for
    specified periods of time. Resolute has a one time right to
    reduce committed volumes under the contract by an amount between
    10.0 and 25.3 Bcf for 25% of the contract price at the time
    the volumes are released. It does not have the right to resell
    CO
2
required to be purchased under the Kinder Morgan contract. As of
    December 31, 2009, Resolute had made payments of
    $1.4 million under this contract for 1.3 MMcf of
    CO
2
for which it had not yet taken delivery.
The
    CO
2
that Resolute purchases for its use will be delivered to it
    through the McElmo Creek Pipeline. This pipeline is
    approximately 25 miles in length and runs directly from the
    McElmo Dome Field to Resolute's McElmo Creek Unit.
    Pipelines within the Aneth Field Properties are used to
    distribute the
    CO
2
to the Aneth Unit. Resolute owns a 75% interest in, and is the
    operator of, the McElmo Creek Pipeline. Resolute recently added
    a pump to the pipeline to increase capacity to 70,000 Mcf
    per day. Additional pumps are planned to further increase
    capacity to more than 130,000 Mcf per day.
Wyoming Properties.
Resolute has prepared a
    multi-year development plan for the Wyoming Properties. At
    Hilight Field, the previous operator was successful in adding
    new reserves by stimulating the Muddy formation. Resolute plans
    to continue this program with 38 refracs scheduled to be
    completed between 2010 and 2012. The repair and maintenance
    program will continue and certain water discharge facilities are
    scheduled to be reconfigured in 2010. At the Hilight area CBM
    property, any new operational activities will be planned after
    the results of the field reconfiguration, which was implemented
    on a trial basis beginning in April 2009, are fully analyzed. At
    the other fourteen properties acquired in June 2008, two proved
    undeveloped reserve locations are scheduled to be drilled in
    2011, and the repair and maintenance program will continue.
Other Planned
    Activities
Aneth Field — Gas Processing.
Currently
    there are two types of gas production in Aneth Field, saleable
    gas and contaminated gas. The saleable gas stream has low levels
    of
    CO
2
and
    is sold. The contaminated gas stream has high levels of
    CO
2
which prevents it from being sold. This contaminated gas stream
    currently is compressed and re-injected into the reservoir. As
    Resolute continues its
    CO
2
injection and expansion plans, the volume of contaminated gas
    will significantly increase. This contaminated stream is rich in
    NGL, which represents a valuable product. Resolute plans to
    install new facilities and gas plant equipment to process and
    treat this contaminated stream. This project will recover
    condensate and also strip the majority of the
    CO
2
from the contaminated stream. The condensate will be sold and
    the
    CO
2
will be compressed and re-injected. The residue gas stream will
    be marketed through third party facilities.
Black Warrior Basin Properties.
Activities on
    Resolute's Black Warrior Basin exploration acreage in
    Alabama are expected to occur in 2010 and 2011. Under a
    participation agreement with Huber, Huber has the option to
    perform specified activities which would earn it an interest in
    Resolute's Black Warrior acreage. Huber may drill,
    complete, and test a five-well CBM pilot in 2010 to earn into
    the CBM leasehold interests. Permitting for such a pilot is
    ongoing. In addition, Huber has the option to further develop
    the deeper Floyd
and/or
Chattanooga shale-gas plays to earn additional interest in the
    acreage. Potential earning activities include completing the
    Floyd formation from Resolute's existing vertical well, or
    drilling, completing, and testing the Chattanooga formation in a
A-15
Table of Contents
horizontal lateral from Resolute's existing vertical well,
    or drilling, completing, and testing the Chattanooga formation
    from a new well.
Big Horn Basin Properties.
Resolute has
    82,133 gross (70,811 net) acres in the Big Horn Basin. In
    2006, Predecessor Resolute entered into an area of mutual
    interest agreement with Fidelity covering certain acreage in the
    southeast portion of the basin, under which approximately
    22,644 gross acres were jointly acquired on a
50-50
basis.
    That agreement has expired, but the acreage remains subject to a
    joint operating agreement for its remaining term. In addition,
    both Resolute and Fidelity independently control additional
    leaseholds in the immediate area. The emerging Mowry shale oil
    resource play is the primary reservoir target and the Frontier
    and Phosphoria are secondary reservoir targets. A well to test
    the Mowry is tentatively planned for 2011.
Williston Basin Properties.
In March 2010, Resolute
    acquired a 45% working interest in approximately
    61,000 gross (42,000 net) leasehold acres in Williams
    County, North Dakota. This undeveloped leasehold is located
    within the Bakken shale trend of the Williston Basin. Although
    the Middle Bakken formation will be the primary objective,
    secondary objectives include the Three Forks, Madison and Red
    River formations. For 2010, Resolute has allocated approximately
    $25 million for acreage acquisition, drilling and
    completion activities in this area and expects to participate in
    drilling at least three horizontal wells.
Estimated Net
    Proved Reserves
Reserve estimates as of December 31, 2009, were prepared by
    Resolute and audited by NSAI, Resolute's independent
    petroleum engineers. Please read "
Risk
    Factors — Risks Related to Resolute's Business,
    Operations and Industry
" and "
Management's
    Discussion and Analysis of Financial Condition and Results of
    Operations of Resolute
" in evaluating the material
    presented below.
Resolute's reserve report was prepared under the direct
    supervision of Resolute's Reservoir Engineering Manager,
    who is a qualified reserve estimator and auditor. The report was
    based upon a review of property interests being appraised,
    production from such properties, current costs of operation and
    development, current prices for production, agreements relating
    to current and future operations and sale of production,
    geoscience and engineering data, and other information. The
    reserve estimates were reviewed internally by senior management.
    An audit of the reserve estimates was performed by NSAI.
The professional qualifications of Resolute's Reservoir
    Engineering Manager meet or exceed the qualifications of reserve
    estimators and auditors set forth in the "Standards
    Pertaining to the Estimating and Auditing of Oil and Gas
    Reserves Information" promulgated by the Society of
    Petroleum Engineers. His qualifications include: Bachelor of
    Science degree in Petroleum Engineering from the Colorado School
    of Mines, 1982; registered professional engineer with the State
    of Colorado since 1987; member of Society of Petroleum Engineers
    since 1980; more than 27 years of practical petroleum
    engineering experience; more than 27 years of practical
    experience in estimating and evaluating reserves information
    with at least five of these years being in charge of estimating
    and evaluating reserves.
The reserves estimates shown herein have been independently
    audited by NSAI, a worldwide leader in petroleum property
    analysis for industry, financial organizations and government
    agencies. NSAI was founded in 1961 and is registered to perform
    consulting petroleum engineering services by the Texas Board of
    Professional Engineers Registration. Within NSAI, the technical
    person primarily responsible for the NSAI audit is David Miller.
    Mr. Miller has been practicing consulting petroleum
    engineering at NSAI since 1997. He is a Registered Professional
    Engineer in the State of Texas and has more than 28 years
    of practical experience in petroleum engineering, with more than
    12 years experience in the estimation and evaluation of
    reserves. He graduated from the University of Kentucky in 1981
    with a Bachelor of Science degree in Civil Engineering and from
    Southern Methodist University in 1994 with a Master of Business
    Administration degree. Mr. Miller meets or exceeds the
    education, training, and experience requirements set forth in
    the Standards Pertaining to the Estimating and Auditing of Oil
    and Gas Reserves Information promulgated by the Society of
    Petroleum Engineers; he is proficient in judiciously applying
    industry standard practices to engineering and geoscience
    evaluations as well as applying SEC and other industry reserves
    definitions and guidelines.
A report of NSAI regarding its audit of the estimates of proved
    reserves at December 31, 2009, has been filed as
    Exhibit 99.1 to this report and is incorporated herein,
A-16
Table of Contents
The following table presents Resolute's estimated net
    proved oil, gas and NGL reserves and the present value of its
    estimated net proved reserves as of December 31, 2009, all
    according to standards set by the Securities and Exchange
    Commission ("SEC"). The standardized measure shown in
    the table below is not intended to represent the current market
    value of Resolute's estimated oil and gas reserves.
    Resolute's estimates of net proved reserves have not been
    filed with or included in reports to any federal authority or
    agency other than the SEC.
Utah
Wyoming
Total
Estimated net proved developed reserves:
Oil (MBbl)
29,851
1,044
30,895
Gas (MMcf)
904
14,620
15,524
NGL (MBbl)
192
1,264
1,456
MBoe
30,194
4,745
34,938
Estimated net proved undeveloped reserves:
Oil (MBbl)
18,923
42
18,965
Gas (MMcf)
22,705
—
22,705
NGL (MBbl)
6,747
—
6,747
MBoe
29,454
42
29,496
Estimated net proved reserves:
Oil (MBbl)
48,774
1,086
49,860
Gas (MMcf)
23,609
14,620
38,229
NGL (MBbl)
6,939
1,264
8,203
Total (MBoe)
59,648
4,786
64,434
Standardized measure ($ in millions)(1)(2)
$
361
Discounted future income taxes
119
PV-10
($ in
    millions)(1)(3)
$
480
1)
In accordance with SEC and Financial Accounting Standards Board
    ("FASB") requirements, Resolute's estimated net
    proved reserves and standardized measure at December 31,
    2009, were determined utilizing prices equal to the twelve-month
    unweighted arithmetic average of first day of the month prices,
    resulting in an average NYMEX oil price of $61.18 per Bbl of oil
    and an average Henry Hub spot market gas price of $3.87 per
    MMBtu, such prices deemed to be "current" by the SEC
    and FASB.
2)
Standardized measure is the present value of estimated future
    net revenue to be generated from the production of proved
    reserves, determined in accordance with the rules and
    regulations of the SEC and FASB, less future development,
    production and income tax expenses, and discounted at 10% per
    annum to reflect the timing of future net revenue. Calculation
    of standardized measure does not give effect to derivatives
    transactions. For a description of Resolute's derivatives
    transactions, please read "
Management's Discussion
    and Analysis of Financial Condition and Results of Operations of
    Resolute — Quantitative and Qualitative Disclosures
    About Market Risk."
3)
PV-10
is a
    non-GAAP measure and incorporates all elements of the
    standardized measure, but excludes the effect of income taxes.
    Management believes that pre-tax cash flow amounts are useful
    for evaluative purposes since future income taxes, which are
    affected by a company's unique tax position and strategies,
    can make after-tax amounts less comparable.
Proved developed reserves are reserves that can be expected to
    be recovered through existing wells with existing equipment and
    operating methods. Proved undeveloped reserves are proved
    reserves that are expected to be recovered from new wells
    drilled within five years to known reservoirs on undrilled
    acreage for which the existence and recoverability of such
    reserves can be estimated with reasonable certainty, or from
    existing wells on which a relatively major expenditure is
    required to establish production.
The data in the above table represent estimates only. Oil and
    gas reserve engineering is inherently a subjective process of
    estimating underground accumulations of oil and gas that cannot
    be measured in an exact way. The accuracy of any reserves
    estimate is a function of the quality of available data and
    engineering and geological
A-17
Table of Contents
interpretation and judgment. Accordingly, reserves estimates may
    vary, perhaps significantly, from the quantities of oil and gas
    that are ultimately recovered. Please read "
Risk
    Factors — Risks Related to Resolute's Business,
    Operations and Industry
."
Future prices received for production and costs may vary,
    perhaps significantly, from the prices and costs assumed for
    purposes of these estimates. The 10% discount factor used to
    calculate present value, which is required by SEC and FASB
    pronouncements, is not necessarily the most appropriate discount
    rate. The present value, no matter what discount rate is used,
    is materially affected by assumptions as to timing of future
    production, which may prove to be inaccurate.
Producing oil and gas reservoirs generally are characterized by
    declining production rates that vary depending upon reservoir
    characteristics and other factors. Therefore, without reserve
    additions in excess of production through successful
    exploitation and development activities or acquisitions,
    Resolute's reserves and production will ultimately decline
    over time. Please read "
Risk Factors — Risks
    Related to Resolute's Business, Operations and
    Industry"
and "
Note 15 —
    Supplemental Oil and Gas Information (unaudited)
" to
    the audited consolidated financial statements of Resolute for a
    discussion of the risks inherent in oil and gas estimates and
    for certain additional information concerning Resolute's
    estimated proved reserves.
At December 31, 2009, no proved undeveloped reserves have
    remained undeveloped for more than five years.
Proved reserves reported by Resolute of 64.4 MMBoe at
    December 31, 2009, represent a 31% increase over the
    49.3 MBoe reported by Predecessor Resolute at
    December 31, 2008. Production (including that of
    Predecessor Resolute) during 2009 reduced proved reserves by
    2.7 MMBoe, while revisions of previous estimates increased
    proved reserves by 17.8 MMBoe. Commodity pricing was the
    principal factor leading to the revisions in proved reserves. In
    accordance with the varying SEC requirements in effect at each
    year end, the reserves at December 31, 2009, utilized
    prices of $61.18 per barrel of oil and $3.87 per MMBtu, as
    compared to prices of $44.60 per barrel of oil and $5.24 per
    MMBtu of gas at December 31, 2008.
Costs incurred of $23 million (including that incurred by
    Predecessor Resolute) to develop Resolute's proved
    undeveloped reserves in 2009 declined from the
    $52.3 million incurred by Predecessor Resolute in 2008,
    primarily due to a lower average cost of
    CO
2
purchased and lower activity levels in response to lower
    commodity prices in the first half of 2009.
The following table sets forth Resolute's net proved
    reserves at December 31, 2009, based on alternative price
    scenarios as identified below in the footnotes to the table. The
    price scenarios illustrate the sensitivity of our estimated
    reserve quantities under various price and cost assumptions.
SEC Case (1)
Flat Case (2)
Strip Case (3)
Proved oil reserves (MMBbl)
58.1
62.8
75.5
Proved gas reserves (Bcf)
38.2
43.5
44.1
Proved equivalents (MMBoe)
64.4
70.1
82.8
PV-10
(millions)
$480
$885
$1,067
1)
Represents reserves utilizing the SEC guidelines which were in
    effect at December 31, 2009. The SEC Case utilized prices
    equal to the twelve-month unweighted arithmetic average of first
    day of the month prices, resulting in an average NYMEX oil price
    of $61.18 per Bbl of oil and an average Henry Hub spot market
    gas price of $3.87 per MMBtu of gas.
2)
Represents reserves utilizing the SEC guidelines which were in
    effect at December 31, 2008. The Flat Case was based on
    prices in effect at December 31, 2009, which were a NYMEX
    oil price of $79.36 per Bbl of oil and a Henry Hub spot market
    gas price of $5.79 per MMBtu of gas.
3)
Represents reserves utilizing future strip prices at
    December 31, 2009. The Strip Case utilized prices which
    included NYMEX front-month oil prices of $82.30, $86.13, $87.99,
    and $89.53 per barrel for each of the years from 2010 through
    2013. Prices were held constant thereafter at $91.30 per barrel
    for 2014 and beyond. Similarly, gas prices used were $5.77,
    $6.31, $6.48, and $6.62 per MMBtu for the four year period, and
    $6.80 per MMBtu for 2014 and thereafter. Capital and operating
    costs were escalated by 3% per year through 2014 and held
    constant thereafter. Aneth field operating costs were allocated
    on a per-well and
per-barrel
cost model rather than the per-well and per-producing unit cost
    model used in the SEC and Flat cases.
A-18
Table of Contents
Production and
    Price History
Set forth in the table below are Resolute and Predecessor
    Resolute's operating data for 2009, 2008 and 2007.
Resolute
Predecessor Resolute
For the 267 day
Year Ended
period ended
December 31,
September 24,
Year Ended December 31,
2009
2009
2008
2007
Production Sales Data:
Oil (MBbl)
543
1,444
2,049
2,127
Gas and NGL (MMcfe)
958
3,400
4,645
3,800
Combined volumes (Mboe)
703
2,011
2,823
2,760
Daily combined volumes (Boe per day)
7,173
7,530
7,712
7,561
Average Realized Prices (excluding derivative
    settlements):
Oil ($/Bbl)
$
69.11
$
50.32
$
94.47
$
69.80
Gas and NGL ($/Mcfe)
5.10
3.73
7.59
6.45
Average Realized Prices (including derivative
    settlements):
Oil ($/Bbl)
$
61.47
$
55.79
$
81.39
$
67.30
Gas and NGL ($/Mcfe)
6.09
5.78
8.38
7.20
Average Production Costs ($/Boe):
Lease operating expense
$
23.02
$
16.84
$
20.04
$
16.76
Production and ad valorem taxes
8.26
6.42
10.42
7.42
Productive
    Wells
The following table sets forth information as of
    December 31, 2009, relating to the productive wells in
    which Resolute owns a working interest. Productive wells consist
    of producing wells and wells capable of producing, including
    wells awaiting connection to production facilities. Gross wells
    are the total number of producing wells in which Resolute has a
    working interest, and net wells are the sum of Resolute's
    fractional working interests owned in gross wells. In addition
    to the wells set forth below, as of December 31, 2009,
    Resolute had interests in and operated 334 gross (218 net)
    active water and
    CO
2
injection wells on the Aneth Field Properties, and 5 gross
    (3 net) active water injection wells associated with the Wyoming
    Properties.
Producing Wells
Area
Gross
Net
Aneth Field Properties
399
262
Wyoming Properties
466
420
Total
865
682
Acreage
All of Resolute's leasehold acreage is categorized as
    developed or undeveloped. The following table sets forth
    information as of December 31, 2009, relating to the
    Company's leasehold acreage:
Developed Acreage (1)
Average Net
Area
Gross (2)
Net (3)
Revenue Interest (4)
Aneth Field Unit acreage (UT)
43,218
28,122
55.42
%
Hilight Field Unit acreage (WY)
48,710
44,577
75.98
%
Hilight area
non-unit
acreage (WY)
3,613
3,308
85.00
%
Other
non-unit
acreage (WY and OK)
6,904
4,441
61.09
%
Total
102,445
80,448
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Table of Contents
Undeveloped Acreage (5)
Average Net
Area
Gross (2)
Net (3)
Revenue Interest (4)
Hilight area
non-unit
acreage (WY)
7,017
5,786
81.25
%
Big Horn Basin acreage (WY)
82,133
70,811
86.00
%
Black Warrior Basin acreage (AL)
47,728
39,518
82.00
%
Other
non-unit
acreage (WY, OK and UT)
6,984
712
81.25
%
Total
143,862
116,827
Approximately 22,000 net acres of undeveloped acreage
    expires in 2010 and approximately 2,000 and 1,300 net acres
    expire in 2011 and 2012, respectively. The majority of the
    expirations (approximately 19,000 net acres) in 2010
    through 2012 relate to acreage in the Black Warrior Basin in
    Alabama.
1)
Developed acreage is acreage attributable to wells producing oil
    or gas.
2)
The number of gross acres is the total number of acres in which
    Resolute owns a working interest and/or unitized interest.
3)
Net acres are calculated as the sum of Resolute's working
    interests in gross acres.
4)
The net revenue interest is the percentage of total production
    to which Resolute is entitled after reductions for burdens on
    production such as royalties and overriding royalties.
5)
Undeveloped acreage includes leases either within their primary
    term or held by production.
Drilling
    Results
Subsequent to the acquisition in September 2009, Resolute did
    not engage in drilling exploratory or developmental wells.
    Predecessor Resolute did not engage in drilling in 2009 and
    2008, but in 2007 drilled 15 gross (14.6 net) wells.
Relationship with
    the Navajo Nation
The purchase of Resolute's Aneth Field Properties was
    facilitated by Predecessor Resolute's strategic alliance
    with NNOG and, through NNOG, the Navajo Nation. The Navajo
    Nation formed NNOG, a wholly-owned corporate entity, under
    Section 17 of the Indian Reorganization Act. Resolute
    supplies NNOG with acquisition, operational and financial
    expertise and NNOG helps Resolute communicate and interact with
    the Navajo Nation agencies.
Resolute's strategic alliance with NNOG is embodied in a
    Cooperative Agreement that Predecessor Resolute entered into
    with NNOG in 2004 to facilitate Resolute and NNOG's joint
    acquisition of the Chevron Properties. The agreement was amended
    subsequently to facilitate the joint acquisition of the
    ExxonMobil Properties. Among other things, this agreement
    provides that:
•
Resolute and NNOG will cooperate on the acquisition and
    subsequent development of their respective properties in Aneth
    Field.
•
NNOG will assist Resolute in dealing with the Navajo Nation and
    its various agencies, and Resolute will assist NNOG in expanding
    its financial expertise and its operating capabilities. Since
    Predecessor Resolute and NNOG acquired the Aneth Field
    Properties, NNOG has helped facilitate interaction between
    Resolute and the Navajo Nation Minerals Department and other
    agencies of the Navajo Nation.
•
NNOG has a right of first negotiation in the event of a proposed
    sale or change of control of Resolute or a sale by Resolute of
    all or substantially all of its Chevron Properties or ExxonMobil
    Properties. This right is separate from and in addition to the
    statutory preferential purchase right held by the Navajo Nation.
In addition to the above provisions, Predecessor Resolute
    granted NNOG three separate but substantially similar purchase
    options. Each purchase option entitles NNOG to purchase from
    Resolute up to 10% of the undivided working interests that
    Resolute acquired from Chevron or ExxonMobil, as applicable, as
    to each unit in the Aneth Field Properties. Each purchase option
    entitles NNOG to purchase at fair market value, for a limited
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period of time, the applicable portion of the undivided working
    interest Resolute acquired. The fair market value is to be
    determined without giving effect to the existence of the Navajo
    Nation statutory preferential purchase right or the fact that
    the properties are located on the Navajo Reservation. Each
    option becomes exercisable based upon Resolute's achieving
    payout multiples of the relevant acquisition costs, subsequent
    capital costs and ongoing operating costs attributable to the
    applicable working interests. Revenue applicable to the
    determination of payout includes the effect of Resolute's
    hedging program. The multiples of payout that trigger the
    exercisability of the purchase options with respect to each of
    the Chevron Properties and the ExxonMobil Properties are 100%,
    150% and 200%. The options are not exercisable prior to four
    years from the relevant acquisition except in the case of a sale
    of such assets by, or a change of control of, Resolute. In that
    case, the first option for 10% would be accelerated and the
    other options would terminate.
As of December 31, 2009, the payout balance on the Chevron
    Properties was approximately $51.6 million and the payout
    balance on the ExxonMobil Properties was approximately
    $108.3 million. Assuming the purchase options are not
    accelerated due to a change of control of Resolute, and assuming
    Resolute continues to develop its Aneth Field Properties in
    accordance with its plans, Resolute expects that the initial
    payout associated with the purchase options would not occur for
    a number of years.
The following table demonstrates the maximum net undivided
    working interest in each of the Aneth Unit, the McElmo Creek
    Unit and the Ratherford Unit that NNOG could acquire from
    Resolute upon exercising each of its purchase options under the
    Cooperative Agreement. The exercise by NNOG of its purchase
    options in full would not give it the right to remove Resolute
    as operator of any of Resolute's Aneth Field Properties.
Aneth Unit
McElmo Creek Unit
Ratherford Unit
Chevron Properties:
Option 1 (100% Payout)
5.30
%
1.50
%
0.30
%
Option 2 (150% Payout)
5.30
%
1.50
%
0.30
%
Option 3 (200% Payout)
5.30
%
1.50
%
0.30
%
Total
15.90
%
4.50
%
0.90
%
ExxonMobil Properties:
Option 1 (100% Payout)
0.75
%
6.00
%
5.60
%
Option 2 (150% Payout)
0.75
%
6.00
%
5.60
%
Option 3 (200% Payout)
0.75
%
6.00
%
5.60
%
Total
2.25
%
18.00
%
16.80
%
Marketing and
    Customers
Aneth Field.
Resolute currently sells all of its
    crude from its Aneth Field Properties to a single customer,
    Western Refining Southwest, Inc. ("Western"), a
    subsidiary of Western Refining, Inc. under a contract that
    terminates August 31, 2010. This contract which was
    effective September 1, 2009, provides for a fixed
    differential to the NYMEX price for crude oil of $6.25 per Bbl.
    This contract continues
month-to-month
after August 31, 2010, with either party having the right
    to terminate after the initial term, upon ninety days'
    notice. The contract may also be terminated by Western after
    December 30, 2009, upon sixty days notice, if Western is
    not able to renew its
right-of-way
agreements with the Navajo Nation or if such
rights-of-way
are declared invalid and either Western is prevented from using
    such rights-of way or the Navajo Nation declares Western to be
    in trespass with respect to such
rights-of-way.
Western has two refineries in the Four Corners area, the
    16,800 barrel per day Bloomfield refinery in Farmington,
    New Mexico, and the 26,000 barrel per day Gallup refinery
    in Gallup, New Mexico. In November 2009 Western announced
    that it intended to discontinue refining operations at the
    Bloomfield refinery. Western now refines Resolute's crude
    oil at the Gallup refinery. Resolute's production is
    transported to the refinery via the Running Horse crude oil
    pipeline owned by NNOG to a terminal known as Bisti,
    approximately 20 miles south of Farmington, New Mexico,
    that serves the refinery. The Resolute and NNOG oil has been
    jointly marketed to Western. The combined Resolute and NNOG
    volumes are approximately 7,000 barrels of oil per day.
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Resolute's Aneth Field crude oil is a sweet, light crude
    oil that is particularly well suited to be refined in
    Western's refinery. Although Resolute has sold all of its
    crude oil production to Western since Predecessor Resolute
    acquired the Chevron Properties in November 2004, and despite
    the value of Resolute's crude oil production to Western,
    Resolute cannot be certain that the commercial relationship with
    Western will continue for the indefinite future, and Resolute
    cannot be certain that the refinery will not suffer significant
    down-time or be closed. If for any reason Western is unable or
    unwilling to purchase Resolute's crude oil production,
    Resolute has other alternatives for marketing its crude oil
    production. Resolute has been working with NNOG to establish
    alternative transportation and markets for Resolute's crude
    oil. A joint venture comprised of affiliates of NNOG and
    Resolute has completed construction of a high volume truck
    loading facility located at the terminal end of NNOG's
    Running Horse Pipeline that will be operative and capable of
    loading all of Resolute and NNOG's production. Crude oil
    can be trucked a relatively short distance from the loading
    facility to rail loading sites near and south of Gallup, New
    Mexico, or longer distances to refineries or oil pipelines in
    southern New Mexico and west Texas. Resolute can also transport
    its crude oil by various combinations of truck, pipeline and
    rail from its Aneth Field Properties to markets north in Utah,
    Colorado and Wyoming. The cost of selling Resolute's crude
    oil to alternative markets in the short term would result in a
    greater differential to the NYMEX price for crude oil than
    Resolute currently receives. If Resolute chooses or is forced to
    sell to these alternative markets for a longer period of time,
    these costs could be lowered significantly. Under long term
    arrangements, which may require the investment of capital,
    Resolute believes it would realize a NYMEX differential
    substantially equivalent to the current differential realized in
    the price received from Western.
Resolute's gas production is minimally processed in the
    field and then sent via pipeline to the San Juan River Gas
    Plant for further processing. Resolute sells its gas at daily
    market prices to numerous purchasers at the tailgate of the
    plant, and it receives a contractually specified percentage of
    the proceeds from the sale of NGL and plant products.
Wyoming.
Resolute sells the majority of its crude
    oil in Wyoming to TEPPCO Crude Oil, LLC and minor amounts to
    other purchasers in a competitive market. The price it receives
    relative to the NYMEX price varies depending on supply and
    demand differentials in the relevant geographic areas in which
    Resolute's wells are located and the quality of
    Resolute's crude oil. Resolute's conventional gas in
    Wyoming comes from Hilight Field and is sold to the Anadarko
    Petroleum Corporation Fort Union Gas Plant. Resolute
    receives a percentage of proceeds for the liquids sold by the
    plant, and Resolute can either take its residue gas in kind or
    market it through Anadarko. Currently, Resolute is selling its
    gas through Anadarko. Resolute's CBM gas also comes from
    the Hilight areas and is minimally conditioned at the
    Fort Union Gas Plant and is sold through Anadarko. Resolute
    receives the Colorado Interstate Gas Company index price for all
    the gas it sells.
Hedging.
Resolute enters into hedging transactions
    from time to time with unaffiliated third parties for portions
    of its crude oil and gas production to achieve more predictable
    cash flows and to reduce exposure to short-term fluctuations in
    oil and gas prices. For more a detailed discussion, please read
    "
Pursue Acquisitions of Properties with Low-Risk
    Development Potential, Management's Discussion and Analysis
    of Financial Condition and Results of Operations of Resolute
    — Overview" and "— Quantitative
    and Qualitative Disclosures About Market Risk."
Other Factors.
The market for Resolute's
    production depends on factors beyond its control, including
    domestic and foreign political conditions, the overall level of
    supply of and demand for oil and gas, the price of imports of
    oil and gas, weather conditions, the price and availability of
    alternative fuels, the proximity and capacity of transportation
    facilities and overall economic conditions. The oil and gas
    industry as a whole also competes with other industries in
    supplying the energy and fuel requirements of industrial,
    commercial and individual consumers.
Aneth Gas
    Processing Plant
Resolute has an interest in gas gathering and compression
    facilities located within and adjacent to its Aneth Field
    Properties. Collectively called the Aneth Gas Processing Plant,
    the facility comprises: a) an active gas compression
    operation currently operated by Resolute and b) a larger
    complex of inactive, decommissioned and partially dismantled gas
    processing plant facilities for which Chevron remains the
    operator of record. In 2006, Chevron began the process of
    demolishing the inactive portions of the Aneth Gas Processing
    Plant. It continues to manage the project, and it retains a 39%
    interest in all demolition and environmental
clean-up
expenses. Resolute acquired ExxonMobil's 25% interest in
    the decommissioned plant and is responsible for that portion of
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decommissioning and cleanup costs. Activities performed to date
    include removal of asbestos-containing building and insulation
    materials, partial dismantling of inactive gas plant buildings
    and facilities, and limited remediation of hydrocarbon-affected
    soil.
As of December 31, 2009, Resolute estimates the total cost
    to fully decommission the inactive portion of the Aneth Gas
    Processing Plant site to be $28.0 million, of which
    approximately $17.1 million had already been incurred and
    paid for. The remaining demolition liability net to
    Resolute's interest is $1.4 million (on a GAAP basis
    that includes an inflation factor and a discount rate).
    Demolition activities are scheduled to be concluded in 2012.
    These costs do not include any costs for
clean-up
or
    remediation of the subsurface. The Aneth Gas Processing Plant
    site was previously evaluated by the Environmental Protection
    Agency ("EPA") for possible listing on the National
    Priorities List ("NPL"), of sites contaminated with
    hazardous substances with the highest priority for
clean-up
under the Comprehensive Environmental Response Compensation and
    Liability Act ("CERCLA"). Based on its investigation,
    the EPA concluded no further investigation was warranted and
    that the site was not required to be listed on the NPL. The
    Navajo Environmental Protection Agency now has primary
    jurisdiction over the Aneth Gas Processing Plant site. Resolute
    cannot predict whether it will require further investigation and
    possible
clean-up,
and the ultimate
clean-up
liability may be affected by the Navajo Nation's recent
    enactment of a Navajo CERCLA. The Navajo CERCLA, in some cases,
    imposes broader obligations and liabilities than the federal
    CERCLA. Resolute has been advised by Chevron that a significant
    portion of the subsurface
clean-up
or
    remediation costs, if any, would be covered by an indemnity from
    the prior owner of the plant, and Chevron has provided Resolute
    with a copy of the pertinent purchase agreement that appears to
    support its position. Resolute cannot predict, however, whether
    any subsurface remediation will be required or what the cost of
    this
clean-up
or
    remediation could be. Additionally, it cannot be certain whether
    any of such costs will be reimbursable to it pursuant to the
    indemnity of the prior owner. Please read also "
—
    Environmental, Health and Safety Matters and
    Regulation — Waste Handling
."
Title to
    Properties
In connection with Predecessor Resolute's acquisition of
    the Chevron Properties and the ExxonMobil Properties, it
    obtained attorneys' title opinions showing good and
    defensible title in the seller to at least 80% of the proved
    reserves of the acquired properties as shown in the relevant
    reserve reports presented by the sellers. Predecessor Resolute
    also reviewed land files and public and private records on
    substantially all of the acquired properties containing proved
    reserves. It performed similar title and land file reviews prior
    to acquiring the Wyoming Properties; however, the prior title
    opinions available for it to review and update constituted 62%
    of the proved reserves of the acquired properties and only the
    public records for these properties were reviewed. Resolute
    believes it has satisfactory title to all of its material proved
    properties in accordance with standards generally accepted in
    the industry. Prior to completing an acquisition of proved
    hydrocarbon leases in the future, it intends to perform title
    reviews on the most significant leases, and, depending on the
    materiality of properties, it may obtain a new title opinion or
    review previously obtained title opinions.
The Aneth Field Properties are subject to a statutory
    preferential purchase right for the benefit of the Navajo Nation
    to purchase at the offered price any Navajo Nation oil and gas
    lease or working interest in such a lease at the time a proposal
    is made to transfer the lease or interest. This could make it
    more difficult to sell Resolute's oil and gas leases and,
    therefore, could reduce the value of the Aneth Field leases if
    it were to attempt to sell them.
Resolute's properties are also subject to certain other
    encumbrances, such as customary interests generally retained in
    connection with the acquisition of real property, customary
    royalty interests and contract terms and restrictions, liens
    under operating agreements, liens for current taxes and other
    burdens, easements, restrictions and minor encumbrances
    customary in the oil and gas industry. It believes that none of
    these liens, restrictions, easements, burdens and encumbrances
    will materially detract from the value of these properties or
    from its interest in these properties or will materially
    interfere with the intended operation of its business.
Competition
Competition is intense in all areas of the oil and gas industry.
    Major and independent oil and gas companies actively bid for
    desirable properties, as well as for the equipment and labor
    required to operate and develop such properties. Many of
    Resolute's competitors have financial and personnel
    resources that are substantially greater
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than its own, and such companies may be able to pay more for
    productive properties and to define, evaluate, bid for and
    purchase a greater number of properties than Resolute's
    financial or human resources permit. Resolute's ability to
    acquire additional properties and to discover reserves in the
    future will depend on its ability to evaluate and select
    suitable properties and to consummate transactions in a highly
    competitive environment.
Seasonality
Resolute's operations have not historically been subject to
    seasonality in any material respect.
Environmental,
    Health and Safety Matters and Regulation
General.
Resolute is subject to various stringent
    and complex federal, tribal, state and local laws and
    regulations governing environmental protection, including the
    discharge of materials into the environment, and protection of
    human health and safety. These laws and regulations may, among
    other things:
•
require the acquisition of various permits before drilling
    commences or other operations are undertaken;
•
require the installation of expensive pollution control
    equipment;
•
restrict the types, quantities and concentration of various
    substances that can be released into the environment in
    connection with oil and gas drilling, production, transportation
    and processing activities;
•
suspend, limit or prohibit construction, drilling and other
    activities in certain lands lying within wilderness, wetlands
    and other protected areas;
•
require remedial measures to mitigate pollution from historical
    and ongoing operations, such as the closure of pits and plugging
    of abandoned wells and remediation of releases of crude oil or
    other substances; and
•
require preparation of an Environmental Assessment
and/or
an
    Environmental Impact Statement.
These laws and regulations may also restrict the rate of oil and
    gas production to a level below the rate that would otherwise be
    possible. The regulatory burden on the oil and gas industry
    increases the cost of doing business in the industry and
    consequently affects profitability.
Governmental authorities have the power to enforce compliance
    with environmental laws, regulations and permits, and violations
    are subject to injunctive action, as well as administrative,
    civil and criminal penalties. The effects of these laws and
    regulations, as well as other laws or regulations that may be
    adopted in the future, could have a material adverse impact on
    Resolute's business, financial condition and results of
    operations.
Resolute believes its operations are in substantial compliance
    with all existing environmental, health and safety laws and
    regulations and that continued compliance with existing
    requirements will not have a material adverse impact on its
    financial condition and results of operations. Spills or
    releases may occur, however, in the course of its operations.
    There can be no assurance that Resolute will not incur
    substantial costs and liabilities as a result of such spills or
    releases, including those relating to claims for damage to
    property, persons and the environment, nor can there be any
    assurance that the passage of more stringent laws or regulations
    in the future will not have a negative effect on Resolute's
    business, financial condition, or results of operations.
The following is a summary of the more significant existing
    environmental, health and safety laws and regulations to which
    oil and gas business operations are generally subject and with
    which compliance may have a material adverse effect on
    Resolute's capital expenditures, earnings or competitive
    position, as well as a discussion of certain matters that
    specifically affect its operations.
Comprehensive Environmental Response, Compensation, and
    Liability Act.
CERCLA, also known as the
    "Superfund law," and comparable tribal and state laws
    may impose strict, joint and several liability, without regard
    to fault, on classes of persons who are considered to be
    responsible for the release of CERCLA hazardous substances into
    the environment. These persons include the owner or operator of
    the site where a release occurred, and anyone who disposed or
    arranged for the disposal of a hazardous substance released at
    the site. Under CERCLA, such persons may be subject to joint and
    several liability for the costs of cleaning up the hazardous
    substances that have been released into the environment, for
    damages to natural resources and for
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the costs of certain health studies. In addition, it is not
    uncommon for neighboring landowners and other third parties to
    file claims for personal injury and property damage allegedly
    caused by the hazardous substances released into the
    environment. Such claims may be filed under CERCLA, as well as
    state common law theories or state laws that are modeled after
    CERCLA. In the course of its operations, Resolute generates
    waste that may fall within the definition of hazardous
    substances under CERCLA, as well as under the recently adopted
    Navajo Nation CERCLA which, unlike the federal CERCLA, defines
    hazardous substances to include crude oil and other
    hydrocarbons, thereby subjecting Resolute to potential liability
    under CERCLA, tribal and state law equivalents to CERCLA and
    common law. Therefore, governmental agencies or third parties
    could seek to hold Resolute responsible for all or part of the
    costs to clean up a site at which such hazardous substances may
    have been released or deposited, or other damages resulting from
    a release.
Waste Handling.
The Resource Conservation and
    Recovery Act ("RCRA") and comparable tribal and state
    statutes, regulate the generation, transportation, treatment,
    storage, disposal and cleanup of hazardous and non-hazardous
    wastes. Under the auspices of the federal EPA, the individual
    states administer some or all of the provisions of RCRA,
    sometimes in conjunction with their own, more stringent
    requirements. Drilling fluids, produced waters and many of the
    other wastes associated with the exploration, development and
    production of crude oil or gas are currently exempt under
    federal law from regulation as hazardous wastes and instead are
    regulated under RCRA's non-hazardous waste provisions. It
    is possible, however, that oil and gas exploration and
    production wastes now classified federally as non-hazardous
    could be classified as hazardous wastes in the future. Any such
    change could result in an increase in Resolute's operating
    expenses, which could have a material adverse effect on the
    results of operations and financial position. Also, in the
    course of operations, Resolute generates some amounts of
    industrial solid wastes, such as paint wastes, waste solvents,
    and waste oils, that may be regulated as hazardous wastes under
    RCRA, tribal and state laws and regulations.
Resolute has an interest in the Aneth Gas Processing Plant
    located in the Aneth Unit. This gas plant consists of a
    non-operational portion of the plant that is in the process of
    being decommissioned and removed by Chevron and an operational
    portion dedicated to compression. Resolute is responsible for a
    portion of the costs of decommissioning and removal and
clean-up
of
    the non-operational portion of the plant and any restoration and
    other costs related to the operational processing facilities.
    For additional information related to Resolute's
    obligations related to this plant, please read
    "—
Aneth Gas Processing Plant
."
Air Emissions.
The federal Clean Air Act and
    comparable tribal and state laws regulate emissions of various
    air pollutants through air emissions permitting programs and the
    imposition of other requirements. These regulatory programs may
    require Resolute to install expensive emissions control
    equipment, modify its operational practices and obtain permits
    for existing operations, and before commencing construction on a
    new or modified source of air emissions such laws may require
    Resolute to reduce its emissions at existing facilities. As a
    result, Resolute may be required to incur increased capital and
    operating costs. Federal, tribal and state regulatory agencies
    can impose administrative, civil and criminal penalties for non-
    compliance with air permits or other requirements of the federal
    Clean Air Act and associated tribal and state laws and
    regulations.
In June 2005, the EPA and ExxonMobil entered into a consent
    decree settling various alleged violations of the federal Clean
    Air Act associated with ExxonMobil's prior operation of the
    McElmo Creek Unit. In response, ExxonMobil submitted amended
    Title V and Prevention of Significant Deterioration
    ("PSD") permit applications for the McElmo Creek Unit
    main flare and other sources, and also paid a civil penalty and
    costs associated with a Supplemental Environmental Project, or
    "SEP." Pursuant to the consent decree, upgrades to the
    main flare were completed in May 2006 by ExxonMobil, and all of
    the remaining material compliance measures of the consent decree
    have been met by Resolute. The EPA is processing the
    Title V and PSD permit applications. Resolute remains
    subject to the consent decree, including stipulated penalties
    for violations of emissions limits and compliance measures set
    forth in the consent decree.
Actual air emissions reported for these facilities are in
    material compliance with emission limits contained in the draft
    permits and the consent decree when emissions associated with
    qualified equipment malfunctions are taken into account.
Water Discharges.
The federal Water Pollution
    Control Act, or the Clean Water Act, and analogous tribal and
    state laws, impose restrictions and strict controls with respect
    to the discharge of pollutants, including spills and
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leaks of oil and other substances, into waters of the United
    States, including wetlands. The discharge of pollutants into
    regulated waters is prohibited by the Clean Water Act, except in
    accordance with the terms of a permit issued by the EPA or an
    authorized tribal or state agency. Federal, tribal and state
    regulatory agencies can impose administrative, civil and
    criminal penalties for unauthorized discharges or non-
    compliance with discharge permits or other requirements of the
    Clean Water Act and analogous tribal and state laws and
    regulations.
In addition, the Oil Pollution Act of 1990, or OPA, augments the
    Clean Water Act and imposes strict liability for owners and
    operators of facilities that are the source of a release of oil
    into waters of the United States. OPA and its associated
    regulations impose a variety of requirements on responsible
    parties related to the prevention of oil spills and liability
    for damages resulting from such spills. For example, operators
    of oil and gas facilities must develop, implement, and maintain
    facility response plans, conduct annual spill training for
    employees and provide varying degrees of financial assurance to
    cover costs that could be incurred in responding to oil spills.
    In addition, owners and operators of oil and gas facilities may
    be subject to liability for cleanup costs and natural resource
    damages as well as a variety of public and private damages that
    may result from oil spills.
In August 2004, the EPA and ExxonMobil entered into a consent
    decree settling alleged violations of the federal Clean Water
    Act related to past spills of produced water and crude oil from
    the McElmo Creek and Ratherford Units and failure to prepare and
    implement Spill Prevention, Control and Countermeasure Plans.
    ExxonMobil paid a civil penalty and costs to implement a SEP,
    and made improvements to the production and injection systems.
    Resolute expects the consent decree to be terminated during 2010
    following confirmation by the EPA of completion of the SEP.
    Until the consent decree is terminated by the EPA, Resolute
    remains subject to various monitoring, recordkeeping, and
    reporting requirements outlined in the consent decree, as well
    as stipulated penalties for spills of produced water and crude
    oil at the McElmo Creek and Ratherford Units.
In November 2001, the EPA issued an administrative order to
    ExxonMobil for removal and remediation of crude oil released as
    a result of a shallow casing leak at the McElmo Creek
P-20 well
in January 2001. In response, ExxonMobil performed various site
    assessment activities and began recovering crude oil from the
    ground water. Resolute is obligated to complete the ground water
    monitoring and remedial activities required under the
    administrative order, at an estimated cost of approximately
    $100,000 per year, with anticipated closure to occur in the
    fourth quarter of 2010 or early 2011.
Underground Injection Control.
Resolute's
    underground injection operations are subject to the federal Safe
    Drinking Water Act, as well as analogous tribal and state laws
    and regulations. Under Part C of the Safe Drinking Water
    Act, the EPA established the Underground Injection Control
    program, which established the minimum program requirements for
    tribal and state programs regulating underground injection
    activities. The Underground Injection Control program includes
    requirements for permitting, testing, monitoring, recordkeeping
    and reporting of injection well activities, as well as a
    prohibition against the migration of fluid containing any
    contaminant into underground sources of drinking water. Federal,
    tribal and state regulations require Resolute to obtain a permit
    from applicable regulatory agencies to operate its underground
    injection wells. Resolute believes it has obtained the necessary
    permits from these agencies for its underground injection wells
    and that it is in substantial compliance with permit conditions
    and applicable federal, tribal and state rules. Nevertheless,
    these regulatory agencies have the general authority to suspend
    or modify one or more of these permits if continued operation of
    one of the underground injection wells is likely to result in
    pollution of freshwater, the substantial violation of permit
    conditions or applicable rules, or leaks to the environment.
    Although Resolute monitors the injection process of its wells,
    any leakage from the subsurface portions of the injection wells
    could cause degradation of fresh groundwater resources,
    potentially resulting in cancellation of operations of a well,
    issuance of fines and penalties from governmental agencies,
    incurrence of expenditures for remediation of the affected
    resource and imposition of liability by third parties for
    property damages and personal injuries.
Pipeline Integrity, Safety, and
    Maintenance.
Resolute's ownership interest in the
    McElmo Creek Pipeline has caused it to be subject to regulation
    by the federal Department of Transportation, or the DOT, under
    the Hazardous Liquid Pipeline Safety Act and comparable state
    statutes, which relate to the design, installation, testing,
    construction, operation, replacement and management of hazardous
    liquid pipeline facilities. Any entity that owns or operates
    such pipeline facilities must comply with such regulations,
    permit access to and copying of records, and file reports and
    provide required information. The DOT may assess fines and
    penalties for violations of these and other requirements imposed
    by its regulations. Resolute believes it is in material
    compliance with all
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regulations imposed by the DOT pursuant to the Hazardous Liquid
    Pipeline Safety Act. Pursuant to the Pipeline Inspection,
    Protection, Enforcement, and Safety Act of 2006, the DOT was
    required to issue new regulations by December 31, 2007,
    setting forth specific integrity management program requirements
    applicable to low stress hazardous liquid pipelines. Resolute
    believes that these new regulations, which have yet to be
    issued, will not have a material adverse effect on its financial
    condition or results of operations.
Environmental Impact Assessments.
Significant
    federal decisions, such as the issuance of federal permits or
    authorizations for many oil and gas exploration and production
    activities are subject to the National Environmental Policy Act
    ("NEPA"). NEPA requires federal agencies, including
    the Department of Interior, to evaluate major federal agency
    actions having the potential to significantly impact the
    environment. In the course of such evaluations, an agency will
    prepare an environmental assessment that assesses the potential
    direct, indirect and cumulative impacts of a proposed project
    and, if necessary, will prepare a more detailed Environmental
    Impact Statement that may be made available for public review
    and comment. All of Resolute's current exploration and
    production activities, as well as proposed exploration and
    development plans on federal lands, require governmental permits
    that are subject to the requirements of NEPA. This process has
    the potential to delay any oil and gas development projects.
Other Laws and
    Regulations
Climate Change.
Recent scientific studies have
    suggested that emissions of gases commonly referred to as
    "greenhouse gases" or "GHG", including
    CO
2
,
    nitrogen dioxide and methane, may be contributing to warming of
    the Earth's atmosphere. Other nations have already agreed
    to regulate emissions of GHG pursuant to the United Nations
    Framework Convention on Climate Change, ("UNFCCC") and
    the Kyoto Protocol, an international treaty (not including the
    United States) pursuant to which many UNFCCC member countries
    have agreed to reduce their emissions of GHG to below 1990
    levels by 2012. In response to such studies and international
    action, the U.S. Congress is now considering legislation to
    reduce emissions of GHG, and the EPA has promulgated a mandatory
    GHG reporting rule that took effect January 1, 2010. As
    finalized, the mandatory reporting rule (MRR) does not require
    reporting by Resolute for its operations in Aneth Field.
    However, on March 23, 2010, EPA proposed several amendments
    to the MRR that would trigger reporting requirements for the
    Company. Among the proposed amendments are provisions that would
    apply to operators that inject
    CO
2
for enhanced oil recovery and geologic sequestration, regardless
    of the magnitude of associated
    CO
2
emissions, and also to operators of oil and natural gas systems
    that emit more than 25,000 metric tons of
    CO
2
-equivalent
    GHGs across an entire producing basin, based on the aggregated
    GHG emissions of all facilities in a basin under common control
    of an operator. On June 26, 2009, the House of
    Representatives passed H.R. 2454, the Waxman-Markey
    "American Clean Energy and Security Act of 2009,"
    which would require 17% reduction in GHG emission by
    "covered entities" by 2020, relative to 2005 GHG
    emission levels, and create an elaborate system of allocated and
    tradable emission allowances and offsets to achieve mandated
    reductions of up to 80% by the year 2050. Companion legislation
    is being considered in the Senate, and a consensus bill could be
    developed later in 2010. Prior to this legislative action on
    climate change by the U.S. Congress, a number of states
    chose not to wait for Congress to develop and implement climate
    control legislation and have already taken legal measures to
    reduce emissions of GHG, primarily through the planned
    development of GHG emission inventories
and/or
regional cap and trade programs. For example, on August 22,
    2007, the Western Climate Initiative, which is comprised of a
    number of Western states and Canadian provinces, including the
    State of Utah, issued a GHG reduction goal statement seeking to
    collectively reduce regional GHG emissions to 15% below 2005
    levels by 2020. Also, as a result of the U.S. Supreme
    Court's decision on April 2, 2007, in
Massachusetts, et al. v. EPA
, the EPA may be
    required to regulate GHG emissions from mobile sources (e.g.,
    cars and trucks) even if Congress does not adopt new legislation
    specifically addressing emissions of GHG. The Court's
    holding in
Massachusetts v. EPA
that GHG fall under
    the federal Clean Air Act's definition of "air
    pollutant" also may result in future regulation of GHG
    emissions from stationary sources under Clean Air Act programs,
    due to EPA's recent "endangerment finding" that
    links global warming to man-caused emissions of GHGs and
    concludes there is an endangerment to public health and the
    environment that requires regulatory action. The passage or
    adoption of new legislation or regulations that restrict
    emissions of GHG or require reporting of such emissions in areas
    where Resolute conducts business could adversely affect its
    operations.
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Department of Homeland Security.
The Department of
    Homeland Security Appropriations Act of 2007 requires the
    Department of Homeland Security ("DHS"), to issue
    regulations establishing risk-based performance standards for
    the security at chemical and industrial facilities, including
    oil and gas facilities that are deemed to present "high
    levels of security risk." The DHS is in the process of
    adopting regulations that will determine whether some of
    Resolute's facilities or operations will be subject to
    additional DHS-mandated security requirements. Presently, it is
    not possible to accurately estimate the costs Resolute could
    incur to comply with any such facility security laws or
    regulations, but such expenditures could be substantial.
Occupational Safety and Health Act.
Resolute is
    subject to the requirements of the federal Occupational Safety
    and Health Act ("OSHA") and comparable state statutes
    that strictly govern protection of the health and safety of
    workers. The Occupational Safety and Health
    Administration's hazard communication standard, the
    Emergency Planning and Community
Right-to-Know
Act, and similar state statutes require that information be
    maintained about hazardous materials used or produced in
    operations and that this information be provided to employees,
    state and local government authorities, and the public. Resolute
    believes that it is in substantial compliance with these
    applicable requirements and with other OSHA and comparable
    requirements.
Laws and
    Regulations Pertaining to Oil and Gas Operations on Navajo
    Nation Lands
General.
Laws and regulations pertaining to oil and
    gas operations on Navajo Nation lands derive from both Navajo
    law and federal law, including federal statutes, regulations and
    court decisions, generally referred to as federal Indian law.
The Federal Trust Responsibility.
The federal
    government has a general trust responsibility to Indian tribes
    regarding lands and resources that are held in trust for such
    tribes. The trust responsibility may be a consideration in
    courts' resolution of disputes regarding Indian trust lands
    and development of oil and gas resources on Indian reservations.
    Courts may consider the compliance of the Secretary of the
    U.S. Department of the Interior, or the Interior Secretary,
    with trust duties in determining whether leases,
rights-of-way,
or contracts relative to tribal land are valid and enforceable.
Tribal Sovereignty and Dependent Status.
The United
    States Constitution vests in Congress the power to regulate the
    affairs of Indian tribes. Indian tribes hold a sovereign status
    that allows them to manage their internal affairs, subject to
    the ultimate legislative power of Congress. Tribes are therefore
    often described as domestic dependent nations, retaining all
    attributes of sovereignty that have not been taken away by
    Congress. Retained sovereignty includes the authority and power
    to enact laws and safeguard the health and welfare of the tribe
    and its members and the ability to regulate commerce on the
    reservation. In many instances, tribes have the inherent power
    to levy taxes and have been delegated authority by the United
    States to administer certain federal health, welfare and
    environmental programs.
Because of their sovereign status, Indian tribes also enjoy
    sovereign immunity from suit and may not be sued in their own
    courts or in any other court absent Congressional abrogation or
    a valid tribal waiver of such immunity. The United States
    Supreme Court has ruled that for an Indian tribe to waive its
    sovereign immunity from suit, such waiver must be clear,
    explicit and unambiguous.
NNOG is a federally chartered corporation incorporated under
    Section 17 of the Indian Reorganization Act and is wholly
    owned by the Navajo Nation. Section 17 corporations
    generally have broad powers to sue and be sued. Courts will
    review and construe the charter of a Section 17 corporation
    to determine whether the tribe has either universally waived the
    corporation's sovereign immunity, or has delegated that
    power to the Section 17 corporation.
The NNOG federal charter of incorporation provides that NNOG
    shares in the immunities of the Navajo Nation, but empowers NNOG
    to waive such immunities in accordance with processes identified
    in the charter. NNOG has contractually waived its sovereign
    immunity, and certain other immunities and rights it may have
    regarding disputes with Resolute relating to certain of the
    Aneth Field Properties, in the manner specified in its charter.
    Although the NNOG waivers are similar to waivers that courts
    have upheld, if challenged, only a court of competent
    jurisdiction may make that determination based on the facts and
    circumstances of a case in controversy.
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Tribal sovereignty also means that in some cases a tribal court
    is the only court that has jurisdiction to adjudicate a dispute
    involving a tribe, tribal lands or resources or business
    conducted on tribal lands or with tribes. Although language
    similar to that used in Resolute's agreements with NNOG
    that provide for alternative dispute resolution and federal or
    state court jurisdiction has been upheld in other cases, there
    is no guarantee that a court would enforce these dispute
    resolution provisions in a future case.
Federal Approvals of Certain Transactions Regarding Tribal
    Lands.
Under current federal law, the Interior
    Secretary (or the Interior Secretary's appropriate
    designee) must approve any contract with an Indian tribe that
    encumbers, or could encumber, for a period of seven years or
    more, (1) lands owned in trust by the United States for the
    benefit of an Indian tribe or (2) tribal lands that are
    subject to a federal restriction against alienation, or
    collectively Tribal Lands. Failure to obtain such approval, when
    required, renders the contract void.
Except for Resolute's oil and gas leases,
rights-of-way
and operating agreements with the Navajo Nation, Resolute's
    agreements do not by their terms specifically encumber Tribal
    Lands, and it believes that no Interior Secretarial approval was
    required to enter into those agreements. With respect to its oil
    and gas leases and unit operating agreements, these and all
    assignments to Resolute have been approved by the Interior
    Secretary. In the case of
rights-of-way
and assignments of these to Resolute, some of these have been
    approved by the Interior Secretary and others are in various
    stages of applications for renewal and approval. It is common
    for these approvals to take an extended period of time, but such
    approvals are routine and Resolute believes that all required
    approvals will be obtained in due course.
Federal Management and Oversight.
Reflecting the
    federal trust relationship with tribes, the Bureau of Indian
    Affairs, or the BIA, exercises oversight of matters on the
    Navajo Nation reservation pertaining to health, welfare and
    trust assets of the Navajo Nation. Of relevance to Resolute, the
    BIA must approve all leases,
rights-of-way,
applications for permits to drill, seismic permits,
    CO
2
pipeline permits and other permits and agreements relating to
    development of oil and gas resources held in trust for the
    Navajo Nation. While NNOG has been successful in facilitating
    timely approvals from the BIA, such timeliness is not guaranteed
    and obtaining such approvals may cause delays in developing the
    Aneth Field Properties.
Resources Committee of the Navajo Nation
    Council.
The Resources Committee is a standing
    committee of the Navajo Nation Tribal Council, and has oversight
    and regulatory authority over all lands and resources of the
    Navajo Nation. The Resources Committee reviews, negotiates and
    recommends to the Navajo Nation Tribal Council actions involving
    the approval of energy development agreements and mineral
    agreements; gives final approvals of rights of way, surface
    easements, geophysical permits, geological prospecting permits,
    and other surface rights for infrastructure; oversees and
    regulates all activities within the Navajo Nation involving
    natural resources and surface disturbance; sets policy for
    natural resource development and oversees the enforcement of
    federal and Navajo law in the development and utilization of
    resources, including issuing cease and desist orders and
    assessing fines for violation of its regulations and orders. The
    Resources Committee also has oversight authority over, among
    other agencies and matters, the Navajo Nation Environmental
    Protection Agency and Navajo Nation environmental laws, the
    Navajo Nation Minerals Department and Navajo Nation oil and gas
    laws and the Navajo Nation Land Department and Navajo Nation
    land use laws. While NNOG has been successful thus far in
    facilitating timely approvals from the Resources Committee for
    Resolute's operations, such timeliness is not guaranteed
    and obtaining future approvals may cause delays in developing
    the Aneth Field Properties.
Navajo Nation Minerals Department of the Division of Natural
    Resources.
The
day-to-day
operation of the Navajo Nation minerals program, including the
    initial negotiation of agreements, applications for approval of
    assignments, exercise of tribal preferential rights and most
    other permits and licenses relating to oil and gas development,
    is managed by the professional staff of the Navajo Nation
    Minerals Department, located within the Division of Natural
    Resources and subject to the oversight of the Resources
    Committee. The Resources Committee and the Navajo Nation Council
    typically defer to the Minerals Department in decisions to
    approve all leases and other agreements relating to oil and gas
    resources held in trust for the Navajo Nation. While NNOG has
    been successful thus far in facilitating timely action and
    favorable recommendations from the Minerals Department for
    Resolute's operations, such timeliness is not guaranteed
    and obtaining future approvals may cause delays in developing
    the Aneth Field Properties.
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Taxation Within the Navajo Nation.
In certain
    instances, federal, state and tribal taxes may be applicable to
    the same event or transaction, such as severance taxes. State
    taxes are rarely applicable within the Navajo Nation Reservation
    except as authorized by Congress or when the application of such
    taxes does not adversely affect the interests of the Navajo
    Nation. Federal taxes of general application are applicable
    within the Navajo Nation, unless specifically exempted by
    federal law. Resolute currently pays the following taxes to the
    Navajo Nation:
•
Oil and Gas Severance Tax.
Resolute pays severance
    tax to the Navajo Nation. The severance tax is payable monthly
    and is 4% of its gross proceeds from the sale of oil and gas.
    Approximately 84% of the Aneth Unit is subject to the Navajo
    Nation severance tax. The other 16% of the Aneth Unit is exempt
    because it is either located off of the reservation or it is
    incremental enhanced oil recovery production, which is not
    subject to the severance tax. Presently all of the McElmo Creek
    and Ratherford Units are subject to the severance tax.
•
Possessory Interest Tax.
Resolute pays a possessory
    interest tax to the Navajo Nation. The possessory interest tax
    applies to all property rights under a lease within the Navajo
    Nation boundaries, including natural resources.
•
Sales Tax.
Resolute pays the Navajo Nation a 4%
    sales tax in lieu of the Navajo Business Activity Tax. All goods
    and services purchased for use on the Navajo Nation reservation
    are subject to the sales tax. The sale of oil and gas is exempt
    from the sales tax.
Royalties from Production on Navajo Nation
    Lands.
Under Resolute's agreements and leases with
    the Navajo Nation, it pays royalties to the Navajo Nation. The
    Navajo Nation is entitled to take its royalties in kind, which
    it currently does for its oil royalties but not its gas
    royalties. The Minerals Management Service of the United States
    Department of the Interior has the responsibility for managing
    and overseeing royalty payments to the Navajo Nation as well as
    the right to audit royalty payments.
Navajo Preference in Employment Act.
The Navajo
    Nation has enacted the Navajo Preference in Employment Act, or
    the Employment Act, requiring preferential hiring of Navajos by
    non-governmental employers operating within the boundaries of
    the Navajo Nation. The Employment Act requires that any Navajo
    candidate meeting job description requirements receives a
    preference in hiring. The Employment Act also provides that
    Navajo employees can only be terminated, penalized, or
    disciplined for "just cause," requires a written
    affirmative action plan that must be filed with the Navajo
    Nation, establishes the Navajo Labor Commission as a forum to
    resolve employment disputes and provides authority for the
    Navajo Labor Commission to establish wage rates on construction
    projects. The restrictions imposed by the Employment Act and its
    recent broad interpretations by the Navajo Supreme Court may
    limit Resolute's pool of qualified candidates for
    employment.
Navajo Business Opportunity Act.
Navajo Nation law
    requires companies doing business in the Navajo Nation to
    provide preference priorities to certified Navajo-owned
    businesses by giving them a first opportunity and contracting
    preference for all contracts within the Navajo Nation. While
    this law does not apply to the granting of mineral leases,
    subleases, permits, licenses and transactions governed by other
    applicable Navajo and federal law, Resolute treats this law as
    applicable to its material non-mineral contracts and procurement
    relating to its general business activities within the Navajo
    Nation.
Navajo Environmental Laws.
The Navajo Nation has
    enacted various environmental laws that may be applicable to
    Resolute's Aneth Field Properties. As a practical matter,
    these laws are patterned after similar federal laws, and the EPA
    currently enforces these laws in conjunction with the Navajo
    EPA. The current practice does not preclude the Navajo Nation
    from taking a more active role in enforcement or from changing
    direction in the future. Some of the Navajo Nation environmental
    laws not only provide for civil, criminal and administrative
    penalties, but also provide for third-party suits brought by
    Navajo Nation tribal members directly against an alleged
    violator, with specified jurisdiction in the Navajo Nation
    District Court in Window Rock. A recent example of this relates
    to the March 2008 adoption by the Navajo Nation of the Navajo
    Comprehensive Environmental Response, Compensation, and
    Liability Act ("Navajo CERCLA"), which gives the
    Navajo EPA broad authority over environmental assessment and
    remediation of facilities contaminated with hazardous
    substances. Navajo CERCLA is patterned after federal CERCLA with
    the important exception that, unlike federal CERCLA, Navajo
    CERCLA considers crude oil and other hydrocarbons to be
    hazardous substances subject to CERCLA response actions and
    damages. Navajo CERCLA also imposes a tariff on the
    transportation of hazardous substances,
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including petroleum and petroleum products, across Navajo lands.
    Resolute is negotiating with representatives of the Navajo
    Nation Council, Navajo Department of Justice, Navajo
    Environmental Protection Agency, NNOG, an industry group headed
    by the New Mexico Oil and Gas Association and Colorado Oil and
    Gas Association, ("the NMOGA Group"), and others, to
    mitigate Navajo CERCLA's potential impact on oilfield
    operations on Navajo lands. The NMOGA Group in particular has
    challenged the validity of the law and has entered into a
    tolling agreement with Navajo EPA that should forestall material
    implementation of Navajo CERCLA at oil and gas facilities while
    appropriate rules and guidelines are developed with input from
    the oil and gas sector. The tolling agreement was renewed in
    August 2009, and negotiations among Navajo EPA, Resolute and the
    NMOGA Group remain ongoing.
Thirty-Two Point Agreement.
An explosion at an
    ExxonMobil facility in Aneth Field in December 1997 prompted
    protests by local tribal members. The protesters asserted
    concerns about environmental degradation, health problems,
    employment opportunities and renegotiating leases. The protest
    was settled among the local residents, ExxonMobil and the Navajo
    Nation by the Thirty-Two Point Agreement that provided, among
    other things, for ExxonMobil to pay partial salaries for two
    Navajo public liaison specialists, follow Navajo hiring
    practices, and settle further issues addressed in the Thirty-Two
    Point Agreement in the Navajo Nation's
    "peacemaker" courts, which follow a community-level
    conflict resolution format. After the Thirty-Two Point Agreement
    was executed, Aneth Field resumed normal operations. While
    Resolute did not assume the obligations of ExxonMobil under the
    Thirty-Two Point Agreement when it acquired the ExxonMobil
    Properties in 2006, it has been its policy to voluntarily comply
    with this agreement.
Moratorium on Future Oil and Gas Development Agreements and
    Exploration.
In February 1994, the Navajo Nation issued
    a moratorium on future oil and gas development agreements and
    exploration on lands situated within the Aneth Chapter on the
    Navajo Reservation. All of the Aneth Unit and a significant
    portion of the McElmo Creek Unit are located within the Aneth
    Chapter. The Navajo Nation has recently taken the position that
    the term of the moratorium is indefinite. Given that
    Resolute's operations within the Aneth Chapter are based on
    existing agreements and that Resolute currently does not
    contemplate new exploration in this mature field, the moratorium
    has had and is expected to continue to have minor impact to
    Resolute operations.
Other Regulation
    of the Oil and Gas Industry
The oil and gas industry is extensively regulated by numerous
    federal, state and local authorities, including Native American
    tribes. Legislation affecting the oil and gas industry is under
    constant review for amendment or expansion, frequently
    increasing the regulatory burden. Also, numerous departments and
    agencies, both federal and state and Native American tribes, are
    authorized by statute to issue rules and regulations binding on
    the oil and gas industry and individual companies, some of which
    carry substantial penalties for failure to comply. Although the
    regulatory burden on the oil and gas industry increases
    Resolute's cost of doing business and, consequently,
    affects profitability, these burdens generally do not affect
    Resolute any differently or to any greater or lesser extent than
    they affect other companies in the industry with similar types,
    quantities and locations of production.
Drilling and Production.
Resolute's operations
    are subject to various types of regulation at federal, state,
    local and Navajo Nation levels. These types of regulation
    include requiring permits for the drilling of wells, drilling
    bonds and reports concerning operations. Most states, and some
    counties, municipalities, the Navajo Nation and other Native
    American tribes also regulate one or more of the following:
•
the location of wells;
•
the method of drilling and casing wells;
•
the rates of production or "allowables";
•
the surface use and restoration of properties upon which wells
    are drilled;
•
the plugging and abandoning of wells; and
•
notice to surface owners and other third-parties.
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On state, federal and Indian lands, the Bureau of Land
    Management laws and regulations regulate the size and shape of
    drilling and spacing units or proration units governing the
    pooling of oil and gas properties. Some states allow forced
    pooling or integration of tracts to facilitate exploration while
    other states rely on voluntary pooling of lands and leases. In
    some instances, forced pooling or unitization may be implemented
    by third-parties and may reduce Resolute's interest in the
    unitized properties. In addition, state conservation laws
    establish maximum rates of production from oil and gas wells,
    generally prohibit or limit the venting or flaring of gas and
    impose requirements regarding the ratability of production.
    These laws and regulations may limit the amount of oil and gas
    that Resolute can produce from its wells or limit the number of
    wells or the locations where it can drill. Moreover, each state
    generally imposes a production or severance tax with respect to
    the production and sale of oil and gas within its jurisdiction.
Gas Sales and Transportation.
Historically, federal
    legislation and regulatory controls have affected the price of
    gas and the manner in which Resolute's production is
    marketed. Federal Energy Regulatory Commission
    ("FERC") has jurisdiction over the transportation and
    sale for resale of gas in interstate commerce by gas companies
    under the Natural Gas Act of 1938 and the Natural Gas Policy Act
    of 1978. Since 1978, various federal laws have been enacted
    which have resulted in the complete removal of all price and
    non-price controls for sales of domestic gas sold in "first
    sales," which include all of Resolute sales of its own
    production.
FERC also regulates interstate gas transportation rates and
    service conditions, which affects the marketing of gas that
    Resolute produces, as well as the revenue Resolute receives for
    sales of its gas. Commencing in 1985, FERC promulgated a series
    of orders, regulations and rule makings that significantly
    fostered competition in the business of transporting and
    marketing gas. Today, interstate pipeline companies are required
    to provide nondiscriminatory transportation services to
    producers, marketers and other shippers, regardless of whether
    such shippers are affiliated with an interstate pipeline
    company. FERC's initiatives have led to the development of
    a competitive, unregulated, open access market for gas purchases
    and sales that permits all purchasers of gas to buy gas directly
    from third-party sellers other than pipelines. However, the gas
    industry historically has been very heavily regulated;
    therefore, Resolute cannot guarantee that the less stringent
    regulatory approach recently pursued by FERC and Congress will
    continue indefinitely into the future nor can it determine what
    effect, if any, future regulatory changes might have on gas
    related activities.
Under FERC's current regulatory regime, transmission
    services must be provided on an open-access, non-discriminatory
    basis at cost-based rates or at market-based rates if the
    transportation market at issue is sufficiently competitive.
    Gathering service, which occurs upstream of jurisdictional
    transmission services, is regulated by the states on-shore and
    instate waters. Although its policy is still in flux, FERC
    recently has reclassified certain jurisdictional transmission
    facilities as non-jurisdictional gathering facilities, which has
    the tendency to increase Resolute's costs of getting gas to
point-of-sale
locations.
Employees
As of December 31, 2009, Resolute had 132 full-time
    employees and 3 part-time employees, including 26
    geologists, geophysicists, petroleum engineers and land and
    regulatory professionals. Approximately 40 of Resolute's
    field level employees are represented by the United Steel, Paper
    and Forestry, Rubber, Manufacturing, Energy, Allied Industrial
    and Service Workers International Union, or USW labor union, and
    are covered by a collective bargaining agreement. Resolute
    believes that it has a satisfactory relationship with its
    employees.
Offices
Resolute currently leases approximately 22,725 square feet
    of office space in Denver, Colorado at 1675 Broadway,
    Suite 1950, Denver, Colorado 80202, where its principal
    offices are located. In February 2010, Resolute entered into an
    amended lease agreement which increased the office space to
    28,800 square feet and extended the lease term through July
    2013. In addition, Resolute owns and maintains field offices in
    Cortez, Colorado and Montezuma Creek, Utah, and leases other,
    less significant, office space in locations where staff are
    located. Resolute believes that its office facilities are
    adequate for its current needs and that additional office space
    can be obtained if necessary.
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Available
    Information
The Company maintains a link to investor relations information
    on its website,
www.resoluteenergy.com
, where it makes
    available, free of charge, the Company's filings with the
    SEC, including its annual reports on
Form 10-K,
quarterly reports on
Form 10-Q,
current reports on
Form 8-K,
and all amendments to those reports filed or furnished pursuant
    to Section 13(a) or 15(d) of the Securities Exchange Act of
    1934, ("Exchange Act"), as soon as reasonably
    practicable after the Company electronically files such material
    with, or furnishes it to, the SEC. The Company also makes
    available on its website copies of the charters of the audit,
    compensation and corporate governance/nominating committees of
    the Company's Board of Directors, its code of business
    conduct and ethics, audit committee whistleblower policy,
    stockholder and interested parties communication policy and
    corporate governance guidelines. Stockholders may request a
    printed copy of these governance materials or any exhibit to
    this report by writing to the Secretary, Resolute Energy
    Corporation, 1675 Broadway, Suite 1950, Denver, Colorado
    80202. You may also read and copy any materials the Company
    files with the SEC at the SEC's Public Reference Room,
    which is located at 100 F Street, NE, Room 1580,
    Washington, D.C. 20549. Information regarding the Public
    Reference Room may be obtained by calling the SEC at
1-800-SEC-0330.
In addition, the SEC maintains a website at
www.sec.gov
that contains the documents the Company files with the SEC.
    The Company's website and the information contained on or
    connected to its website is not incorporated by reference herein
    and its web address is included as an inactive textual reference
    only.
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ITEM 1A.
RISK
    FACTORS
You should consider carefully the following risk factors, as
    well as the other information set forth in this
Form 10-K.
Risks Related to
    Resolute's Business, Operations and Industry
The risk factors set forth below are not the only risks that
    may affect Resolute's business. Resolute's business
    could also be affected by additional risks not currently known
    to it or that it currently deems to be immaterial. If any of the
    following risks were actually to occur, Resolute's
    business, financial condition or results of operations could be
    materially adversely affected.
Resolute's
    oil production from its Aneth Field Properties is presently
    connected by pipeline to only one customer, and such sales are
    dependent on gathering systems and transportation facilities
    that Resolute does not control. With only one pipeline connected
    customer, when these facilities or systems are unavailable,
    Resolute's operations can be interrupted and its revenue
    reduced.
The marketability of Resolute's oil and gas production
    depends in part upon the availability, proximity and capacity of
    pipelines, gas gathering systems, and processing facilities
    owned by third parties. In general, Resolute does not control
    these facilities and its access to them may be limited or denied
    due to circumstances beyond its control. A significant
    disruption in the availability of these facilities could
    adversely impact Resolute's ability to deliver to market
    the oil and gas Resolute produces, and thereby cause a
    significant interruption in its operations. In some cases,
    Resolute's ability to deliver to market its oil and gas is
    dependent upon coordination among third parties who own
    pipelines, transportation and processing facilities that
    Resolute uses, and any inability or unwillingness of those
    parties to coordinate efficiently could also interrupt
    Resolute's operations. These are risks for which Resolute
    generally does not maintain insurance.
With respect to oil produced at its Aneth Field Properties,
    Resolute operates in a remote part of southeastern Utah, and
    currently Resolute sells all of its crude oil production to a
    single customer, Western. Resolute and Western, with the consent
    of NNOG, entered into a new contract effective September 1,
    2009, covering the joint crude oil volumes of Resolute and NNOG
    from Aneth Field with an initial term of one year and continuing
month-to-month
thereafter, with either party having the right to terminate
    after the initial term, upon ninety days' notice. The
    contract may also be terminated by Western after
    December 30, 2009, upon sixty days notice, if Western is
    not able to renew its
right-of-way
agreements with the Navajo Nation or if such
rights-of-way
are declared invalid and either Western is prevented from using
    such rights-of way or the Navajo Nation declares Western to be
    in trespass with respect to such
rights-of-way.
Resolute's crude oil production is currently transported to
    a terminal that serves Western's two refineries in the
    region via a crude oil pipeline owned by NNOG. In November 2009,
    Western announced that it intended to discontinue refining
    operations at one of its two refineries. See
Business and
    Properties - Marketing and Customers — Aneth
    Field
. There are presently no pipelines in service that run
    the entire distance from Resolute's Aneth Field Properties
    to any alternative markets. If Western did not purchase
    Resolute's crude oil, Resolute would have to transport its
    crude oil to other markets by a combination of the NNOG
    pipeline, truck and rail, which would result, in the short term,
    in a lower price relative to the NYMEX price than it currently
    receives. Resolute may in the future receive prices with a
    greater differential to NYMEX than it currently receives, which
    if not offset by increases in the NYMEX price for crude oil
    could result in a material adverse effect on Resolute's
    financial results.
Resolute would also have to find alternative markets if
    Western's refining capacity in the region is temporarily or
    permanently shut-down for any reason or if NNOG's pipeline
    to Western's refineries is temporarily or permanently
    shut-in for any reason. Resolute does not have any control over
    Western's decisions with respect to its refineries.
    Resolute would also not have control over similar decisions by
    any replacement customers.
Resolute customarily ships crude oil to Western daily and
    receives payment on the twentieth day of the month following the
    month of production. As a result, at any given time, Western
    owes Resolute between 20 and 50 days of production revenue.
    Based upon average production from Aneth Field during the three
    months ended December 31, 2009, and a NYMEX oil price of
    $80.00 per barrel, Western could owe Resolute between
    $8 million and $20 million. If Western defaults on its
    obligation to pay Resolute for the crude oil it has delivered,
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Resolute's income would be materially and negatively
    affected. Both Moody's Investor Services and
    Standard & Poor's have assigned credit ratings to
    Western's long-term debt that are below investment grade
    and Standard & Poor's has recently put Western on
    credit watch negative.
With respect to its Wyoming operations, Resolute does not have
    any long-term supply or similar agreements with entities for
    which it acts as a producer and currently sells most of its
    Wyoming oil production under a purchase agreement with a single
    purchaser. Resolute is therefore dependent upon its ability to
    sell oil and gas at the prevailing wellhead market price. There
    can be no assurance that purchasers will be available or that
    the prices they are willing to pay will remain stable and not
    decline.
Current
    financial conditions may have effects on Resolute's
    business and financial condition that Resolute cannot
    predict.
Turmoil in the global financial system may continue to have an
    impact on Resolute's business and financial condition, and
    Resolute may continue to face challenges if conditions in the
    financial markets do not improve. Resolute's ability to
    access the capital markets has been restricted as a result of
    this turmoil and may be restricted in the future when Resolute
    would like, or need, to raise capital. The financial turmoil may
    also limit the number of prospects for Resolute's
    development and acquisition, or make such transactions
    uneconomic or difficult to consummate, and make it more
    difficult for Resolute to develop its reserves. The economic
    situation could also adversely affect the collectability of
    Resolute's trade receivables and cause Resolute's
    commodity hedging arrangements, if any, to be ineffective if
    Resolute's counterparties are unable to perform their
    obligations or seek bankruptcy protection. It may also adversely
    affect any of Resolute's partners' ability to fulfill
    their obligations under operating agreements and Resolute may be
    required to fund these expenditures from other sources or reduce
    Resolute's planned activities. Additionally, the global
    economic situation could lead to further reduced demand for oil
    and gas, lower product prices or continued product price
    volatility which would have a negative effect on Resolute's
    revenue.
Inadequate
    liquidity could materially and adversely affect Resolute's
    business operations in the future.
Resolute's ability to generate cash flow depends upon
    numerous factors related to its business that may be beyond its
    control, including:
•
the amount of oil and gas it produces;
•
the price at which it sells its oil and gas production and the
    costs it incurs to market its production;
•
the effectiveness of its commodity price hedging strategy;
•
the development of proved undeveloped properties and the success
    of its enhanced oil recovery activities;
•
the level of its operating and general and administrative costs;
•
its ability to replace produced reserves;
•
prevailing economic conditions;
•
government regulation and taxation;
•
the level of its capital expenditures required to implement its
    development projects and make acquisitions of additional
    reserves;
•
its ability to borrow under its revolving credit facility;
•
its debt service requirements contained in its revolving credit
    facility or future debt agreements;
•
fluctuations in its working capital needs; and
•
timing and collectability of receivables.
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Resolute's
    planned operations, as well as replacement of its production and
    reserves, will require additional capital that may not be
    available.
Resolute's business is capital intensive, and requires
    substantial expenditures to maintain currently producing wells,
    to make the acquisitions of additional reserves
and/or
conduct its exploration, exploitation and development program
    necessary to replace its reserves, to pay expenses and to
    satisfy its other obligations, which will require cash flow from
    operations, additional borrowings or proceeds from the issuance
    of additional equity, or some combination thereof, which may not
    be available to Resolute.
For example, Resolute expects to spend an additional
    $377.4 million of capital expenditures over the next
    28 years (including
    CO
2
purchases) to implement and complete its proved developed
    non-producing and proved undeveloped
    CO
2
flood projects. Resolute expects to incur approximately
    $161.7 million of these future capital expenditures between
    2010 and 2012 based on its year-end 2009 SEC case reserve
    report. To the extent Resolute's production and reserves
    decline faster than it anticipates, Resolute will require a
    greater amount of capital to maintain its production.
    Resolute's ability to obtain bank financing or to access
    the capital markets for future equity or debt offerings may be
    limited by its financial condition at the time of any such
    financing or offering, the covenants in its revolving credit
    facility or future debt agreements, adverse market conditions or
    other contingencies and uncertainties that are beyond its
    control. Resolute's failure to obtain the funds necessary
    for future activities could materially affect its business,
    results of operations and financial condition. Even if Resolute
    is successful in obtaining the necessary funds, the terms of
    such financings could limit Resolute's activities and its
    ability to pay dividends. In addition, incurring additional debt
    may significantly increase Resolute's interest expense and
    financial leverage, and issuing additional equity may result in
    significant equity holder dilution.
A significant part of Resolute's development plan
    involves the implementation of its
    CO
2
projects.
    The supply of
    CO
2
and efficacy of the planned projects is uncertain, and
    other resources may not be available or may be more expensive
    than expected, which could adversely impact production, revenue
    and earnings, and may require a write-down of reserves.
Producing oil and gas reservoirs are depleting assets generally
    characterized by declining production rates that vary depending
    upon factors such as reservoir characteristics. A significant
    part of Resolute's business strategy depends on its ability
    to successfully implement
    CO
2
floods and other development projects it has planned for its
    Aneth Field Properties in order to counter the natural decline
    in production from the field. As of December 31, 2009,
    approximately 65% of Resolute's estimated net proved
    reserves were classified as proved developed non-producing and
    proved undeveloped, meaning Resolute must undertake additional
    development activities before it can produce those reserves.
    These development activities involve numerous risks, including
    insufficient quantities of
    CO
2
,
    project execution risks and cost overruns, insufficient capital
    to allocate to these projects, and inability to obtain equipment
    and materials that are necessary to successfully implement these
    projects.
A critical part of Resolute's development strategy depends
    upon its ability to purchase
    CO
2
.
    Resolute currently has entered into contracts to purchase
    CO
2
from two suppliers, EMGP and Kinder Morgan. The contract with
    EMGP expires June 30, 2010; the contract with Kinder Morgan
    expires in 2016. All of the
    CO
2
Resolute has under contract comes from the McElmo Dome field.
    Following the termination of the EMGP contract in June 2010, all
    of Resolute's
    CO
2
will be supplied under the Kinder Morgan contract. If Resolute
    is unable to purchase sufficient
    CO
2
under either of its existing contracts, or from Kinder Morgan
    after June 2010, either because Resolute's suppliers are
    unable or are unwilling to supply the contracted volumes,
    Resolute would have to purchase
    CO
2
from other owners of
    CO
2
in the McElmo Dome field or elsewhere. In such an event,
    Resolute may not be able to locate substitute supplies of
    CO
2
at acceptable prices or at all. In addition, certain suppliers
    of
    CO
2
,
    such as Kinder Morgan, use
    CO
2
in their own tertiary recovery projects. As a result, if
    Resolute needs to purchase additional volumes of
    CO
2
,
    these suppliers may not be willing to sell a portion of their
    supply of
    CO
2
to Resolute if their own demand for
    CO
2
exceeds their supply. Additionally, even if adequate supplies
    are available for delivery from the McElmo Dome field, Resolute
    could experience temporary or permanent shut-ins of
    Resolute's pipeline that delivers
    CO
2
from that field to its Aneth Field Properties. If Resolute is
    unable to obtain the
    CO
2
it requires and is unable to undertake its development projects
    or if Resolute's development projects are significantly
    delayed, Resolute's recoverable reserves may not be as much
    as it currently anticipates, it will not realize its expected
    incremental production, and its expected decline in the rate of
    production from its Aneth Field Properties will be accelerated.
    If Resolute's requirements for
    CO
2
were to decrease, it could be required to incur
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costs for
    CO
2
that it has not purchased or to purchase more
    CO
2
than it could use effectively. For more information about
    Resolute's minimum financial obligations under these
    contracts, please read "
Resolute's
    Business — Planned Operating and Development
    Activities
." For more information about Resolute's
    CO
2
development program and Resolute's minimum financial
    obligations under these contracts, please read
    "
Resolute's Business — Planned Operating
    and Development Activities
."
In addition, Resolute's estimate of future development
    costs, including with respect to its planned
    CO
2
development projects, is based on Resolute's current
    expectation of prices and other costs of
    CO
2
,
    equipment and personnel Resolute will need in the future to
    implement such projects. Resolute's actual future
    development costs may be significantly higher than Resolute
    currently estimates, and delays in executing its development
    projects could result in higher labor and other costs associated
    with these projects. If costs become too high, Resolute's
    future development projects may not be economical and Resolute
    may be forced to abandon its development projects.
Furthermore, the results Resolute obtains from its
    CO
2
flood projects may not be the same as it expected when preparing
    its estimate of net proved reserves. Lower than expected
    production results or delays in when Resolute first realizes
    additional production as a result of its
    CO
2
flood projects will reduce the value of its reserves, which
    could reduce its ability to incur indebtedness, require Resolute
    to use cash to repay indebtedness, and require Resolute to
    write-down the value of its reserves. Therefore, Resolute's
    future reserves, production and future cash flow are highly
    dependent on Resolute's success in efficiently developing
    and exploiting its current estimated net proved undeveloped
    reserves.
Resolute is a
    party to contracts that require it to pay for a minimum quantity
    of
    CO
2
.
    These contracts limit Resolute's ability to curtail costs
    if its requirements for
    CO
2
decrease.
Resolute's contracts with Kinder Morgan and EMGP require
    Resolute to take, or pay for if not taken, a minimum volume of
    CO
2
on a monthly basis. The
take-or-pay
obligations result in minimum financial obligations through
    2016, in the case of the Kinder Morgan contract, and through
    2010 in the case of the EMGP contract. The
take-or-pay
provisions in both contracts allow Resolute to subsequently
    apply
take-or-pay
payments made to volumes subsequently taken, but these
    provisions have limitations and Resolute may not be able to
    utilize all such amounts paid if the limitations apply or if
    Resolute does not subsequently take sufficient volumes to
    utilize the amounts previously paid.
Oil and gas
    prices are volatile and change for reasons that are beyond
    Resolute's control. Decreases in the price Resolute
    receives for its oil and gas production can adversely affect its
    business, financial condition, results of operations and
    liquidity and impede its growth.
The oil and gas markets are highly volatile, and Resolute cannot
    predict future prices. Resolute's revenue, profitability
    and cash flow depend upon the prices and demand for oil and
    natural gas. The markets for these commodities are very volatile
    and even relatively modest drops in prices can significantly
    affect Resolute's financial results and impede its growth.
    Prices for oil and gas may fluctuate widely in response to
    relatively minor changes in the supply of and demand for the
    commodities, market uncertainty and a variety of additional
    factors that are beyond Resolute's control, such as:
•
domestic and foreign supply of and demand for oil and gas,
    including as a result of technological advances affecting energy
    consumption and supply;
•
weather conditions;
•
overall domestic and global political and economic conditions;
•
actions of the Organization of Petroleum Exporting Countries and
    other state-controlled oil companies relating to oil price and
    production controls;
•
the price of foreign imports;
•
political and economic conditions in oil producing countries,
    including the Middle East and South America;
•
technological advances affecting energy consumption;
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•
variations between product prices at sales points and applicable
    index prices;
•
domestic, tribal and foreign governmental regulations and
    taxation;
•
the impact of energy conservation efforts;
•
the capacity, cost and availability of oil and gas pipelines and
    other transportation and gathering facilities, and the proximity
    of these facilities to its wells;
•
the availability of refining and processing capability;
•
factors specific to the local and regional markets where
    Resolute's production occurs; and
•
the price and availability of alternative fuels.
In the past, the price of crude oil has been extremely volatile,
    and Resolute expects this volatility to continue. For example,
    during the twelve months ended December 31, 2009, the NYMEX
    price for light sweet crude oil ranged from a high of $81.04 per
    Bbl to a low of $33.98 per Bbl. For calendar year 2008, the
    range was from a high of $145.28 per Bbl to a low of $33.03 per
    Bbl, and for the five years ended December 31, 2009, the
    price ranged from a high of $145.28 per Bbl to a low of $31.41
    per Bbl.
A decline in oil and gas prices can significantly affect many
    aspects of Resolute's business, including financial
    condition, revenue, results of operations, liquidity, rate of
    growth and the carrying value of Resolute's oil and gas
    properties, all of which depend primarily or in part upon those
    prices. For example, declines in the prices Resolute receives
    for its oil and gas adversely affect its ability to finance
    capital expenditures, make acquisitions, raise capital and
    satisfy its financial obligations. In addition, declines in
    prices reduce the amount of oil and gas that Resolute can
    produce economically and, as a result, adversely affect its
    quantities of proved reserves. Among other things, a reduction
    in its reserves can limit the capital available to Resolute, as
    the maximum amount of available borrowing under its revolving
    credit facility is, and the availability of other sources of
    capital likely will be, based to a significant degree on the
    estimated quantities of those reserves.
Resolute's
    estimated proved reserves are based on many assumptions that may
    turn out to be inaccurate. Any significant inaccuracies in these
    reserve estimates or underlying assumptions will materially
    affect the quantities of Resolute's proved
    reserves.
Resolute's estimate of proved reserves for the period ended
    December 31, 2009, is based on the quantities of oil and
    gas that engineering and geological analyses demonstrate with
    reasonable certainty to be recoverable from established
    reservoirs in the future under current operating and economic
    parameters. Netherland, Sewell & Associates, Inc.,
    independent petroleum engineers, audited reserve and economic
    evaluations of all properties that were prepared by Resolute on
    a
well-by-well
basis. Oil and gas reserve engineering is not exact; it relies
    on subjective interpretations of data that may be inaccurate or
    incomplete and requires predictions and assumptions of future
    reservoir behavior and economic conditions. Estimates of
    economically recoverable oil and gas reserves and of future net
    cash flows depend upon a number of variable factors and
    assumptions, including:
•
the assumed accuracy of field measurements and other reservoir
    data;
•
assumptions regarding expected reservoir performance relative to
    historical analog reservoir performance;
•
the assumed effects of regulations by governmental agencies;
•
assumptions concerning future oil and gas prices; and
•
assumptions concerning future operating costs, severance and
    excise taxes, development costs and workover and remedial costs.
Because all reserve estimates are to some degree subjective,
    each of the following items may differ materially from those
    assumed in estimating reserves:
•
the quantities of oil and gas that are ultimately recovered;
•
the timing of the recovery of oil and gas reserves;
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Table of Contents
•
the production and operating costs incurred; and
•
the amount and timing of future development expenditures.
Furthermore, different reserve engineers may make different
    estimates of reserves and cash flows based on the same available
    data. As a result of all these factors, Resolute may make
    material changes to reserves estimates to take into account
    changes in its assumptions and the results of its development
    activities and actual drilling and production.
If these assumptions prove to be incorrect, Resolute's
    estimates of reserves, the economically recoverable quantities
    of oil and gas attributable to any particular group of
    properties, the classifications of reserves based on risk of
    recovery and Resolute's estimates of the future net cash
    flows from its reserves could change significantly. In addition,
    if declines in oil and gas prices result in its having to make
    substantial downward adjustments to its estimated proved
    reserves, or if its estimates of development costs increase,
    production data factors change or drilling results deteriorate,
    accounting rules may require Resolute to make downward
    adjustments, as a non-cash impairment charge to earnings, to the
    carrying value of Resolute's oil and gas properties. If
    Resolute incurs impairment charges in the future, Resolute could
    have a material adverse effect on its results of operations in
    the period incurred and on its ability to borrow funds under its
    credit facility.
The
    standardized measure of future net cash flows from
    Resolute's net proved reserves is based on many assumptions
    that may prove to be inaccurate. Any material inaccuracies in
    Resolute's reserve estimates or underlying assumptions will
    materially affect the quantities and present value of its proved
    reserves.
Actual future net cash flows from Resolute's oil and gas
    properties will be determined by the actual prices Resolute
    receives for oil and gas, its actual operating costs in
    producing oil and gas, the amount and timing of actual
    production, the amount and timing of Resolute's capital
    expenditures, supply of and demand for oil and gas and changes
    in governmental regulations or taxation, which may differ from
    the assumptions used in creating estimates of future cash flows.
The timing of both Resolute's production and its incurrence
    of expenses in connection with the development and production of
    oil and gas properties will affect the timing of actual future
    net cash flows from proved reserves, and thus their actual
    present value. In addition, the 10% discount factor Resolute
    uses when calculating discounted future net cash flows in
    compliance with guidance from the Financial Accounting Standards
    Board may not be the most appropriate discount factor based on
    interest rates in effect from time to time and risks associated
    with Resolute or the oil and gas industry in general.
Currently,
    substantially all of Resolute's oil producing properties
    are located on the Navajo Reservation, making Resolute
    vulnerable to risks associated with laws and regulations
    pertaining to the operation of oil and gas properties on Native
    American tribal lands.
Substantially all of Resolute's Aneth Field Properties,
    which represent approximately 93% of Resolute's total
    proved reserves and approximately 75% of Resolute's
    production (on an equivalent barrel basis) at December 31,
    2009, are located on the Navajo Reservation in southeastern
    Utah. Operation of oil and gas interests on Indian lands
    presents unique considerations and complexities. These arise
    from the fact that Indian tribes are "dependent"
    sovereign nations located within states, but are subject only to
    tribal laws and treaties with, and the laws and Constitution of,
    the United States. This creates a potential overlay of three
    jurisdictional regimes — Indian, federal and state.
    These considerations and complexities could arise around various
    aspects of Resolute's operations, including real property
    considerations, employment practices, environmental matters and
    taxes.
For example, Resolute is subject to the Navajo Preference in
    Employment Act. This law requires that it give preference in
    hiring to members of the Navajo Nation, or in some cases other
    Native American tribes, if such a person is qualified for the
    position, rather than hiring the most qualified person. A
    further regulatory requirement is imposed by the Navajo Nation
    Business Opportunity Act which requires Resolute to give
    preference to businesses owned by Navajo persons when it is
    hiring contractors. These regulatory restrictions can negatively
    affect Resolute's ability to recruit and retain the most
    highly qualified personnel or to utilize the most experienced
    and economical contractors for its projects.
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Furthermore, because tribal property is considered to be held in
    trust by the federal government, before Resolute can take
    actions such as drilling, pipeline installation or similar
    actions, it is required to obtain approvals from various federal
    agencies that are in addition to customary regulatory approvals
    required of oil and gas producers operating on non-Indian
    property. Resolute also is required to obtain approvals from the
    Resources Committee, which is a standing committee of the Navajo
    Nation Tribal Council, before Resolute can take similar actions
    with respect to its Aneth Field Properties. These approvals
    could result in delays in its implementation of, or otherwise
    prevent it from implementing, its development program. These
    approvals, even if ultimately obtained, could result in delays
    in Resolute's ability to implement its development program.
In addition, under the Native American laws and regulations,
    Resolute could be held liable for personal injuries, property
    damage (including site
clean-up
and
    restoration costs) and other damages. Failure to comply with
    these laws and regulations may also result in the suspension or
    termination of Resolute's operations and subject it to
    administrative, civil and criminal penalties, including the
    assessment of natural resource damages.
For additional information about the legal complexities and
    considerations associated with operating on the Navajo
    Reservation, please read "
Resolute's
    Business — Laws and Regulations Pertaining to Oil and
    Gas Operations on Navajo Nation Lands
."
NNOG has
    options to purchase a portion of Resolute's Aneth Field
    Properties.
NNOG has a total of six options to purchase for cash at fair
    market value, in the aggregate, up to 30.0% of Resolute's
    interest in the Chevron Properties and 30.0% of its interest in
    the ExxonMobil Properties. These options become exercisable over
    a period of time if financial hurdles related to recovery by
    Resolute of its investments are met. If NNOG exercises its
    purchase options in full, it could acquire from Resolute
    undivided working interests representing an 18.15% working
    interest in the Aneth Unit, a 22.5% working interest in the
    McElmo Creek Unit and a 17.7% working interest in the Ratherford
    Unit. If NNOG were to exercise any of these options, Resolute
    might not be able to effectively redeploy the cash received from
    NNOG. For additional information about NNOG's purchase
    right, please read "
Resolute's Business —
    Relationship with the Navajo Nation
."
The statutory
    preferential purchase right held by the Navajo Nation to acquire
    transferred Navajo Nation oil and gas leases and NNOG's
    right of first negotiation could diminish the value Resolute may
    be able to receive in a sale of its properties.
Nearly all of Resolute's Aneth Field Properties are located
    on the Navajo Reservation. The Navajo Nation has a statutory
    preferential right to purchase at the offered price any Navajo
    Nation oil and gas lease or working interest in such a lease at
    the time a proposal is made to transfer the lease or interest.
    The existence of this right can make it more difficult to sell a
    Navajo Nation oil and gas lease because this right may
    discourage third parties from purchasing such a lease and,
    therefore, could reduce the value of Resolute's leases if
    it were to attempt to sell them. In addition, under the terms of
    Resolute's Cooperative Agreement with NNOG, Resolute is
    obligated to first negotiate with NNOG to sell its Aneth Field
    Properties before it may offer to sell such properties to any
    other third party. This contractual right could make it more
    difficult for Resolute to sell its Aneth Field Properties. For
    additional information about the right of first negotiation for
    the benefit of NNOG, please read "
Resolute's
    Business — Relationship with the Navajo
    Nation
."
All of
    Resolute's producing properties are located in two
    geographic areas, making it vulnerable to risks associated with
    operating in only two geographic areas.
A substantial amount of Resolute's sales of oil and gas and
    93% of its total proved reserves at December 31, 2009, are
    currently located in its Aneth Field Properties in the southeast
    Utah portion of the Paradox Basin in the Four Corners area of
    the southwestern United States. Essentially all of the remainder
    of Resolute's sales of oil and gas and 7% of its total
    proved reserves are predominantly located in Hilight Field in
    the Powder River Basin in northeastern Wyoming and southeastern
    Montana. As a result of Resolute's lack of diversification
    in asset type and location, any delays or interruptions of
    production from these wells caused by such factors as
    governmental regulation, transportation capacity constraints,
    curtailment of production or interruption of transportation of
    oil produced from the wells in these fields, price fluctuations,
    natural disasters or shut-downs of the pipelines
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Table of Contents
connecting its Aneth Field production to refineries would have a
    significantly greater impact on Resolute's results of
    operations than if Resolute possessed more diverse assets and
    locations.
Lack of geographic diversification also affects the prices to be
    received for Resolute's oil and gas production from its
    properties, since prices are determined to a significant extent
    by factors affecting the regional supply of and demand for oil
    and gas, including the adequacy of the pipeline and processing
    infrastructure in the region to transport or process
    Resolute's production and that of other producers. Those
    factors result in basis differentials between the published
    indices generally used to establish the price received for
    regional oil and gas production and the actual (frequently
    lower) price Resolute may receive for its production.
Developing and
    producing oil and gas are costly and high-risk activities with
    many uncertainties that could adversely affect Resolute's
    financial condition or results of operations, and insurance may
    not be available or may not fully cover losses.
There are numerous risks associated with developing, completing
    and operating a well, and cost factors can adversely affect the
    economics of a well. Resolute's development and producing
    operations may be curtailed, delayed or canceled as a result of
    other factors, including:
•
high costs, shortages or delivery delays of rigs, equipment,
    labor or other services;
•
unexpected operational events
and/or
conditions;
•
reductions in oil or gas prices or increases in the differential
    between index oil or gas prices and prices received by Resolute;
•
increases in severance taxes;
•
limitations on Resolute's ability to sell its crude oil or
    gas production;
•
adverse weather conditions and natural disasters;
•
facility or equipment malfunctions, and equipment failures or
    accidents;
•
pipe or cement failures and casing collapses;
•
compliance with environmental and other governmental
    requirements;
•
environmental hazards, such as leaks, oil spills, pipeline
    ruptures and discharges of toxic gases;
•
lost or damaged oilfield development and service tools;
•
unusual or unexpected geological formations, and pressure or
    irregularities in formations;
•
fires, blowouts, surface craterings and explosions;
•
shortages or delivery delays of equipment and services;
•
title problems;
•
objections from surface owners and nearby surface owners in the
    areas where Resolute operates; and
•
uncontrollable flows of oil, gas or well fluids.
Any of these or other similar occurrences could reduce
    Resolute's cash from operations or result in the disruption
    of Resolute's operations, substantial repair costs,
    significant damage to property, environmental pollution and
    impairment of its operations. The occurrence of these events
    could also affect third parties, including persons living near
    Resolute's operations, Resolute's employees and
    employees of Resolute's contractors, leading to injuries or
    death.
Insurance against all operational risk is not available to
    Resolute, and pollution and environmental risks generally are
    not fully insurable. Additionally, Resolute may elect not to
    obtain insurance if it believes that the cost of available
    insurance is excessive relative to the perceived risks
    presented. Losses could, therefore, occur for uninsurable or
    uninsured risks or in amounts in excess of existing insurance
    coverage. Moreover, insurance may not be available in the future
    at commercially reasonable costs and on commercially reasonable
    terms. Changes
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in the insurance markets subsequent to the terrorist attacks on
    September 11, 2001, have made it more difficult for
    Resolute to obtain coverage for terrorist attacks and related
    risks. Resolute may not be able to obtain the levels or types of
    insurance it would otherwise have obtained prior to these market
    changes, and any insurance coverage Resolute does obtain may
    contain large deductibles or it may not cover all hazards or
    potential losses. Losses and liabilities from uninsured and
    underinsured events or a delay in the payment of insurance
    proceeds could adversely affect Resolute's business,
    financial condition and results of operations.
Exploration
    and development drilling may not result in commercially
    productive reserves.
Resolute may not encounter commercially productive reservoirs
    through its drilling operations. In 2010, Resolute expects to
    incur approximately $30 million of capital expenditures for
    acreage acquisition, exploration and development drilling, most
    significantly in the Williston Basin properties in North Dakota.
    The new wells Resolute drills or participates in may not be
    productive and the Company may not recover all or any portion of
    its investment in such wells. The seismic data and other
    technologies Resolute uses do not allow it to know conclusively
    prior to drilling whether it will find oil or gas or, if found,
    that the hydrocarbons will be produced economically. The cost of
    drilling, completing and operating a well is often uncertain,
    and cost factors can adversely affect the economics of a
    project. Resolute's efforts will be unprofitable if it
    drills dry wells or wells that are productive but do not produce
    enough reserves to return a profit after drilling, operating and
    other costs. Further, Resolute's drilling operations may be
    curtailed, delayed or canceled as a result of a variety of
    factors, including:
•
increases in the cost of, or shortages or delays in the
    availability of, drilling rigs and equipment;
•
unexpected drilling conditions;
•
title problems;
•
pressure or irregularities in formations;
•
equipment failures or accidents;
•
adverse weather conditions; and
•
compliance with environmental and other governmental
    requirements.
If Resolute
    does not make acquisitions of reserves on economically
    acceptable terms, Resolute's future growth and ability to
    maintain production will be limited to only the growth it
    intends to achieve through the development of its proved
    developed non-producing and proved undeveloped
    reserves.
Producing oil and gas reservoirs are generally characterized by
    declining production rates that vary depending upon reservoir
    characteristics and other factors. The rate of decline will
    change if production from Resolute's existing wells
    declines in a different manner than Resolute has estimated and
    can change under other circumstances. Resolute's future oil
    and gas reserves and production and, therefore, Resolute's
    cash flow and income are highly dependent upon its success in
    efficiently developing and exploiting its current reserves and
    economically finding or acquiring additional recoverable
    reserves.
Resolute intends to grow by bringing its proved developed
    non-producing reserves into production, developing its proved
    undeveloped reserves and exploring for and finding additional
    reserves on its non-proved properties. Resolute's ability
    to further grow depends in part on its ability to make
    acquisitions, particularly in the event NNOG exercises its
    options to increase its working interest in the Aneth Field
    Properties. Resolute may be unable to make such acquisitions
    because it is:
•
unable to identify attractive acquisition candidates or
    negotiate acceptable purchase contracts with the seller;
•
unable to obtain financing for these acquisitions on
    economically acceptable terms; or
•
outbid by competitors.
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If Resolute is unable to acquire properties containing proved
    reserves at acceptable costs, Resolute's total level of
    proved reserves and associated future production will decline as
    a result of its ongoing production of its reserves.
Any
    acquisitions Resolute completes are subject to substantial risks
    that could negatively affect its financial condition and results
    of operations.
Even if Resolute does make acquisitions that it believes will
    enhance its growth, financial condition or results of
    operations, any acquisition involves potential risks, including,
    among other things:
•
the validity of Resolute's assumptions about the acquired
    properties or company's reserves, future production, the
    future prices of oil and gas, infrastructure requirements,
    environmental and other liabilities, revenue and costs;
•
an inability to integrate successfully the properties and
    businesses Resolute acquires;
•
a decrease in Resolute's liquidity to the extent it uses a
    significant portion of its available cash or borrowing capacity
    to finance acquisitions or operations of the acquired properties;
•
a significant increase in its interest expense or financial
    leverage if Resolute incurs debt to finance acquisitions or
    operations of the acquired properties;
•
the assumption of unknown liabilities, losses or costs for which
    Resolute is not indemnified or for which Resolute's
    indemnity is inadequate;
•
the diversion of management's attention from other business
    concerns;
•
an inability to hire, train or retain qualified personnel to
    manage and operate Resolute's growing business and assets;
•
unforeseen difficulties encountered in operating in new
    geographic areas; and
•
customer or key employee losses at the acquired businesses.
Resolute's decision to acquire a property or business will
    depend in part on the evaluation of data obtained from
    production reports and engineering studies, geophysical and
    geological analyses and seismic and other information, the
    results of which are often inconclusive and subject to various
    interpretations.
Also, Resolute's reviews of acquired properties are
    inherently incomplete because it generally is not feasible to
    perform an in-depth review of the individual properties involved
    in each acquisition. Even a detailed review of records and
    properties may not necessarily reveal existing or potential
    problems, nor will it permit a buyer to become sufficiently
    familiar with the properties to assess fully their deficiencies
    and potential problems. Inspections may not always be performed
    on every well, and environmental problems, such as ground water
    contamination, are not necessarily observable even when an
    inspection is undertaken. The potential risks in making
    acquisitions could adversely affect Resolute's ability to
    achieve anticipated levels of cash flows from the acquired
    businesses or realize other anticipated benefits of those
    acquisitions.
Resolute's
    future debt levels may limit its flexibility to obtain
    additional financing and pursue other business
    opportunities.
Resolute expects to have the ability to incur additional debt
    under its revolving credit facility, subject to borrowing base
    limitations. Resolute's increased level of indebtedness
    could have important consequences to Resolute, including:
•
Resolute's ability to obtain additional financing, if
    necessary, for working capital, capital expenditures,
    acquisitions or other purposes may be impaired or such financing
    may not be available on favorable terms;
•
covenants contained in Resolute's existing and future
    credit and debt arrangements will require it to meet financial
    tests that may affect its flexibility in planning for and
    reacting to changes in its business, including possible
    acquisition opportunities;
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•
Resolute will need a substantial portion of its cash flow to
    make principal and interest payments on its indebtedness,
    reducing the funds that would otherwise be available for
    operations and future business opportunities; and
•
Resolute's debt level will make it more vulnerable than its
    competitors with less debt to competitive pressures or a
    downturn in its business or the economy generally.
Resolute's ability to service its indebtedness will depend
    upon, among other things, its future financial and operating
    performance, which will be affected by prevailing economic
    conditions and financial, business, regulatory and other
    factors, some of which are beyond Resolute's control. If
    Resolute's operating results are not sufficient to service
    its current or future indebtedness, it will be forced to take
    actions such as reducing or delaying business activities,
    acquisitions, investments
and/or
capital expenditures, selling assets, restructuring or
    refinancing Resolute's indebtedness, or seeking additional
    equity capital or bankruptcy protection. Resolute may not be
    able to effect any of these remedies on satisfactory terms or at
    all.
Resolute's
    revolving credit facility has substantial financial and
    operating covenants that restrict Resolute's business and
    financing activities and prohibit Resolute from paying
    dividends. Future borrowing agreements would likely include
    similar restrictions.
The operating and financial covenants in Resolute's senior
    secured revolving credit facility restrict Resolute's
    ability to finance future operations or capital needs or to
    engage, expand or pursue its business activities.
    Resolute's revolving credit facility currently restricts,
    and it anticipates that any amendment to such facility would
    restrict, its ability to:
•
incur indebtedness;
•
grant liens;
•
make acquisitions and investments;
•
lease equipment;
•
redeem or prepay other debt;
•
pay dividends to shareholders or repurchase shares;
•
enter into transactions with affiliates; and
•
enter into a merger, consolidation or sale of assets.
The revolving credit agreement matures in March 2014, unless
    extended, and is secured by all of Resolute's oil and gas
    properties as well as a pledge of all ownership interests in
    operating subsidiaries. The revolving credit agreement has a
    borrowing base (currently $260 million) determined by the
    lenders based on their evaluation of the value of the
    collateral. Resolute is required to maintain a consolidated
    current ratio of at least 1.0 to 1.0 at the end of any fiscal
    quarter; and may not permit its Maximum Leverage Ratio
    (consolidated indebtedness to consolidated EBITDA as defined in
    the credit agreement) to exceed 4.0 to 1.0 at the end of each
    fiscal quarter. Resolute's revolving credit facility does
    not permit it to pay dividends to shareholders.
Resolute may enter into additional borrowing agreements which
    would likely include additional operating and financial
    covenants.
Shortages of
    qualified personnel or field equipment and services could affect
    Resolute's ability to execute its plans on a timely basis,
    reduce its cash flow and adversely affect its results of
    operations.
The demand for qualified and experienced geologists,
    geophysicists, engineers, field operations specialists, landmen,
    financial experts and other personnel in the oil and gas
    industry can fluctuate significantly, often in correlation with
    oil and gas prices, causing periodic shortages. From time to
    time, there also have been shortages of drilling rigs and other
    field equipment, as demand for rigs and equipment has increased
    along with the number of wells being drilled. These factors can
    also result in significant increases in costs for equipment,
    services and personnel. Higher oil and gas prices generally
    stimulate increased demand and result in increased prices for
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drilling rigs, crews and associated supplies, equipment and
    services. Historically, increased demand resulting from high
    commodity prices have at times significantly increased costs and
    resulted in some difficulty in obtaining drilling rigs,
    experienced crews and related services. Resolute may continue to
    experience such difficulties in the future. If shortages persist
    or prices continue to increase, Resolute's profit margin,
    cash flow and operating results could be adversely affected and
    Resolute's ability to conduct its operations in accordance
    with current plans and budgets could be restricted.
Resolute's
    hedging activities could reduce its net income, which could
    reduce the price at which the Company's stock may
    trade.
To achieve more predictable cash flow and to reduce
    Resolute's exposure to adverse changes in the price of oil
    and gas, Resolute has entered into, and plans to enter into in
    the future, derivative arrangements covering a significant
    portion of its oil and gas production. These derivative
    arrangements could result in both realized and unrealized
    hedging losses. Resolute's derivative instruments are
    subject to
mark-to-market
accounting treatment, and the change in fair market value of the
    instrument is reported in Resolute's statement of
    operations each quarter, which has resulted in, and will in the
    future likely result in, significant unrealized net gains or
    losses.
As of December 31, 2009, Resolute had in place oil and gas
    swaps, oil and gas collars and a gas basis hedge. These included
    oil swaps covering approximately 75% of its anticipated 2010 oil
    production at a weighted average price of $67.24 per Bbl, oil
    collars covering approximately 4% of its anticipated 2010 oil
    production with a floor of $105.00 per Bbl and ceiling of
    $151.00 per Bbl, gas swaps covering approximately 73% of its
    anticipated 2010 gas production at a weighted average price of
    $9.69 per MMBtu, and a CIG gas basis hedge priced at $2.10 per
    MMBtu covering approximately 34% of its anticipated 2010 gas
    production. Additional instruments are also in place for future
    years and are summarized in the table below. Resolute expects to
    continue to use hedging arrangements to reduce commodity price
    risk with respect to its estimated production from producing
    properties. Please read "
Management's Discussion
    and Analysis of Financial Condition and Results of Operations of
    Resolute — How Resolute Evaluates Its
    Operations — Production Levels, Trends and
    Prices
" and "
Management's Discussion and
    Analysis of Financial Condition and Results of
    Resolute — Quantitative and Qualitative Disclosures
    About Market Risk
."
Oil
(NYMEX
WTI)
Oil
Weighted
Collar
Swap
Average
Volumes
Volumes
Hedge Price
Bbl per
Floor
Ceiling
Year
Bbl per Day
per Bbl
Day
Price
Price
2010
3,650
$
67.24
200
$
105.00
$
151.00
2011
3,250
$
68.26
—
—
—
2012
3,250
$
68.26
—
—
—
2013
2,000
$
60.47
—
—
—
Basic Hedges
Gas Swap
Swap
Volumes
Gas (Henry
Volumes
MMBtu per
Hub) Swap
MMBtu per
Swap
Year
day
Price
Day
Price
2010
3,800
$
9.69
1,800
$
2.10
2011
2,750
$
9.32
1,800
$
2.10
2012
2,100
$
7.42
1,800
$
2.10
2013
1,900
$
7.40
1,800
$
2.10
Resolute's actual future production during a period may be
    significantly higher or lower than it estimates at the time it
    enters into derivative transactions for such period. If the
    actual amount is higher than it estimates, it will have more
    unhedged production and therefore greater commodity price
    exposure than it intended. If the actual amount is lower than
    the nominal amount that is subject to Resolute's derivative
    financial instruments, it might be forced to satisfy all or a
    portion of its derivative transactions without the benefit of
    the cash flow from its sale of
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the underlying physical commodity, resulting in a substantial
    diminution of its liquidity. As a result of these factors,
    Resolute's derivative activities may not be as effective as
    it intends in reducing the volatility of its cash flows, and in
    certain circumstances may actually increase the volatility of
    its cash flows.
In addition, Resolute's derivative activities are subject
    to the risk that a counterparty may not perform its obligation
    under the applicable derivative instrument. If hedge
    counterparties, some of which have received governmental support
    in connection with the ongoing credit crisis, are unable to make
    payments to Resolute under its hedging arrangements,
    Resolute's results of operations, financial condition and
    liquidity would be adversely affected.
The
    effectiveness of hedging transactions to protect Resolute from
    future oil price declines will be dependent upon oil prices at
    the time it enters into future hedging transactions as well as
    its future levels of hedging, and as a result its future net
    cash flow may be more sensitive to commodity price
    changes.
As Resolute's hedges expire, more of its future production
    will be sold at market prices unless it enters into additional
    hedging transactions. Resolute's revolving credit facility
    prohibits it from entering into hedging arrangements for more
    than 85% of its production from projected proved developed
    producing reserves using economic parameters specified in its
    credit agreements. The prices at which Resolute hedges its
    production in the future will be dependent upon commodity prices
    at the time it enters into these transactions, which may be
    substantially lower than current prices. Accordingly,
    Resolute's commodity price hedging strategy will not
    protect it from significant and sustained declines in oil and
    gas prices received for its future production. Conversely,
    Resolute's commodity price hedging strategy may limit its
    ability to realize cash flow from commodity price increases. It
    is also possible that a larger percentage of Resolute's
    future production will not be hedged as the Company's
    hedging policies may change, which would result in its oil
    revenue becoming more sensitive to commodity price changes.
The nature of
    Resolute's assets exposes it to significant costs and
    liabilities with respect to environmental and operational safety
    matters. Resolute is responsible for costs associated with the
    removal and remediation of the decommissioned Aneth Gas
    Processing Plant.
Resolute may incur significant costs and liabilities as a result
    of environmental, health and safety requirements applicable to
    its oil and gas exploitation, production and other activities.
    These costs and liabilities could arise under a wide range of
    environmental, health and safety laws and regulations, including
    agency interpretations thereof and governmental enforcement
    policies, which have tended to become increasingly strict over
    time. Failure to comply with these laws and regulations may
    result in the assessment of administrative, civil and criminal
    penalties, the imposition of investigatory, cleanup and site
    restoration costs and liens, the denial or revocation of permits
    or other authorizations and the issuance of injunctions to limit
    or cease operations. Compliance with these laws and regulations
    also increases the cost of Resolute's operations and may
    prevent or delay the commencement or continuance of a given
    operation. In addition, claims for damages to persons or
    property may result from environmental and other impacts of its
    operations.
Resolute has an interest in the Aneth Gas Processing Plant,
    which is currently being decommissioned. Under Resolute's
    purchase agreement with Chevron, Chevron is responsible for
    indemnifying Resolute against the decommissioning and
clean-up
or
    remediation costs allocable to the 39% interest Resolute
    purchased from it. Under Resolute's purchase agreement with
    ExxonMobil, however, Resolute is responsible for the
    decommissioning and
clean-up
or
    remediation cost allocable to the interests it purchased from
    ExxonMobil, which is 25% of the total cost of the project. If
    Chevron fails to pay its share of the decommissioning costs in
    accordance with the purchase agreement, Resolute could be held
    responsible for 64% of the total costs to decommission and
    remediate the Aneth Gas Processing Plant. Chevron is managing
    the decommissioning process and, based on Resolute's
    current estimate, the total cost of the decommissioning is
    $28.0 million. $17.1 million has already been incurred
    and paid for as of December 31, 2009. This estimate does
    not include any costs for any possible subsurface
clean-up
or
    remediation of the site.
The Aneth Gas Processing Plant site was previously evaluated by
    the U.S. EPA for possible listing on the NPL of sites
    contaminated with hazardous substances with the highest priority
    for
clean-up
under the CERCLA. Based
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on its investigation, the EPA concluded no further investigation
    was warranted and that the site was not required to be listed on
    the NPL. The Navajo Environmental Protection Agency now has
    primary jurisdiction over the Aneth Gas Processing Plant site,
    however, and Resolute cannot predict whether it will require
    further investigation and possible
clean-up,
and the ultimate cleanup liability may be affected by the recent
    enactment by the Navajo Nation of a Navajo CERCLA. In some
    matters, the Navajo CERCLA imposes broader obligations and
    liabilities than the federal CERCLA. Resolute has been advised
    by Chevron that a significant portion of the subsurface
clean-up
or
    remediation costs, if any, would be covered by an indemnity from
    the prior owner of the plant, and Chevron has provided Resolute
    with a copy of the pertinent purchase agreement that appears to
    support its position. Resolute cannot predict whether any
    subsurface remediation will be required or what the costs of the
    subsurface
clean-up
or
    remediation could be. Additionally, it cannot be certain whether
    any of such costs will be reimbursable to it pursuant to the
    indemnity of the prior owner. To the extent any such costs are
    incurred and not reimbursed pursuant to the indemnity from the
    prior owner, Resolute would be liable for 25% of such costs as a
    result of its acquisition of the ExxonMobil Properties. Please
    read "
Resolute's Business — Aneth Gas
    Processing Plant
" for additional information about this
    liability.
Strict or joint and several liability to remediate contamination
    may be imposed under environmental laws, which could cause
    Resolute to become liable for the conduct of others or for
    consequences of its own actions that were in compliance with all
    applicable laws at the time those actions were taken. New or
    modified environmental, health or safety laws, regulations or
    enforcement policies could be more stringent and impose
    unforeseen liabilities or significantly increase compliance
    costs. Please read "
Resolute's Business —
    Environmental, Health and Safety Matters and
    Regulation
" for more information.
Resolute may
    be unable to compete effectively with larger companies, which
    may adversely affect its operations and ability to generate and
    maintain sufficient revenue.
The oil and gas industry is intensely competitive, and Resolute
    competes with companies that have greater resources. Many of
    these companies not only explore for and produce oil and gas,
    but also refine and market petroleum and other products on a
    regional, national or worldwide basis. These companies may be
    able to pay more for oil and gas properties and exploratory
    prospects or identify, evaluate, bid for and purchase a greater
    number of properties and prospects than Resolute's
    financial or human resources permit. In addition, these
    companies may have a greater ability to continue exploration or
    exploitation activities during periods of low oil and gas market
    prices. Resolute's larger competitors may be able to absorb
    the burden of present and future federal, state, local and other
    laws and regulations more easily than Resolute can, which would
    adversely affect Resolute's competitive position.
    Resolute's ability to acquire additional properties and to
    discover reserves in the future will depend upon its ability to
    evaluate and select suitable properties and to consummate
    transactions in this highly competitive environment.
Resolute is
    subject to complex federal, state, tribal, local and other laws
    and regulations that could adversely affect the cost, manner or
    feasibility of doing business.
Exploration, exploitation, development, production and marketing
    operations in the oil and gas industry are regulated extensively
    at the federal, state and local levels. In addition,
    substantially all of Resolute's current leases in the Aneth
    Field are regulated by the Navajo Nation. Some of its future
    leases may be regulated by Native American tribes. Environmental
    and other governmental laws and regulations have increased the
    costs to plan, design, drill, install, operate and properly
    abandon oil and gas wells and other recovery operations. Under
    these laws and regulations, Resolute could also be liable for
    personal injuries, property damage and other damages. Failure to
    comply with these laws and regulations may result in the
    suspension or termination of Resolute's operations or
    denial or revocation of permits and subject Resolute to
    administrative, civil and criminal penalties. In addition, the
    President's budget and other legislative proposals would
    terminate various tax deductions currently available to
    companies engaged in oil and gas development and production. Tax
    deductions that are proposed to be terminated include the
    deduction for intangible drilling and development costs, the
    deduction for qualified tertiary injectant expenses, and the
    domestic manufacturing deduction. If enacted, the elimination of
    these deductions will adversely affect our business.
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Part of the regulatory environment in which Resolute operates
    includes, in some cases, federal requirements for obtaining
    environmental assessments, environmental impact statements
and/or
plans
    of development before commencing exploration and production
    activities. In addition, Resolute's activities are subject
    to regulation by oil and gas producing states and the Navajo
    Nation regarding conservation practices, protection of
    correlative rights and other concerns. These regulations affect
    Resolute's operations and could limit the quantity of oil
    and gas it may produce and sell. A risk inherent in
    Resolute's
    CO
2
flood project is the need to obtain permits from federal, state,
    local and Navajo Nation tribal authorities. Delays or failures
    in obtaining regulatory approvals or permits or the receipt of
    an approval or permit with unreasonable conditions or costs
    could have a material adverse effect on Resolute's ability
    to exploit its properties. Additionally, the oil and gas
    regulatory environment could change in ways that might
    substantially increase the financial and managerial costs to
    comply with the requirements of these laws and regulations and,
    consequently, adversely affect Resolute's profitability.
    Proposed GHG, or GHG, reporting rules, and proposed GHG cap and
    trade legislation are two examples of proposed changes in the
    regulatory climate that would affect Resolute. Furthermore,
    Resolute may be placed at a competitive disadvantage to larger
    companies in the industry, which can spread these additional
    costs over a greater number of wells and larger operating staff.
    Please read "
Resolute's Business —
    Environmental, Health and Safety Matters and
    Regulation
" and "
Resolute's
    Business — Other Regulation of the Oil and Gas
    Industry
" for a description of the laws and regulations
    that affect Resolute.
Possible
    regulation related to global warming and climate change could
    have an adverse effect on Resolute's operations and demand
    for oil and gas.
Recent scientific studies have suggested that emissions of GHG
    including
    CO
2
and methane, may be contributing to warming of the Earth's
    atmosphere. In response to such studies, the U.S. Congress
    is considering legislation to reduce emissions of GHG. In
    addition, several states have already taken legal measures to
    reduce emissions of GHG. As a result of the U.S. Supreme
    Court's decision on April 2, 2007, in
Massachusetts, et al. v. EPA
, the EPA also may be
    required to regulate GHG emissions from mobile sources (e.g.
    cars and trucks) even if Congress does not adopt new legislation
    specifically addressing emissions of GHG. Other nations have
    already agreed to regulate emissions of GHG, pursuant to the
    United Nations Framework Convention on Climate Change, and the
    subsequent "Kyoto Protocol," an international treaty
    pursuant to which participating countries (not including the
    United States) have agreed to reduce their emissions of GHG to
    below 1990 levels by 2012. Passage of state or federal climate
    control legislation or other regulatory initiatives or the
    adoption of regulations by the EPA and state agencies that
    restrict emissions of GHG in areas in which Resolute conducts
    business could have an adverse effect on Resolute's
    operations and demand for oil and gas.
Resolute
    depends on a limited number of key personnel who would be
    difficult to replace.
Resolute depends substantially on the performance of its
    executive officers and other key employees. Resolute has not
    entered into any employment agreements with any of these
    employees, and Resolute does not maintain key person life
    insurance policies on any of these employees. The loss of any
    member of the senior management team or other key employees
    could negatively affect Resolute's ability to execute its
    business strategy.
Terrorist
    attacks aimed at Resolute's facilities or operations could
    adversely affect its business.
The United States has been the target of terrorist attacks of
    unprecedented scale. The U.S. government has issued
    warnings that U.S. energy assets may be the future targets
    of terrorist organizations. These developments have subjected
    Resolute's operations to increased risks. Any terrorist
    attack at Resolute's facilities, or those of its customers
    or suppliers, could have a material adverse effect on
    Resolute's business.
Work stoppages
    or other labor issues at Resolute's facilities could
    adversely affect its business, financial position, results of
    operations, or cash flows.
As of December 31, 2009, approximately 40 of
    Resolute's field level employees were represented by the
    United Steel, Paper and Forestry, Rubber, Manufacturing, Energy,
    Allied Industrial and Service Workers International Union, and
    covered by a collective bargaining agreement. Although Resolute
    believes that its relations with its employees are generally
    satisfactory, if Resolute is unable to reach agreement with any
    of its unionized work
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groups on future negotiations regarding the terms of their
    collective bargaining agreements, or if additional segments of
    Resolute's workforce become unionized, Resolute may be
    subject to work interruptions or stoppages. Work stoppages at
    the facilities of Resolute's customers or suppliers may
    also negatively affect Resolute's business. If any of
    Resolute's customers experience a material work stoppage,
    the customer may halt or limit the purchase of Resolute's
    products. Moreover, if any of Resolute's suppliers
    experience a work stoppage, its operations could be adversely
    affected if an alternative source of supply is not readily
    available. Any of these events could be disruptive to
    Resolute's operations and could adversely affect its
    business, financial position, results of operations, or cash
    flows.
Resolute may
    be required to write down the carrying value of its properties
    in the future.
Resolute uses the full cost accounting method for oil and gas
    exploitation, development and exploration activities. Under the
    full cost method rules, Resolute performs a ceiling test and if
    the net capitalized costs for a cost center exceed the ceiling
    for the relevant properties, it writes down the book value of
    the properties. Accordingly, Resolute could recognize
    impairments in the future if oil and gas prices are low, if
    Resolute has substantial downward adjustments to its estimated
    proved reserves, if Resolute experiences increases in its
    estimates of development costs or deterioration in its
    exploration and development results.
At December 31, 2009, using its year-end reserve estimates
    prepared in accordance with the recently promulgated SEC rules,
    total capitalized costs exceeded the full cost ceiling by
    approximately $150 million. No impairment expense was
    recorded at December 31, 2009, as the Company requested and
    received an exemption from the SEC to exclude the Resolute
    Transaction from the full cost ceiling assessment for a period
    of twelve months following the acquisition, provided the Company
    can demonstrate that the fair value of the acquired properties
    exceed the carrying value in the interim periods through
    June 30, 2010.
At the time of the Resolute Transaction, Resolute valued the
    properties using NYMEX forward strip prices for a period of five
    years and then held prices flat thereafter. The Company also
    used various discount rates and other risk factors depending on
    the classification of reserves. Management believes this
    internal pricing model reflected the fair value of the assets
    acquired. Under full cost ceiling test rules, the commodity
    price utilized was equal to the twelve-month unweighted
    arithmetic average of first day of the month prices, resulting
    in an average NYMEX oil price of $61.18 per barrel of oil and an
    average Henry Hub spot market price of gas of $3.87 per MMBtu of
    gas, which may not be indicative of actual fair market values.
The request for exemption was made because the Company believes
    that the fair value of the Resolute Transaction properties can
    be demonstrated beyond a reasonable doubt to exceed unamortized
    cost. Management continues to believe that its internal model
    utilizing NYMEX strip prices continues to reflect the fair value
    of these reserves and clearly exceeds carrying value at
    December 31, 2009.
While commodity prices have increased since September 30,
    2009, Resolute recognizes that due to volatility associated with
    oil and gas prices, a downward trend could occur. If such a case
    were to occur and is deemed to be other than temporary, Resolute
    would assess Resolute's properties for impairment during
    the requested exemption period. Further, if Resolute cannot
    demonstrate that fair value exceeds the unamortized carrying
    costs during the exemption periods, it will recognize impairment.
Compliance
    with the Sarbanes-Oxley Act of 2002 and other obligations of
    being a public company will require substantial financial and
    management resources.
Section 404 of the Sarbanes-Oxley Act of 2002, or the
    Sarbanes-Oxley Act, will require that the Company implement,
    evaluate and report on its system of internal controls. If the
    Company fails to implement and maintain the adequacy of its
    internal controls, it could be subject to regulatory scrutiny,
    civil or criminal penalties
and/or
stockholder litigation. Any inability to provide reliable
    financial reports could harm the Company's business.
    Section 404 of the Sarbanes-Oxley Act also requires that
    the Company's independent registered public accounting firm
    report on management's evaluation of the Company's
    system of internal controls. In addition, as a newly public
    company, Resolute has been required to assume additional
    reporting and disclosure responsibilities, which will require
    the hiring of additional personnel and the establishment of
    additional systems. Any failure to implement required new or
    improved controls or systems, or difficulties encountered in the
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implementation of adequate controls over its financial processes
    and reporting and disclosures in the future, could harm the
    Company's operating results or cause the Company to fail to
    meet its reporting obligations. Inferior internal controls could
    also cause investors to lose confidence in the Company's
    reported financial information, which could have a negative
    effect on the trading price of the shares of Company common
    stock.
ITEM 3.
LEGAL
    PROCEEDINGS
Legal
    Proceedings
In February of 2008, Resolute and, separately, the Navajo Nation
    and NNOG, filed Protests and Motions for Intervention with FERC
    objecting to a February 8, 2008, tariff filing by Western
    Refining Pipeline Company, a subsidiary of Western Refining,
    Inc. The filing was with respect to service on the 16 inch
    diameter Tex-New Mex Crude Oil Pipeline that runs from Jal, New
    Mexico to a pipeline terminal known as Bisti, south of
    Farmington, New Mexico. Resolute, the Navajo Nation and NNOG
    complained that Western was using the pipeline to implement an
    anti-competitive market scheme designed to drive down the price
    of crude oil in the Four Corners area in violation of the
    Interstate Commerce Act. FERC ruled that the protesting parties
    lacked standing to intervene. In August of 2008, Resolute
    appealed the FERC order to the United States Court of Appeals
    for the District of Columbia Circuit. On February 26, 2010,
    the court decided that the FERC order was not reviewable and
    dismissed the appeal. Resolute has not decided whether it will
    take further action on this matter.
Resolute is not a party to any other material pending legal or
    governmental proceedings, other than ordinary routine litigation
    incidental to its business. While the ultimate outcome and
    impact of any proceeding cannot be predicted with certainty,
    Resolute's management believes that the resolution of any
    of its pending proceedings will not have a material adverse
    effect on its financial condition or results of operations.
ITEM 4.
SUBMISSION
    OF MATTERS TO A VOTE OF SECURITY HOLDERS
Not Applicable
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PART II
ITEM 5.
MARKET
    FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS
    AND ISSUER PURCHASES OF EQUITY SECURITIES
Price Range of
    Common Stock and Number of Holders
Resolute's common stock is listed on the New York Stock
    Exchange under the symbol "REN".
The following table sets forth the high and the low sale prices
    per share of Resolute's common stock for the period from
    September 28, 2009 (inception) through December 31,
    2009. The closing price of the common stock on March 29,
    2010 was $12.21
2009
Period
High
Low
3rd Quarter
$
10.60
$
9.72
4th Quarter
$
11.79
$
10.12
As of March 29, 2010, there were approximately 80 record
    holders of Resolute's common stock.
Resolute's warrants are listed on the New York Stock
    Exchange under the symbol "RENWS".
The following table sets forth the high and the low sale prices
    per share of Resolute's warrants for the period from
    September 28, 2009 (inception) through December 31,
    2009. The closing price of the warrants on March 29, 2010
    was $2.46.
2009
Period
High
Low
3rd Quarter
$
1.65
$
1.00
4th Quarter
$
2.38
$
1.40
Unregistered
    Sales of Equity Securities
Not applicable.
Dividend
    Policy
Resolute has not declared any cash dividends on its common stock
    since inception and has no plans to do so in the foreseeable
    future. The ability of Resolute's Board of Directors to
    declare any dividend is subject to limits imposed by the terms
    of its credit agreement, which currently prohibit Resolute from
    paying dividends on its common stock. Resolute's ability to
    pay dividends is also subject to limits imposed by Delaware law.
    In determining whether to declare dividends, the Board of
    Directors will consider the limits imposed by credit agreement,
    financial condition, results of operations, working capital
    requirements, future prospects and other factors it considers
    relevant.
Comparison of
    Cumulative Return
The following graph compares the cumulative return on a $100
    investment in Resolute common stock from September 28,
    2009, the date the common stock began trading on the New York
    Stock Exchange, through December 31, 2009, to that of the
    cumulative return on a $100 investment in the Russell 2000 Index
    and the S&P 500 Energy Index for the same period. In
    calculating the cumulative return, reinvestment of dividends, if
    any, is assumed. The indices are included for comparative
    purpose only. This graph is not "soliciting material,"
    is not deemed filed with the SEC and is not to be incorporated
    by reference in any of our filings under the Securities Act of
    1933 or the Exchange Act, whether made before or after the date
    hereof and irrespective of any general incorporation language in
    any such filing.
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COMPARISON OF
    CUMULATIVE TOTAL RETURN
AMONG RESOLUTE ENERGY CORPORATION, THE RUSSELL 2000 INDEX,
AND THE S&P 500 ENERGY INDEX
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ITEM 6.
SELECTED
    FINANCIAL DATA
The following table presents Resolute's selected historical
    financial data for the years ended December 31, 2009 and
    2008 and for the period from inception in 2007 to
    December 31, 2007. The consolidated balance sheet and
    income statement information are derived from Resolute's
    audited financial statements included elsewhere in this report.
    HACI was the accounting acquirer and, accordingly, the
    historical financial data below reflects HACI since its
    inception in 2007. Results of oil and gas operations are
    reflected from the date of the Resolute Transaction in September
    2009. Future results may differ substantially from historical
    results because of changes in oil and gas prices, production
    increases or declines and other factors. This information should
    be read in conjunction with the consolidated financial
    statements and notes thereto and
"Item 7
    Management's Discussion and Analysis of Financial Condition
    and Results of Operations"
presented elsewhere in this
    Annual Report on
Form 10-K.
The discussion in Item 7 regarding the Resolute Transaction
    affects the comparability of the information provided in this
    Selected Financial Data.
Year Ended December 31,
2009
2008
2007
(in thousands, except per share data)
Statement of Operation Data:
Revenue
$
42,416
$
—
$
—
Operating expenses
(57,361
)
(1,560
)
(1,036
)
Loss from operations
(14,945
)
(1,560
)
(1,036
)
Other (expense) income
(50,185
)
7,601
5,154
(Loss) income before taxes
(65,130
)
6,041
4,118
Income tax benefit (expense)
19,887
(2,054
)
(1,401
)
Net (loss) income
(45,243
)
3,987
2,717
Basic and diluted (loss) earnings per share:
Common stock, subject to redemption
$
(0.16
)
$
0.09
$
0.06
Common stock
$
(0.93
)
$
0.06
$
0.09
Weighted average shares outstanding:
Common stock, subject to redemption
12,114
16,560
16,560
Common stock
46,394
45,105
18,587
Selected Cash Flow Data:
Net cash (used in) provided by operating activities
$
(12,164
)
$
3,031
$
5,164
Net cash provided by (used in) investing activities
209,987
(2,264
)
(541,302
)
Net cash (used in) provided by financing activities
(198,187
)
—
536,190
As of December 31,
2009
2008
2007
(In thousands)
Balance Sheet Data:
Total assets
$
693,440
$
544,797
$
541,842
Long term debt
109,575
—
—
Total liabilities
299,903
19,291
20,322
Shareholders' equity
393,537
362,199
359,702
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ITEM 7.
MANAGEMENT'S
    DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
    OPERATIONS
References to the "Company," "us" or
    "we" refer to Resolute Energy Corporation
    ("Resolute"), a corporation formed to consummate a
    business combination between Hicks Acquisition Company I,
    Inc. ("HACI"), Resolute and Resolute Holdings Sub,
    LLC. "Predecessor Resolute" refers to the companies
    acquired by Resolute in the Resolute Transaction, as defined
    below, with respect to their operations prior to
    September 25, 2009, the date of the Resolute Transaction.
    The following discussion and analysis should be read in
    conjunction with the consolidated financial statements and the
    notes thereto contained elsewhere in this report. Due to the
    nature of the Resolute Transaction, two sets of financial
    statements are presented in this report. The first set covers
    the reporting company, Resolute, including a pro forma
    presentation of Resolute giving effect to the Resolute
    Transaction and the acquisition of a net profits interest of RWI
    (defined below) as if they had occurred on January 1, 2008.
    The second set covers the predecessor company, Predecessor
    Resolute, through September 24, 2009. This discussion is
    presented in two parts, the first relating to the business of
    Resolute, and the second setting forth comparative data with
    respect to Predecessor Resolute.
RESOLUTE
    ENERGY CORPORATION
The following section of MD&A addresses the business of
    Resolute, the Resolute Transaction, how Resolute evaluates its
    operations, factors that affect Resolute's operations and
    the results of operations, liquidity and capital resources of
    Resolute as the successor to HACI. HACI was the accounting
    acquirer in the Resolute financial statements presented herein.
    As such, the Resolute financial statements reflect the
    operations of HACI on a stand-alone basis prior to
    September 25, 2009, the date of closing of the Resolute
    Transaction, and reflect Predecessor Resolute's operations
    as part of Resolute for the period from September 25, 2009,
    through December 31, 2009.
Overview
Resolute is an independent oil and gas company engaged in the
    acquisition, exploration, development and production of oil, gas
    and hydrocarbon liquids. Resolute's strategy is to grow
    through exploration, exploitation and industry standard enhanced
    oil recovery projects.
As of December 31, 2009, Resolute's estimated net
    proved reserves were approximately 64 million equivalent
    barrels of oil ("MMBoe"), of which approximately 54%
    were proved developed reserves and approximately 77% were oil.
    The standardized measure of Resolute's estimated net proved
    reserves as of December 31, 2009, was $361 million.
    See Note 15 to the Consolidated Financial Statements.
Resolute focuses its efforts on increasing reserves and
    production while controlling costs at a level that is
    appropriate for long-term operations. Resolute's future
    earnings and cash flow from existing operations are dependent on
    a variety of factors including commodity prices, exploitation
    and recovery activities and its ability to manage its overall
    cost structure at a level that allows for profitable production.
The
    Resolute Transaction
On September 25, 2009 (the "Acquisition Date"),
    Resolute consummated a business combination under the terms of a
    Purchase and IPO Reorganization Agreement dated as of
    August 2, 2009 (the "Acquisition Agreement") by
    and among us, HACI, Resolute Holdings Sub, LLC
    ("Sub"), Resolute Subsidiary Corporation, a
    wholly-owned subsidiary of Resolute ("Merger Sub"),
    Resolute Aneth, LLC, a subsidiary of Sub ("Aneth"),
    Resolute Holdings, LLC and HH-HACI, L.P. (the
    "Sponsor"), pursuant to which HACI stockholders
    acquired a majority of the outstanding shares of capital stock
    of Resolute and Resolute acquired all of the operating companies
    previously owned by Sub (the "Resolute Transaction").
    Prior to September 25, 2009, HACI was a blank check company
    formed for the purpose of acquiring, or acquiring control of,
    through a merger, capital stock exchange, asset acquisition,
    stock purchase, reorganization or similar business combination
    one or more businesses or assets.
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As a result of the Resolute Transaction, through a series of
    transactions, shareholders of HACI common stock, par value
    $0.0001 per share, acquired approximately 82% of the outstanding
    shares of Resolute common stock, par value $0.0001 per share
    ("Resolute common stock"), and Sub owned approximately
    18% of the outstanding Resolute common stock, excluding, in each
    case, warrants, options and the Resolute Earnout Shares (as
    defined below). HACI transferred $327 million remaining in
    its trust account, after payment of expenses of $11 million
    and redemption of HACI common stock and warrants in the amount
    of $201 million, to Aneth in exchange for a membership
    interest in Aneth. Sub then contributed its direct and indirect
    ownership interests in its operating subsidiaries to HACI.
    Merger Sub merged with and into HACI, with HACI surviving the
    merger and continuing as a wholly-owned subsidiary of Resolute.
    As required by the Acquisition Agreement, the $327 million
    was used to repay amounts owed under Aneth's credit
    facilities.
In exchange for Sub's contribution of its operating
    subsidiaries and as a result of the other transactions
    contemplated by the Acquisition Agreement, Sub acquired
    (i) 9,200,000 shares of Resolute common stock,
    (ii) 4,600,000 warrants to purchase Resolute common stock
    at a price of $13.00 per share, with a five year life and
    subject to a trigger price of $13.75 per share (the
    "Resolute Founders Warrants"), (iii) 2,333,333
    warrants to purchase Resolute common stock at a price of $13.00
    per share, with a five year life (the "Resolute Sponsors
    Warrants"), and (iv) 1,385,000 shares of Resolute
    common stock subject to forfeiture in the event a trigger price
    of $15.00 is not exceeded within five years following the
    closing of the Resolute Transaction and that have no economic
    rights until such trigger is met (the "Resolute Earnout
    Shares"). Of the 9,200,000 shares of Resolute common
    stock issuable to Sub, 200,000 were issued to employees of
    Predecessor Resolute who became employees of Resolute upon
    closing of the Resolute Transaction in recognition of their
    services. 100,000 shares vested immediately and the
    remaining 100,000 shares will vest on the one year
    anniversary of the Acquisition Date, provided the recipient
    remains employed by the Company on that date. At the effective
    time of the Resolute Transaction, each outstanding share of HACI
    common stock was converted into the right to receive one share
    of Resolute common stock.
In connection with the Resolute Transaction,
    7,335,000 shares of HACI's common stock and 4,600,000
    warrants to purchase HACI common stock held by the Sponsor were
    cancelled and forfeited and an additional 1,865,000 shares
    held by the Sponsor were converted into 1,865,000 Resolute
    Earnout Shares. As a result of the consummation of the Resolute
    Transaction, the Sponsor, together with its initial pre-public
    offering stockholders, owned (i) 4,600,000 shares of
    Resolute common stock, (ii) 9,200,000 Resolute Founders
    Warrants, (iii) 4,666,667 Resolute Sponsors Warrants, and
    (iv) 1,865,000 Resolute Earnout Shares.
At the effective time of the Resolute Transaction, each of the
    55,200,000 outstanding warrants that were issued in HACI's
    initial public offering (the "Public Warrants") was
    converted, at the election of the warrantholder, into either
    (i) the right to receive $0.55 in cash or (ii) when
    properly tendered, the right to receive one warrant to purchase
    one share of Resolute common stock (a "Resolute
    Warrant") at a exercise price of $13.00, subject to
    adjustment. The number of total Resolute Warrants was limited to
    27,600,000. Warrants that were voted against the Warrant
    Amendment (as defined below) were, at the effective time of the
    Resolute Transaction, converted into the right to receive $0.55
    in cash. Because more than 50% of the HACI warrantholders
    elected to receive Resolute Warrants, the properly voted and
    tendered warrants were exchanged pro rata. The Resolute Warrants
    have a five year life and are subject to redemption upon
    30 days prior notice (as defined) at $.01 per Resolute
    Warrant, at the Company's option, when the price of
    Resolute's common stock equals or exceed $18.00 per share
    for a specified period.
How
    Resolute Evaluates Its Operations
Resolute's management uses a variety of financial and
    operational measurements to analyze its operating performance.
    These measurements include: (i) production levels, trends
    and prices, (ii) reserve and production volumes and trends,
    (iii) operating expenses and general and administrative
    expenses, (iv) operating cash flow, and (v) EBITDA.
Production Levels, Trends and Prices.
Oil and gas
    revenue is the product of Resolute's production multiplied
    by the price that it receives for that production. Because the
    price that Resolute receives is highly dependent on many factors
    outside of its control, except to the extent that it has entered
    into hedging arrangements that can influence its net price
    either positively or negatively, production is the primary
    revenue driver over which it has
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some influence. Although Resolute cannot greatly alter reservoir
    performance, it can aggressively implement exploitation
    activities that can increase production or diminish production
    declines relative to what would have been the case without
    intervention. Examples of activities that can positively
    influence production include minimizing production downtime due
    to equipment malfunction, well workovers and cleanouts,
    recompletions of existing wells in new parts of the reservoir,
    and expanded secondary and tertiary recovery programs. Total
    production for 2010 is expected to be between 2.7 and
    2.8 MMBoe, or an average of 7,400 to 7,700 Boe per day.
The price of crude oil has been extremely volatile, and Resolute
    expects that this volatility will continue. Given the inherent
    volatility of crude oil prices, Resolute plans its activities
    and budget based on sales price assumptions that it believes to
    be reasonable. Resolute uses hedging arrangements to provide a
    measure of stability to its cash flows in an environment of
    volatile oil and gas prices. These instruments limit its
    exposure to declines in prices, but also limit its expected
    benefits if prices increase. Changes in the price of oil or gas
    will result in the recognition of a non-cash gain or loss
    recorded in other income or expense due to changes in the fair
    value of the hedging arrangements. Recognized gains or losses
    only arise from payments made or received on monthly settlements
    of contracts or if a contract is terminated prior to its
    expiration. Resolute typically enters into hedging arrangements
    that cover a significant portion of its estimated future oil and
    gas production. Resolute currently has such hedging arrangements
    in place through 2012, with lesser volumes hedged in 2013.
    Resolute has oil and gas derivatives in place for 2010 covering
    the aggregate average daily oil volumes of 3,850 barrels of
    oil at NYMEX weighted average prices of $69.19; daily gas
    volumes of 3,800 MMBtu at NYMEX weighted average prices of
    $9.69; and 1,800 MMBtu per day of CIG basis gas hedges at
    $2.10 per MMBtu. These derivatives provide price protection on
    an estimated 66% at the midpoint of previously announced
    guidance relating to 2010 oil production and 55% at the midpoint
    of previously announced guidance relating to 2010 gas production.
Reserve and Production Volumes and Trends.
From
    inception, Predecessor Resolute grew its reserve base through a
    focused acquisition strategy, completing three significant
    acquisitions. Predecessor Resolute acquired substantially all of
    its Aneth Field Properties through two significant purchases:
    the acquisition of the Chevron Properties was completed in
    November 2004 followed by the acquisition of the ExxonMobil
    Properties in April 2006. Predecessor Resolute acquired all of
    its Wyoming Properties through the purchase of Primary Natural
    Resources, Inc. (now known as Resolute Wyoming, Inc.
    ("RWI")) in July 2008. Resolute looks to acquire
    similar producing properties that have upside potential through
    low-risk development drilling and exploitation projects.
    Resolute believes that its knowledge of various domestic, on
    shore operating areas, strong management and staff and solid
    industry relationships will allow it to find, capitalize on and
    integrate strategic acquisition opportunities.
At December 31, 2009, Resolute had estimated net proved
    reserves of approximately 42 MMBoe that were classified as
    proved developed non-producing and proved undeveloped. An
    estimated 40 MMBoe, or 95%, of those reserves are
    attributable to recoveries associated with expansions,
    extensions and processing of the tertiary recovery
    CO
2
floods that are currently in operation on Resolute's Aneth
    Field Properties. Resolute expects to incur approximately
    $377 million of capital expenditures over the next
    28 years (including purchases of
    CO
2
under existing contracts), in connection with bringing those
    incremental reserves attributable to Resolute's
    CO
2
flood projects into production. Resolute believes that these
    expenditures will result in significant increases in its oil and
    gas production.
Operating Expenses.
Operating expenses are costs
    associated with the operation of oil and gas properties and are
    classified as lease operating expenses and production and ad
    valorem taxes. Direct labor, repair and maintenance, workovers,
    utilities and contract services comprise the most significant
    portion of lease operating expenses. Resolute monitors its
    operating expenses in relation to the amount of production and
    the number of wells operated. Some of these expenses are
    relatively independent of the volume of hydrocarbons produced,
    but may fluctuate depending on the activities performed during a
    specific period. Other expenses, such as taxes and utility
    costs, are more directly related to production volumes or
    reserves. Severance taxes, for example, are charged based on
    production revenue and therefore are based on the product of the
    volumes that are sold and the price received therefor. Ad
    valorem taxes are based on the value of reserves. Because
    Resolute operates on the Navajo Reservation, it also pays a
    possessory interest tax, which is effectively an ad valorem tax
    assessed by the Navajo Nation. Resolute's largest utility
    expense is for electricity that is used primarily to power the
    pumps
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in producing wells and the compressors behind the injection
    wells. The more fluid that is moved, the greater the amount of
    electricity that is consumed. In the recent past, higher oil
    prices led to higher demand for drilling rigs, workover rigs,
    operating personnel and field supplies and services, which in
    turn caused increases in the costs of those goods and services.
    Resolute projects 2010 cash lease operating expenses of $17.75
    to $18.25 per Boe of production. Production taxes for 2010 are
    expected to be 13.5% to 14.5% of 2010 production revenue.
General and Administrative Expenses.
Resolute
    monitors its general and administrative expenses carefully,
    attempting to balance the cash effect of incurring general and
    administrative costs against the benefits of, among other
    things, hiring and retaining highly qualified staff who can add
    value to the Company's asset base. In the current period
    the Company's general and administrative expenses were
    high, primarily due to costs incurred in consummating the
    Resolute Transaction. In future periods, absent other
    transactions, Resolute anticipates that general and
    administrative costs will be significantly lower. However,
    management anticipates that, effective with the Resolute
    Transaction, the Company will incur material additional annual
    general and administrative expenses that are associated with
    being a publicly traded company. These expenses include
    compensation and benefit expenses of certain additional
    personnel, increased fees paid to independent auditors, lawyers,
    independent petroleum engineers and other professional advisors,
    costs associated with shareholder reports, investor relations
    activities, registrar and transfer agent fees, increased
    director and officer liability insurance costs and director
    compensation. Resolute expects G&A expense will be $3.00 to
    $3.50 per Boe of production, excluding non-cash stock-based
    compensation expense.
Operating Cash Flow.
Operating cash flow is the cash
    directly derived from Resolute's oil and gas properties,
    before considering such things as administrative expenses and
    interest costs. Operating cash flow on a per unit of production
    basis is a measure of field efficiency, and can be compared to
    results obtained by operators of oil and gas properties with
    characteristics similar to Resolute's to evaluate relative
    performance. Aggregate operating cash flow is a measure of
    Resolute's ability to sustain overhead expenses and costs
    related to capital structure, including interest expenses.
EBITDA.
EBITDA (a non-GAAP measure) is defined by
    the Company as consolidated net income adjusted to exclude
    interest expense, interest income, income taxes, depletion,
    depreciation and amortization, impairment expense, accretion of
    asset retirement obligation, change in fair value of derivative
    instruments, expiration of puts, non-cash equity-based
    compensation expense and noncontrolling interest. This
    definition is consistent with the definition of EBITDA in
    Resolute's existing credit agreement. EBITDA is also a
    financial measure that Resolute expects will be reported to its
    lenders and used as a gauge for compliance with some of the
    financial covenants under its revolving credit facility.
EBITDA is used as a supplemental liquidity or performance
    measure by Resolute's management and by external users of
    its financial statements such as investors, commercial banks,
    research analysts and others, to assess:
•
the ability of Resolute's assets to generate cash
    sufficient to pay interest costs;
•
the financial metrics that support Resolute's indebtedness;
•
Resolute's ability to finance capital expenditures;
•
financial performance of the assets without regard to financing
    methods, capital structure or historical cost basis;
•
Resolute's operating performance and return on capital as
    compared to those of other companies in the exploration and
    production industry, without regard to financing methods or
    capital structure; and
•
the viability of acquisitions and capital expenditure projects
    and the overall rates of return on alternative investment
    opportunities.
EBITDA should not be considered an alternative to, or more
    meaningful than, net income, operating income, cash flows from
    operating activities or any other measure of financial
    performance presented in accordance with GAAP as measures of
    operating performance, liquidity or ability to service debt
    obligations. Because Resolute has borrowed money to finance its
    operations, interest expense is a necessary element of its costs
    and its ability to generate gross margins. Because Resolute uses
    capital assets, depletion, depreciation and amortization are
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also necessary elements of its costs. Therefore, any measures
    that exclude these elements have material limitations. To
    compensate for these limitations, Resolute believes that it is
    important to consider both net income and net cash provided by
    operating activities determined under GAAP, as well as EBITDA,
    to evaluate its financial performance and liquidity. EBITDA
    excludes some, but not all, items that affect net income,
    operating income and net cash provided by operating activities
    and these measures may vary among companies. Resolute's
    EBITDA may not be comparable to EBITDA or EBITDA of any other
    company because other entities may not calculate these measures
    in the same manner.
Factors
    That Significantly Affect Resolute's Financial
    Results
Revenue, cash flow from operations and future growth depend
    substantially on factors beyond Resolute's control, such as
    economic, political and regulatory developments and competition
    from other sources of energy. Crude oil prices have historically
    been volatile and may be expected to fluctuate widely in the
    future. Sustained periods of low prices for crude oil could
    materially and adversely affect Resolute's financial
    position, its results of operations, the quantities of oil and
    gas that it can economically produce, and its ability to obtain
    capital.
Like all businesses engaged in the exploration for and
    production of oil and gas, Resolute faces the challenge of
    natural production declines. As initial reservoir pressures are
    depleted, oil and gas production from a given well decreases.
    Thus, an oil and gas exploration and production company depletes
    part of its asset base with each unit of oil or gas it produces.
    Resolute attempts to overcome this natural decline by
    implementing secondary and tertiary recovery techniques and by
    acquiring more reserves than it produces. Resolute's future
    growth will depend on its ability to enhance production levels
    from existing reserves and to continue to add reserves in excess
    of production. Resolute will maintain its focus on costs
    necessary to produce its reserves as well as the costs necessary
    to add reserves through production enhancement, drilling and
    acquisitions. Resolute's ability to make capital
    expenditures to increase production from existing reserves and
    to acquire more reserves is dependent on availability of capital
    resources, and can be limited by many factors, including the
    ability to obtain capital in a cost-effective manner and to
    timely obtain permits and regulatory approvals.
Results of
    Operations
Through September 24, 2009, HACI's efforts had been
    primarily limited to organizational activities, activities
    relating to its initial public offering, activities relating to
    identifying and evaluating prospective acquisition candidates,
    and activities relating to general corporate matters; HACI had
    not generated any revenue, other than interest income earned on
    the proceeds of its initial public offering.
For the purposes of management's discussion and analysis of
    results of operations of Resolute, management has analyzed the
    year ended December 31, 2009, in comparison to the year
    ended December 31, 2008, for HACI. Any references to the
    2009 or 2008 period refer to these specific periods and
    companies. However, as a result of the Resolute Transaction, the
    2009 period includes 98 days of oil and gas operations,
    while the 2008 period has no such activity.
Key measurements for the year ended December 31, 2009 were
    as follows:
Year Ended
December 31, 2009
Net Sales:
Total sales (Boe)
702,849
Average daily sales (Boe/d)
7,172
Average Sales Prices ($/Boe):
Average sales price (excluding derivative settlements)
$
60.35
Average sales price (including derivative settlements)
$
55.80
Expense per Boe:
Lease operating expenses
$
31.29
General and administrative expenses
$
33.90
Depletion, depreciation, amortization and accretion
$
16.42
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Subsequent to the Acquisition Date, the results of operations
    include Resolute and its subsidiaries (including HACI). For the
    year ended December 31, 2009, Resolute had a loss before
    income taxes of $65.1 million, a decrease of
    $71.1 million, as compared to income before income taxes of
    approximately $6.0 million for the year ended
    December 31, 2008. The decrease is primarily attributable
    to $16.6 million of Resolute Transaction costs,
    $46.3 million of unrealized losses related to the change in
    the fair value of our derivative instruments and a
    $6.8 million decrease in interest income during the year
    ended December 31, 2009. For the year ended
    December 31, 2009, Resolute earned approximately
    $0.8 million in interest income, as compared to
    $7.6 million in 2008. Interest income decreased in 2009 due
    to a decrease in cash and cash equivalents and cash held in
    trust, as well as a decrease in interest rates as a result of
    market conditions.
For the year ended December 31, 2008, Resolute had income
    before income taxes of approximately $6.0 million, an
    increase of $1.9 million as compared to income before
    income taxes of $4.1 million for the year ended
    December 31, 2007. The increase is primarily attributable
    to $2.4 million of additional interest income in 2008. For
    the year ended December 31, 2008, Resolute earned
    approximately $7.6 million in interest income, as compared
    to $5.2 million in 2007. Interest income increased in 2008
    due to a significant increase in cash and cash equivalents as
    well as a full year of operations versus ten months of
    operations in 2007.
Revenue, lease operating expenses, depletion, depreciation,
    amortization and asset retirement obligation accretion, interest
    expense and loss on derivative instruments for the periods prior
    to September 25, 2009, relate solely to Predecessor
    Resolute's operations and are not included in the Resolute
    Management Discussion and Analysis. For additional management
    discussion and analysis of the results of the acquired business,
    please see the management discussion and analysis for the
    Predecessor Resolute in this Annual Report on
Form 10-K
below.
Unaudited Pro
    Forma Results of Operations
The following unaudited pro forma consolidated financial
    information below is provided to supplement the financial
    statement presentations contained in this
Form 10-K.
Such unaudited pro forma data is prepared as if the Resolute
    Transaction and the 2008 acquisition of a net profits interest
    by RWI occurred on January 1, 2008. These pro forma results
    eliminate certain activities of HACI as well as certain other
    non-recurring items in order to present what the Company
    believes is representative of the underlying business of the
    Company. The unaudited pro forma financial information is
    presented for informational purposes only and is not indicative
    of the results of operations that would have been achieved if
    the Resolute Transaction had taken place at the beginning of the
    earliest period presented or that may result in the future. The
    pro forma adjustments made are based on certain assumptions that
    Resolute believes are reasonable based on currently available
    information.
The pro forma loss from operations was $26.6 million in
    2009, a decrease of $149.6 million, or 85%, as compared to
    the pro forma loss from operations of $176.2 million in
    2008. The components of this decrease are analyzed below.
Pro forma revenue was $127.8 million in 2009, a decrease of
    $107.8 million, or 46%, as compared to the
    $235.6 million in 2008. The decrease in pro forma revenue
    was principally due to the 41% decrease in average sales price
    to $47.07 per Boe in 2009 from $80.02 in 2008. Additionally, pro
    forma production declined 8% to 2.7 MMBoe in 2009 from
    2.9 MMBoe in 2008, principally due to the loss of
    production from CBM wells that produced during all of 2008, but
    were shut-in during a majority of 2009 due to low commodity
    prices.
Pro forma combined lease operating expenses and production and
    ad valorem taxes were $68.8 million in 2009, a decrease of
    $21.2 million, or 24%, as compared to $90.0 million in
    2008. Pro forma production taxes declined $10.8 million, or
    37%, principally as a result of lower revenue, and lease
    operating expenses declined $10.4 million, or 17%, as
    Resolute and Predecessor Resolute endeavored to reduce lease
    operating and workover costs during the low commodity price
    environment in 2009.
Pro forma general and administrative (and write-off of deferred
    acquisition costs) expenses were $31.9 million in 2009, an
    increase of $10.1 million, or 46%, as compared to
    $21.8 million in 2008. The increase is principally due to
    the $19.1 million of acquisition and transaction costs
    expensed in 2009, as compared to the $5.1 million of
    similar costs in 2008. Offsetting decreases were principally due
    to the $3.7 million of equity-based compensation in 2009,
    as compared to the $7.9 million of similar cost in 2008.
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Pro forma depletion, depreciation, amortization and accretion
    expense was $40.1 million in 2009, a decrease of
    $14.9 million, or 27%, as compared to the
    $55.0 million in 2008. The decrease is partially due to the
    8% decrease in pro forma production noted above, but is
    primarily due to the lower pro forma carrying cost of proved oil
    and gas properties in 2009 following the $245.0 million of
    impairment of proved properties recorded at December 31,
    2008, and the additional $13.3 million impairment recorded
    at March 31, 2009.
Liquidity
    and Capital Resources
During 2009, the Company used $12.2 million in operating
    activities, primarily as a result of changes in working capital,
    provided $210.0 million in investing activities for the
    Resolute Transaction, and used $198.2 million in financing
    activities from equity purchase agreements related to the
    Resolute Transaction. At December 31, 2009, the Company had
    $0.5 million in cash and $109.6 million in debt
    outstanding under its Credit Facility (as defined below). Unused
    availability under the Credit Facility at December 31,
    2009, was $121.9 million. Subsequent to December 31,
    2009, Resolute's primary sources of liquidity are expected
    to be cash generated from operating activities, amounts
    available under its Credit Facility and funds from future
    private and public equity and debt offerings. Resolute does not
    anticipate paying dividends to holders of its common stock.
Resolute plans to reinvest a sufficient amount of its cash flow
    in its development operations in order to maintain its
    production over the long term, and plans to use external
    financing sources as well as cash flow from operations and cash
    reserves to increase its production.
If cash flow from operating activities does not meet
    expectations, Resolute may reduce its expected level of capital
    expenditures
and/or
fund
    a portion of its capital expenditures using borrowings under its
    Credit Facility, issuances of debt and equity securities or from
    other sources, such as asset sales. There can be no assurance
    that needed capital will be available on acceptable terms or at
    all. Resolute's ability to raise funds through the
    incurrence of additional indebtedness could be limited by the
    covenants in its credit facility. If Resolute is unable to
    obtain funds when needed or on acceptable terms, it may not be
    able to complete acquisitions that may be favorable to it or
    finance the capital expenditures necessary to maintain
    production or proved reserves.
If Resolute incurs significant indebtedness in the future, its
    ability to obtain additional financing may be impaired, its
    ability to make changes in its business may become impaired due
    to covenant restrictions, a significant portion of its cash flow
    will be used to make payments in respect of principal and
    interest on the debt, rather than being available for operating
    or capital expenditures, and thus put Resolute at a competitive
    disadvantage as compared to its competitors that have less debt,
    and may limit its ability to pursue other business opportunities.
Resolute plans to continue its practice of hedging a significant
    portion of its production. Hedge arrangements are generally
    settled within five days of the end of the month. As is typical
    in the oil and gas industry, however, Resolute does not
    generally receive the proceeds from the sale of its crude oil
    production until the 20th day of the month following the
    month of production. As a result, when commodity prices increase
    above the fixed price in the derivative contacts, Resolute will
    be required to pay the derivative counterparty the difference
    between the fixed price in the derivative contract and the
    market price before receiving the proceeds from the sale of the
    hedged production. If this occurs, Resolute may use working
    capital borrowings to fund its operations.
Revolving
    Credit Facility
Resolute's credit facility is with a syndicate of banks led
    by Wachovia Bank, National Association (the "Credit
    Facility") with Aneth as the borrower. The Credit Facility
    specifies a maximum borrowing base as determined by the lenders.
    The determination of the borrowing base takes into consideration
    the estimated value and future cash flows of Resolute's oil
    and gas properties in accordance with the lenders'
    customary practices for oil and gas loans. The borrowing base is
    re-determined semi-annually, and the amount available for
    borrowing could be increased or decreased as a result of such
    re-determinations. Under certain circumstances, either Resolute
    or the lenders may request an interim re-determination. As of
    December 31, 2009, the borrowing base was $240 million
    and unused availability under the borrowing base was
    $121.9 million. The borrowing base availability has been
    reduced by $8.5 million in conjunction with letters of
    credit issued to vendors at December 31, 2009.
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The Credit Facility matures on April 13, 2011 and, to the
    extent that the borrowing base, as adjusted from time to time,
    exceeds the outstanding balance, no repayments of principal are
    required prior to maturity.
The outstanding balance under the Credit Facility accrues
    interest, at Aneth's option, at either (a) the London
    Interbank Offered Rate, plus a margin which varies from 2.5% to
    3.5%, or (b) the Alternative Base Rate defined as the
    greater of (i) the Administrative Agent's Prime Rate,
    (ii) the Administrative Agent's Base CD rate plus 1%,
    or (iii) the Federal Funds Effective Rate plus 0.5%, plus a
    margin which varies from 1.0% to 2.0%. Each such margin is based
    on the level of utilization under the borrowing base. As of
    December 31, 2009, the weighted average interest rate on
    the outstanding balance under the facility was 3.30%. The Credit
    Facility is collateralized by substantially all of the proved
    oil and gas assets of Aneth and RWI, and is guaranteed by
    Resolute and its subsidiaries other than Aneth.
The Credit Facility includes terms and covenants that place
    limitations on certain types of activities, the payment of
    dividends, and require satisfaction of certain financial tests.
    Resolute was in compliance with all terms and covenants of the
    Credit Facility at December 31, 2009.
On March 30, 2010, the Company entered into a Restated
    Credit Agreement (the "Restated Agreement"). Under the
    terms of the Restated Agreement, the borrowing base was
    increased from $240.0 million to $260.0 million and
    the maturity date was extended to March 2014. At Resolute's
    option, the outstanding balance under the Credit Facility
    accrues interest at either (a) the London Interbank Offered
    Rate, plus a margin which varies from 2.25% to 3.0% or
    (b) the Alternative Base Rate, defined as the greater of
    (i) the Administrative Agent's Prime Rate,
    (ii) the Federal Funds Effective Rate plus 0.5%, or
    (iii) an adjusted London Interbank Offered Rate plus 1%,
    plus a margin which ranges from 1.25% to 2.0%.
As of March 30, 2010, Resolute had borrowings of
    $115.4 million under the borrowing base, resulting in an
    unused availability of $136.1 million.
Off Balance
    Sheet Arrangements
Resolute does not have any off-balance sheet financing
    arrangements other than operating leases. Resolute has not
    guaranteed any debt or commitments of other entities or entered
    into any options on non-financial assets.
Contractual
    Obligations
Resolute has the following contractual obligations and
    commitments as of December 31, 2009:
Payments Due By Year
(in thousands)
After
2010
2011
2012
2013
2014
2014
Total (5)
Long-term debt (1)
$
—
$
109,575
$
—
$
—
$
—
$
—
$
109,575
Office and equipment leases
460
399
—
—
—
—
859
Operating equipment leases (2)
2,747
2,747
2,747
2,747
2,747
5,769
19,504
ExxonMobil escrow agreement (3)
1,800
1,800
1,800
1,800
1,800
17,900
26,900
CO
2
purchases (4)
17,689
14,665
11,477
11,088
4,924
5,443
65,286
Total
$
22,696
$
129,186
$
16,024
$
15,635
$
9,471
$
29,112
$
222,124
1)
Included in long-term debt is the outstanding principal amount
    under Resolute's Credit Facility. This table does not
    include future commitment fees, interest expense or other fees
    because the Credit Facility is floating rate instrument, and the
    Company cannot determine with accuracy the timing of future loan
    advances, repayments or future interest rates to be charged.
2)
Operating equipment leases consist of compressors and other oil
    and gas field equipment used in the
    CO
2
project.
3)
Under the terms of Resolute's purchase agreement with
    ExxonMobil, Resolute is obligated to make annual deposits into
    an escrow account that will be used to fund plugging and
    abandonment liabilities associated with the ExxonMobil
    Properties.
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4)
Represents the minimum
take-or-pay
quantities associated with Resolute's existing
    CO
2
purchase contracts. For purposes of calculating the future
    purchase obligation under these contracts, Resolute has assumed
    the purchase price over the term of the contracts was the price
    in effect as of December 31, 2009.
5)
Total contractually obligated payment commitments do not include
    the anticipated settlement of derivative contracts, obligations
    to taxing authorities or amounts relating to our asset
    retirement obligations, which include plugging and abandonment
    obligations, due to the uncertainty surrounding the ultimate
    settlement amounts and timing of these obligations.
    Resolute's total asset retirement obligations were
    $9.2 million at December 31, 2009.
Critical
    Accounting Policies
The discussion and analysis of Resolute's financial
    condition and results of operations is based upon the
    consolidated financial statements, which have been prepared in
    accordance with accounting principles generally accepted in the
    United States. The preparation of these financial statements
    requires Resolute to make estimates and assumptions that affect
    the reported amounts of assets, liabilities, revenue and
    expenses, and related disclosure of contingent assets and
    liabilities. The application of accounting policies involve
    judgments and uncertainties to such an extent that there is
    reasonable likelihood that materially different amounts could
    have been reported under different conditions, or if different
    assumptions had been used. Resolute evaluates estimates and
    assumptions on a regular basis. Resolute bases estimates on
    historical experience and various other assumptions that are
    believed to be reasonable under the circumstances, the results
    of which form the basis for making judgments about the carrying
    values of assets and liabilities that are not readily apparent
    from other sources. Actual results may differ, perhaps
    materially, from these estimates and assumptions used in
    preparation of Resolute's financial statements. Provided
    below is an expanded discussion of the most significant
    accounting policies, estimates and judgments. Resolute believes
    these accounting policies reflect Resolute's most
    significant estimates and assumptions used in the preparation of
    the financial statements.
Oil and Gas Properties.
Resolute uses the full cost
    method of accounting for oil and gas producing activities. All
    costs incurred in the acquisition, exploration and development
    of properties, including costs of unsuccessful exploration,
    costs of surrendered and abandoned leaseholds, delay lease
    rentals and the fair value of estimated future costs of site
    restoration, dismantlement and abandonment activities, improved
    recovery systems and a portion of general and administrative
    expenses are capitalized within the cost center.
Resolute conducts tertiary recovery projects on a portion of its
    oil and gas properties in order to recover additional
    hydrocarbons that are not recoverable from primary or secondary
    recovery methods. Under the full cost method, all development
    costs are capitalized at the time incurred. Development costs
    include charges associated with access to and preparation of
    well locations, drilling and equipping development wells, test
    wells, and service wells including injection wells; acquiring,
    constructing, and installing production facilities and providing
    for improved recovery systems. Improved recovery systems include
    all related facility development costs and the cost of the
    acquisition of tertiary injectants, primarily purchased
    CO
2
.
    The development cost related to
    CO
2
purchases are incurred solely for the purpose of gaining access
    to incremental reserves not otherwise recoverable. The
    accumulation of injected
    CO
2
,
    in combination with additional purchased and recycled
    CO
2
,
    provide future economic value over the life of the project.
In contrast, other costs related to the daily operation of the
    improved recovery systems include, but are not limited to,
    compression, electricity, separation, re-injection of recovered
    CO
2
and water, are considered production costs and are expensed as
    incurred. Costs incurred to maintain reservoir pressure are also
    expensed as incurred.
Capitalized general and administrative costs include salaries,
    employee benefits, costs of consulting services and other
    specifically identifiable costs and do not include costs related
    to production operations, general corporate overhead or similar
    activities.
Investments in unproved properties are not depleted, pending
    determination of the existence of proved reserves. Unproved
    properties are assessed periodically to ascertain whether
    impairment has occurred. Unproved properties whose costs are
    individually significant are assessed individually by
    considering the primary
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lease terms of the properties, the holding period of the
    properties, and geographic and geologic data obtained relating
    to the properties. Where it is not practicable to assess
    individually the amount of impairment of properties for which
    costs are not individually significant, such properties are
    grouped for purposes of assessing impairment. The amount of
    impairment assessed is added to the costs to be amortized, or is
    reported as a period expense as appropriate.
Pursuant to full cost accounting rules, Resolute must perform a
    ceiling test each quarter on its proved oil and gas assets. The
    ceiling test provides that capitalized costs less related
    accumulated depletion and deferred income taxes for each cost
    center may not exceed the sum of (1) the present value of
    future net revenue from estimated production of proved oil and
    gas reserves using current prices, excluding the future cash
    outflows associated with settling asset retirement obligations
    that have been accrued on the balance sheet, and a discount
    factor of 10%; plus (2) the cost of properties not being
    amortized, if any; plus (3) the lower of cost or estimated
    fair value of unproved properties included in the costs being
    amortized, if any; less (4) income tax effects related to
    differences in the book and tax basis of oil and gas properties.
    Should the net capitalized costs for a cost center exceed the
    sum of the components noted above, an impairment charge would be
    recognized to the extent of the excess capitalized costs.
No gain or loss is recognized upon the sale or abandonment of
    undeveloped or producing oil and gas properties unless the sale
    represents a significant portion of oil and gas properties and
    the gain significantly alters the relationship between
    capitalized costs and proved oil reserves of the cost center.
Depletion and amortization of oil and gas properties is computed
    on the
unit-of-production
method based on proved reserves. Amortizable costs include
    estimates of asset retirement obligations and future development
    costs of proved reserves, including, but not limited to, costs
    to drill and equip development wells, constructing and
    installing production and processing facilities, and improved
    recovery systems including the cost of required future
    CO
2
purchases.
Oil and Gas Reserve Quantities.
Resolute's
    estimate of proved reserves is based on the quantities of oil
    and gas that engineering and geological analyses demonstrate,
    with reasonable certainty, to be recoverable from established
    reservoirs in the future under current operating and economic
    parameters. Reserves and their relation to estimated future net
    cash flows affect Resolute's depletion and impairment
    calculations. As a result, adjustments to depletion and
    impairment are made concurrently with changes to reserves
    estimates. Resolute prepares reserves estimates, and the
    projected cash flows derived from these reserves estimates, in
    accordance with SEC and FASB guidelines. The accuracy of
    Resolute's reserves estimates is a function of many factors
    including but not limited to the following: the quality and
    quantity of available data, the interpretation of that data, the
    accuracy of various mandated economic assumptions and the
    judgments of the individuals preparing the estimates.
    Resolute's proved reserves estimates are a function of many
    assumptions, any or all of which could deviate significantly
    from actual results. As such, reserves estimates may vary
    materially from the ultimate quantities of oil, gas and natural
    gas liquids reserves eventually recovered.
Derivative Instruments and Hedging
    Activities.
Resolute enters into derivative contracts
    to manage its exposure to oil and gas price volatility.
    Derivative contracts may take the form of futures contracts,
    swaps or options. Realized and unrealized gains and losses
    related to commodity derivatives are recognized in other income
    (expense). Realized gains and losses are recognized in the
    period in which the related contract is settled. The cash flows
    from derivatives are reported as cash flows from operating
    activities unless the derivative contract is deemed to contain a
    financing element. Derivatives deemed to contain a financing
    element are reported as financing activities in the consolidated
    statement of cash flows.
FASB Accounting Standards Codification ("ASC") Topic
    815,
Derivatives and Hedging
, requires recognition of all
    derivative instruments on the balance sheet as either assets or
    liabilities measured at fair value. Changes in the fair value of
    a derivative are recognized currently in earnings unless
    specific hedge accounting criteria are met. Gains and losses on
    derivative hedging instruments must be recorded in either other
    comprehensive income or current earnings, depending on the
    nature and designation of the instrument. Presently,
    Resolute's management has determined that the benefit of
    the financial statement presentation available under the
    provisions of FASB ASC Topic 815, which may allow for its
    derivative instruments to be reflected as cash flow hedges, is
    not commensurate with the administrative burden required to
    support that treatment. As a result,
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Resolute marked its derivative instruments to fair value in
    accordance with the provisions of FASB ASC Topic 815 and
    recognized the changes in fair market value in earnings. Gains
    and losses on derivative instruments reflected in the
    consolidated statement of operations incorporate both realized
    and unrealized values.
Asset Retirement Obligations.
Asset retirement
    obligations relate to future costs associated with the plugging
    and abandonment of oil and gas wells, removal of equipment and
    facilities from leased acreage and returning such land to its
    original condition. The fair value of a liability for an asset
    retirement obligation is recorded in the period in which it is
    incurred (typically when the asset is installed at the
    production location), and the cost of such liability increases
    the carrying amount of the related long-lived asset by the same
    amount. The liability is accreted each period and the
    capitalized cost is depleted on a
units-of-production
basis as part of the full cost pool. Revisions to estimated
    retirement obligations result in adjustments to the related
    capitalized asset and corresponding liability.
Resolute's estimated asset retirement obligation liability
    is based on estimated economic lives, estimates as to the cost
    to abandon the wells in the future, and federal and state
    regulatory requirements. The liability is discounted using a
    credit-adjusted risk-free rate estimated at the time the
    liability is incurred or revised. Revisions to the liability
    could occur due to changes in estimated abandonment costs or
    well economic lives, or if federal or state regulators enact new
    requirements regarding the abandonment of wells.
Equity-Based Compensation.
Resolute accounts for
    stock-based compensation in accordance with FASB ASC Topic 718,
    which requires it to measure the grant date fair value of equity
    awards given to employees in exchange for services, and to
    recognize that cost, less estimated forfeitures, over the period
    that such services are performed.
Income taxes.
Deferred tax assets and liabilities
    are recorded to account for the expected future tax consequences
    of events that have been recognized in the financial statements
    and tax returns. The ability to realize the deferred tax assets
    is routinely assessed. If the conclusion is that it is more
    likely than not that some portion or all of the deferred tax
    assets will not be realized, the tax asset would be reduced by a
    valuation allowance. The future taxable income is considered
    when making such assessments. Numerous judgments and assumptions
    are inherent in the determination of future taxable income,
    including factors such as future operating conditions
    (particularly as related to prevailing oil and gas prices).
    Income tax positions are also required to meet a
    more-likely-than-not recognition threshold to be recognized in
    the financial statements. Tax positions that previously failed
    to meet the more-likely-than-not threshold are recognized in the
    first subsequent financial reporting period in which that
    threshold is met. Previously recognized tax positions that no
    longer meet the more-likely-than-not threshold are derecognized
    in the first subsequent financial reporting period in which that
    threshold is no longer met.
Accounting
    Standards Update
In June of 2009, the FASB established the ASC as the single
    source of authoritative GAAP for all non-governmental entities
    with the exception of authoritative guidance from the SEC. All
    other accounting literature is considered non-authoritative. The
    ASC changes the way the Company cites authoritative guidance
    within the Company's financial statements and notes to the
    financial statements. The ASC is effective for periods ending on
    or after September 15, 2009, and did not have a material
    impact on the Company's consolidated financial statements.
Resolute adopted FASB ASC Topic 805,
Business Combinations,
on January 1, 2009. This guidance establishes
    principles and requirements for how the acquirer of a business
    recognizes and measures in its financial statements the
    contingent and identifiable assets acquired, the liabilities
    assumed, and any noncontrolling interest in the acquiree. The
    nature and magnitude of the specific effects of this guidance on
    the consolidated financial statements will depend upon the
    nature, terms and size of the acquisitions consummated after the
    effective date.
In January 2010, the FASB issued additional guidance to improve
    disclosure requirements related to fair value measurements and
    disclosures. Specifically, this guidance requires disclosures
    about transfers in and out of Level 1 and 2 fair value
    measurements, activity in Level 3 fair value measurements
    (See Note 12 of the Resolute Energy Corporation
    Consolidated Financial Statements for Level 1, 2 and 3
    definitions), greater desegregation of
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the amounts on the consolidated balance sheets that are subject
    to fair value measurements and additional disclosures about the
    valuation techniques and inputs used in fair value measurements.
    This guidance is effective for annual reporting periods
    beginning after December 31, 2009, except for disclosure of
    Level 3 fair value measurement roll forward activity, which
    is effective for annual reporting periods beginning after
    December 15, 2010. The Company is currently assessing the
    impact this guidance will have on the consolidated financial
    statements.
On December 31, 2008, the SEC published the final rules and
    interpretations updating its oil and gas reporting requirements.
    Many of the revisions are updates to definitions in the existing
    oil and gas rules to make them consistent with the petroleum
    resource management system. This system, which was developed by
    several industry organizations, is a widely accepted standard
    for the management of petroleum resources. Key revisions include
    changes to the pricing used to estimate reserves, the ability to
    include nontraditional resources in reserves, the use of new
    technology for determining reserves, and permitting disclosure
    of probable and possible reserves. The FASB ASC was updated in
    January of 2010 to align the oil and gas reserve estimation and
    disclosure requirements in the ASC with the SEC's oil and
    gas reporting requirements. The SEC will require companies to
    comply with the amended disclosure requirements for registration
    statements filed after January 1, 2010, and for annual
    reports for fiscal years ending on or after December 15,
    2009. Early adoption is not permitted. Resolute adopted the
    requirements for the year ended December 31, 2009 and the
    consolidated financial statements were affected in the following
    manner:
•
The price used in calculating reserves changed from a
single-day
closing price measured on the last day of the Company's
    fiscal year to a
12-month
average first of the month price for the previous twelve months
    as of the balance sheet date. This average price was utilized in
    the Company's depletion and ceiling test calculations.
•
The notes to the consolidated financial statements include
    additional financial reporting disclosures.
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PREDECESSOR
    RESOLUTE
The following section of MD&A addresses the
period-to-period
comparisons of operating results for Predecessor Resolute.
Period Ended
    September 24, 2009, Compared to the Year Ended
    December 31, 2008
For the purposes of management's discussion and analysis of
    results of operations of Predecessor Resolute, management has
    presented the 267 day period ended September 24, 2009
    in comparison to the 366 day year ended December 31,
    2008. Any references to the 2009 or 2008 period refer to these
    specific periods. As such, the 2009 period is 27.0% shorter than
    the 2008 period.
Revenue.
Revenue from oil and gas activities
    decreased to $85.3 million during 2009, from
    $229.2 million during 2008. The key revenue measurements
    were as follows:
Percentage
Increase
2009
2008
(Decrease)
Net Sales:
Total sales (MBoe)
2,011
2,823
(28.8
)%
Average daily sales (Boe/d)
7,530
7,712
(2.4
)%
Average Sales Prices ($/Boe):
Average sales price (excluding derivative settlements)
$
42.45
$
81.19
(47.7
)%
Average sales price (including derivative settlements)
$
48.31
$
69.60
(30.6
)%
Total production decreased 28.8% during 2009 as compared to
    2008, decreased only 2.4% during 2009 on a daily basis as
    compared to 2008. The overall production decrease was primarily
    due to shut-in of CBM wells in 2009 that were producing in 2008
    and the shorter 2009 production period. This decrease was
    mitigated on a daily basis by increased
    CO
2
production response in Aneth versus 2008. The average sales
    price per Boe decreased by 47.7% in 2009 as compared to 2008 due
    to lower commodity pricing in 2009.
Operating Expenses.
Operating expenses
    consists of lease operating expense, depletion, depreciation and
    amortization, impairment of proved property and general
    administrative expenses. Predecessor Resolute assessed lease
    operating expenses in part by monitoring the expenses in
    relation to production volumes and the number of wells operated.
Lease operating expenses consist of lease operating expenses,
    including labor, field office rent, vehicle expenses,
    supervision, transportation, minor maintenance, tools and
    supplies, workover expenses, ad valorem, severance and other
    taxes and other customary charges.
Lease operating expenses per Boe decreased during 2009 as
    compared to 2008 as follows:
Percentage
Increase
2009
2008
(Decrease)
Lease operating expenses per Boe
$
23.26
$
30.46
(23.6
)%
Lease operating expenses decreased to $46.8 million during
    2009, from $86.0 million during 2008. The
    $39.2 million, or 45.6%, decrease was principally
    attributable to an approximately $16.5 million decrease in
    ad valorem, severance and other taxes generally caused by lower
    sales, $5.8 million decrease in workover expenses,
    $6.0 million decrease in labor costs and a
    $4.1 million decrease in equipment materials and supplies,
    as well as the shorter 2009 operating period.
Depletion, depreciation, amortization and accretion expenses
    decreased to $21.9 million during 2009, as compared to
    $50.3 million during 2008. The $28.4 million, or
    56.5%, decrease is principally due to a decrease in the per Boe
    depletion, depreciation and amortization rate from $17.83 per
    Boe in 2008 to $10.90 per Boe in 2009 due to the reduction in
    the carrying value of proved oil and gas properties in 2009
    following the impairment of proved properties at
    December 31, 2008 and March 31, 2009.
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Pursuant to full cost accounting rules, Predecessor Resolute
    performed a ceiling test each quarter on its proved oil and gas
    assets. As a result of this limitation on capitalized costs,
    Predecessor Resolute included a provision for an impairment of
    oil and gas property costs for 2009 and 2008 of
    $13.3 million and $245.0 million, respectively.
General and administrative expenses include the costs of
    Predecessor Resolute's employees and executive officers,
    related benefits, office leases, professional fees and other
    costs not directly associated with field operations. Predecessor
    Resolute monitors general and administrative expenses in
    relation to the amount of production and the number of wells
    operated.
Percentage
Increase
2009
2008
(Decrease)
General and administrative expenses per Boe
$
4.02
$
7.16
(43.9
)%
General and administrative expenses decreased to
    $8.1 million during 2009, as compared to $20.2 million
    during 2008. The $12.1 million, or 60.0%, decrease in the
    absolute level of general and administrative expenses
    principally resulted from a $5.1 million decrease in
    non-cash charges to compensation expense associated with
    equity-based compensation, a $4 million decrease in
    salaries and wages, and a $1.8 million decrease in
    professional fees.
Other Income (Expense).
All oil and gas
    derivative instruments are accounted for under
mark-to-market
accounting rules, which provide for the fair value of the
    contracts to be reflected as either an asset or a liability on
    the balance sheet. The change in the fair value during an
    accounting period is reflected in the income statement for that
    period. During 2009, the fair value of oil and gas derivatives
    decreased by $23.5 million. This amount included
    approximately $1.9 million of realized gains on oil and gas
    derivatives, including a realized loss of $12.5 million
    that was incurred to cash settle a 2010 hedge position as
    required under the terms of the Resolute Transaction and
    $25.4 million of decreases in the unrealized future value
    of oil and gas derivatives. During 2008, the fair value of oil
    and gas derivatives increased by $96.0 million. This amount
    included approximately $120.6 million of unrealized gain in
    the future value of oil and gas derivatives and
    $24.6 million of realized losses from monthly settlements.
Interest expense was $18.4 million during 2009, as compared
    to $33.1 million during 2008. The $14.7 million, or
    44.4%, decrease is attributable to lower interest rates and to
    the shorter 2009 period.
Income Tax Benefit (Expense).
Income tax
    benefit recognized during 2009 was $5.0 million, as
    compared to an income tax benefit of $18.3 million in 2008.
    The 2009 period included the effect of the reversal of a
    $0.4 million contingent tax liability due to the expiration
    of the statute of limitations and recording $14.4 million
    in deferred income tax expense.
Year Ended
    December 31, 2008, Compared to the Year Ended
    December 31, 2007
Revenue.
Revenue increased to $229.2 million
    during 2008, from $173.3 million during 2007. The key
    revenue measures were as follows:
Percentage
Increase
2008
2007
(Decrease)
Net Sales:
Total sales (MBoe)
2,823
2,760
2.3
%
Average daily sales (Boe/d)
7,712
7,561
2.0
%
Average Sales Prices ($/Boe):
Average sales price (including derivative settlements)
$
69.60
$
61.09
13.9
%
Average sales price (excluding derivative settlements)
$
81.19
$
62.81
29.3
%
The increase in revenue was primarily due to a 29.3% increase in
    the average sales price in 2008 excluding hedges as compared to
    the average sales price in 2007, as well as a 2% increase in
    production in 2008. The increase in production is due in part to
    Predecessor Resolute's ongoing efforts to enhance
day-to-day
production
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in its Aneth Field Properties. Average sales price, excluding
    the effects of hedges, increased to $81.19 per Boe during 2008,
    as compared to $62.81 per Boe during 2007.
Lease Operating Expenses.
Lease operating
    expenses increased to $86.0 million for 2008, from
    $66.7 million for 2007. The increase of $19.3 million
    in lease operating expenses for 2008, was attributable to an
    $8.9 million increase in production taxes due principally
    to higher product prices, a $3.7 million increase in field
    services, a $2.4 million increase in repairs and
    maintenance and a $4.3 million increase in other costs. The
    increase in non-tax related production expense was due primarily
    to the escalation in virtually all oil and gas industry costs
    induced by the high levels of industry activity during 2008.
Percentage
Wtd. Avg $/Boe
Increase
2008
2007
(Decrease)
Lease operating expenses per Boe
$
30.46
$
24.18
26.0
%
General and Administrative Expenses.
General
    and administrative expenses decreased to $20.2 million
    during 2008, from $40.3 million during 2007, due primarily
    to the recognition of a non-cash charge to equity based
    compensation expense of $34.5 million in 2007 as compared
    to $7.9 million in 2008.
Percentage
Wtd. Avg $/Boe
Increase
2008
2007
(Decrease)
General and administrative expenses per Boe
$
7.16
$
14.59
(50.9
)%
Impairment of Proved Properties.
Pursuant to
    full cost accounting rules, Predecessor Resolute performed a
    ceiling test each quarter on its proved oil and gas assets. As a
    result of this limitation on capitalized costs, Predecessor
    Resolute included a provision for an impairment of oil and gas
    property cost for 2008 and 2007 of $245.0 and $0 million,
    respectively.
Depletion, Depreciation and Amortization
    Expenses.
Depletion, depreciation and amortization
    increased to $50.3 million for 2008, from
    $27.8 million for 2007, due to an increase in the
    depletion, depreciation and amortization rate which primarily
    resulted from a reduction in future economic recoverable
    reserves associated with significantly reduced energy prices
    during the latter half of 2008.
Other Income (Expense).
All of Predecessor
    Resolute's oil and gas derivative instruments are accounted
    for under
mark-to-market
accounting rules, which provide for the fair value of the
    contracts to be reflected as either an asset or a liability on
    its balance sheet. During 2008, Predecessor Resolute recognized
    a $96.0 million gain on its derivative contracts. This
    amount included approximately $32.8 million of realized
    losses, which was partially offset by an $8.2 million gain
    on the forward sales of derivative contracts and a
    $120.6 million unrealized gain in the fair market value of
    these contracts. During 2007, the fair value of Predecessor
    Resolute's oil hedges decreased by $106.2 million.
    This amount included approximately $4.7 million of realized
    losses and a $101.5 million decline in the future value of
    future contracts.
Interest expense was $33.1 million for 2008, compared to
    $35.9 million for 2007. The decrease is attributable to a
    reduction in long term debt during 2008 as well as a reduction
    in interest rates.
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Table of Contents
ITEM 7A.
QUANTITIVE
    AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Commodity
    Price Risk and Hedging Arrangements
Resolute's major market risk exposure is in the pricing
    applicable to oil and gas production. Realized pricing on
    Resolute's unhedged volumes of production is primarily
    driven by the spot market prices applicable to oil production
    and the prevailing price for gas. Pricing for oil production has
    been volatile and unpredictable for several years, and Resolute
    expects this volatility to continue in the future. The prices
    Resolute receives for unhedged production depend on many factors
    outside of Resolute's control.
Resolute periodically hedges a portion of its oil and gas
    production through swaps, puts, calls, collars and other such
    agreements. The purpose of the hedges is to provide a measure of
    stability to Resolute's cash flows in an environment of
    volatile oil and gas prices and to manage Resolute's
    exposure to commodity price risk.
Under the terms of its Credit Agreement the form of derivative
    instruments to be entered into is at Resolute's discretion,
    not to exceed 80% of its anticipated production from proved
    developed producing properties utilizing economic parameters
    specified in its credit agreements, including escalated prices
    and costs.
By removing the price volatility from a significant portion of
    Resolute's oil production, Resolute has mitigated, but not
    eliminated, the potential effects of changing prices on the cash
    flow from operations for those periods. While mitigating
    negative effects of falling commodity prices, certain of these
    derivative contracts also limit the benefits Resolute would
    receive from increases in commodity prices. It is
    Resolute's policy to enter into derivative contracts only
    with counterparties that are major, creditworthy financial
    institutions deemed by management as competent and competitive
    market makers.
As of December 31, 2009, Resolute had entered into certain
    commodity swap contracts. The following table represents
    Resolute's commodity swaps with respect to its oil
    production through 2013:
Oil (NYMEX WTI)
Gas (NYMEX HH)
Weighted Average
Weighted Average
Year
Bbl per Day
Hedge Price per Bbl
MMBtu per Day
Hedge Price per MMBtu
2010
3,650
$
67.24
3,800
$
9.69
2011
3,250
$
68.26
2,750
$
9.32
2012
3,250
$
68.26
2,100
$
7.42
2013
2,000
$
60.47
1,900
$
7.40
Resolute also uses basis swaps in connection with gas swaps in
    order to fix the price differential between the NYMEX Henry Hub
    price and the index price at which the gas production is sold.
    The table below sets forth Resolute's outstanding basis
    swaps as of December 31, 2009:
Weighted Average
Hedged Price
Year
Index
MMBtu per Day
Differential per MMBtu
2010 – 2013
Rocky Mountain NWPL
1,800
$
2.10
As of December 31, 2009, Resolute had entered into certain
    commodity collar contracts. The following table represents
    Resolute's commodity collars with respect to its oil and
    production:
Oil (NYMEX WTI)
Weighted Average
Year
Bbl per Day
Hedge Price per Bbl
2010
200
$
105.00-151.00
Interest Rate
    Risk
At December 31, 2009, Resolute has $109.6 million of
    outstanding debt. Interest is calculated under the terms of the
    agreement based on a LIBOR spread. A 10% increase in LIBOR would
    result in an estimated $0.1 million increase in annual
    interest expense. Resolute does not currently intend to enter
    into any hedging arrangements to protect against fluctuations in
    interest rates applicable to its outstanding indebtedness.
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Table of Contents
Credit Risk
    and Contingent Features in Derivative Instruments
Resolute is exposed to credit risk to the extent of
    nonperformance by the counterparties in the derivative contracts
    discussed above. All counterparties are also lenders under
    Resolute's Credit Facility. For these contracts, Resolute
    is not required to provide any credit support to its
    counterparties other than cross collateralization with the
    properties securing the Credit Facility. Resolute's
    derivative contracts are documented with industry standard
    contracts known as a Schedule to the Master Agreement and
    International Swaps and Derivative Association, Inc. Master
    Agreement ("ISDA"). Typical terms for the ISDAs
    include credit support requirements, cross default provisions,
    termination events, and set-off provisions. Resolute has set-off
    provisions with its lenders that, in the event of counterparty
    default, allow Resolute to set-off amounts owed under the Credit
    Facility or other general obligations against amounts owed for
    derivative contract liabilities.
ITEM 8.
FINANCIAL
    STATEMENTS AND SUPPLEMENTARY DATA
The information required by this item is included below in
    "Item 15. Exhibits, Financial Statements
    Schedules".
ITEM 9.
CHANGES
    IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
    FINANCIAL DISCLOSURE
None.
ITEM 9A.
CONTROLS
    AND PROCEDURES
Attached as exhibits to this report are certifications of our
    CEO and CFO required pursuant to
Rule 13a-14
under the Exchange Act. This section includes information
    concerning the controls and procedures evaluation referred to in
    the certifications. Our management, with the participation of
    Nicholas J. Sutton, our Chief Executive Officer, and Theodore
    Gazulis, our Chief Financial Officer, evaluated the
    effectiveness of the design and operation of our disclosure
    controls and procedures as of December 31, 2009. Based on
    the evaluation, those officers have concluded that:
•
our disclosure controls and procedures were effective to ensure
    that information required to be disclosed by us in the reports
    we file or submit under the Securities Exchange Act of 1934 was
    accumulated and communicated to our management, including our
    Chief Executive Officer and Chief Financial Officer, as
    appropriate to allow timely decisions regarding required
    disclosure.
•
our disclosure controls and procedures were effective to ensure
    that information required to be disclosed by us in the reports
    we file or submit under the Securities Exchange Act of 1934 is
    recorded, processed, summarized and reported within the time
    periods specified in the SEC's rules and forms.
Internal Control
    Over Financial Reporting
There has not been any change in the Company's internal
    control over financial reporting that occurred during the
    quarterly period ended December 31, 2009, that has
    materially affected, or is reasonably likely to affect, the
    Company's internal control over financial reporting.
The Company's Annual Report on
Form 10-K
for the year ending December 31, 2009, does not include a
    report of management's assessment regarding internal
    control over financial reporting or an attestation report of the
    Company's registered public accounting firm due to a
    transition period established by rules of the SEC for newly
    public companies.
ITEM 9B.
OTHER
    INFORMATION
Not applicable
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PART III
ITEM 10.
DIRECTORS,
    EXECUTIVE OFFICERS AND CORPORATE GOVERANCE
Directors
The following table sets forth certain information as of
    March 29, 2010, regarding the composition of the Board of
    Directors, including the term of each director.
Current Term to
Name
Age
Position
Director Since
Expire
Nicholas J. Sutton
65
Chief Executive Officer and Director
2009
2012
James M. Piccone
59
President, General Counsel, Secretary
and Director
2009
2011
Richard L. Covington
52
Director
2009
2011
William H. Cunningham
66
Director
2009
2010
James E. Duffy
59
Director
2009
2010
Kenneth A. Hersh
47
Director
2009
2012
Thomas O. Hicks, Jr.
32
Director
2009
2012
William J. Quinn
39
Director
2009
2010
Robert M. Swartz
57
Director
2009
2011
Nicholas J. Sutton
is the Chief Executive Officer
    and has been a director of the Company since the Company's
    formation in July 2009. Mr. Sutton has been the Chief
    Executive Officer and a member of the board of managers of
    Predecessor Resolute and of Holdings since their founding in
    2004. Mr. Sutton was a co-founder and the Chief Executive
    Officer of HS Resources, Inc., a New York Stock Exchange listed
    company, from 1978 until the company's acquisition by
    Kerr-McGee Corporation in late 2001. From 2002 until the
    formation of Resolute Holdings, LLC in 2004, Mr. Sutton was
    a director of Kerr-McGee. Currently, Mr. Sutton is a
    director of Tidewater, Inc., the owner and operator of the
    world's largest fleet of vessels serving the global
    offshore oil industry, and a member of the Board of the St.
    Francis Memorial Hospital Foundation. He also is a member of the
    Society of Petroleum Engineers and of the American Association
    of Petroleum Geologists. In determining Mr. Sutton's
    qualifications to serve on our Board of Directors, the Board of
    Directors has considered, among other things, his experience and
    expertise in the oil and gas industry, his track record in
    growing public oil and gas companies, including managing
    acquisition programs, as well as his role in the founding of
    Holdings and the Resolute Transaction. In addition,
    Mr. Sutton has degrees in engineering and law, and has
    attended the Harvard Owner/President Management program, giving
    him expertise in all of the areas of importance to the Company.
James M. Piccone
is the President, General
    Counsel, Secretary and has been a director of the Company since
    the Company's formation in July 2009. Mr. Piccone has
    been the President, General Counsel, Secretary and a member of
    the board of managers of Predecessor Resolute and of Holdings
    since their formation in 2004. From January 2002 until January
    2004 Mr. Piccone was Senior Vice President and General
    Counsel for Aspect Energy, LLC, a private oil and gas company.
    Mr. Piccone also served as a contract attorney for Aspect
    Energy from October 2001 until January 2002. Mr. Piccone
    served as Vice President — General Counsel and
    Secretary of HS Resources from May 1995 until the acquisition of
    HS Resources by Kerr-McGee in August 2001. Mr. Piccone is
    admitted to the practice of law in Colorado and is a member of
    local and national bar associations. He is a member of the
    American Association of Corporate Counsel. In determining
    Mr. Piccone's qualifications to serve on our Board of
    Directors, the Board or Directors has considered, among other
    things, his management and legal expertise, his knowledge of the
    oil and gas industry and the role he played in the success of HS
    Resources and Holdings, including his role in the Resolute
    Transaction.
Richard L. Covington
was elected to the
    Company's Board of Directors in September 2009.
    Mr. Covington has been a member of the Compensation and
    Corporate Governance/Nominating Committees since
    September 25, 2009. He is a managing director of the
    Natural Gas Partners private equity funds. He has been a member
    of the board of managers of Holdings since its founding in 2004.
    Mr. Covington joined Natural Gas Partners in 1997. Prior to
    joining NGP, Mr. Covington was a senior shareholder at the
    law firm of Thompson & Knight, LLP, in Dallas, Texas.
    Mr. Covington serves on the investment committee of NGP
    Capital Resources
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Company and as a director of numerous private energy companies.
    In determining Mr. Covington's qualifications to serve
    on our Board of Directors, the Board of Directors has
    considered, among other things, his experience and expertise in
    the legal and finance aspects of the oil and gas industry and
    his role as a key advisor to Resolute from the founding of
    Holdings to the present.
William H. Cunningham
was elected to the
    Company's Board of Directors in September 2009.
    Dr. Cunningham has been a member of the Audit Committee
    since September 25, 2009, and between September 25,
    2009 and December 15, 2009 was also a member of the
    Compensation and Corporate Governance/Nominating Committees. He
    was a director of Hicks Acquisition Company I, Inc. from
    October 2007 through September 2009. Since 1979,
    Dr. Cunningham has served as a professor of marketing at
    the University of Texas at Austin and he has held the James L.
    Bayless Chair for Free Enterprise at the University of Texas at
    Austin since 1985. From 1983 to 1985 he was Dean of the College
    of Business Administration and Graduate School of Business of
    the University of Texas at Austin, from 1985 to 1992 he served
    as the President of the University of Texas at Austin and from
    1992 to 2000 he served as the Chancellor (Chief Executive
    Officer) of the University of Texas System. Dr. Cunningham
    currently serves on the Board of Directors of Lincoln National
    Corporation, a New York Stock Exchange listed holding company
    for insurance, investment management, broadcasting and sports
    programming businesses; Southwest Airlines, an airline listed on
    the New York Stock Exchange; and Lin Television, a New York
    Stock Exchange listed company that owns a number of television
    stations. Dr. Cunningham currently serves as a member of
    the Board of Trustees of John Hancock Mutual Funds.
    Dr. Cunningham received a Bachelor of Business
    Administration degree in 1966, a Master of Business
    Administration degree in 1967 and a Ph.D. in 1971, each from
    Michigan State University. Dr. Cunningham was president and
    chief executive officer of IBT Technologies, a privately held
e-learning
company, from December 2000 through December 2001. IBT
    Technologies filed for bankruptcy in December 2001 and has been
    liquidated. In determining Mr. Cunningham's
    qualifications to serve on our Board of Directors, the Board of
    Directors has considered, among other things, his academic
    experience in corporate governance matters in law schools and
    graduate business programs, his service on more than 20
    corporate boards, including in many instances as chairman of the
    audit committee of public companies, and his experience and
    expertise in marketing and management.
James E. Duffy
was elected to the Company's
    Board of Directors in September 2009. Mr. Duffy has been a
    member of the Compensation and Audit Committees since
    September 25, 2009, and between September 25, 2009 and
    December 15, 2009 was also a member of the Corporate
    Governance/Nominating Committee. He is a co-founder and, since
    2003, Chairman of StreamWorks Products Group, Inc., a private
    consumer products development company that manufactures products
    for the sport fishing, industrial safety, specialty tool and
    outdoor recreation industries. From 1990 to 2001 he served as
    Chief Financial Officer and Director of HS Resources, Inc. until
    its sale to Kerr-McGee Corporation. Prior to that time, he
    served as Chief Financial Officer and Director of a division of
    Tidewater, Inc. He was also a general partner in a boutique
    investment banking business specializing in the oil and gas
    business, and began his career with Arthur Young & Co
    in San Francisco. He is a certified public accountant. In
    determining Mr. Duffy's qualifications to serve on our
    Board of Directors, the Board of Directors has considered, among
    other things, his experience and expertise in oil and gas
    finance, accounting, and banking as well as his position as
    chief financial officer of two public oil and gas companies and
    his service as an audit manager for a major accounting firm with
    engagement responsibility for public and private entities.
Kenneth A. Hersh
was elected to the Company's
    Board of Directors in September 2009. Mr. Hersh has been a
    member of the Compensation and Corporate Governance/Nominating
    Committees since September 25, 2009. He is the Chief
    Executive Officer of NGP Energy Capital Management, L.L.C. and
    is a managing partner of the Natural Gas Partners private equity
    funds and has served in those or similar capacities since 1989.
    He has been a member of the board of managers of Holdings since
    its founding in 2004. Prior to joining Natural Gas Partners,
    L.P. in 1989, he was a member of the energy group in the
    investment banking division of Morgan Stanley & Co. He
    currently serves on the investment committee and as a director
    of NGP Capital Resources Company, serves as a director of Eagle
    Rock Energy G&P, LLC, the general partner of Eagle Rock
    Energy Partners, L.P., and as a director of numerous private
    companies. In determining Mr. Hersh's qualifications
    to serve on our Board of Directors, the Board of Directors has
    considered, among other things, his experience and expertise in
    finance,
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investment banking and management in the energy industry and his
    extensive record of investing in and helping to develop numerous
    private and public oil and gas companies.
Thomas O. Hicks, Jr.
was elected to the
    Company's Board of Directors in September 2009.
    Mr. Hicks has been a member of the Corporate
    Governance/Nominating Committee since September 25, 2009,
    and between September 25, 2009 and December 15, 2009
    was also a member of the Compensation Committee. He was a vice
    president of HACI from February 2007 through September 2009 and
    was its secretary from August 2007 to September 2009.
    Mr. Hicks has served as a vice president of Hicks Holdings
    since 2005. Hicks Holdings is a Dallas-based family holding
    company for the Hicks family and a private investment firm which
    owns and manages assets in sports and real estate and makes
    corporate acquisitions. Mr. Hicks has served as Alternate
    Governor for the Dallas Stars Hockey Club. In 2004 and 2005,
    Mr. Hicks served as Director, Corporate and
    Suite Sales, for the Texas Rangers Baseball Club. From 2001
    to 2003, Mr. Hicks was an analyst at Greenhill &
    Co. LLC, a New York based merchant banking firm. As an analyst,
    Mr. Hicks was involved in numerous private equity, mergers
    and acquisition advisory and financial restructuring
    transactions. Mr. Hicks currently serves as the chairman of
    the Campaign for Children in Crisis for Big Brother Big Sisters
    Organization of North Texas, and is on the boards of Big
    Brothers Big Sisters of North Texas, the Texas Rangers
    Foundation, Capital for Kids and is a member of Business
    Executives for National Security. In determining
    Mr. Hick's qualifications to serve on our Board of
    Directors, the Board of Directors has considered, among other
    things, his experience and expertise in sales, banking and
    management.
William J. Quinn
was elected to the Company's
    Board of Directors in September 2009. Mr. Quinn has been a
    member of the Compensation Committee since September 25,
    2009, and between September 25, 2009, and December 15,
    2009, was also a member of the Corporate Governance/Nominating
    Committee. He is the Executive Vice President of NGP Energy
    Capital Management and is a managing partner of the Natural Gas
    Partners private equity funds, having served in those or similar
    capacities since 1998. He has been a member of the board of
    managers of Holdings since its founding in 2004. He currently
    serves on the investment committee of NGP Capital Resources
    Company, and is a director of Eagle Rock Energy Partners, L.P.,
    and of its general partner, Eagle Rock Energy G&P, LLC. He
    also serves as a member of the board of numerous private energy
    companies. In determining Mr. Quinn's qualifications
    to serve on our Board of Directors, the Board of Directors has
    considered, among other things, his extensive experience and
    expertise in finance and in the energy industry.
Robert M. Swartz
was elected to the Company's
    Board of Directors in September 2009. Mr. Swartz has been a
    member of the Audit Committee since September 25, 2009, and
    between September 25, 2009, and December 15, 2009, was
    also a member of the Compensation and Corporate
    Governance/Nominating Committees. He was a senior vice president
    of HACI from September 2007 until September 2009, and currently
    serves as a managing director and partner of Hicks Equity
    Partners LLC. Mr. Swartz is on the Board of Directors of
    Anvita Health. From 1999 until 2007, Mr. Swartz served in
    various positions at Centex Corporation, a New York Stock
    Exchange home building company, serving as Senior Vice President
    of Strategic Planning and Mergers and Acquisitions from 1999 to
    2000 and serving as Chairman and Chief Executive Officer of
    Centex HomeTeam Services from 2000 to 2007. From 1997 until
    1999, Mr. Swartz served as Executive Vice President of
    FirstPlus Financial Group, Inc., a consumer finance company in
    Dallas, Texas. In 1996, Mr. Swartz served as president and
    chief executive officer of AMRE, Inc. a nationwide home services
    provider. From 1994 to 1995, Mr. Swartz served as President
    of Recognition International, an NYSE high-technology company
    and previously served from 1990 to 1993 as that company's
    chief financial officer. Mr. Swartz received a Bachelors of
    Science degree in accounting from the State University of New
    York in Albany in 1973 and a Master of Business Administration
    degree in finance from New Hampshire College in 1976.
    Mr. Swartz is a Certified Public Accountant. In determining
    Mr. Swartz's qualifications to serve on our Board of
    Directors, the Board of Directors has considered, among other
    things, his experience and expertise in mergers and
    acquisitions, finance, accounting and management.
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Current Executive
    Officers
The following table sets forth certain information as of
    March 29, 2010, regarding the current executive officers of
    the Company.
Name
Age
Position
Nicholas J. Sutton
65
Chief Executive Officer and Director
James M. Piccone
59
President, General Counsel, Secretary and
Director
Richard F. Betz
48
Senior Vice President, Strategy and
Planning
Dale E. Cantwell
54
Senior Vice President, Operations
Theodore Gazulis
55
Senior Vice President and Chief Financial
Officer
Janet W. Pasque
52
Senior Vice President, Land and Business
Development
Nicholas J. Sutton —
See above under
Directors
for Mr. Sutton's biography.
James M. Piccone —
See above under
Directors
for Mr. Piccone's biography.
Richard F. Betz
has been Senior Vice President of
    the Company since September 25, 2009, and was
    Vice President — Business Development of the
    Company from July 2009 to September 2009. He has been Vice
    President, Business Development of Predecessor Resolute and
    Holdings since their founding in 2004. From September 2001 to
    January 2004, Mr. Betz was involved in various financial
    consulting activities related to the energy industry. Prior to
    that, Mr. Betz spent seventeen years with Chase Securities
    and successor companies, where he was involved primarily in oil
    and gas corporate finance. Mr. Betz was a Managing Director
    in the oil and gas investment banking coverage group with
    primary responsibility for mid-cap exploration and production
    companies as well as leveraged finance and private equity. In
    that capacity, Mr. Betz worked with the HS Resources
    management team for approximately twelve years.
Dale E. Cantwell
has been Senior Vice President,
    Operations of the Company since September 25, 2009, and was
    Vice President — Operations of the Company from July
    2009 to September 2009. He has been Vice President, Operations
    of Predecessor Resolute and Holdings since their founding in
    2004. From March 2003 to January 2004, Mr. Cantwell was a
    private investor. After the acquisition of HS Resources by
    Kerr-McGee in August 2001 until February 2003, Mr. Cantwell
    was Vice President of Kerr-McGee Rocky Mountain Corporation.
    Prior to that, Mr. Cantwell was Vice President of
    Operations for HS Resources D-J Basin District. From 1979 until
    joining HS Resources in 1993, he worked for Amoco Production
    Company in various engineering and marketing capacities.
    Mr. Cantwell is a member of the Society of Petroleum
    Engineers.
Theodore Gazulis
has been Senior Vice President
    and Chief Financial Officer of the Company since
    September 25, 2009, and was Vice President of Finance,
    Chief Financial Officer and Treasurer of the Company from July
    2009 to September 2009. He has been Vice President —
    Finance, Treasurer and Assistant Secretary of Predecessor
    Resolute and Holdings since their founding in 2004.
    Mr. Gazulis served as a Vice President of HS Resources from
    1984 until its merger with Kerr-McGee in 2001. Mr. Gazulis
    had primary responsibility for HS Resources' capital
    markets activity and for investor relations and information
    technology. Subsequent to HS Resources' acquisition by
    Kerr-McGee and prior to the formation of Resolute Natural
    Resources Company, Mr. Gazulis was a private investor and
    also undertook assignments with two privately-held oil and gas
    companies, serving on the Board of Directors of Contour Energy
    Co. and performing the functions of the Chief Financial Officer
    of Venoco, Inc. on a consulting basis. Prior to joining HS
    Resources, he worked for Amoco Production Company and Sohio
    Petroleum Company. He is a member of the American Association of
    Petroleum Geologists.
Janet W. Pasque
has been Senior Vice President,
    Land and Development of the Company since September 25,
    2009, and was Vice President — Land of the Company
    from July 2009 to September 2009. She has been Vice President,
    Land of Predecessor Resolute and Holdings since their founding
    in 2004. Ms. Pasque was a Vice President of HS Resources
    where she had responsibility for the land department and joint
    responsibility for the company's exploration activities
    from 1993 until the company's acquisition by Kerr-McGee in
    late 2001. Subsequent to the HS Resources acquisition by
    Kerr-McGee, Ms. Pasque managed the land functions
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at Kerr-McGee Rocky Mountain Corp. until early 2003.
    Ms. Pasque served as a land consultant from 2003 until the
    founding of Resolute Holdings, LLC in 2004. Prior to joining HS
    Resources in 1993, Ms. Pasque worked for Texaco Inc. and
    Champlin Petroleum Company. Ms. Pasque is a member of the
    American Association of Professional Landmen.
Family
    Relationships
There are no family relationships among any of the
    Company's directors and executive officers.
The Company Board
    of Directors and Committees
Director
    Independence
Under the rules of the NYSE, a majority of the members of the
    Board of Directors and all of the members of certain committees
    must be composed of "independent directors," as
    defined in the rules of the NYSE. In general, an
    "independent director" is a person other than an
    officer or employee of the Company or any other individual who
    has a relationship, which, in the opinion of the Company's
    Board of Directors, would interfere with the director's
    exercise of independent judgment in carrying out the
    responsibilities of a director. Additional independence and
    qualification requirements apply to our directors serving on
    certain committees. The Company has standing audit,
    compensation, corporate governance/nominating and finance
    committees, each of which is composed entirely of independent
    directors, under each of the applicable standards. The
    Company's Board of Directors has determined that, other
    than Messrs. Sutton and Piccone, each member of the Board
    of Directors is independent under the NYSE rules. In making that
    determination, the Board of Directors considered the
    relationships of Messrs. Swartz, and Hicks with HACI and
    HH-HACI, L.P., a Delaware limited partnership, and the
    relationships of Messrs. Hersh, Covington and Quinn with
    various NGP entities.
General
The Company's business is managed under the direction of
    its Board of Directors. In connection with its oversight of the
    Company's operations and governance, the Board of Directors
    has adopted, among other things, the following:
•
Corporate Governance Guidelines to implement certain policies
    regarding the governance of the Company;
•
a Code of Business Conduct and Ethics to provide guidance to
    directors, officers and employees with regard to certain ethical
    and compliance issues;
•
Charters of the Audit Committee, the Compensation Committee and
    the Corporate Governance/Nominating Committee of the Board of
    Directors;
•
an Insider Trading Policy to facilitate compliance with insider
    trading regulations;
•
an Audit Committee Whistleblower Policy to allow directors,
    officers and employees (i) to make confidential anonymous
    submissions regarding concerns with respect to accounting or
    auditing matters and (ii) provides for the receipt of
    complaints regarding accounting, internal controls or
    auditing; and
•
a Stockholder and Interested Parties Communication Policy
    pursuant to which holders of our securities and other interested
    parties can communicate with the Board of Directors, Board
    Committees
and/or
individual directors.
Other than the Insider Trading Policy, each of these documents
    can be viewed on the Company's website, available at:
www.resoluteenergy.com
under the "Investor
    Relations" tab, subheading "Corporate
    Governance." Copies of the foregoing documents and
    disclosures are available without charge to any person who
    requests them. Requests should be directed to Resolute Energy
    Corporation, Attn: Secretary, 1675 Broadway, Suite 1950,
    Denver, Colorado 80202.
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Non-Management
    Sessions
The Board of Directors schedules regular executive sessions
    involving exclusively non-management directors as required by
    NYSE rules. Mr. Covington, as the Lead Independent
    Director, presides at all such executive sessions
Audit
    Committee
The Company has a separately designated Audit Committee, the
    members of which are Messrs. Duffy, Cunningham and Swartz,
    with Mr. Swartz serving as Chairman. The primary function
    of the Audit Committee is to assist the Board of Directors in
    its oversight of its financial reporting process. Among other
    things, the committee is responsible for reviewing and selecting
    our independent registered public accounting firm and reviewing
    our accounting practices and policies, and to serve as an
    independent and objective party to monitor the financial
    reporting process. The Board of Directors has determined that
    each of Mr. Swartz, Mr. Duffy and Mr. Cunningham
    qualifies as an "audit committee financial expert" as
    defined in Item 407(d)(5) of SEC
Regulation S-K
and that each member of the committee is independent for
    purposes of SEC
Rule 10A-3,
and "financially literate" for purposes of applicable
    NYSE rules. See "Directors, Executive Officers and
    Corporate Governance — Directors" for a summary
    of the business experience of each member of the committee.
Corporate
    Governance/Nominating Committee
The charter of the corporate governance/nominating committee
    provides that director candidates recommended by security
    holders will be considered on the same basis as candidates
    recommended by other persons. A security holder who wishes to
    recommend a candidate should send complete information regarding
    the candidate to Resolute Energy Corporation, Attn: Secretary,
    1675 Broadway, Suite 1950, Denver, Colorado 80202. The
    information provided with respect to the nominee should include
    five years of professional background, academic qualifications,
    whether the nominee has been subject to any legal proceedings in
    the past 10 years, the relationship between the security
    holder and the nominee, and any other specific experience,
    qualifications, attributes or skills that qualify the nominee
    for the board. The committee will assess each candidate,
    including candidates recommended by security holders, by
    evaluating all factors it considers appropriate, which may
    include career specialization, relevant technical skills or
    financial acumen, diversity of viewpoint and industry knowledge.
    The charter provides that nominees must meet certain minimum
    qualifications. In particular, a nominee must:
•
have displayed the highest personal and professional ethics,
    integrity and values and sound business judgment;
•
be highly accomplished in his or her field, with superior
    credentials and recognition and broad experience at the
    administrative or policy-making level in business, government,
    education, technology or public interest;
•
have relevant expertise and experience and be able to offer
    guidance and advice to the chief executive officer based on that
    expertise and experience;
•
with respect to a majority of directors, be independent and able
    to represent all stockholders and be committed to enhancing long
    term stockholder value; and
•
have sufficient time available to devote to the activities of
    the Board of Directors and to enhance his or her knowledge of
    the Company's business.
The committee does not have a formal policy with respect to the
    consideration of diversity when assessing director nominees, but
    considers diversity as part of its overall assessment of the
    board's functioning and needs.
Section 16(a)
    Beneficial Ownership Reporting Compliance
Section 16(a) of the Securities Exchange Act of 1934
    requires our directors and executive officers, and persons who
    own more than ten percent of our common stock, to file with the
    Securities and Exchange Commission initial reports of ownership
    and reports of changes in ownership of our common stock. To our
    knowledge, based solely on a review of the copies of such
    reports available to us and written representations that no
    other reports were
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required, we believe that all reporting obligations of our
    officers, directors and greater than ten percent stockholders
    under Section 16(a) were satisfied during the year ended
    December 31, 2009, except as follows: Resolute Holdings,
    LLC, a beneficial owner of more than 10% of our common stock,
    filed late one Form 4; Natural Gas Partners VII, a
    beneficial owner of more than 10% of our common stock, filed
    late one Form 3; and Kenneth A. Hersh, a director, filed
    late one Form 5.
Code of
    Ethics
The Company has adopted a code of ethics that applies to
    directors, officers and employees that complies with the rules
    and regulations of the NYSE and SEC. The Code of Ethics is
    posted on the Company's website, at
www.resoluteenergy.com
, under the "Investor
    Relations" tab, subheading "Corporate
    Governance." All amendments to, and waivers granted under,
    the Company's code of ethics will be disseminated on the
    Company's website in the manner required by SEC and NYSE
    rules.
Communications
    with the Board
In recognition of the importance of providing stockholders and
    other interested parties with the ability to communicate with
    members of the Board of Directors and with non-management
    directors, the Board of Directors has adopted a Stockholder and
    Interested Parties Communication Policy, a copy of which is
    available on our website. Pursuant to the policy, security
    holders and other interested persons may direct correspondence
    to the Board of Directors or to any individual director by mail
    to the following address:
c/o Resolute
Energy Corporation, Attention: Lead Independent Director, 1675
    Broadway, Suite 1950, Denver, Colorado 80202.
Communications should not exceed 1,000 words in length and
    should indicate (i) the type and amount of Resolute
    securities held by the person submitting the communication
and/or
the
    nature of the person's other interest in Resolute,
    (ii) any personal interest the person has in the subject
    matter of the communication and (iii) the person's
    mailing address,
e-mail
address and telephone number. Unless the communication relates
    to an improper topic (e.g., it contains offensive content or
    advocates that we engage in illegal activities) or it fails to
    satisfy the procedural requirements of the policy, we will
    deliver it to the person(s) to whom it is addressed.
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ITEM 11.
EXECUTIVE
    COMPENSATION
Summary
    Compensation Table
The following table summarizes the total compensation paid or
    earned by our principal executive officer, our principal
    financial officer and four other most highly compensated
    executive officers (the "Named Executive Officers")
    who served as executive officers from September 25, 2009,
    the date the Company became a public reporting entity, through
    December 31, 2009.
Change in
Pension Value
and
Nonqualified
Non-Equity
Deferred
Stock
Option
Incentive Plan
Compensation
All Other
Name and
Salary
Bonus
Awards
Awards
Compensation
Earnings
Compensation
Total
Principal Position
Year
($)
($)
($)
($)
($)
($)
($)
($)
Nicholas J.
    Sutton
(1)(2)(5)
2009
$
191,827
$
138,111
(3)
—
—
—
—
14,700
(4)
$
344,638
Chief Executive Officer
James M.
    Piccone
(1)(2)(5)
2009
$
102,308
$
100,611
(3)
—
—
—
—
15,508
(4)
$
218,427
President, General Counsel
Theodore
    Gazulis
(1)(2)
2009
$
88,846
$
88,111
(3)
—
—
—
—
14,700
(4)
$
191,657
Chief Financial Officer
and Senior Vice
President
Richard F.
    Betz
(1)(2)
2009
$
88,846
$
75,000
—
—
—
—
—
$
163,846
Senior Vice President,
Strategy and Planning
Dale E.
    Cantwell
(1)(2)
2009
$
88,846
$
88,111
(3)
—
—
—
—
15,508
(4)
$
192,465
Senior Vice President,
Operations
Janet W.
    Pasque
(1)(2)
2009
$
88,846
$
88,111
(3)
—
—
—
—
15,508
(4)
$
192,465
Senior Vice President,
Land and Business
1)
Each of the executive officers assumed such position with the
    Company upon completion of the Resolute Transaction on
    September 25, 2009, at which time the Company became a
    reporting company pursuant to the Securities Exchange Act of
    1934. Prior to that time, each executive officer was employed by
    Predecessor Resolute, and, in that capacity, received the
    following salary and other compensation for the period from
    January 1, 2009 through September 24, 2009 (no other
    compensation was paid during that period):
Salary and Other
All Other
Compensation
Salary
Compensation
Nicholas J. Sutton
$
71,346
—
James M. Piccone
$
120,481
$2,201(4)
Theodore Gazulis
$
120,481
—
Richard E. Betz
$
120,481
—
Dale E. Cantwell
$
120,481
$2,201(4)
Janet W. Pasque
$
120,481
$2,201(4)
2)
Each of the executive officers is also an officer of Holdings,
    and has received equity and other compensation in such capacity.
    Such compensation is not included in the above table.
3)
$13,111 of the bonus relates to matching 401(k) contributions
    that would have been made in 2009 in respect of
    2008 employee contributions in accordance with policies of
    Predecessor Resolute. Because Predecessor Resolute had suspended
    its matching contributions in 2009, Resolute determined to pay
    the amount of such matching contributions in the form of a cash
    payment.
4)
Consists of (i) contributions pursuant to the
    Company's 401(k) plan to match employee contributions made
    in 2009 and (ii) the value of parking paid for by the
    Company. The 401(k) matching contribution was paid in 2010, but
    accrued on the Company's financial statements in 2009.
5)
Mr. Sutton and Mr. Piccone are also directors of the
    Company but received no compensation for their services as
    directors.
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2009 Grants of
    Plan-Based Awards
The Company has one equity incentive plan, the 2009 Performance
    Incentive Plan (the "Plan"), pursuant to which the
    Company may grant stock options, restricted stock, restricted
    stock units and stock appreciation rights. The Plan provides for
    the issuance of up to 2,657,744 shares of common stock. No
    plan-based awards have been made to the Named Executive Officers
    in 2009.
Outstanding
    Equity Awards at Fiscal Year End
There were no equity awards outstanding under the Plan at
    December 31, 2009.
Option Exercises
    and Stock Vested in 2009
No options to purchase Company common stock were exercised by
    Named Executive Officers in 2009, and no options held by Named
    Executive Officers vested in 2009.
2009 Pension
    Benefits
The Company has no defined benefit pension plans.
2009 Nonqualified
    Deferred Compensation Plans
In the year ended December 31, 2009, the Company had no
    nonqualified plan that provides for deferral of compensation.
Potential
    Payments Upon Termination or Change of Control of
    Resolute
There are currently no agreements under which the Named
    Executive Officers would be entitled to receive payments upon
    termination or upon a change of control of the Company.
Compensation
    Discussion and Analysis of the Company
The Company began operations on September 25, 2009, and the
    Board of Directors and Compensation Committee assumed their
    positions at that date. The Compensation Committee is in the
    process of developing its compensation policies and philosophy
    for executive officers, and in February 2010 engaged Effective
    Compensation, Inc., an independent compensation consultant, to
    advise with respect to development of comprehensive compensation
    philosophy and practices for executives and other employees.
Overview of the Company's Compensation
    Program.
The Company's Board of Directors has
    responsibility for establishing, implementing and continually
    monitoring adherence with the Company's compensation
    philosophy. The Board of Directors has delegated to the
    Compensation Committee of the Board of Directors its
    responsibilities with respect to development of a compensation
    program and implementation of that program. The Compensation
    Committee will be solely responsible for determining the
    compensation of the CEO and will make recommendations to the
    Board of Directors regarding the compensation of other executive
    officers. It will also administer equity incentive plans, and
    make recommendations to the Board of Directors regarding awards
    under the Incentive Plan. Generally, the types of compensation
    and benefits that are provided to the Company's executive
    officers are similar to those provided to the Company's
    other officers and employees. The Company does not have
    compensation plans that are solely for executive officers.
Compensation Philosophy and Objectives.
The Company
    believes that the most effective compensation program is one
    that is designed to reward all employees, not just executives,
    for the achievement of the Company's short-term and
    long-term strategic goals. As a result, the Company's
    compensation philosophy is to provide all employees with cash
    incentives or a combination of cash and equity-based incentives
    that foster the continued growth and overall success of the
    Company and encourage employees to maximize stockholder value.
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Under this philosophy, all the Company employees, from the most
    senior executives of the organization to entry level, have
    aligned interests. When establishing its total compensation, the
    Company has the following objectives:
•
to attract, retain and motivate highly qualified and experienced
    individuals;
•
to provide financial incentives, through an appropriate mix of
    fixed and variable pay components, to achieve the
    organization's key financial and operational objectives;
•
to ensure that a portion of total compensation is "at
    risk" in the form of equity compensation; and
•
to offer competitive compensation packages that are consistent
    with the Company's core values, including the balance of
    fairness to the individual and the organization, and the demand
    for commitment and dedication in the performance of the job.
Setting the Company's Executive
    Compensation.
The Compensation Committee is developing
    a comprehensive compensation plan that will encompass all
    elements of compensation for executives and all employees. The
    committee expects that process to be completed in the first half
    of 2010. Following development of the comprehensive plan and
    2010 implementation, executive compensation will be reviewed by
    the compensation committee no less frequently than annually.
    Compensation is expected to be based on the foregoing
    objectives, and to include as integral components base salary
    and annual and long-term incentive-based cash and non-cash
    compensation. In performing its compensation reviews and making
    its compensation decisions regarding the compensation of the
    Company's chief executive officer and other executive
    officers, the Compensation Committee of the Board of Directors
    will conduct an ongoing review of compensation data from other
    oil and gas companies of comparable size and scope. In
    establishing executive compensation, base salaries are expected
    to be targeted near the midpoint of a range established by this
    peer review, although adjustments are made for such things as
    experience, market factors or exceptional performance, among
    others, and potential total compensation, including annual
    incentive compensation, are expected to be at the upper range of
    total compensation at comparable companies if performance
    targets are met. Annual cash incentive and equity incentive
    awards will be designed to reflect progress toward company-wide
    financial goals and personal objectives, as well as salary grade
    level, and to balance rewards for short-term and long-term
    performance. Long-term incentive compensation will be used to
    reward and to encourage long-term performance and an alignment
    of interests between the individual and the organization.
    Long-term incentive grants will be used not only to reward prior
    performance, but also to retain executive officers and other
    employees and provide incentives for future exceptional
    performance. To the extent that business success makes long-term
    incentive awards more valuable, an individual's total
    compensation may move from the median to the high end of ranges
    established with reference to peer data.
There is no pre-established policy or target for the allocation
    between either cash and non-cash or short-term and long-term
    incentive compensation for executive officers. Rather, the
    compensation committee engages in an individual analysis for
    each executive. Factors affecting compensation include:
    (i) the Company's annual performance; (ii) impact
    of the employee's performance on the Company's
    results; (iii) the Company's objective to provide
    total compensation that is higher than competitive levels when
    aggressive goals of the Company are exceeded; and
    (iv) internal equity. The size of the long-term incentive
    compensation grants will typically increase with the level of
    responsibility of the executive position. For the chief
    executive officer, long term incentive grants are typically the
    largest element of the total compensation package.
Executive officers generally receive the same benefits as other
    employees. The Company has matched 401(k) contributions made by
    all employees, including executive officers, in 2009.
Executive Compensation Components.
The principal
    components of compensation for executive officers are:
•
base salary;
•
cash bonus;
•
long-term incentive compensation; and
•
401(k) and other benefits.
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Relative Size of Major Compensation Elements.
The
    combination of base salary, annual cash incentives and equity
    awards comprises total direct compensation. In setting executive
    compensation, the compensation committee considers the aggregate
    compensation payable to an executive officer and the form of
    that compensation. The compensation committee seeks to achieve
    the appropriate balance between immediate cash rewards and
    long-term financial incentives for the achievement of both
    annual and long-term financial and non-financial objectives.
The compensation committee may decide, as appropriate, to modify
    the mix of base salary, annual cash incentives and long-term
    equity incentives to best fit an executive officer's
    specific circumstances. For example, the compensation committee
    may make the decision to award more cash and not award an equity
    grant. This provides more flexibility to the Company to reward
    executive officers appropriately as they near retirement, when
    they may only be able to partially fulfill the vesting required
    for equity grants. The compensation committee may also increase
    the size of equity grants to an executive officer if the total
    number of career equity grants does not adequately reflect the
    executive's current position with the Company.
Timing of Compensation Decisions.
In the first half
    of 2010, the Company will undertake a comprehensive analysis of
    its compensation system and establish performance and other
    goals. After this process is completed, it is expected that all
    elements of the executive officers' compensation will be
    reviewed each February, including a review of financial,
    operating and personal objectives with respect to the prior
    year's results. At that time, the financial, operating and
    personal objectives and performance targets will be determined
    for the current year. The Board of Directors or the compensation
    committee may, however, review salaries or grant equity
    incentives at other times in connection with new appointments or
    promotions or other extraordinary events that occur during the
    year, or under other circumstances that it deems appropriate.
The following table summarizes the approximate timing of
    significant compensation events:
Event
Timing
Base salary review and recommendation.
First quarter of the fiscal year for base salary for the current
    year.
Executive performance evaluation and corresponding compensation
    recommendations.
Results approved in February of each fiscal year for annual cash
    bonus with respect to prior year.
Earned incentive compensation paid in March.
Granting of long term incentives to executives.
No set period.
External consultants' analyses provided to the compensation
    committee evaluating executive compensation.
No set period.
Establish executive officer performance objective(s).
February of each fiscal year for the current year.
Base Salary.
The Company provides executive officers
    with a base salary to compensate them for services rendered
    during the fiscal year. Base salaries for each of the Named
    Executive Officers were reset following the consummation of the
    Resolute Transaction, as follows: base salary levels for
    Messrs. Betz, Cantwell and Gazulis and Ms. Pasque were
    set at $300,000, for Mr. Piccone at $350,000, and for
    Mr. Sutton at $500,000. This decision reflected increased
    responsibilities associated with public company status, as well
    as other factors. The compensation committee reviewed survey
    data compiled by a third party of publicly available information
    of salary levels for executives at companies in the oil and gas
    industry with a market capitalization comparable to that of the
    Company. In addition, the compensation committee considered the
    then-current salary levels of executives. Prior to the Resolute
    Transaction in 2009, all Named Executive Officers had been
    executive officers of Resolute Holdings. Each executive had an
    agreed annual salary level of $175,000 per year, which reflected
    private company salary and equity arrangements for a
start-up
company that were no longer applicable to a much larger public
    company. Salaries had been unchanged since 2004, and these
    levels were not considered competitive with market rates. In
    addition, executives had foregone salary increases and had
    agreed to salary reductions from agreed salary levels in 2009 in
    response to cash flow concerns of Resolute Holdings.
Base salary for executive officers for 2010 will take into
    consideration salaries of executives of comparable companies in
    the oil and gas industry, individual performance, comparison to
    internal peer positions, the relative
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performance of the Company during the year, and overall
    performance against the Company objectives. Base salaries will
    be reviewed and adjusted pursuant to the procedures discussed
    above.
There are occasions when a base salary can be reduced such as
    when an executive officer moves to a position of lesser
    responsibility in the organization. Alternatively, a base salary
    can be frozen for a number of years until it falls in line with
    comparable positions.
Cash Bonus.
Cash bonuses to executive officers will
    be made at the discretion of the Board of Directors. Cash
    bonuses totaling $578,055 were awarded in December 2009 to the
    Named Executive Officers for services during 2009. Each bonus
    was equal to approximately one quarter of each executive's
    annual salary at year-end 2009, subject to certain adjustments
    and special considerations. Mr. Sutton received a bonus of
    $138,100, Mr. Piccone a bonus of $100,600, and
    Messrs. Gazulis and Cantwell and Ms. Pasque each
    received bonuses of $88,100 and Mr. Betz received a bonus
    of $75,000. Factors considered in awarding this bonus included
    the exemplary efforts made by such executives in completing the
    Resolute Transaction and in transitioning to public company
    status. In addition, the bonuses took into consideration the
    salary reductions agreed to by the executives in 2009:
    Mr. Sutton had agreed to a 50% reduction in his salary from
    February 2009 and other executives had agreed to a 10% reduction
    in salary from April 2009. The Committee also considered, in
    determining the amount of the bonuses, that the Company's
    normal policy of matching employee 401(k) contributions had been
    suspended in 2009 (with respect to 2008 contributions) and that
    Named Executive Officers received no bonus in 2009 for services
    in 2008.
The Committee expects that future year-end cash bonuses would
    range from 0% to 150% of each executive's annual base
    salary, depending on an executive's position of
    responsibility and an assessment of that executive's
    contribution to the success of the Company. Performance targets
    will be established, and bonuses will reflect a combination of
    time vesting and achievement of performance objectives.
Employment Agreements.
The Company expects to enter
    into employment agreements with the Named Executive Officers in
    2010. It is expected that the employment agreements will provide
    for (i) base salary, (ii) bonuses to be earned by
    achievement of specified performance targets,
    (iii) severance and change of control benefits,
    (iv) non-competition and non-solicitation provisions,
    (v) obligations to maintain the confidentiality of the
    Company information, and (vi) assignment of all
    intellectual property rights to the Company.
Retirement and Other Benefit Plans.
All of the
    Company's employees will be eligible to participate in a
    401(k) plan. While the Company will have the option but not the
    requirement to match all or a portion of employee contributions
    to the 401(k) plan, a matching contribution was made in 2010 for
    2009 contributions.
Long-Term Incentive Compensation.
The Company has
    adopted the 2009 Incentive Performance Plan (the "Incentive
    Plan"), providing for long-term equity based awards
    intended to compensate key employees, consultants and directors.
    The principal terms of the Incentive Plan are summarized below
    under the caption "2009 Incentive Performance Plan."
Other Benefits Plans.
The Company offers a variety
    of health and benefit programs to all employees, including
    medical, dental, vision, life insurance and disability
    insurance. The Company's executive officers are generally
    eligible to participate in these employee benefit plans on the
    same basis as the rest of the Company's employees.
Compensation
    Programs and Potential of Risks —
The Company has determined that the risks arising from its
    compensation policies and practices are not reasonably likely to
    have a material adverse effect on the Company.
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Director Summary
    Compensation Table
The following table summarizes the compensation we paid to our
    non-employee directors between September 25, 2009, the date
    the Company commenced operations, and December 31, 2009.
Change in
Pension Value
Fees
and
Earned
Non-Equity
Nonqualified
or Paid in
Stock
Option
Incentive Plan
Deferred
All Other
Cash
Awards
Awards
Compensation
Compensation
Compensation
Total
Name
($)
($)
($)
($)
Earnings
($)
($)
Kenneth A. Hersh
14,144
—
—
—
—
—
14,144
Richard L. Covington
14,144
—
—
—
—
—
14,144
William J. Quinn
14,144
—
—
—
—
—
14,144
William H. Cunningham
14,144
—
—
—
—
—
14,144
Robert M. Swartz
14,144
—
—
—
—
—
14,144
James E. Duffy
14,144
—
—
—
—
—
14,144
Thomas O. Hicks, Jr.
14,144
—
—
—
—
—
14,144
1)     Messrs. Sutton and Piccone
    are not included in this table because as employees of the
    Company they receive no additional compensation for their
    services as directors. The compensation received by
    Messrs. Sutton and Piccone as employees is shown in
    "— Executive Officer Compensation in
    2009 — Summary Compensation Table."
On December 14, 2009, the compensation committee
    recommended, and the Board of Directors approved, the following
    annual compensation for non-employee directors: annual retainer
    of $50,000, fees of $2,000 for each Board of Directors meeting
    and $1,000 for each committee meeting, and additional
    compensation of $7,500 for each committee chairman. In addition,
    non-employee directors would receive equity compensation, in a
    form to be determined by the compensation committee, having a
    value of $50,000 annually. The cash fees appearing in the above
    table reflects this compensation arrangement for 2009. While the
    Board of Directors authorized the directors to receive equity
    compensation for services as a director for the period from
    September 25, 2009 to December 31, 2009, the form and
    terms of any such equity compensation were subject to analysis
    of legal, tax and other factors and had not been determined by
    the end of 2009. As a result, no awards were made in 2009, but
    awards of 1,373 shares were made to each non-employee
    director on March 16, 2010 with respect to 2009 services.
    See "
Security Ownership of Certain Beneficial Owners and
    Management"
.
In addition, each director will be reimbursed for his or her
out-of-pocket
expenses in connection with attending meetings of the Board of
    Directors or committees. Each director is covered by a liability
    insurance policy paid for by the Company and is indemnified, to
    the fullest extent permitted under Delaware law, by the Company
    for his or her actions associated with being a director. The
    Company entered into indemnification agreements with each of its
    directors.
Compensation
    Committee Report
We, the Compensation Committee of the Board of Directors, have
    reviewed and discussed the Compensation Discussion and Analysis
    with the management of the Company, and, based on such review
    and discussion, have recommended to the Board of Directors that
    the Compensation Discussion and Analysis be included in this
    Annual Report on
Form 10-K
for the fiscal year ended December 31, 2009.
Compensation Committee:
James E. Duffy, Chairman
Richard L. Covington
Kenneth A. Hersh
William J. Quinn
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2009 INCENTIVE
    PERFORMANCE PLAN
The Company adopted the 2009 Incentive Performance Plan (the
    "Incentive Plan") in July 2009, and the Incentive Plan
    was approved by the sole stockholder of the Company at that
    time. This summary is qualified in its entirety by the full text
    of the Incentive Plan.
Purpose.
The purpose of the Incentive Plan is to
    promote the success of the Company and the interests of its
    stockholders by providing an additional means for the Company to
    attract, motivate, retain and reward directors, officers,
    employees and other eligible persons (including consultants and
    advisors) through the grant of awards and incentives for high
    levels of individual performance and improved financial
    performance of the Company. Equity-based awards are also
    intended to further align the interests of award recipients and
    the Company's stockholders.
Administration.
The Company's Board of
    Directors or one or more committees consisting of independent
    directors appointed by the Company's Board of Directors
    will administer the Incentive Plan. Our Board of Directors has
    delegated general administrative authority for the Incentive
    Plan to the compensation committee, which is comprised of
    directors who qualify as independent under rules promulgated by
    the SEC and The New York Stock Exchange listing standards.
    Except with respect to grants to non-employee directors, a
    committee may delegate some or all of its authority with respect
    to the Incentive Plan to another committee of directors and
    certain limited authority to grant awards to employees may be
    delegated to one or more officers of the Company. For purposes
    of Section 162(m) of the Internal Revenue Code of 1986, as
    amended (the "Code"),
Rule 16b-3
of the Securities Exchange Act of 1934, as amended, the rules of
    the New York Stock Exchange ("NYSE") and for grants to
    non-employee directors, the Incentive Plan must be administered
    by a committee consisting solely of independent directors. The
    appropriate acting body, be it the Company's Board of
    Directors, a committee within its delegated authority, or an
    officer within his or her delegated authority, is referred to in
    this plan description as the Administrator.
The Administrator has broad authority under the Incentive Plan
    with respect to award grants including, without limitation, the
    authority:
•
to select participants and determine the type(s) of award(s)
    that they are to receive;
•
to determine the number of shares that are to be subject to
    awards and the terms and conditions of awards, including the
    price (if any) to be paid for the shares or the award;
•
to cancel, modify, or waive the Company's rights with
    respect to, or modify, discontinue, suspend, or terminate any or
    all outstanding awards, subject to any required consents;
•
to accelerate or extend the vesting or exercisability or extend
    the term of any or all outstanding awards subject to any
    required consent;
•
subject to the other provisions of the Incentive Plan, to make
    certain adjustments to an outstanding award and to authorize the
    conversion, succession or substitution of an award;
•
to allow the purchase price of an award or shares of Company
    common stock to be paid in the form of cash, check, or
    electronic funds transfer, by the delivery of already-owned
    shares of Company common stock or by a reduction of the number
    of shares deliverable pursuant to the award, by services
    rendered by the recipient of the award, by notice of third party
    payment or by cashless exercise, on such terms as the
    Administrator may authorize, or any other form permitted by law.
Eligibility.
Persons eligible to receive awards
    under the Incentive Plan include officers and employees of the
    Company or any of its subsidiaries, directors of the Company,
    and certain consultants and advisors to the Company or any of
    its subsidiaries.
Authorized Shares.
The maximum number of shares of
    Company Common Stock that may be issued pursuant to awards under
    the Incentive Plan is 2,657,744. No awards were made in 2009.
    The Incentive Plan generally provides that shares issued in
    connection with awards that are granted by or become obligations
    of the Company through the assumption of awards (or in
    substitution for awards) in connection with an acquisition of
    another Company will not count against the shares available for
    issuance under the Incentive Plan.
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No Repricing.
In no case (except due to an
    adjustment to reflect a stock split or similar event or any
    repricing that may be approved by stockholders) will any
    adjustment be made to a stock option or stock appreciation right
    award under the Incentive Plan (by amendment, cancellation and
    regrant, exchange or other means) that would constitute a
    repricing of the per share exercise or base price of the award.
Types of Awards.
The Incentive Plan authorizes stock
    options, stock appreciation rights, restricted stock, restricted
    stock units, stock bonuses and other forms of awards that may be
    granted or denominated in Company common stock or units of
    Company common stock, as well as cash bonus awards. The
    Incentive Plan retains flexibility to offer competitive
    incentives and to tailor benefits to specific needs and
    circumstances. Any award may be paid or settled in cash.
Stock Options.
A stock option is the right to
    purchase shares of Company common stock at a future date at a
    specified price per share (the "exercise price.") The
    per share exercise price of an option generally may not be less
    than the fair market value of a share of Company common stock on
    the date of grant. The maximum term of an option is ten years
    from the date of grant. An option may be either an incentive
    stock option or a nonqualified stock option. Incentive stock
    options are taxed differently than nonqualified stock options
    and are subject to more restrictive terms under the Code and the
    Incentive Plan. Incentive stock options may be granted only to
    employees of the Company or a subsidiary.
Stock Appreciation Rights.
A stock appreciation
    right is the right to receive payment of an amount equal to the
    excess of the fair market value of shares of Company common
    stock on the date of exercise of the stock appreciation right
    over the base price of the stock appreciation right. The base
    price will be established by the Administrator at the time of
    grant of the stock appreciation right and generally cannot be
    less than the fair market value of a share of Company common
    stock on the date of grant. Stock appreciation rights may be
    granted in connection with other awards or independently. The
    maximum term of a stock appreciation right is ten years from the
    date of grant.
Restricted Stock.
Shares of restricted stock are
    shares of Company common stock that are subject to certain
    restrictions on sale, pledge, or other transfer by the recipient
    during a particular period of time (the "restricted
    period"). Subject to the restrictions provided in the
    applicable award agreement and the Incentive Plan, a participant
    receiving restricted stock may have all of the rights of a
    stockholder as to such shares, including the right to vote and
    the right to receive dividends.
Restricted Stock Units.
A restricted stock unit
    ("RSU"), represents the right to receive one share of
    Company common stock on a specific future vesting or payment
    date. Subject to the restrictions provided in the applicable
    award agreement and the Incentive Plan, a participant receiving
    RSUs has no stockholder rights until shares of common stock are
    issued to the participant. RSUs may be granted with dividend
    equivalent rights.
Cash Awards.
The Administrator, in its sole
    discretion, may grant cash awards, including without limitation,
    discretionary awards, awards based on objective or subjective
    performance criteria, and awards subject to other vesting
    criteria.
Other Awards.
The other types of awards that may be
    granted under the Incentive Plan include, without limitation,
    stock bonuses, performance stock, dividend equivalents, and
    similar rights to purchase or acquire shares of Company common
    stock.
Performance-Based Awards.
The Administrator may
    grant awards that are intended to be performance-based
    compensation within the meaning of Section 162(m) of the
    Code ("Performance-Based Awards"). Performance-Based
    Awards are in addition to any of the other types of awards that
    may be granted under the Incentive Plan (including options and
    stock appreciation rights which may also qualify as
    performance-based compensation for Section 162(m)
    purposes). Performance-Based Awards may be in the form of
    restricted stock, performance stock, stock units, other rights,
    or cash bonus opportunities.
The vesting or payment of Performance-Based Awards (other than
    options or stock appreciation rights) will depend on the
    absolute or relative performance of the Company on a
    consolidated, subsidiary, segment, division, or business unit
    basis. The Administrator will establish the targets on which
    performance will be measured based on criterion or criteria
    selected by the Administrator. The Administrator must establish
    criteria and targets in advance of applicable deadlines under
    the Code and while the attainment of the performance targets
    remains
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substantially uncertain. The Administrator may use any criteria
    it deems appropriate for this purpose, and applicable criteria
    may include one or more of the following: earnings per share,
    cash flow (which means cash and cash equivalents derived from
    either net cash flow from operations or net cash flow from
    operating, financing and investing activities), total
    stockholder return, gross revenue, revenue growth, operating
    income (before or after taxes), net earnings (before or after
    interest, taxes, depreciation
and/or
amortization), return on equity, capital employed, or on assets
    or net investment, cost containment or reduction, operating
    margin, debt reduction, finding and development costs,
    production growth or production growth per share, reserve
    replacement or reserve replacement per share or any combination
    thereof. The performance measurement period with respect to an
    award may be as short as three months to as long as ten years.
    Performance targets will be adjusted to mitigate the unbudgeted
    impact of material, unusual or nonrecurring gains and losses,
    accounting changes or other extraordinary events not foreseen at
    the time the targets were set unless the Administrator provides
    otherwise at the time of establishing the targets.
Performance-Based Awards may be paid in stock or in cash. Before
    any Performance-Based Award (other than an option or stock
    appreciation right) is paid, the Administrator must certify that
    the performance target or targets have been satisfied. The
    Administrator has discretion to determine the performance target
    or targets and any other restrictions or other limitations of
    Performance-Based Awards and may reserve discretion to reduce
    payments below maximum award limits.
Acceleration of Awards; Possible Early Termination of
    Awards.
Generally, and subject to limited exceptions
    set forth in the Incentive Plan, if any person acquires more
    than 50% of the outstanding common stock or combined voting
    power of the Company, if there are certain changes in a majority
    of the Company Board of Directors, if stockholders prior to a
    transaction do not continue to own more than 50% of the voting
    securities of the Company (or a successor or a parent) following
    a reorganization, merger, statutory share exchange or
    consolidation or similar corporate transaction involving the
    Company or any of its subsidiaries, a sale or other disposition
    of all or substantially all of the Company's assets or the
    acquisition of assets or stock of another entity by the Company
    or any of its subsidiaries, or if the Company is dissolved or
    liquidated, then awards then-outstanding under the Incentive
    Plan may become fully vested or paid, as applicable, and may
    terminate or be terminated upon consummation of such a change in
    control event. The Administrator also has the discretion to
    establish other change in control provisions with respect to
    awards granted under the Incentive Plan. For example, the
    Administrator could provide for the acceleration of vesting or
    payment of an award in connection with a change in control event
    that is not described above or provide that any such
    acceleration shall be automatic upon the occurrence of any such
    event.
Transfer Restrictions.
Awards under the Incentive
    Plan generally are not transferable by the recipient other than
    by will or the laws of descent and distribution, or pursuant to
    domestic relations orders, and are generally exercisable during
    the recipient's lifetime only by the recipient. Any amounts
    payable or shares issuable pursuant to an award generally will
    be paid only to the recipient or the recipient's
    beneficiary or representative. The Administrator has discretion,
    however, to establish written conditions and procedures for the
    transfer of awards to other persons or entities, as long as such
    transfers comply with applicable federal and state securities
    laws.
Adjustments.
As is customary in incentive plans of
    this nature, the share limit and the number and kind of shares
    available under the Incentive Plan and any outstanding awards,
    as well as the exercise or purchase prices of awards, and
    performance targets under certain types of performance-based
    awards, are subject to adjustment in the event of certain
    reorganizations, mergers, combinations, recapitalizations, stock
    splits, stock dividends, or other similar events that change the
    number or kind of shares outstanding, and extraordinary
    dividends or distributions of property to the stockholders.
No Limit on Other Authority.
The Incentive Plan does
    not limit the authority of the Company's Board of Directors
    or any committee to grant awards or authorize any other
    compensation, with or without reference to Company common stock,
    under any other plan or authority.
Termination of, or Changes to, the Incentive
    Plan.
The Administrator may amend or terminate the
    Incentive Plan at any time and in any manner. Stockholder
    approval for an amendment will be required only to the extent
    then required by applicable law or any applicable listing agency
    or required under Sections 162, 409A, 422 or 424 of the
    Code to preserve the intended tax consequences of the Incentive
    Plan. For example, stockholder approval
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will be required for any amendment that proposes to increase the
    maximum number of shares that may be delivered with respect to
    awards granted under the Incentive Plan. Adjustments as a result
    of stock splits or similar events will not, however, be
    considered an amendment requiring stockholder approval. Unless
    terminated earlier by the Board of Directors, the authority to
    grant new awards under the Incentive Plan will terminate ten
    years from the date of its adoption, or July 31, 2019.
    Outstanding awards generally will continue following the
    expiration or termination of the Incentive Plan. Generally
    speaking, outstanding awards may be amended by the Administrator
    (except for a repricing), but the consent of the award holder is
    required if the amendment (or any plan amendment) materially and
    adversely affects the holder.
Awards Under the Incentive Plan.
No awards were made
    under the Incentive Plan in 2009. Because future awards under
    the Incentive Plan will be granted in the discretion of the
    Company's Board of Directors or a committee of the board,
    the type, number, recipients and other terms of future awards
    cannot be determined at this time.
Securities
    Authorized for Issuance Under Equity Compensation
    Plans
The following table sets forth certain information regarding
    shares of our common stock issuable upon the exercise of options
    granted under our compensation plans as of December 31,
    2009.
Number of securities
Weighted-average
Number of securities
to be issued upon
exercise price of
remaining available for
exercise of
outstanding
future issuance under
outstanding options,
options, warrants
equity compensation
Plan Category
warrants and rights
and rights
plans
Equity compensation plans approved by security holders
0
$
0.00
2,657,744
(1)
Equity compensation plans not approved by security holders
—
—
—
Total
0
$
0.00
2,657,744
1)
Awards under the 2009 Performance Incentive Plan may be made in
    the form of options, restricted stock, restricted stock units or
    stock appreciation rights. At December 31, 2009, no awards
    of any form had been granted.
Compensation
    Committee Interlocks and Insider Participation
No member of the compensation committee has been an officer or
    employee of the Company. None of the Company's executive
    officers serves as a member of the Board of Directors or the
    compensation committee of any entity that has one or more
    executive officers serving on the Company's Board of
    Directors, or on the compensation committee of the
    Company's Board of Directors.
Confidentiality
    and Non-Competition Agreements
Each of the executive officers entered into a Confidentiality
    and Non-Competition Agreement ("Confidentiality
    Agreement") dated January 23, 2004, at the time of the
    formation of Predecessor Resolute. In this agreement, each
    officer agreed: (i) that all intellectual property
    developed, and business opportunities as to which such executive
    became aware, during his employment belong to Predecessor
    Resolute, (ii) to maintain confidentiality of proprietary
    information, and (iii) to turn over to Predecessor Resolute
    all business records during, and upon termination of, employment.
In addition, Predecessor Resolute has the right, in its sole
    discretion, to agree to make severance payments to any executive
    officer for up to eighteen months following termination other
    than for Cause (as defined), or upon voluntary resignation
    following a reduction in annual salary. Severance payments would
    be equal to the executive's salary immediately prior to
    termination. During the period in which severance payments are
    being made, the executive may not engage in the oil and gas
    business in an area within a ten mile radius of the boundaries
    of any property interest of Predecessor Resolute (the
    "Non-Compete"). In addition, the executive is
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subject to the Non-Compete, even if no severance is paid, if the
    executive resigns other than following a salary reduction, the
    executive is terminated for Cause, or the executive has breached
    any material provision of the Confidentiality Agreement. In
    addition, executive is in all events prohibited during the
    eighteen months following termination from inducing any other
    employee of Predecessor Resolute to terminate his employment or
    cease providing services to Predecessor Resolute. Upon the
    consummation of the Resolute Transaction, these agreements
    became agreements of Resolute.
ITEM 12.
SECURITY
    OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND
    RELATED STOCKHOLDER MATTERS
Security
    Ownership of Certain Beneficial Owners and Management
The following table, based in part upon information supplied by
    officers, directors and principal stockholders, sets forth
    certain information known to the Company with respect to
    beneficial ownership of the Company's common stock par
    value $0.0001 per share ("Common Stock") as of
    March 29, 2010, by (i) each person known to the
    Company to be a beneficial owner of more than 5% of the
    Company's Common Stock, (ii) each Named Executive
    Officer (see "Executive Compensation — Summary
    Compensation Table"), (iii) each director of the
    Company, and (iv) all directors and executive officers of
    the Company as a group. Except as otherwise indicated, each
    person has sole voting and investment power with respect to all
    shares shown as beneficially owned, subject to community
    property laws where applicable. Voting power is the power to
    vote or direct the voting of securities, and dispositive power
    is the power to dispose of or direct the disposition of
    securities. Except as otherwise indicated, the address of the
    persons listed below is
c/o Resolute
Energy Corporation, 1675 Broadway, Suite 1950, Denver,
    Colorado 80202.
For purposes of this beneficial ownership table,
    (x) "Earnout Shares" are shares of Common Stock
    subject to forfeiture, unless at any time prior to
    September 25, 2014, either (a) the closing sale price
    of Common Stock exceeds $15.00 per share for 20 trading days in
    any 30 trading day period or (b) a change in control event
    occurs in which Common Stock is valued at greater than $15.00
    per share, (y) "Founder's Warrants" are
    warrants which entitle the holder to purchase one share of
    Company Common Stock at a price of $13.00 per share, subject to
    adjustment, commencing any time after the last sale price of
    Common Stock exceeds $13.75 for any 20 days within any
    30 day trading period prior to September 25, 2014, and
    (z) "Sponsor's Warrants" are warrants which
    entitle the holder to purchase one share of Common Stock at a
    price of $13.00 per share at any time prior to
    September 25, 2014. For purposes of calculating beneficial
    ownership, Earnout Shares and shares issuable on exercise of
    Sponsor's Warrants are considered to be beneficially owned
    by the holders thereof, but shares issuable on exercise of
    Founder's Warrants are not considered to be beneficially
    owned by such holders.
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Amount and Nature of
Name
    and Address of Beneficial Owner
Beneficial Ownership
    (1)
Percent of Class
SPO Advisory Corp.
18,421,059
(2)
29.9
%
591 Redwood Highway, Suite 3215
Mill Valley, CA 94941
Pine River Capital Management L.P.
4,542,222
(3)
8.5
%
601 Carlson Parkway, Suite 330
Minnetonka, MN 55305
Thomas O. Hicks
10,036,923
(4)
17.4
%
100 Crescent Court, Suite 1200
Dallas, Texas 75201
Advisory Research Energy Fund, L.P.
3,766,466
(5)
6.8
%
180 North Stetson St., Suite 5500
Chicago, IL 60601
Advisory Research Inc.
8,021,250
(6)
14.4
%
180 North Stetson St., Suite 5500
Chicago, IL 60601
Natural Gas Partners VII, L.P.
10,284,318
(7)(8)(9)
18.5
%
125 E. John Carpenter Fwy., Suite 600
Irving, TX 75062
Resolute Holdings LLC
3,718,433
(7)(9)
6.7
%
Kenneth A. Hersh
10,284,318
(7)(8)(11)
18.5
%
Janet W. Pasque
243,233
(10)
*
William J. Quinn
0
(11)
*
James M. Piccone
266,243
*
James E. Duffy
1,373
(12)
*
Richard L. Covington
0
(11)
*
Theodore Gazulis
266,242
(13)
*
Thomas O. Hicks, Jr.
33,698
(12)(14)
*
Robert M. Swartz
141,448
(12)(15)
*
Dale E. Cantwell
254,738
*
Richard F. Betz
266,243
(16)
*
Nicholas J. Sutton
616,818
1.2
%
William H. Cunningham
33,698
(12)(17)
*
All directors and executive officers as a group (13 persons)
12,408,052
(7)(8)(18)
22.4
%
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(1) Security ownership information for beneficial owners is
    taken from statements filed with the Securities and Exchange
    Commission pursuant to Sections 13(d), 13(g) and 16(a) and
    information made known to the Company. Beneficial ownership is
    determined in accordance with the rules of the Securities and
    Exchange Commission and generally includes voting or investment
    power with respect to securities. Shares of common stock subject
    to options or warrants that are currently exercisable or
    exercisable within 60 days of the date of the table are
    deemed to be outstanding for the purpose of computing the
    percentage ownership of the person holding those options or
    warrants, but are not treated as outstanding for the purpose of
    computing the percentage ownership of any other person. The
    percentage of beneficial ownership is based on
    53,160,375 shares of common stock outstanding as of
    March 29, 2010.
(2) This disclosure is based on the Schedule 13D/A filed
    with the SEC on October 29, 2009 by SPO Advisory Corp. on
    behalf of SPO Partners II, L.P., SPO Advisory Partners, L.P.,
    San Francisco Partners, L.P., SF Advisory Partners, L.P.,
    SPO Advisory Corp., John H. Scully, William E. Oberndorf,
    William J. Patterson and Edward H. McDermott.
    Messrs. Scully, Oberndorf, Patterson and McDermott are the
    four controlling persons of SPO Advisory Corp., which is the
    sole general partner of the sole general partners of SPO
    Partners II, L.P. and San Francisco Partners, L.P., and may
    be deemed to beneficially own the shares owned by SPO Partners
    II, L.P. and San Francisco Partners, L.P. Of these shares,
    SPO Partners II, L.P., through its sole general partner, SPO
    Advisory Partners, L.P., holds sole voting and dispositive power
    over 17,672,325 shares (9,502,800 shares of Company
    Common Stock and warrants covering 8,169,525 shares of
    Company common stock issuable upon exercise); SPO Advisory
    Partners, L.P., through its sole general partner, SPO Advisory
    Corp, and in its capacity as sole general partner of SPO
    Partners II, L.P., holds sole voting and dispositive power over
    17,672,325 shares (9,502,800 shares of Company Common
    Stock and warrants covering 8,169,525 shares of Company
    Common Stock issuable upon exercise); San Francisco
    Partners, L.P., through its sole general partner, SF Advisory
    Partners, L.P., holds sole voting and dispositive power over
    607,253 shares (327,500 shares of Company Common Stock
    and warrants covering 279,753 shares of Company Common
    Stock issuable upon exercise); SF Advisory Partners, L.P.,
    through its sole general partner SPO Advisory Corp and in its
    capacity as sole general partner of San Francisco Partners,
    L.P. holds sole voting and dispositive power over
    607,253 shares (327,500 shares of Company Common Stock
    and warrants covering 279,753 shares of Company Common
    Stock issuable upon exercise); SPO Advisory Corp, in its
    capacity as (i) sole general partner of SPO Advisory
    Partners, L.P., holds sole voting and dispositive power with
    respect to 9,502,800 shares of Company Common Stock and
    warrants covering 8,169,525 shares of Company Common Stock
    issuable upon exercise, and as (ii) the sole general
    partner of SF Advisory Partners, L.P. holds sole voting and
    dispositive power with respect to 327,500 shares of Company
    Common Stock and warrants covering 279,753 shares of
    Company Common Stock issuable upon exercise; and power is
    exercised through its four controlling persons, John H. Scully,
    William E. Oberndorf, William J. Patterson and Edward H.
    McDermott. John H. Scully holds sole voting power over
    3,913 shares held in the John H. Scully Individual
    Retirement Account, which is self-directed, and shared voting
    and dispositive power over 18,279,578 shares (there are
    9,830,300 shares of Company Common Stock and warrants
    covering 8,449,278 shares of Company Common Stock issuable
    upon exercise) beneficially owned by Mr. Scully solely in
    his capacity as one of four controlling persons of SPO Advisory
    Corp. William E. Oberndorf holds sole voting and dispositive
    power over 135,788 shares held in the William E. Oberndorf
    Individual Retirement Account, which is self-directed, and
    shared voting and dispositive power over 18,279,578 shares
    (there are 9,830,300 shares of Company Common Stock and
    warrants covering 8,449,278 shares of Company Common Stock
    issuable upon exercise) beneficially owned by Mr. Oberndorf
    solely in his capacity as one of four controlling persons of SPO
    Advisory Corp. William J. Patterson holds sole voting and
    dispositive power over 358 shares held in the William J.
    Patterson Individual Retirement Account, which is self-directed,
    and shared voting and dispositive power over
    18,279,578 shares (there are 9,830,300 shares of
    Company Common Stock and warrants covering 8,449,278 shares
    of Company Common Stock issuable upon exercise) beneficially
    owned by Mr. Patterson solely in his capacity as one of
    four controlling persons of SPO Advisory Corp. Edward H.
    McDermott holds sole voting and dispositive power over
    1,422 shares held in the Edward H. McDermott Individual
    Retirement Account, which is self-directed, and shared voting
    and dispositive power over 18,279,578 shares (there are
    9,830,300 shares of Company Common Stock and warrants
    covering 8,449,278 shares of Company Common Stock issuable
    upon exercise) beneficially owned by Mr. McDermott solely
    in his capacity as one of four controlling persons of SPO
    Advisory Corp.
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(3) This disclosure is based on a Schedule 13G/A filed on
    January 29, 2010 by Pine River Capital Management L.P. on
    behalf of Brian Taylor and Nisswa Acquisition Master
    Fund Ltd. with the SEC on January 29, 2010. The
    reporting person shares voting and dispositive power over
    4,542,222 shares with Brian Taylor and shares voting and
    dispositive power over 4,333,177 shares with Nisswa
    Acquisition Master Fund Ltd.
(4) This disclosure is based on a (i) Schedule 13D/A
    filed by Thomas O. Hicks on behalf of HH-HACI, L.P. ("HH
    LP"), HH-HACI GP, LLC, ("HH LLC", the general
    partner of HH LP) and Mr. Hicks, the sole member of HH LLC,
    and (ii) a Form 4 filed by HH LP, each of which was
    filed with the SEC on October 21, 2009. HH LLC has sole
    voting and dispositive power over 430 shares (which
    includes 124 Earnout Shares) and shared voting and dispositive
    power over 301,913 shares (which includes 87,093 Earnout
    Shares). HH LLC also owns 613 Founder's Warrants. HH LP has
    sole voting power and dispositive over 301, 913 shares
    (which includes 87,093 Earnout Shares), HH LP also owns 429,636
    Founder's Warrants. Thomas O. Hicks has sole voting and
    dispositive power over 7,200,301 shares and shared voting
    and dispositive power over 2,836,622 shares. The
    7,200,301 shares includes 730,894 Earnout Shares and
    4,666,667 Sponsor's Warrants. Mr. Hicks also owns
    3,605,481 Founder's Warrants. The 2,836,622 shares
    over which Mr. Hicks has shared voting and dispositive
    power include 430 shares of Company Common Stock held by HH
    LLC, 301,913 shares of Company Common Stock held by HH LP
    (each described above) and 2,534,279 shares of Company
    Common Stock held by Mr. Hicks' charitable foundation
    and estate planning entities for his family. The
    2,534,279 shares include 731,079 Earnout Shares.
    Mr. Hicks' charitable foundation and estate planning
    entities also own 3,606,400 Founders Warrants. HH LLC disclaims
    beneficial ownership of shares of Company Common Stock owned by
    HH LP, except to the extent of its pecuniary interest.
    Mr. Hicks disclaims beneficial ownership of any shares held
    by other entities, except to the extent of his pecuniary
    interest.
(5) This disclosure is based on a Schedule 13G/A filed by
    Advisory Research Energy Fund, L.P. with the SEC on
    February 12, 2010. Advisory Research Energy Fund, L.P.
    shares with its general partner, Advisory Research, Inc., voting
    and dispositive power over these shares, which include
    2,516,466 shares underlying currently exercisable warrants.
    Advisory Research Energy Fund, L.P. claims beneficial ownership
    over 3,766,466 shares.
(6) This disclosure is based on a Schedule 13G/A filed by
    Advisory Research Inc. with the SEC on February 12, 2010.
    Advisory Research Inc. shares voting and dispositive power over
    these shares, which include 2,516,466 shares underlying
    currently exercisable warrants. Advisory Research Inc. manages
    accounts that may have the right to receive or the power to
    direct the receipt of dividends from, or the proceeds from the
    sale of, the 8,021,250 shares. The interest of one such
    account, owned by Advisory Research Energy Fund L.P.,
    relates to ownership over 3,766,466 shares, and is reported
    separately.
(7) Based on (i) a Form 3 filed by Natural Gas
    Partners VII, L.P. ("NGP VII") with the SEC on
    February 16, 2010, (ii) a Schedule 13D filed with
    the SEC on February 22, 2010 on behalf of Kenneth A. Hersh,
    NGP VII and Resolute Holdings, LLC ("Resolute
    Holdings") and (iii) a Form 5 filed by Kenneth
    Hersh with the SEC on February 16, 2010. NGP VII shares
    voting and dispositive power over 4,008,152 shares and has
    sole voting and dispositive power over 6,276,166 shares.
    Securities beneficially owned are comprised as follows:
    (i) direct ownership of 6,276,166 shares of Company
    Common Stock distributed by Resolute Holdings to NGP VII on
    December 21, 2009 in a pro rata distribution by Resolute
    Holdings to its members for no consideration; (ii) indirect
    ownership of 289,719 shares of Company Common Stock owned
    directly by NGP-VII Income Co-Investment Opportunities, L.P.
    ("Co-Invest") and received in a pro rata distribution
    by Resolute Holdings to its members for no consideration. NGP
    VII owns 100% of NGP Income Management, L.L.C., which is the
    sole general partner of Co-Invest. NGP VII may be deemed to be
    the indirect beneficial owner of the 289,719 shares of
    Company Common Stock owned by Co-Invest; (iii) indirect
    ownership of 1,385,100 shares of Common Stock (including
    1,385,000 Earnout Shares) owned by Resolute Holdings. NGP VII
    and Co-Invest own approximately 71% of the outstanding
    membership interests of Resolute Holdings and therefore may be
    deemed to be the indirect beneficial owners of the Common Stock
    owned by Resolute Holdings; (iv) indirect ownership of
    2,333,333 Sponsor's Warrants owned by Resolute Holdings.
    Resolute Holdings also owns 4,600,000 Founder's Warrants.
    NGP VII may be deemed to be the indirect beneficial owner of
    warrants owned by Resolute Holdings. NGP VII disclaims
    beneficial ownership of the reported securities except to the
    extent of its pecuniary interest therein.
(8) Includes 10,284,318 shares over which Mr. Hersh
    has shared voting and dispositive power. Mr. Hersh is an
    Authorized Member of GFW VII, L.L.C., which is the sole general
    partner of G.F.W. Energy VII, L.P., which is the
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sole general partner of NGP VII. Thus, Mr. Hersh may be
    deemed to indirectly beneficially own all the Company Common
    Stock directly and/or indirectly deemed beneficially owned by
    NGP VII. Mr. Hersh disclaims beneficial ownership of the
    reported securities except to the extent of his pecuniary
    interest therein.
(9) Resolute Holdings has sole voting and dispositive power over
    3,718,433 shares, consisting of (i) 1,385,000 Earnout
    Shares, (ii) 100 shares of Company Common Stock and
    (iii) 2,333,333 Sponsor's Warrants. Resolute Holdings
    also owns 4,600,000 Founder's Warrants. NGP VII and
    Co-Invest own approximately 71% of the outstanding membership
    interests of Resolute Holdings and therefore may be deemed to be
    the indirect beneficial owners of the Common Stock and warrants
    owned by Resolute Holdings.
(10) All shares are held in a trust over which the reporting
    person is a co-trustee.
(11) Messrs. Hersh, Quinn and Covington have waived their
    director compensation that would have been paid through the
    issuance of Company common stock on March 16, 2010.
(12) Includes 1,373 shares of restricted stock granted
    pursuant to the 2009 performance incentive plan. 343 shares
    vested on the date of grant, March 16, 2010,
    343 shares vest on the first and second anniversaries of
    the date of grant, and 344 shares vest on the third
    anniversary of the date of grant.
(13) Includes 38,462 shares held by the reporting person in
    custodial accounts.
(14) Includes (i) 23,000 shares of Company Common
    Stock, (ii) 9,325 Earnout Shares; Excludes 45,999
    Founder's Warrants.
(15) Includes (i) 99,666 shares of Company Common
    Stock, (ii) 40,409 Earnout Shares; Excludes 199,332
    Founder's Warrants.
(16) Includes 46,692 shares held by the reporting person in
    custodial accounts.
(17) Includes (i) 23,000 shares of Company Common
    Stock,(ii) 9,325 Earnout Shares; Excludes 46,000 Founder's
    Warrants.
(18) Includes 4,120 shares of restricted stock that are
    subject to future vesting.
ITEM 13.
CERTAIN
    RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR
    INDEPENDENCE
At the time of the closing of the Resolute Transaction,
    $1.3 million was held in bank accounts of Predecessor
    Resolute that represented payments received by Predecessor
    Resolute with respect to a tax distribution payable to Resolute
    Holdings. Following the Resolute Transaction, Resolute paid such
    amounts to Resolute Holdings.
The
    Company's Review, Approval or Ratification of Transactions
    with Related Parties
Pursuant to the Company's Code of Business Conduct and
    Ethics, the Board of Directors will review and approve all
    relationships and transactions in which it and its directors,
    director nominees and executive officers and their immediate
    family members, as well as holders of more than 5% of any class
    of its voting securities and their family members, have a direct
    or indirect material interest. In approving or rejecting such
    proposed relationships and transactions, the Board of Directors
    shall consider the relevant facts and circumstances available
    and deemed relevant to this determination. The Company has
    designated James M. Piccone as the compliance officer to
    generally oversee compliance with the Code of Conduct.
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Table of Contents
ITEM 14.
PRINCIPAL
    ACCOUNTING FEE AND SERVICES
On September 14, 2009, the Registration Statement on
Form S-4
relating to the Resolute Transaction was declared effective by
    the Securities and Exchange Commission. On December 21,
    2009, KPMG LLP accepted its appointment as the Company's
    principal accountant. No fees were billed to Resolute by KPMG
    LLP during 2009. Resolute anticipates incurring audit fees from
    KPMG LLP of approximately $300,000, relating to the
    Company's Annual Report on
Form 10-K
for the year ended December 31, 2009.
The charter of the Audit Committee includes certain policies and
    procedures regarding the pre-approval of audit and non-audit
    services performed by an outside accountant. The committee is
    required to pre-approve all engagement letters and fees for all
    auditing services (including providing comfort letters in
    connection with securities underwritings) and permissible
    non-audit services, subject to any exception under
    Section 10A of the Exchange Act and the rules promulgated
    thereunder. Pre-approval authority may be delegated to a
    committee member or a subcommittee, and any such member or
    subcommittee shall report any decisions to the full committee at
    its next scheduled meeting.
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Table of Contents
PART IV
ITEM 15.
EXHIBITS,
    FINANCIAL STATEMENT SCHEDULES
(a)(1) and (a)(2) Financial Statements and Financial Statement
    Schedules
See "Item 8 Financial Statements and Supplementary
    Data".
(a)(3) Exhibits
Exhibit
Number
Description of Exhibits
2
.1†
Purchase and IPO Reorganization Agreement, dated as of
    August 2, 2009, among Hicks Acquisition Company I,
    Inc., Resolute Energy Corporation, Resolute Subsidiary
    Corporation., Resolute Holdings, LLC, Resolute Holdings Sub,
    LLC, Resolute Aneth, LLC and HH-HACI, L.P., (incorporated by
    reference to
Annex A
to the Registration Statement
    on
Form S-4
filed with the SEC on August 6, 2009 (File. No
33-161076)("Initial
S-4").
2
.2
Letter Agreement amending Purchase and IPO Reorganization
    Agreement, dated as of September 9, 2009, among Hicks
    Acquisition Company I, Inc., Resolute Energy Corporation,
    Resolute Subsidiary Corporation., Resolute Holdings, LLC,
    Resolute Holdings Sub, LLC, Resolute Aneth, LLC and HH-HACI,
    L.P., (incorporated by reference to
Annex A
to the
    Initial
S-4.
2
.3†
Purchase and Sale Agreement between Exxon Mobil Corporation,
    ExxonMobil Oil Corporation, Mobil Exploration and Producing
    North America Inc., Mobil Producing Texas & New Mexico
    Inc. and Mobil Exploration & Producing U.S. Inc. and
    Resolute Aneth, LLC — 75% and Navajo Nation Oil and
    Gas Company — 25% dated January 1, 2005.
    (incorporated by reference to Exhibit 2.2 to the Initial
S-4)
2
.4†
Asset Sale Agreement Aneth Unit, Rutherford Unit and McElmo
    Creek Unit, San Juan County, Utah between Chevron U.S.A.
    Inc. (as seller) and Resolute Natural Resources Company and
    Navajo Nation Oil and Gas Company, Inc. (as buyer) dated
    October 22, 2004. (incorporated by reference to
    Exhibit 2.3 to the Initial
S-4)
2
.5†
Stock Purchase Agreement dated June 24, 2008, between
    Primary Natural Resources, Inc. (as seller) and Resolute
    Acquisition Company, LLC (as buyer). (incorporated by reference
    to Exhibit 2.4 to the Initial
S-4)
3
.1
Amended and Restated Certificate of Incorporation of Resolute
    Energy Corporation, filed September 25, 2009
3
.2
Amended and Restated Bylaws of Resolute Energy Corporation
4
.1
Warrant Agreement between Resolute Energy Corporation and
    Continental Stock Transfer and Trust Company dated
    September 25, 2009 (incorporated by reference as
Annex D
to the Initial
S-4)
4
.2
Registration Rights Agreement dated September 25, 2009,
    among Resolute Energy Corporation and certain holders.
    (incorporated by reference as Exhibit 4.4 to Amendment
    No. 2 to the Initial
S-4
filed on
    September 8, 2009)
10
.1
Second Amended and Restated Credit Agreement dated
    March 30, 2010, between Resolute Energy Corporation as
    Borrower and certain of its Subsidiaries as Guarantors, Wells
    Fargo Bank, National Association, as Administrative Agent, Bank
    of Montreal as Syndication Agent, Deutsche Bank Securities Inc.,
    UBS Securities LLC and Union Bank, N.A. as Co-Documentation
    Agents, and The Lenders Party Hereto, Wells Fargo Securities,
    LLC and BMO Capital Markets as Joint Bookrunners and Joint Lead
    Arrangers
10
.2#
2009 Performance Incentive Plan. (incorporated by reference as
    Exhibit 10.7 to Amendment No. 1 to the Initial
S-4
filed on
    August 31, 2009)
10
.3#
Form of Indemnification Agreement between Resolute Energy
    Corporation and each executive officer and independent director
    of the Company. (incorporated by reference as Exhibit 10.8
    to Amendment No. 1 to the initial
S-4
filed on
    August 31, 2009)
10
.4††
Cooperative Agreement between Resolute Natural Resources Company
    and Navajo Nation Oil and Gas Company dated October 22,
    2004. (incorporated by reference by Exhibit 10.9 to the
    Initial
S-4)
10
.5††
First Amendment of Cooperative Agreement between Resolute Aneth,
    LLC and Navajo Nation Oil and Gas Company, Inc. dated
    October 21, 2005. (incorporated by reference as
    Exhibit 10.10 to the Initial
S-4)
10
.6††
Carbon Dioxide Sale and Purchase Agreement by and between
    ExxonMobil Gas & Power Marketing Company (a division
    of Exxon Mobil Corporation), as agent for Mobil Producing
    Texas & New Mexico, Inc. (Seller) and Resolute Aneth,
    LLC (Buyer) dated July 1, 2006, as amended July 21,
    2006. (incorporated by reference as Exhibit 10.11 to
    Amendment No. 1 to the Initial
S-4
filed on
    August 31, 2009)
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Table of Contents
Exhibit
Number
Description of Exhibits
10
.7††
Product Sale and Purchase Contract by and between Resolute
    Natural Resources Company (Buyer) and Kinder Morgan
    CO
2
Company, L.P. (Seller) dated July 1, 2007, as
    amended October 1, 2007 and January 1, 2009.
    (incorporated by reference as Exhibit 10.12 to Amendment
    No. 1 to the Initial
S-4
filed on
    August 31, 2009)
10
.8
Gas Sales and Purchase Contract —
    Conventional & Residue Gas dated April 12, 1995,
    between Rim Offshore, Inc., as producer, and Western Gas
    Resources, Inc., as processor (Contract #6690), as amended
    July 27, 2006 and March 6, 2009. (incorporated by
    reference as Exhibit 10.13 to Amendment No. 1 to the
    Initial
S-4
filed on August 31, 2009 )
10
.9
Consent Decree, entered into June 2005, relating to alleged
    violations of the federal Clean Air Act. (incorporated by
    reference as Exhibit 10.16 to the Initial
S-4)
10
.10
Consent Decree, entered into August 2004, relating to alleged
    violations of the federal Clean Water Act. (incorporated by
    reference as Exhibit 10.17 to the Initial
S-4)
10
.11
Crude Oil Purchase Agreement dated August 27, 2009 between
    Western Refining Southwest, Inc., as purchaser, and Resolute
    Natural Resources Company, as seller. (incorporated by reference
    as Exhibit 10.18 to Amendment No. 1 to the Initial
S-4
filed on
    August 31, 2009)
10
.12
Form of Retention Award Agreement between Resolute Energy
    Corporation and certain award recipients. (incorporated by
    reference as Exhibit 10.19 to Amendment No. 2 to the
    Initial
S-4
filed on September 8, 2009)
10
.13
Form of Restricted Stock Award Agreement for Non-employee
    Directors
10
.14#
Form of Confidentiality and Non Compete Agreement among Resolute
    Holdings, LLC and certain employees dated as of January 23,
    2004.
21
List of Subsidiaries of Resolute Energy Corporation.
23
.1
Consent of Deloitte & Touche LLP.
23
.2
Consent of KPMG LLP.
23
.3
Consent of Netherland, Sewell & Associates, Inc.
23
.4
Consent of Grant Thornton
31
.1
Certification of the Chief Executive Officer pursuant to
    Section 302 of the Sarbanes-Oxley Act of 2002
31
.2
Certification of the Chief Financial Officer pursuant to
    Section 302 of the Sarbanes Oxley Act of 2002
32
Certification of the Chief Executive Officer and Chief Financial
    Officer pursuant to Section 906 of the Sarbanes-Oxley Act
    of 2002
99
.1
Report of Netherland, Sewell & Associates, Inc.
    regarding the registrants reserves as of December 31, 2009
99
.2
Report of Grant Thornton dated May 9, 2008
†
The Purchase and IPO Reorganization Agreement filed as
    Exhibit 2.1, the Purchase and Sale Agreement filed as
    Exhibit 2.3, the Asset Sale Agreement filed as
    Exhibit 2.4, the Purchase and Sale Agreement filed as
    Exhibit 2.5 and the Cooperative Agreement file as
    Exhibit 10.4 omit certain of the schedule and exhibits to
    each of the Purchase and IPO Reorganization Agreement, Purchase
    and Sale Agreements, the Asset Sale Agreement and the
    Cooperative Agreement in accordance with Item 601(b)(2) of
Regulation S-K.
A list briefly identifying the contents of all omitted schedules
    and exhibits is included with each of the Purchase and Sale
    Agreement, the Asset Sale Agreement and the Cooperative
    Agreement filed as Exhibit 2.1, 2.3, 2.4, 2.5 and 10.4,
    respectively. Resolute agrees to furnish supplementally a copy
    of any omitted schedule or exhibit to the Securities and
    Exchange Commission upon request.
††
Portions of this exhibit have been omitted pursuant to a request
    for confidential treatment.
#
Management Contract, Compensation Plan or Agreement.
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Table of Contents
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the
    Securities Exchange Act of 1934, the registrant has duly caused
    this report to be signed on its behalf by the undersigned,
    thereunto duly authorized.
RESOLUTE ENERGY CORPORATION
Dated: March 30, 2010
By:
/s/  Nicholas
    J. Sutton
Nicholas J. Sutton, Chief Executive Officer and Director
Pursuant to the requirements of the Securities Exchange Act of
    1934, this report has been signed below by the following persons
    on behalf of the registrant and in the capacities and on the
    dates indicated.
Signature
Title
Date
/s/  Nicholas
    J. Sutton
Nicholas
    J. Sutton
Chief Executive Officer and Director (Principal Executive
    Officer)
March 30, 2010
/s/  James
    M. Piccone
James
    M. Piccone
President, General Counsel,
Secretary and Director
March 30, 2010
/s/  Theodore
    Gazulis
Theodore
    Gazulis
Senior Vice President and Chief Financial Officer (Principal
    Financial and
Accounting Officer)
March 30, 2010
/s/  Richard
    L. Covington
Richard
    L. Covington
Director
March 30, 2010
/s/  William
    H. Cunningham
William
    H. Cunningham
Director
March 30, 2010
/s/  James
    E. Duffy
James
    E. Duffy
Director
March 30, 2010
/s/  Kenneth
    A. Hersh
Kenneth
    A. Hersh
Director
March 30, 2010
/s/  Thomas
    O. Hicks, Jr.
Thomas
    O. Hicks, Jr.
Director
March 30, 2010
/s/  William
    J. Quinn
William
    J. Quinn
Director
March 30, 2010
/s/  Robert
    M. Swartz
Robert
    M. Swartz
Director
March 30, 2010
A-96
Table of Contents
FINANCIAL
    STATEMENTS
INDEX TO
    FINANCIAL STATEMENTS
RESOLUTE ENERGY CORPORATION
Report of Independent Registered Public
    Accounting Firm
A-98
Resolute Energy Corporation Consolidated Balance
    Sheets
as of December 31, 2009 and 2008
A-99
Resolute Energy Corporation Consolidated
    Statements of Operations,
for the years ended December 31, 2009, 2008 and 2007
A-100
Resolute Energy Corporation Consolidated
    Statements of Stockholders' Equity
for the years ended December 31, 2009, 2008 and 2007
A-101
Resolute Energy Corporation Statements of Cash
    Flows,
for the years ended December 31, 2009, 2008 and 2007
A-102
Notes to Resolute Energy Corporation Consolidated
    Financial Statements
A-103
PREDECESSOR RESOLUTE
Report of Independent Registered Public
    Accounting Firm
A-125
Predecessor Resolute Combined Balance Sheet as of
    December 31, 2008
A-126
Predecessor Resolute Combined Statements of
    Operations,
for the 267 day period ended September 24, 2009 and
    years ended December 31, 2008 and 2007
A-127
Predecessor Resolute Combined Statements of
    Shareholder's/Member's Equity
for the 267 day period ended September 24, 2009 and
    years ended December 31, 2008 and 2007
A-128
Predecessor Resolute Combined Statements of Cash
    Flows,
for the 267 day period ended September 24, 2009 and
    years ended December 31, 2008 and 2007
A-129
Notes to Predecessor Resolute Combined Financial
    Statements
A-130
A-97
Table of Contents
Report of
    Independent Registered Public Accounting Firm
To the Board of Directors and Stockholders of
Resolute Energy Corporation
We have audited the accompanying consolidated balance sheets of
    Resolute Energy Corporation and subsidiaries (successor by
    merger to Hicks Acquisition Company I, Inc.) (the Company)
    as of December 31, 2009 and 2008, and the related
    consolidated statements of operations, stockholders'
    equity, and cash flows for each of the years in the
two-year
period then ended, and for the period from February 26,
    2007 (inception) to December 31, 2007. These consolidated
    financial statements are the responsibility of the
    Company's management. Our responsibility is to express an
    opinion on these consolidated financials statements based on our
    audits.
We conducted our audits in accordance with the standards of the
    Public Company Accounting Oversight Board (United States). Those
    standards require that we plan and perform the audit to obtain
    reasonable assurance about whether the financial statements are
    free of material misstatement. An audit includes examining, on a
    test basis, evidence supporting the amounts and disclosures in
    the financial statements. An audit also includes assessing the
    accounting principles used and significant estimates made by
    management, as well as evaluating the overall financial
    statement presentation. We believe that our audits provide a
    reasonable basis for our opinion.
In our opinion, the consolidated financial statements referred
    to above present fairly, in all material respects, the financial
    position of Resolute Energy Corporation and subsidiaries as of
    December 31, 2009 and 2008, and the results of their
    operations and their cash flows for each of the years in the
    two-year period then ended, and for the period from
    February 26, 2007 (inception) to December 31, 2007 in
    conformity with U.S. generally accepted accounting
    principles.
/s/
KPMG
    LLP
Denver, Colorado
March 30, 2010
A-98
Table of Contents
RESOLUTE ENERGY
    CORPORATION
Consolidated
    Balance Sheets
(in thousands, except share amounts)
December 31,
2009
2008
Assets
Current assets:
Cash and cash equivalents
$
455
$
819
Cash and cash equivalents held in trust
—
250,024
Restricted cash
149
—
Accounts receivable
27,047
—
Marketable securities held in trust
—
290,117
Deferred income taxes
7,050
—
Derivative instruments
6,958
—
Prepaid expenses and other current assets
1,781
68
Total current assets
43,440
541,028
Property and equipment, at cost:
Oil and gas properties, full cost method of accounting
Unproved
7,306
—
Proved
634,383
—
Other property and equipment
2,413
—
Accumulated depletion, depreciation and amortization
(11,323
)
—
Net property and equipment
632,779
—
Other assets:
Restricted cash
12,965
—
Derivative instruments
3,600
—
Deferred income taxes
—
269
Other assets
656
3,500
Total assets
$
693,440
$
544,797
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable and accrued expenses
$
42,508
$
1,903
Derivative instruments
20,360
—
Deferred underwriters' commission
—
17,388
Total current liabilities
62,868
19,291
Long term liabilities:
Long term debt
109,575
—
Asset retirement obligations
9,217
—
Derivative instruments
55,260
—
Deferred income taxes
62,467
—
Other noncurrent liabilities
516
—
Total liabilities
299,903
19,291
Common stock, subject to possible redemption;
    16,559,999 shares at $9.71 per share
—
160,798
Deferred interest attributable to common stock subject to
    possible redemption
—
2,509
Commitments and contingencies
Stockholders' equity:
Preferred stock, $0.0001 par value; 1,000,000 shares
    authorized; none issued or outstanding
—
—
Common stock, $0.0001 par value; 225,000,000 shares
    authorized; issued and outstanding 53,154,883 and
    69,000,000 shares (less 16,559,999 shares subject to
    possible redemption) at December 31, 2009 and
    December 31, 2008, respectively
5
5
Additional paid-in capital
432,650
357,999
Retained earnings accumulated (deficit)
(39,118
)
4,195
Total stockholders' equity
393,537
362,199
Total liabilities and stockholders' equity
$
693,440
$
544,797
See notes to consolidated financial statements
A-99
Table of Contents
RESOLUTE ENERGY
    CORPORATION
Consolidated
    Statements of Operations
(in thousands, except per share data)
For the Period from
Year Ended
February 26, 2007
December 31,
to December 31,
2009
2008
2007
Revenue:
Oil
$
37,528
$
—
$
—
Gas
4,149
—
—
Other
739
—
—
Total revenue
42,416
—
—
Operating expenses:
Lease operating
16,185
—
—
Production and ad valorem taxes
5,807
—
—
Depletion, depreciation, amortization,
and asset retirement obligation accretion
11,541
—
—
General and administrative
20,328
1,560
1,036
Write-off of deferred acquisition costs
3,500
—
—
Total operating expenses
57,361
1,560
1,036
Loss from operations
(14,945
)
(1,560
)
(1,036
)
Other income (expense):
Interest income
776
7,601
5,154
Interest expense
(1,538
)
—
—
Realized and unrealized losses on derivative instruments
(49,514
)
—
—
Other income
91
—
—
Total other income (expense)
(50,185
)
7,601
5,154
Income (loss) before income taxes
(65,130
)
6,041
4,118
Income tax benefit (expense)
19,887
(2,054
)
(1,401
)
Net income (loss)
$
(45,243
)
$
3,987
$
2,717
Basic and diluted earnings (loss) per common share:
Common stock, subject to redemption
$
(0.16
)
$
0.09
$
0.06
Common stock
$
(0.93
)
$
0.06
$
0.09
Weighted average shares outstanding:
Common stock, subject to redemption
12,114
16,560
16,560
Common stock
46,394
45,105
18,587
See notes to consolidated financial statements
A-100
Table of Contents
RESOLUTE ENERGY
    CORPORATION
Consolidated
    Statements of Stockholders' Equity
(in thousands)
Additional
Accumulated
Common Stock
Paid-in
(Deficit)/ Retained
Stockholders'
Shares
Amount
Capital
Earnings
Equity
Initial capital from founding stockholder for cash
11,500
$
1
$
24
$
—
$
25
Stock dividend
2,300
—
—
—
—
Sale of 55,200,000 units, net of underwriter's
discount and offering costs
55,200
6
511,771
—
511,777
Proceeds subject to possible redemption
of 16,559,999 shares
—
(2
)
(160,796
)
—
(160,798
)
Proceeds from sale of warrants to Sponsor
(defined in Notes)
—
—
7,000
—
7,000
Net income
—
—
—
2,717
2,717
Deferred interest attributable to common stock,
subject to redemption
—
—
—
(1,020
)
(1,020
)
Balance as of December 31, 2007
69,000
5
357,999
1,697
359,701
Net income
—
—
—
3,987
3,987
Deferred interest attributable to common stock,
subject to redemption
—
—
—
(1,489
)
(1,489
)
Balance as of December 31, 2008
69,000
5
357,999
4,195
362,199
Reclassification of common stock subject to
possible redemption
—
2
160,796
2,510
163,308
Common stock redeemed
(11,592
)
(1
)
(112,557
)
(580
)
(113,138
)
Purchase of common stock
(7,503
)
(1
)
(73,345
)
—
(73,346
)
Cancellation of common stock previously issued
to founding stockholder
(7,335
)
(1
)
—
—
(1
)
Redemption of 27,600,000 warrants
—
—
(15,180
)
—
(15,180
)
Forgiveness of deferred underwriters' commission
—
—
11,738
—
11,738
Issuance of common stock for acquisition
9,200
1
88,779
—
88,780
Issuance of earnout shares for acquisition
1,385
—
10,024
—
10,024
Issuance of warrants for acquisition
—
—
3,202
—
3,202
Equity based compensation
—
—
1,194
—
1,194
Net loss
—
—
—
(45,243
)
(45,243
)
Balance as of December 31, 2009
53,155
$
5
$
432,650
$
(39,118
)
$
393,537
See notes to consolidated financial statements
A-101
Table of Contents
RESOLUTE ENERGY
    CORPORATION
Consolidated
    Statements of Cash Flows
(in
    thousands)
For the Period from
Year Ended
February 26, 2007
December 31,
to December 31,
2009
2008
2007
Operating activities:
Net income (loss)
$
(45,243
)
$
3,987
$
2,717
Adjustments to reconcile net income (loss) to net cash provided
    by (used in) operating activities:
Depletion, depreciation, amortization and asset retirement
    obligation accretion
11,541
—
—
Equity-based compensation
1,084
—
—
Write-off of deferred acquisition costs
3,500
—
—
Unrealized loss on derivative instruments
46,321
—
—
Deferred income taxes
(19,813
)
(115
)
(154
)
Change in operating assets and liabilities, net of amount
    acquired:
Accounts receivable
(3,786
)
—
—
Other current assets
(883
)
266
(334
)
Accounts payable and accrued expenses
(4,848
)
(1,054
)
2,818
Other current liabilities
(18
)
—
—
Accounts payable — related party
(19
)
(53
)
117
Net cash provided by (used in) operating activities
(12,164
)
3,031
5,164
Investing activities:
Acquisition of subsidiary, net of cash acquired
(323,822
)
—
—
Decrease (increase) in cash and cash equivalents in trust
250,024
(250,024
)
—
Purchase of marketable securities held in trust
(249,654
)
—
(541,302
)
Sales / maturities of marketable securities held in trust
539,771
251,184
—
Oil and gas exploration and development expenditures
(6,640
)
—
—
Proceeds from sale of oil and gas properties
59
—
—
Purchase of other property and equipment
(224
)
—
—
Settlement of notes receivable — related parties
52
—
—
Payment of proposed acquisition costs
—
(3,424
)
—
Other
421
—
—
Net cash provided by (used in) investing activities
209,987
(2,264
)
(541,302
)
Financing activities:
Payments due to Holdings
(1,248
)
—
—
Proceeds from note payable — related party
—
—
225
Payment on note payable — related party
—
—
(225
)
Proceeds from sale of units to sponsor
—
—
25
Proceeds from sale of warrants to initial founder
—
—
7,000
Proceeds from initial public offering net of underwriters
    discount and offering costs
—
—
529,165
Redemption of common stock
(113,139
)
—
—
Purchase of common stock
(73,346
)
—
—
Redemption of warrants
(15,180
)
—
—
Payment of deferred underwriters' commission
(5,650
)
—
—
Proceeds from bank borrowings
53,376
—
—
Payments of bank borrowings
(43,000
)
—
—
Net cash provided by (used in) financing activities
(198,187
)
—
536,190
Net increase (decrease) in cash and cash equivalents
(364
)
767
52
Cash and cash equivalents at beginning of period
819
52
—
Cash and cash equivalents at end of period
$
455
$
819
$
52
Supplemental disclosures of cash flow information:
Cash paid during the period for:
Interest
$
3,584
$
—
$
—
Income taxes
$
1,004
$
2,750
$
Supplemental schedule of non-cash investing and financing
    activities:
Accrual of deferred underwriter's commission
$
—
$
—
$
17,388
Deferred acquisition costs included in accounts payable and
    accrued expenses
$
—
$
76
$
—
Capital expenditures financed through current liabilities
$
2,755
$
—
$
—
Issuance of common stock for acquisition
$
88,780
$
—
$
—
Issuance of warrants for acquisition
$
3,202
$
—
$
—
Issuance of earnout shares for acquisition
$
10,024
$
—
$
—
Forgiveness of deferred underwriters' commission
$
11,738
$
—
$
—
See notes to consolidated financial statements
A-102
Table of Contents
RESOLUTE ENERGY
    CORPORATION
Notes To Consolidated Financial Statements
Note 1 —
    Organization and Nature of Business
Resolute Energy Corporation ("Resolute" or the
    "Company"), a Delaware corporation incorporated on
    July 28, 2009, was formed to consummate a business
    combination with Hicks Acquisition Company I, Inc.
    ("HACI"), a Delaware corporation incorporated on
    February 26, 2007. Resolute is an independent oil and gas
    company engaged in the acquisition, exploration, development,
    and production of oil, gas and natural gas liquids
    ("NGL"). The Company conducts all of its activities in
    the United States of America, principally in the Paradox Basin
    in southeastern Utah and the Powder River Basin in Wyoming.
HACI was a blank check company that was formed to acquire
    through a merger, capital stock exchange, asset acquisition,
    stock purchase, reorganization or similar business combination,
    one or more businesses or assets. HACI's initial public
    offering (the "Offering") was consummated on
    October 3, 2007, and HACI received proceeds of
    approximately $529.1 million. Upon the consummation of the
    Resolute Transaction, described below, $11.7 million of
    deferred underwriters' commission were forgiven and were
    recognized as additional paid in capital. HACI sold to the
    public 55,200,000 units (one share and one warrant) at a
    price of $10.00 per unit, including 7,200,000 units issued
    pursuant to the exercise of the underwriter's
    over-allotment option. Simultaneous with the consummation of the
    Offering, HACI consummated the private sale of 7,000,000
    warrants (the "Sponsor Warrants") to HH-HACI, L.P., a
    Delaware limited partnership (the "Sponsor"), at a
    price of $1.00 per Sponsor Warrant, generating gross proceeds,
    before expenses, of $7.0 million (the "Private
    Placement"). Net proceeds received from the consummation of
    both the Offering and Private Placement of Sponsor Warrants
    totaled approximately $536.1 million, net of
    underwriter's commissions and offering costs. The net
    proceeds were placed in a trust account at JPMorgan Chase Bank,
    N.A. with Continental Stock Transfer &
    Trust Company acting as trustee. HACI had neither engaged
    in any operations nor generated any operating revenue prior to
    the business combination with Resolute.
On September 25, 2009 (the "Acquisition Date"),
    HACI consummated a business combination under the terms of a
    Purchase and IPO Reorganization Agreement ("Acquisition
    Agreement") with Resolute and Resolute Holdings Sub, LLC
    ("Sub"), whereby, through a series of transactions,
    HACI's stockholders collectively acquired a majority of the
    outstanding shares of Resolute common stock (the "Resolute
    Transaction"). Immediately prior to the consummation of the
    Resolute Transaction, Resolute owned, directly or indirectly,
    100% of the equity interests of Resolute Natural Resources
    Company, LLC ("Resources"), WYNR, LLC
    ("WYNR"), BWNR, LLC ("BWNR"), RNRC Holdings,
    Inc. ("RNRC"), and Resolute Wyoming, Inc.
    ("RWI") (formerly known as Primary Natural Resources,
    Inc. ("PNR")), and owned a 99.996% equity interest in
    Resolute Aneth, LLC ("Aneth"), (collectively
    "Predecessor Resolute"). The entities comprising
    Predecessor Resolute prior to the Resolute Transaction were
    wholly owned by Sub (except for Aneth, which was owned 99.996%),
    which in turn is a wholly owned subsidiary of Resolute Holdings,
    LLC ("Holdings").
The Resolute Transaction was accounted for using the acquisition
    method, with HACI as the accounting acquirer, and resulted in a
    new basis of accounting reflecting the fair values of the
    Predecessor Resolute assets and liabilities at the Acquisition
    Date. Accordingly, the accompanying consolidated financial
    statements are presented on Resolute's new basis of
    accounting (see Note 3 for details). HACI is the surviving
    entity and periods prior to September 25, 2009 reflected in
    this report represent activity related to HACI's formation,
    its initial public offering and identifying and consummating a
    business combination. The operations of Predecessor Resolute
    have been incorporated beginning September 25, 2009.
Note 2 —
    Summary of Significant Accounting Policies
Basis of
    Presentation
The consolidated financial statements include the historical
    accounts of HACI and, subsequent to the Acquisition Date,
    include Resolute and its subsidiaries, and have been prepared in
    accordance with accounting
A-103
Table of Contents
principles generally accepted in the United States
    ("GAAP"). All significant intercompany transactions
    have been eliminated upon consolidation.
In connection with the preparation of the consolidated financial
    statements, Resolute evaluated subsequent events after the
    balance sheet date. Certain prior period amounts have been
    reclassified to conform to the current period presentation.
Assumptions,
    Judgments and Estimates
The preparation of the consolidated financial statements in
    conformity with GAAP requires management to make various
    assumptions, judgments and estimates to determine the reported
    amounts of assets, liabilities, revenue and expenses, and in the
    disclosures of commitments and contingencies. Changes in these
    assumptions, judgments and estimates will occur as a result of
    the passage of time and the occurrence of future events.
    Accordingly, actual results could differ from amounts previously
    established.
Significant estimates with regard to the consolidated financial
    statements include the estimate of proved oil and gas reserve
    volumes and the related present value of estimated future net
    cash flows and the ceiling test applied to capitalized oil and
    gas properties, the estimated cost and timing related to asset
    retirement obligations, the estimated fair value of derivative
    assets and liabilities, the estimated expense for share based
    compensation and depletion, depreciation, and amortization.
Fair Value
    of Financial Instruments
The carrying amount of Resolute's financial instruments,
    namely cash and cash equivalents, accounts receivable and
    accounts payable, approximate their fair value because of the
    short-term nature of these instruments. The long-term debt (see
    Note 7) has a recorded value that approximates its
    fair market value. The fair value of derivative instruments (see
    Note 11) is estimated based on market conditions in
    effect at the end of each reporting period.
Industry
    Segment and Geographic Information
Resolute conducts operations in one industry segment, the crude
    oil, gas and NGL exploration and production industry. All of
    Resolute's operations and assets are located in the United
    States, and all of its revenue is attributable to domestic
    customers. Resolute considers gathering, processing and
    marketing functions as ancillary to its oil and gas producing
    activities, and therefore are not reported as a separate segment.
Cash, Cash
    Equivalents, and Marketable Securities
For purposes of reporting cash flows, Resolute considers all
    highly liquid investments with original maturities of three
    months or less at date of purchase to be cash equivalents.
    Resolute periodically maintains cash and cash equivalents in
    bank deposit accounts and money market funds which may be in
    excess of federally insured amounts. Resolute has not
    experienced any losses in such accounts and believes it is not
    exposed to any significant credit risk on such accounts.
Cash and cash equivalents held in trust are with JPMorgan Chase
    Bank, N.A., and Continental Stock Transfer &
    Trust Company serves as the trustee. The Company considers
    all highly liquid investments placed in trust with original
    maturities of three months or less to be cash equivalents. The
    Company had $250.0 million held in trust at
    December 31, 2008.
Marketable securities held in trust were with JPMorgan Chase
    Bank, N.A., and Continental Stock Transfer &
    Trust Company serves as the trustee. The marketable
    securities held in trust were invested in U.S. Treasury
    Bills with a maturity of 180 days or less. The Company had
    $290.1 million held in trust at December 31, 2008.
Amounts held in trust were restricted as to use until
    consummation of an initial qualifying business combination.
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Table of Contents
Accounts
    Receivable
The Company's accounts receivable at December 31,
    consists of the following (in thousands):
Accounts Receivable:
2009
Trade receivables
$
25,500
Derivative receivables
236
Other receivables
1,311
Total accounts receivable
$
27,047
Concentration
    of Credit Risk
Financial instruments that potentially subject Resolute to
    concentrations of credit risk consist primarily of trade,
    production and derivative settlement receivables. Resolute
    derived approximately 87% and 9% of its total 2009 revenue from
    Western and WGR Asset Holding Company, LLC, respectively. If
    Resolute was compelled to sell its crude oil to an alternative
    market, costs associated with the transportation of its
    production would increase, and such increase could materially
    and negatively affect its operations. The concentration of
    credit risk in the oil and gas industry affects the overall
    exposure to credit risk because customers may be similarly
    affected by changes in economic or other conditions. The
    creditworthiness of customers and other counterparties is
    subject to continuing review, including the use of master
    netting agreements, where appropriate. Commodity derivative
    contracts expose Resolute to the credit risk of non-performance
    by the counterparty to the contracts. This exposure is
    diversified among major investment grade financial institutions,
    all of which are financial institutions participating in
    Resolute's Credit Facility (see Note 7).
Oil and Gas
    Properties
Resolute uses the full cost method of accounting for oil and gas
    producing activities. All costs incurred in the acquisition,
    exploration and development of properties, including costs of
    unsuccessful exploration, costs of surrendered and abandoned
    leaseholds, delay lease rentals and the fair value of estimated
    future costs of site restoration, dismantlement and abandonment
    activities, improved recovery systems and a portion of general
    and administrative expenses are capitalized on a country-wide
    basis (the "cost center").
Resolute conducts tertiary recovery projects on certain of its
    oil and gas properties in order to recover additional
    hydrocarbons that are not recoverable from primary or secondary
    recovery methods. Under the full cost method, all development
    costs are capitalized at the time incurred. Development costs
    include charges associated with access to and preparation of
    well locations, drilling and equipping development wells, test
    wells, and service wells including injection wells, and
    acquiring, constructing, and installing production facilities
    and providing for improved recovery systems. Improved recovery
    systems include all related facility development costs and the
    cost of the acquisition of tertiary injectants, primarily
    purchased carbon dioxide
    ("CO
2
").
    The development cost related to
    CO
2
purchases are incurred solely for the purpose of gaining access
    to incremental reserves not otherwise recoverable. The
    accumulation of injected
    CO
2
,
    in combination with additional purchased and recycled
    CO
2
,
    provides future economic value over the life of the project.
In contrast, other costs related to the daily operation of the
    improved recovery systems are considered production costs and
    are expensed as incurred. These costs include, but are not
    limited to, compression, electricity, separation, re-injection
    of recovered
    CO
2
and water and reservoir pressure maintenance.
Capitalized general and administrative and operating costs
    include salaries, employee benefits, costs of consulting
    services and other specifically identifiable costs and do not
    include costs related to production operations, general
    corporate overhead or similar activities. Resolute capitalized
    general and administrative and operating costs related to its
    acquisition, exploration and development activities of
    $0.1 million during 2009. No general and administrative and
    operating costs were capitalized during 2008 or 2007.
Investments in unproved properties are not depleted, pending
    determination of the existence of proved reserves. The
    Company's investments in unproved properties are related to
    exploration plays in the Black Warrior
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Basin in Alabama and the Big Horn Basin in Wyoming. The Company
    expects to evaluate these locations for the existence of proved
    reserves in the next two to four years. Unproved properties are
    assessed at least annually to ascertain whether impairment has
    occurred. Unproved properties whose costs are individually
    significant are assessed individually by considering the primary
    lease terms of the properties, the holding period of the
    properties, and geographic and geologic data obtained relating
    to the properties. Where it is not practicable to assess
    individually the amount of impairment of properties for which
    costs are not individually significant, such properties are
    grouped for purposes of assessing impairment. The amount of
    impairment assessed is added to the costs to be amortized, or is
    reported as a period expense as appropriate. During 2009,
    Resolute transferred $3.9 million in unproved property
    costs to the full cost pool.
No gain or loss is recognized upon the sale or abandonment of
    undeveloped or producing oil and gas properties unless the sale
    represents a significant portion of oil and gas properties and
    the gain or loss significantly alters the relationship between
    the capitalized costs and proved oil reserves of the cost center.
Depletion and amortization of oil and gas properties is computed
    on the
unit-of-production
method based on proved reserves. Amortizable costs include
    estimates of asset retirement obligations and future development
    costs of proved reserves, including, but not limited to, costs
    to drill and equip development wells, constructing and
    installing production and processing facilities, and improved
    recovery systems, including the cost of required future
    CO
2
purchases.
Pursuant to full cost accounting rules, Resolute must perform a
    ceiling test each quarter on its proved oil and gas assets. The
    ceiling test provides that capitalized costs less related
    accumulated depletion and deferred income taxes for each cost
    center may not exceed the sum of (1) the present value of
    future net revenue from estimated production of proved oil and
    gas reserves using current prices, excluding the future cash
    outflows associated with settling asset retirement obligations
    that have been accrued on the balance sheet, and a discount
    factor of 10%; plus (2) the cost of properties not being
    amortized, if any; plus (3) the lower of cost or estimated
    fair value of unproved properties included in the costs being
    amortized, if any; less (4) income tax effects related to
    differences in the book and tax basis of oil and gas properties.
    Should the net capitalized costs for a cost center exceed the
    sum of the components noted above, an impairment charge would be
    recognized to the extent of the excess capitalized costs. There
    have been no provisions for impairment of oil and gas property
    costs for the periods ended December 31, 2009, 2008 and
    2007, respectively.
The Company's full cost pool is solely comprised of assets
    attributable to the Resolute Transaction. In accordance with
Regulation S-X
Article 4-10
and rules for full cost accounting for proved oil and gas
    properties, Resolute performed a ceiling test at
    December 31, 2009 using its year-end reserve estimates
    prepared in accordance with the recently promulgated SEC rules.
    Total capitalized costs exceeded the full cost ceiling by
    approximately $150 million; however, no impairment was
    recognized at December 31, 2009, as the Company requested
    and received an exemption from the Securities and Exchange
    Commission (the "SEC") to exclude the Resolute
    Transaction from the full cost ceiling assessment for a period
    of twelve months following the acquisition, provided the Company
    can demonstrate that the fair value of the acquired properties
    exceeds the carrying value in the interim periods through
    June 30, 2010. The request for exemption was made because
    the Company could demonstrate beyond a reasonable doubt that the
    fair value of the Resolute Transaction oil and gas properties
    exceed unamortized cost at the Acquisition Date and at
    December 31, 2009.
At the Acquisition Date, Resolute valued its oil and gas
    properties using NYMEX forward strip prices for a period of five
    years and then held prices flat thereafter. The Company also
    used various discount rates and other risk factors depending on
    the classification of reserves. Management believes this
    internal pricing model reflected the fair value of the assets
    acquired. Under full cost ceiling test rules, the commodity
    price utilized was equal to the trailing twelve-month unweighted
    arithmetic average of first day of the month prices resulting in
    an average NYMEX oil price of $61.18 per barrel of oil and an
    average Henry Hub spot market price for gas of $3.87 per MMBtu
    of gas, which may not be indicative of actual fair market values.
While commodity prices have increased since September 30,
    2009, the Company recognizes that due to the volatility
    associated with oil and natural gas prices, a downward trend
    could occur. If such a case were to occur and is deemed to be
    other than temporary, the Company would assess the Resolute
    Transaction properties for
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impairment during the requested exemption period. Further, if
    the Company cannot demonstrate that fair value exceeds the
    unamortized carrying costs during the exemption periods, the
    Company will recognize impairment.
Other
    Property and Equipment
Other property and equipment are recorded at cost. Costs of
    renewals and improvements that substantially extend the useful
    lives of the assets are capitalized. Maintenance and repair
    costs which do not extend the useful lives of property and
    equipment are charged to expense as incurred. Depreciation and
    amortization is calculated using the straight-line method over
    the estimated useful lives of the assets. Office furniture,
    automobiles, and computer hardware and software are depreciated
    over three to five years. Field offices are depreciated over
    fifteen to twenty years. Leasehold improvements are depreciated,
    using the straight line method, over the shorter of the lease
    term or the useful life of the asset. When other property and
    equipment is sold or retired, the capitalized costs and related
    accumulated depreciation and amortization are removed from the
    accounts.
Impairment
    of Long-Lived Assets Other than Oil and Gas
    Properties
Resolute evaluates long-lived assets for impairment or when
    indicators of possible impairment are present. Resolute performs
    an analysis of the anticipated undiscounted future net cash
    flows of the related long-lived assets and if the carrying value
    of the related asset exceeds the undiscounted cash flows, the
    carrying value is reduced to the assets' fair value and an
    impairment loss is recorded against the long-lived asset. There
    have been no provisions for impairment recorded for the periods
    ended December 31, 2009, 2008 and 2007.
Asset
    Retirement Obligation
Asset retirement obligations relate to future costs associated
    with the plugging and abandonment of oil and gas wells, removal
    of equipment and facilities from leased acreage and returning
    such land to its original condition. The fair value of a
    liability for an asset retirement obligation is recorded in the
    period in which it is incurred and the cost of such liability is
    recorded as an increase in the carrying amount of the related
    long-lived asset by the same amount. The liability is accreted
    each period and the capitalized cost is depleted on a
units-of-production
basis as part of the full cost pool. Revisions to estimated
    retirement obligations result in adjustments to the related
    capitalized asset and corresponding liability.
The restricted cash of $13.0 million located on the
    Company's consolidated balance sheet at December 31,
    2009 in non-current other assets is legally restricted for the
    purpose of settling asset retirement obligations related to
    Predecessor Resolute's purchase of properties from a
    subsidiary of ExxonMobil Corporation and its affiliates
    ("ExxonMobil Properties") (See Note 13).
Resolute's estimated asset retirement obligation liability
    is based on estimated economic lives, estimates as to the cost
    to abandon the wells in the future, and federal and state
    regulatory requirements. The liability is discounted using a
    credit- adjusted risk-free rate estimated at the time the
    liability is incurred or revised. Revisions to the liability
    could occur due to changes in estimated abandonment costs or
    well economic lives, or if federal or state regulators enact new
    requirements regarding the abandonment of wells. Asset
    retirement obligations are valued utilizing Level 3 fair
    value measurement inputs. See Note 12.
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The following table provides a reconciliation of Resolute's
    asset retirement obligations at December 31, (in thousands):
2009
Asset retirement obligations at beginning of period
$
—
Liabilities assumed in acquisition of Predecessor Resolute
10,278
Additional liability incurred
—
Accretion expense
218
Liabilities settled
(58
)
Revisions to previous estimates
—
Asset retirement obligations at end of period
10,438
Less current asset retirement obligations accrued in accounts
    payable and accrued expenses
(1,221
)
Long-term asset retirement obligations
$
9,217
Derivative
    Instruments
Financial Accounting Standards Board ("FASB")
    Accounting Standards Codification ("ASC") Topic 815,
Derivatives and Hedging
, requires recognition of all
    derivative instruments on the balance sheet as either assets or
    liabilities measured at fair value. Changes in the fair value of
    a derivative are recognized currently in earnings unless
    specific hedge accounting criteria are met. Gains and losses on
    derivative hedging instruments must be recorded in either other
    comprehensive income or current earnings, depending on the
    nature and designation of the instrument. Presently,
    Resolute's management has determined that the benefit of
    cash flow hedge accounting, which may allow for its derivative
    instruments to be reflected as cash flow hedges, is not
    commensurate with the administrative burden required to support
    that treatment. As a result, Resolute marks its derivative
    instruments to fair value on the consolidated balance sheets and
    recognizes the changes in fair market value in earnings. Gains
    and losses on derivative instruments reflected in the
    consolidated statements of operations incorporate both the
    realized and unrealized amounts.
Resolute enters into derivative contracts to manage its exposure
    to oil and gas price volatility. Derivative contracts may take
    the form of futures contracts, swaps or options. Realized and
    unrealized gains and losses related to commodity derivatives are
    recognized in other income (expense). Realized gains and losses
    are recognized in the period in which the related contract is
    settled. The cash flows from derivatives are reported as cash
    flows from operating activities unless the derivative contract
    is deemed to contain a financing element. Derivatives deemed to
    contain a financing element are reported as financing activities
    in the statement of cash flows.
Revenue
    Recognition
Oil and gas revenue is recognized when production is sold to a
    purchaser at a fixed or determinable price, when delivery has
    occurred and title has transferred and the collectability of the
    revenue is probable. Oil and gas revenue is recorded using the
    sales method.
RWI is party to three well suspension agreements (the
    "Agreements"). The counterparties to the Agreements
    from time to time may submit a request to RWI to suspend well
    operations or defer drilling plans on certain acreage under
    lease to RWI in exchange for non-refundable payments. Revenue is
    recognized for these payments over the expected development plan
    or until such time as the specified properties are released from
    suspension and RWI may proceed with exploration of these
    properties. During 2009, the Company recognized
    $0.2 million in income related to the Agreements
General and
    Administrative Expenses
General and administrative expenses are reported net of amounts
    capitalized to oil and gas properties and of reimbursements of
    overhead costs that are billed to working interest owners of the
    oil and gas properties operated by Resolute. In addition, the
    Company recorded $16.6 million of transaction costs related
    to the Resolute Transaction for the year ended December 31,
    2009 (see Note 3). No transaction costs were recognized in
    2008 and 2007.
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Income
    Taxes
Income taxes and uncertain tax positions are accounted for in
    accordance with FASB ASC Topic 740,
Accounting for Income
    Taxes
. Deferred income taxes are provided for the
    differences between the bases of assets and liabilities for
    financial reporting and income tax purposes. A valuation
    allowance is established when necessary to reduce deferred tax
    assets to the amount expected to be realized. Tax positions
    meeting the more-likely-than-not recognition threshold are
    measured pursuant to the guidance set forth FASB ASC Topic 740.
Accounting
    Standards Update
In June of 2009, the FASB established the ASC as the single
    source of authoritative GAAP for all non-governmental entities
    with the exception of authoritative guidance from the SEC. All
    other accounting literature is considered non-authoritative. The
    ASC changes the way the Company cites authoritative guidance
    within the Company's financial statements and notes to the
    financial statements. The ASC is effective for periods ending on
    or after September 15, 2009, and did not have a material
    impact on the Company's consolidated financial statements.
Resolute adopted FASB ASC Topic 805,
Business Combinations,
on January 1, 2009. This guidance establishes
    principles and requirements for how the acquirer of a business
    recognizes and measures in its financial statements the
    contingent and identifiable assets acquired, the liabilities
    assumed, and any noncontrolling interest in the acquiree. The
    nature and magnitude of the specific effects of this guidance on
    the consolidated financial statements will depend upon the
    nature, terms and size of the acquisitions consummated after the
    effective date. Resolute expensed approximately
    $3.5 million of deferred acquisition costs in its 2009
    consolidated financial statements as the new guidance no longer
    allowed deferral of these costs.
In January of 2010, the FASB issued additional guidance to
    improve disclosure requirements related to fair value
    measurements and disclosures. Specifically, this guidance
    requires disclosures about transfers in and out of Level 1
    and 2 fair value measurements, activity in Level 3 fair
    value measurements (See Note 12 for Level 1, 2 and 3
    definitions), greater desegregation of the amounts on the
    consolidated balance sheets that are subject to fair value
    measurements and additional disclosures about the valuation
    techniques and inputs used in fair value measurements. This
    guidance is effective for annual reporting periods beginning
    after December 31, 2009, except for disclosure of
    Level 3 fair value measurement roll forward activity, which
    is effective for annual reporting periods beginning after
    December 15, 2010. The Company is currently assessing the
    impact this guidance will have on the consolidated financial
    statements.
On December 31, 2008, the SEC published the final rules and
    interpretations updating its oil and gas reporting requirements.
    Many of the revisions are updates to definitions in the existing
    oil and gas rules to make them consistent with the petroleum
    resource management system. This system, which was developed by
    several industry organizations, is a widely accepted standard
    for the management of petroleum resources. Key revisions include
    changes to the pricing used to estimate reserves, the ability to
    include nontraditional resources in reserves, the use of new
    technology for determining reserves, and permitting disclosure
    of probable and possible reserves. FASB ASC Topic 932 was
    updated in January of 2010 to align the oil and gas reserve
    estimation and disclosure requirements in the ASC with the
    SEC's oil and gas reporting requirements. The SEC will
    require companies to comply with the amended disclosure
    requirements for registration statements filed after
    January 1, 2010, and for annual reports for fiscal years
    ending on or after December 15, 2009. Early adoption is not
    permitted. Resolute adopted the requirements for the year ended
    December 31, 2009 and the consolidated financial statements
    were impacted in the following manner:
•
The price used in calculating reserves changed from a
single-day
closing price measured on the last day of the Company's
    fiscal year to a
12-month
average first of the month price for the previous twelve months
    as of the balance sheet date. This average price was utilized in
    the Company's depletion and ceiling test calculations.
•
The notes to the consolidated financial statements include
    additional financial reporting disclosures.
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Note 3 —
Acquisitions
    and Divestitures
Resolute
    Transaction
On September 25, 2009, HACI completed the Resolute
    Transaction with Resolute, through which, in a series of
    transactions, HACI's stockholders collectively acquired a
    majority of the outstanding shares of Resolute common stock, and
    the Company acquired, directly or indirectly, 100% of the equity
    interests comprising Predecessor Resolute, with the exception of
    Aneth, in which the Company indirectly acquired a 99.996% equity
    interest. The total purchase price was allocated to the acquired
    assets and liabilities assumed of Predecessor Resolute based on
    their respective fair values as determined by management.
The total purchase price was comprised of the following (in
    thousands):
September 25, 2009
Cash consideration
$
325,000
Company common stock
88,800
Company common stock subject to forfeiture
10,000
Fair value of warrants, net of payment to Sponsor of
    $1.2 million
3,200
Total purchase price
$
427,000
The business combination was accounted for using the acquisition
    method, in which HACI was the accounting acquirer, and resulted
    in a new basis of accounting reflecting the fair values of the
    Predecessor Resolute assets acquired and liabilities assumed.
    The following table presents the preliminary allocation of the
    purchase price at September 25, 2009, based on the
    estimated fair values of assets acquired and liabilities assumed
    (in thousands):
September 25, 2009
Current assets
$
33,500
Oil and gas properties
633,600
Other property and equipment
2,200
Other assets
18,400
Debt assumed
(99,200
)
Deferred income tax liability
(75,500
)
Other liabilities
(86,000
)
Total purchase price
$
427,000
The fair value of acquired properties was determined based upon
    numerous inputs, many of which were unobservable (which are
    defined as Level 3 inputs). The significant inputs used in
    estimating the fair value were: (1) NYMEX crude oil and
    natural gas futures prices (observable), (2) projections of
    the estimated quantities of oil and gas reserves,
    (3) projections regarding rates and timing of production,
    (4) projections regarding amounts and timing of future
    development and abandonment costs, (5) projections
    regarding the amounts and timing of operating costs and property
    taxes, (6) estimated risk adjusted discount rates and
    (7) estimated inflation rates. As a result of applying the
    above assumptions, the Company estimated the aggregate fair
    value of the oil and gas assets acquired at $622.5 million
    for proved properties and $11.1 million for unevaluated
    properties. Portions of the consideration paid were valued using
    a Black-Scholes model which is also a Level 3 input. The
    fair value of the acquired current assets and current
    liabilities equaled their stated amounts due to their short-term
    maturities. The fair value of the debt assumed under the Credit
    Facility approximated its stated amount due to the variable
    interest rate grid and its May 2011 maturity date. The fair
    value of derivative assets and liabilities were determined
    consistent with the basis described in
Note 12 — Fair Value Measurements.
There
    were no identifiable intangibles acquired and no goodwill was
    recognized as identifiable assets acquired and the liabilities
    assumed approximated the purchase price.
The Company has not yet submitted final tax returns for
    Predecessor Resolute for the period ended September 24,
    2009. Any adjustments to the tax returns may impact the
    estimated fair value of the assets and liabilities acquired. Any
    adjustments will be reflected retrospectively.
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In connection with the Resolute Transaction, HACI acquired an
    estimated 72.8% membership interest in Aneth in exchange for
    HACI's payment to Aneth of $325 million (the
    "HACI Contribution"), which Aneth used to repay a
    portion of the debt outstanding under Aneth's credit
    facilities.
Immediately following the repayment of debt, Sub contributed to
    the Company its interests in Predecessor Resolute in exchange
    for:
(i)
9,200,000 shares of Company common stock, 200,000 of which
    were issued to service providers (employees of Predecessor
    Resolute who became employees of Resolute upon consummation of
    the Resolute Transaction) in recognition of their services.
    100,000 shares vested immediately on September 25,
    2009 and the remaining 100,000 shares will vest on the one
    year anniversary of the Acquisition Date, provided the recipient
    remains an employee of the Company;
(ii)
4,600,000 new Company Founders Warrants, ("New Founder
    Warrants") issued in exchange for Old Founder's
    Warrants (defined below) to purchase Company common stock with a
    strike price of $13.00, a trigger price of $13.75 and a five
    year term from the date of the Resolute Transaction; and
(iii)
1,385,000 Company earnout shares, which are shares of Company
    common stock (with voting rights) ("Earnout Shares")
    that will be forfeited if the price of Company common stock does
    not exceed $15.00 per share for 20 trading days in any 30
    trading day period within five years from the date of the
    Resolute Transaction.
Immediately prior to the Resolute Transaction,
    7,335,000 shares of common stock and 4,600,000 sponsor
    warrants of HACI that had been issued to the founder of HACI
    ("Founder Shares" and "Old Founder
    Warrants," respectively) were cancelled and forfeited.
    Sponsor Warrants of 2,333,333 were sold to Sub by the sponsor in
    exchange for Sub's payment of $1,166,667 to the Sponsor.
    Sponsor Warrants were warrants to purchase the common stock of
    HACI held by the Sponsor that were exchanged in the Resolute
    Transaction for New Sponsor Warrants to purchase Company common
    stock with a strike price of $13.00 and a five year term.
Immediately following the HACI Contribution and simultaneously
    with Sub's contribution of Predecessor Resolute, Resolute
    Subsidiary Corporation, a wholly owned subsidiary of Resolute,
    merged with and into HACI, with HACI surviving. HACI continues
    as a wholly-owned subsidiary of Resolute and the outstanding
    shares of HACI common stock and outstanding HACI warrants,
    including outstanding Old Founder Warrants and Sponsor Warrants,
    were exchanged for Sub's contribution. After the Resolute
    Transaction, the former HACI stockholders and warrant holders
    have no direct equity ownership interest in HACI.
Pro Forma
    Financial Information
The unaudited pro forma consolidated financial information in
    the table below summarizes the results of operations of the
    Company as though the Resolute Transaction had occurred as of
    the beginning of each period presented. The pro forma financial
    information is presented for informational purposes only and is
    not indicative of the results of operations that would have been
    achieved if the acquisition had taken place at the beginning of
    the earliest period presented or that may result in the future.
    The pro forma adjustments made are based on certain assumptions
    that Resolute believes are reasonable based on currently
    available information.
The unaudited pro forma financial information for the years
    ended December 31, 2009 and 2008 combine the historical
    results of HACI and Predecessor Resolute. Additionally, the 2008
    period includes the pro forma results of a net profits
    overriding royalty interest ("NPI") acquired by RWI on
    July 31, 2008, as though the NPI had been acquired as of
    January 1, 2008.
2009
2008
(In thousands, except per share amount)
Total revenue
$
127,760
$
235,616
Operating income (loss)
(26,558
)
(176,175
)
Net income (loss)
(64,827
)
(53,444
)
Basic and diluted net income (loss) per share
$
(1.22
)
$
(1.01
)
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Note 4 –
Earnings per
    Share
The Company computes earnings per share using the two class
    method. Basic net income per share is computed using the
    weighted average number of common shares outstanding during the
    period. Diluted net income per share is computed using the
    weighted average number of common shares and, if dilutive,
    potential common shares outstanding during the period.
    Potentially dilutive shares consist of the incremental shares
    issuable under the outstanding warrants and earnout shares.
The treasury stock method is used to measure the dilutive impact
    of potentially warrants. When there is a loss, all potentially
    dilutive shares will be anti-dilutive. As such, there were no
    dilutive shares for the year ended December 31, 2009 and
    therefore, the impact of 48,400,000 warrants and 3,250,000
    earnout shares outstanding for the year ended December 31,
    2009, were not included in the calculation of diluted loss per
    share. In 2008 and 2007, 76,000,000 warrants were contingently
    issuable and were excluded from the calculation of diluted
    earnings per share.
The liquidation rights of the holders of the Company's
    common stock and common stock that were subject to redemption
    are identical, except with respect to redemption rights for
    dissenting shareholders in an acquisition by the Company. As a
    result, the undistributed earnings for each year are allocated
    based on the contractual participation rights of the common
    stock and common stock subject to redemption as if the earnings
    for the year had been distributed. The undistributed earnings
    are allocated to common stock subject to redemption based on
    their pro-rata right to income earned by the trust and, in 2009,
    their share of administrative expenses. Subsequent to the
    Resolute Transaction, no common stock subject to redemption
    remains outstanding.
The following table sets forth the computation of basic and
    diluted net income per share of common stock and common stock
    subject to redemption (in thousands except per share data):
2009
2008
2007
Common
Common
Common
Common
Stock
Common
Stock
Common
Stock
Stock
Subject to
Stock
Subject to
Stock
Subject to
Redemption
Redemption
Redemption
Numerator:
Allocation of undistributed earnings (loss)
$
(43,313
)
$
(1,930
)
$
2,498
$
1,489
$
1,697
$
1,020
Denominator:
Weighted average of issued shares outstanding
46,394
12,114
45,105
16,560
18,587
16,560
Basic and diluted earnings per share
$
(0.93
)
$
(0.16
)
$
0.06
$
0.09
$
0.09
$
0.06
A summary of the activity associated with warrants during 2009,
    2008 and 2007 is as follows (in thousands):
Warrants
Warrants issued to founding stockholder
11,500
Warrants issued through stock dividend
2,300
Warrants issued through HACI Offering
55,200
Sale of Sponsor Warrants
7,000
Balance at December 31, 2007 and 2008
76,000
Redemption of warrants in Resolute Transaction
(27,600
)
Cancellation of Founder Warrants
(4,600
)
Issuance of new Founder Warrants
4,600
Balance at December 31, 2009
48,400
Warrants entitle the holder to purchase one share of Company
    common stock at a price of $13.00 per share and expire on
    September 25, 2014.
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Note 5 —
Marketable
    Securities Held in Trust
The carrying amount, including accrued interest, gross
    unrealized holding gains, gross unrealized holding losses, and
    fair value of
held-to-maturity
marketable securities by major security type and class of
    security are as follows (in thousands):
Carrying
Gross Unrealized
Gross Unrealized
December 31, 2008
Amount
Holding Gains
Holding (Losses)
Fair value
Held-to-Maturity:
U.S. Treasury Bills
$
290,117
$
—
$
—
$
290,117
The treasury bills classified as
held-to-maturity
mature within one year. On September 25, 2009, the
    marketable securities held in trust were distributed in
    connection with the Resolute Transaction (see Note 3).
Note 6 —
Related Party
    Transactions
HACI agreed to pay up to $10,000 a month for office space and
    general and administrative services to Hicks Holdings Operating
    LLC ("Hicks Holdings"), an affiliate of HACI's
    founder and chairman of the board, Thomas O. Hicks. Services
    commenced after the effective date of the Offering and were
    terminated on the Acquisition Date due to the consummation of
    the Resolute Transaction. The Company expensed $0.1 million
    during each of the periods ended December 31, 2009, 2008
    and 2007 under this agreement.
During 2009, Resources carried a payable for payments received
    on behalf of affiliate, Holdings, for Holdings'
    transactions not related to Resolute. Resources paid Holdings
    $1.3 million in satisfaction of this payable during 2009.
Note 7 —
Long Term
    Debt
Resolute's credit facility is with a syndicate of banks led
    by Wachovia Bank, National Association (the "Credit
    Facility") with Aneth as the borrower. The Credit Facility
    specifies a maximum borrowing base as determined by the lenders.
    The determination of the borrowing base takes into consideration
    the estimated value of Resolute's oil and gas properties in
    accordance with the lenders' customary practices for oil
    and gas loans. The borrowing base is re-determined
    semi-annually, and the amount available for borrowing could be
    increased or decreased as a result of such re-determinations.
    Under certain circumstances, either Resolute or the lenders may
    request an interim re-determination. As of December 31,
    2009, the borrowing base was $240 million and outstanding
    borrowings were $109.6 million. Unused availability under
    the borrowing base as of December 31, 2009 was
    $121.9 million. The borrowing base availability has been
    reduced by $8.5 million in conjunction with letters of
    credit issued to vendors at December 31, 2009. The Credit
    Facility matures on April 13, 2011 and, to the extent that
    the borrowing base, as adjusted from time to time, exceeds the
    outstanding balance, no repayments of principal are required
    prior to maturity.
The outstanding balance under the Credit Facility accrues
    interest, at Aneth's option, at either (a) the London
    Interbank Offered Rate, plus a margin which varies from 2.5% to
    3.5%, or (b) the Alternative Base Rate defined as the
    greater of (i) the Administrative Agent's Prime Rate,
    (ii) the Administrative Agent's Base CD rate plus 1%,
    or (iii) the Federal Funds Effective Rate plus 0.5%, plus a
    margin which varies from 1.0% to 2.0%. Each such margin is based
    on the level of utilization under the borrowing base. As of
    December 31, 2009, the weighted average interest rate on
    the outstanding balance under the facility was 3.30%. The Credit
    Facility is collateralized by substantially all of the proved
    oil and gas assets of Aneth and RWI, and is guaranteed by
    Resolute and its subsidiaries other than Aneth.
The Credit Facility includes terms and covenants that place
    limitations on certain types of activities, the payment of
    dividends, and require satisfaction of certain financial tests.
    Resolute was in compliance with all terms and covenants of the
    Credit Facility at December 31, 2009.
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On March 30, 2010, the Company entered into a Restated
    Credit Agreement (the "Restated Agreement"). Under the
    terms of the Restated Agreement, the borrowing base was
    increased from $240.0 million to $260.0 million and
    the maturity date was extended to March 2014. At Resolute's
    option, the outstanding balance under the Credit Facility
    accrues interest at either (a) the London Interbank Offered
    Rate, plus a margin which varies from 2.25% to 3.0% or
    (b) the Alternative Base Rate defined as the greater of
    (i) the Administrative Agent's Prime Rate,
    (ii) the Federal Funds Effective Rate plus 0.5%, or
    (iii) an adjusted London Interbank Offered Rate plus 1%,
    plus a margin which ranges from 1.25% to 2.0%.
As of March 30, 2010, Resolute had borrowings of
    $115.4 million under the borrowing base, resulting in an
    unused availability of $136.1 million.
Note 8 —
Income Taxes
The following table summarizes the components of the provision
    for income taxes (in thousands):
2009
2008
2007
Current income tax benefit (expense)
$
74
$
(2,169
)
$
(1,555
)
Deferred income tax benefit
19,813
115
154
Total income tax benefit (expense)
$
19,887
$
(2,054
)
$
(1,401
)
The provision for income taxes for the periods ended
    December 31, 2009, 2008 and 2007 differs from the amount
    that would be provided by applying the statutory
    U.S. federal income tax rate of 35% to income before income
    taxes. This difference relates primarily to state income taxes
    and estimated permanent differences as follows (in thousands):
2009
2008
2007
Expected statutory income tax benefit (expense)
$
22,120
$
(2,054
)
(1,400
)
State income tax benefit
1,612
—
—
Equity based compensation
(322
)
—
—
Non-deductible merger costs
(3,615
)
—
—
Other
92
—
(1
)
Total income tax benefit (expense)
$
19,887
$
(2,054
)
$
(1,401
)
The tax effects of temporary differences that give rise to
    significant portions of the deferred income tax assets and
    liabilities are presented below (in thousands):
December 31,
2009
2008
Current deferred income tax assets (liabilities):
Derivative financial instruments
$
5,170
$
—
Asset retirement obligation
968
—
Other
912
—
Total current
7,050
—
Long term deferred income tax assets (liabilities):
Derivative financial instruments
19,515
—
Net operating loss carryovers
9,310
—
Asset retirement obligation
2,414
—
Startup and organization costs
253
249
Deferred acquisition costs
45
41
Property and equipment costs
(92,249
)
(21
)
Other
(1,755
)
—
Total long term
(62,467
)
269
Net deferred tax (liability) asset
$
(55,417
)
$
269
As set forth in Note 3, the Company acquired Predecessor
    Resolute's assets and liabilities in a partially tax-free
    transaction pursuant to Section 351 of the Internal Revenue
    Code. Accordingly, the Company established a
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deferred tax liability of $75.5 million as part of the
    acquisition accounting to give effect to the differing financial
    accounting and income tax bases of the acquired assets and
    liabilities.
The Company has U.S. net operating loss carryforwards of
    $25.2 million at December 31, 2009, which will begin
    expiring in 2025. Of the $25.2 million, $6.0 million
    would not be available for use until 2011 and after.
The Company adopted the accounting for uncertain tax positions
    per FASB ASC Topic 740,
Accounting for Income Taxes
, from
    inception. This guidance prescribes a recognition threshold and
    measurement attribute for the financial statement recognition
    and measurement of a tax position taken or expected to be taken
    in a tax return. This guidance requires that the Company
    recognize in the consolidated financial statements, only those
    tax positions that are "more-likely-than-not" of being
    sustained, based on the technical merits of the position. As a
    result of the implementation of this guidance, the Company
    performed a comprehensive review of the Company's material
    tax positions. This guidance had no effect on the Company's
    financial position, cash flows or results of operations at for
    2009, 2008 or 2007 as the Company had no unrecognized tax
    benefits. The Company's policy is to recognize interest and
    penalties related to uncertain tax positions in income tax
    expense. The Company has no accrued interest or penalties
    related to uncertain tax positions as of December 31, 2009
    or 2008.
The Company is subject to the following material taxing
    jurisdictions: U.S. federal, Colorado, Utah and the Navajo
    Nation. The tax years that remain open to examination by the
    Internal Revenue Service are the years 2006 through 2009. The
    tax years that remain open to examination by Colorado and Utah
    are 2005 through 2009. Resource's 2007 tax return is
    currently under examination in the U.S. federal
    jurisdiction.
Note 9 —
Stockholders'
    Equity and Equity Based Awards
Preferred
    Stock
The Company is authorized to issue up to 1,000,000 shares
    of preferred stock, par value $0.0001 with such designations,
    voting and other rights and preferences as may be determined
    from time to time by the Board of Directors. No shares were
    issued and outstanding as of December 31, 2009 or
    December 31, 2008.
Common
    Stock
The authorized common stock of the Company consists of
    225,000,000 shares. The holders of the common shares are
    entitled to one vote for each share of common stock. In
    addition, the holders of the common stock are entitled to
    receive dividends when, as and if declared by the Board of
    Directors. At December 31, 2009, the Company had
    53,154,883 shares of common stock issued and outstanding.
    HACI had 69,000,000 common shares issued and outstanding at
    December 31, 2008.
Of the 53,154,883 shares of common stock outstanding at
    December 31, 2009, 3,250,000 are classified as Earnout
    Shares. Earnout Shares are common stock of Resolute subject to
    forfeiture in the event that an earnout target of $15.00 per
    share is not met by September 25, 2014. The Earnout Shares
    have voting rights and are transferable; however, they are not
    registered for resale and do not participate in dividends until
    the trigger price is met.
Holders of 30% of public common stock, less one share, had the
    right to vote against any acquisition proposal and demand
    conversion of their shares for a pro rata portion of cash and
    marketable securities held in trust, less certain adjustments.
    As a result, HACI classified 16,559,999 of the total 69,000,000
    common shares issued during 2007 as common stock, subject to
    possible redemption for $160.8 million. The common stock
    subject to redemption participated in the net income of HACI.
    Income or loss attributable to common stock subject to
    redemption was considered in the calculation of earning per
    share and the deferred interest attributable to common stock
    subject to possible redemption was accrued. Upon consummation of
    the Resolute Transaction, the $160.8 million temporary
    equity was reclassified to common stock and additional paid-in
    capital and 11,592,084 shares were redeemed. The deferred
    interest attributable to the shares of common stock not redeemed
    of $1.9 million was reclassified to stockholders'
    equity.
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Stock-Based
    Compensation
The Company accounts for stock-based compensation in accordance
    with FASB ASC Topic 718,
Stock Compensation
.
On July 31, 2009, the Company adopted the 2009 Stock
    Incentive Performance Plan (the "Incentive Plan"),
    providing for long-term equity based awards intended as a means
    for the Company to attract, motivate, retain and reward
    directors, officers, employees and other eligible persons
    through the grant of awards and incentives for high levels of
    individual performance and improved financial performance of the
    Company. Equity-based awards are also intended to further align
    the interests of award recipients and the Company's
    stockholders. The Company's Board of Directors or one or
    more committees appointed by the Company's Board of
    Directors will administer the Incentive Plan. The maximum number
    of shares of Company common stock that may be issued pursuant to
    awards under the Incentive Plan is 2,657,744.
The Incentive Plan authorizes stock options, stock appreciation
    rights, restricted stock, restricted stock units, stock bonuses
    and other forms of awards that may be granted or denominated in
    Company common stock or units of Company common stock, as well
    as cash bonus awards. The Incentive Plan retains flexibility to
    offer competitive incentives and to tailor benefits to specific
    needs and circumstances. Any award may be paid or settled in
    cash at the Company's option. As of December 31, 2009,
    no long-term equity based awards have been granted.
On September 25, 2009, the Company and Sub entered into a
    Retention Bonus Award Agreement calling for the award to
    employees of the Company of 200,000 shares of Company
    common stock that would otherwise have been issued to Sub in the
    Resolute Transaction. Resolute accounts for these awards under
    the provisions of FASB ASC Topic 718. Fifty percent of each
    employee award was awarded without restriction and fifty percent
    of each employee award was granted contingent upon the employee
    remaining employed by the Company for one year following the
    closing of the Resolute Transaction. As of December 31,
    2009, employees had forfeited 11,697 shares under this
    agreement, leaving 88,303 unvested shares outstanding. The
    compensation expense to be recognized for the awards was
    measured based on the Company's traded stock price at the
    date of the Resolute Transaction. For the year ended
    December 31, 2009, the Company recorded $1.1 million
    of stock based compensation expense for this award, of which
    $0.9 million was recorded in general and administrative
    expense and $0.2 million was recorded in lease operating
    expense. The remaining expense will be recognized over the
    remaining vesting period ending on September 25, 2010.
Note 10 –
Employee
    Benefits
The Company offers a variety of health and benefit programs to
    all employees, including medical, dental, vision, life insurance
    and disability insurance. The Company's executive officers
    are generally eligible to participate in these employee benefit
    plans on the same basis as the rest of the Company's
    employees. The Company offers a 401(k) plan for all eligible
    employees. For the year ended December 31, 2009, the
    Company expensed $0.5 million in connection with matching
    of employee contributions. No matching contributions were made
    in 2008 or 2007. Employee benefit plans may be modified or
    terminated at any time by the Company's Board of Directors.
On October 22, 2009, the Company's Board of Directors
    approved (i) cash awards to employees in the aggregate
    amount of approximately $1.5 million, with 50% of each
    award to an employee to be paid currently and 50% to be paid one
    year from closing if the employee remains employed by the
    Company; (ii) the payment to each employee who had been
    subject to a salary reduction in 2009 a lump sum payment equal
    to the amount of the reduction, such payments aggregating to
    approximately $0.3 million; and (iii) the payment of
    lump sum payments to employees approximately equal to the amount
    they would have received as matching 401(k) contributions for
    2008 had Predecessor Resolute made a matching contribution in
    accordance with past practice, such bonuses amounting to
    approximately $0.6 million.
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Time Vested
    Cash Awards
Prior to the Resolute Transaction, certain employees of
    Predecessor Resolute hold time vested cash awards
    ("Awards"). All of the Awards bear simple interest of
    15% per annum commencing January 1, 2008, and are payable
    in three installments, with the first installment paid on
    January 1, 2009 and the remaining two installments payable
    on January 1, 2010 and 2011. The Awards are accounted for
    as deferred compensation. The annual payments are paid
    contingent upon the employee's continued employment with
    Resolute and there is potential for forfeiture of the Awards.
    Accordingly, Resolute will accrue the Awards and related return
    for the respective year on an annual basis. For the year ended
    December 31, 2009, $0.1 million of compensation
    expense related to the Awards was recognized. The remaining
    amount to be paid at December 31, 2009 for all Awards is
    $0.3 million.
Note 11 —
Derivative
    Instruments
Effective January 1, 2009, new authoritative accounting
    guidance regarding derivative instruments and hedging activities
    requires entities to provide greater transparency about how and
    why an entity uses derivative instruments, how derivative
    instruments and related hedged items are accounted for, and how
    derivative instruments and related hedged items affect an
    entity's financial position, results of operations, and
    cash flows.
Resolute enters into commodity derivative contracts to manage
    its exposure to oil and gas price volatility. Resolute has not
    elected to designate derivative instruments as cash flow hedges
    under the provisions of FASB ASC Topic 815. As a result, these
    derivative instruments are marked to market at the end of each
    reporting period and changes in the fair value are recorded in
    the accompanying consolidated statements of operations. Realized
    and unrealized gains and losses from Resolute's price risk
    management activities are recognized in other income (expense),
    with realized gains and losses recognized in the period in which
    the related production is sold. The cash flows from derivatives
    are reported as cash flows from operating activities unless the
    derivative contract is deemed to contain a financing element.
    Derivatives deemed to contain a financing element are reported
    as financing activities in the statement of cash flows.
    Commodity derivative contracts may take the form of futures
    contracts, swaps or options.
As of December 31, 2009, Resolute had entered into certain
    commodity swap contracts. The following table represents
    Resolute's commodity swaps through 2013:
Oil (NYMEX
Gas (NYMEX HH)
WTI) Weighted
Weighted Average
Average Hedge
Hedge Price per
Year
Bbl per Day
Price per Bbl
MMBtu per Day
MMBtu
2010
3,650
$
67.24
3,800
$
9.69
2011
3,250
$
68.26
2,750
$
9.32
2012
3,250
$
68.26
2,100
$
7.42
2013
2,000
$
60.47
1,900
$
7.40
Resolute also uses basis swaps in connection with gas swaps in
    order to fix the price differential between the NYMEX Henry Hub
    price and the index price at which the gas production is sold.
    The table below sets forth Resolute's outstanding basis
    swaps as of December 31, 2009.
Weighted Average
Hedged Price
Differential per
Year
Index
MMBtu per Day
MMBtu
2010 – 2013
Rocky Mountain NWPL
1,800
$
2.10
As of December 31, 2009, Resolute had entered into certain
    commodity collar contracts. The following table represents
    Resolute's commodity collars:
Gas (NYMEX HH)
Oil (NYMEX WTI)
Weighted Average
Weighted Average
MMBtu per
Hedge Price per
Year
Bbl per Day
Hedge Price per Bbl
Day
MMBtu
2010
200
$
105.00-151.00
—
—
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Resolute's derivative instruments are not designated and do
    not qualify for hedge accounting under the FASB ASC. For
    financial reporting purposes, Resolute does not offset the fair
    value amounts of derivative assets and liabilities with the same
    counterparty. See Note 12 for the location and fair value
    amounts of Resolute's commodity derivative instruments
    reported in the consolidated balance sheets at December 31,
    2009.
Because Resolute's derivative instruments are not
    designated and do not qualify for hedge accounting under the
    FASB ASC, the gains and losses are included in other income
    (expense) in the consolidated statements of operations. The
    table below summarizes the location and amount of commodity
    derivative instrument losses reported in the consolidated
    statements of operations (in thousands):
Year Ended
December 31,
2009
Other income (expense):
Realized losses
$
(3,193
)
Unrealized losses
(46,321
)
Total loss on derivative instruments
$
(49,514
)
Credit Risk
    and Contingent Features in Derivative
    Instruments
Resolute is exposed to credit risk to the extent of
    nonperformance by the counterparties in the derivative contracts
    discussed above. All counterparties are lenders under
    Resolute's Credit Facility. Accordingly, Resolute is not
    required to provide any credit support to its counterparties
    other than cross collateralization with the properties securing
    the Credit Facility. Resolute's derivative contracts are
    documented with industry standard contracts known as a Schedule
    to the Master Agreement and International Swaps and Derivative
    Association, Inc. Master Agreement ("ISDA"). Typical
    terms for the ISDAs include credit support requirements, cross
    default provisions, termination events, and set-off provisions.
    Resolute has set-off provisions with its lenders that, in the
    event of counterparty default, allow Resolute to set-off amounts
    owed under the Credit Facility or other general obligations
    against amounts owed for derivative contract liabilities.
The maximum amount of loss in the event of all counterparties
    defaulting is $0 as of December 31, 2009, due to the set
    off provisions noted above.
Note 12 —
    Fair Value Measurements
Resolute fully adopted this guidance as it relates to all
    nonfinancial assets and liabilities that are not recognized or
    disclosed on a recurring basis (e.g. those measured at fair
    value in a business combination, the initial recognition of
    asset retirement obligations, and impairments of goodwill and
    other long-lived assets) as of January 1, 2009. The full
    adoption did not have a material impact on Resolute's
    consolidated financial statements or its disclosures.
FASB ASC Topic 820
, Fair Value Measurements and Disclosures,
defines fair value as the price that would be received to
    sell an asset or paid to transfer a liability (an exit price) in
    an orderly transaction between market participants at the
    measurement date. The guidance establishes market or observable
    inputs as the preferred sources of values, followed by
    assumptions based on hypothetical transactions in the absence of
    market inputs. The guidance establishes a hierarchy for
    determining the fair values of assets and liabilities, based on
    the significance level of the following inputs:
•
Level 1 – Quoted prices in active markets for
    identical assets or liabilities.
•
Level 2 – Quoted prices in active markets for
    similar assets and liabilities, quoted prices for identical or
    similar instruments in markets that are not active and
    model-derived valuations whose inputs are observable or whose
    significant value drivers are observable.
•
Level 3 – Significant inputs to the valuation
    model are unobservable.
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An asset or liability subject to the fair value requirements is
    categorized within the hierarchy based on the lowest level of
    input that is significant to the fair value measurement.
    Resolute's assessment of the significance of a particular
    input to the fair value measurement in its entirety requires
    judgment and considers factors specific to the asset or
    liability. Following is a description of the valuation
    methodologies used by Resolute as well as the general
    classification of such instruments pursuant to the hierarchy.
As of December 31, 2009, Resolute's commodity
    derivative instruments were required to be measured at fair
    value on a recurring basis. Resolute used the income approach in
    determining the fair value of its derivative instruments,
    utilizing present value techniques for valuing its swaps and
    basis swaps and option-pricing models for valuing its collars.
    Inputs to these valuation techniques include published forward
    index prices, volatilities, and credit risk considerations,
    including the incorporation of published interest rates and
    credit spreads. Substantially all of these inputs are observable
    in the marketplace throughout the full term of the contract, can
    be derived from observable data or are supported by observable
    levels at which transactions are executed in the marketplace and
    are therefore designated as Level 2 within the valuation
    hierarchy.
The following is a listing of Resolute's assets and
    liabilities required to be measured at fair value on a recurring
    basis and where they are classified within the hierarchy as of
    December 31, 2009 (in thousands):
Description
Level 1
Level 2
Level 3
Total
Assets
Current assets: derivative instruments
$
—
$
6,958
$
—
$
6,958
Other assets: derivative instruments
—
3,600
—
3,600
Total
$
$
10,558
$
$
10,558
Liabilities
Current liabilities: derivative instruments
$
—
$
(20,360
)
$
—
$
(20,360
)
Long term liabilities: derivative instruments
—
(55,260
)
—
(55,260
)
Total
$
$
(75,620
)
$
$
(75,620
)
Note 13 —
    Commitments and Contingencies
CO
2
Take-or-Pay
Agreements
Resolute is party to two
take-or-pay
purchase agreements, each with a different supplier, under which
    Resolute has committed to buy specified volumes of
    CO
2
.
    The purchased
    CO
2
is for use in Resolute's enhanced tertiary recovery
    projects in Aneth Field. In each case, Resolute is obligated to
    purchase a minimum daily volume of
    CO
2
or pay for any deficiencies at the price in effect when delivery
    was to have occurred. The
    CO
2
volumes planned for use on the enhanced recovery projects exceed
    the minimum daily volumes provided in these
take-or-pay
purchase agreements. Therefore, Resolute expects to avoid any
    payments for deficiencies.
One contract was effective July 1, 2006, with a four year
    term. As of December 31, 2009, future commitments under
    this purchase agreement amounted to approximately
    $3.0 million in 2010, based on prices in effect at
    December 31, 2009. The second contract was entered into on
    May 25, 2005, and was amended on July 1, 2007, and has
    a ten year term. Future commitments as of December 31, 2009
    under this purchase agreement amounted to approximately
    $62.3 million through June 2016 based on prices in effect
    on December 31, 2009.
The annual minimum obligation by year is as follows (in
    thousands):
CO
2
Purchase
Year
Commitments
2010
$
17,689
2011
14,665
2012
11,477
2013
11,088
2014
4,924
Thereafter
5,443
Total
$
65,286
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Crude
    Production Purchase Agreement
Resolute sells all of its crude oil production from the Aneth
    field to a single customer, Western Refining Southwest, Inc.
    ("Western"), a subsidiary of Western Refining, Inc.
    Resolute and Western entered into a new contract on
    August 27, 2009, effective September 1, 2009. The new
    contract provides for a minimum price equal to the NYMEX price
    for crude oil less a fixed differential of $6.25 per Bbl. The
    contract provides for an initial term of one year and continuing
month-to-month
thereafter, with either party having the right to terminate
    after the initial term, upon ninety days written notice. The
    contract may also be terminated by Western after
    December 31, 2009, upon sixty days written notice, if
    Western is not able to renew its
right-of-way
agreements with the Navajo Nation or if such
rights-of-way
are declared invalid and Western is prevented from using such
rights-of-way.
Operating
    Leases
For 2009, 2008 and 2007,
month-to-month
office facilities rental payments charged to expense were
    approximately $0.3 million, $0.1 million and
    $0.1 million, respectively. Future rental payments for
    office facilities under the terms of non-cancelable operating
    leases as of December 31, 2009 were approximately
    $0.5 million and $0.4 million for the years ending
    December 31, 2010 and 2011, respectively. As of
    December 31, 2009, the Company does not have any office
    facility leases in effect for 2012 and beyond. In February 2010,
    the Company entered into an amended office lease agreement.
    Under this agreement the Company will incur future annual rental
    payments of an additional $0.1 million through 2013.
The Company is also party to several field equipment and
    compressor leases used in the
    CO
2
project. Future rental payments under the terms of these leases
    amount to annual payments of $2.7 million through 2014 with
    total lease obligations of $6.0 million thereafter. Rental
    expense for 2009 was $0.5 million. No rental expense was
    incurred under these leases in 2008 or 2007.
Escrow
    Funding Agreement
Under the terms of Predecessor Resolute's purchase of the
    ExxonMobil Properties, Predecessor Resolute and Navajo Nation
    Oil and Gas Company ("NNOG") were required to fund an
    escrow account sufficient to complete abandonment, well
    plugging, site restoration and related obligations arising from
    ownership of the acquired interests. The contribution net to
    Aneth's working interest, is included in other assets:
    restricted cash in the consolidated balance sheets of
    December 31, 2009. Aneth is required to make additional
    deposits to the escrow account annually. Beginning in 2010 and
    continuing through 2016, Aneth must fund approximately
    $1.8 million per year. In years after 2016, Aneth must fund
    additional payments averaging approximately $0.9 million
    per year until 2031. Total contributions from the date of
    acquisition through 2031 will aggregate $26.9 million.
    Annual interest earned in the escrow account becomes part of the
    balance and reduces the payment amount required for funding the
    escrow account each year. As of December 31, 2009, Aneth
    has funded the 2009 annual contractual amount of approximately
    $1.8 million required to meet its future obligation.
NNOG
    Purchase Options
In connection with Predecessor Resolute's acquisition of
    the ExxonMobil Properties and the acquisition from Chevron
    Corporation and its affiliates ("Chevron") of 75% of
    Chevron's interest in Aneth Field ("Chevron
    Properties") in 2005, pursuant to the terms of the
    Cooperative Agreement, Predecessor Resolute granted to NNOG
    three separate but substantially similar purchase options which
    became obligations of Resolute through the Resolute Transaction.
    Each purchase option entitles NNOG to purchase from Resolute up
    to 10% of Resolute's interest in each of the Chevron
    Properties and the ExxonMobil Properties. Each purchase option
    entitles NNOG to purchase, for a limited period of time, the
    applicable portion of Resolute's interest in the Chevron
    Properties or the ExxonMobil Properties, at Fair Market Value
    (as defined in the agreement), which is determined without
    giving effect to the existence of the Navajo Nation preferential
    purchase right or the fact that the properties are located
    within the Navajo Nation. Each option becomes exercisable based
    upon Resolute's achieving a certain multiple of payout of
    the relevant acquisition costs, subsequent capital costs and
    ongoing operating costs attributable to the applicable working
    interests. Revenue applicable to the determination of payout
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includes the effect of Resolute's hedging program. The
    multiples of payout that trigger the exercisability of the
    purchase option are 100%, 150% and 200%. The options are not
    exercisable prior to four years from the acquisition except in
    the case of a sale of such assets by, or a change of control of,
    Aneth. In that case, the first option for 10% would be
    accelerated and the other options would terminate. Assuming the
    purchase options are not accelerated due to a change of control
    of Aneth, Resolute expects that the initial payout associated
    with the purchase options granted will occur no sooner than 2013.
The following table demonstrates the maximum net undivided
    working interest in each of the Aneth Unit, the McElmo Creek
    Unit and the Ratherford Unit that NNOG could acquire upon
    exercising each of its purchase options under the Cooperative
    Agreement. The exercise by NNOG of its purchase options in full
    would not give it the right to remove Resolute as operator of
    any of the units.
McElmo
Ratherford
Aneth Unit
Creek Unit
Unit
Chevron Properties:
Option 1 (100% Payout)
5.30%
1.50%
0.30%
Option 2 (150% Payout)
5.30%
1.50%
0.30%
Option 3 (200% Payout)
5.30%
1.50%
0.30%
Total
15.90%
4.50%
0.90%
McElmo
Ratherford
Aneth Unit
Creek Unit
Unit
ExxonMobil Properties:
Option 1 (100% Payout)
0.75%
6.00%
5.60%
Option 2 (150% Payout)
0.75%
6.00%
5.60%
Option 3 (200% Payout)
0.75%
6.00%
5.60%
Total
2.25%
18.00%
16.80%
Note 14 —
Oil and Gas
    Producing Activities
Costs incurred during 2009 related to oil and gas property
    acquisition, exploration and development activities, including
    the fair value of oil and gas properties acquired in the
    Resolute Transaction are summarized as follows (in thousands):
2009
Development costs*
$
7,989
Exploration
2
Acquisitions:
Proved
622,495
Unproved
11,203
Total
$
641,689
*
Includes $4.4 million of
    acquired
    CO
2.
Net capitalized costs related to Resolute's oil and gas
    producing activities at December 31, were as follows
    (in thousands):
2009
Proved oil and gas properties
$
634,383
Unevaluated oil and gas properties, not subject to amortization
7,306
Accumulated depletion, depreciation and amortization
(11,173
)
Oil and gas properties, net
$
630,516
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Table of Contents
Note 15 —
Supplemental
    Oil and Gas Information (unaudited)
Reserve
    Engineering and Auditor Qualifications:
Company reserves are prepared by, or under the direct
    supervision of, the Company's Reservoir Engineering Manager
    and are then reviewed internally by senior management and
    audited by a qualified independent auditor. The professional
    qualifications of the Reservoir Engineering Manager meet or
    exceed the qualification of reserve estimators and auditors as
    set forth by the Society of Petroleum Engineers. The Reservoir
    Engineering Manager has more than 27 years of practical
    petroleum engineering and reserve estimation and evaluation
    experience as well as experience as a qualified reserve
    estimator and auditor.
The Company's reserve data is audited by Netherland,
    Sewell & Associates, Inc. ("NSAI"), a
    worldwide leader of petroleum property analysis. Within NSAI,
    the technical person primarily responsible for auditing the
    Company's reserve estimates has been practicing consulting
    petroleum engineering at NSAI since 1997. Additionally, this
    person has more than 28 years of practical experience in
    petroleum engineering, with more than 12 years experience
    in the estimation and evaluation of reserves.
Oil and Gas
    Reserve Quantities:
Resolute had no oil and gas reserves prior to the acquisition of
    Predecessor Resolute. Accordingly, the following table presents
    Resolute's estimated net proved oil and gas reserves and
    the present value of such estimated net proved reserves as of
    December 31, 2009. The reserve data as of December 31,
    2009 was prepared by Resolute and was audited by NSAI. Users of
    this information should be aware that the process of estimating
    quantities of proved oil and gas reserves is very complex,
    requiring significant subjective decisions to be made in the
    evaluation of available geological, engineering and economic
    data for each reservoir. The data for a given reservoir may also
    change substantially over time as a result of numerous factors,
    including, but not limited to, additional development activity,
    evolving production history and continual reassessment of the
    viability of production under varying economic conditions. As a
    result, revisions to existing reserves estimates may occur from
    time to time. Although every reasonable effort is made to ensure
    reserves estimates reported represent the most accurate
    assessments possible, the subjective decisions and variances in
    available data for various reservoirs make these estimates
    generally less precise than other estimates included in the
    financial statement disclosures.
Presented below is a summary of the changes in estimated
    reserves (in thousands):
Oil
Gas
Oil Equivalent
(Bbl)
(Mcf)(1)
(Boe)
Purchases of minerals in place on September 25, 2009
64,946
94,181
80,643
Production
(543
)
(918
)
(696
)
Revisions of previous estimates (2)
(14,544
)
(5,818
)
(15,514
)
Proved reserves as of December 31, 2009:
49,859
87,445
64,433
Proved developed reserves:
As of December 31, 2009
30,895
24,256
34,938
1)
The gas column includes NGL volumes.
2)
The negative revisions are primarily due to commodity pricing
    attributable to utilization of average first of month fiscal
    year commodity prices.
Standardized
    Measure of Discounted Future Net Cash Flows Relating to Proved
    Oil and Gas Reserves:
The following summarizes the policies used in the preparation of
    the accompanying oil and gas reserves disclosures, standardized
    measures of discounted future net cash flows from proved oil and
    gas reserves and the reconciliations of standardized measures at
    December 31, 2009. The information disclosed is an attempt
    to present the information in a manner comparable with industry
    peers.
A-122
Table of Contents
The information is based on estimates of proved reserves
    attributable to Resolute's interest in oil and gas
    properties as of December 31, 2009. Due to the Resolute
    Transaction, only 2009 activity is presented. Proved reserves
    are estimated quantities of oil and gas that geological and
    engineering data demonstrate with reasonable certainty to be
    recoverable in future years from known reservoirs under existing
    economic and operating conditions.
The standardized measure of discounted future net cash flows
    from production of proved reserves was developed as follows:
1)
Estimates were made of quantities of proved reserves and future
    periods during which they are expected to be produced based on
    year-end economic conditions.
2)
The estimated future cash flows was compiled by applying average
    annual prices of crude oil and gas relating to Resolute's
    proved reserves to the year-end quantities of those reserves.
3)
The future cash flows were reduced by estimated production
    costs, costs to develop and produce the proved reserves and
    abandonment costs, all based on year-end economic conditions.
4)
Future income tax expenses were based on year-end statutory tax
    rates giving effect to the remaining tax basis in the oil and
    gas properties, other deductions, credits and allowances
    relating to Resolute's proved oil and natural gas reserves.
5)
Future net cash flows were discounted to present value by
    applying a discount rate of 10%.
The standardized measure of discounted future net cash flows
    does not purport, nor should it be interpreted, to present the
    fair value of Resolute's oil and gas reserves. An estimate
    of fair value would also take into account, among other things,
    the recovery of reserves not presently classified as proved,
    anticipated future changes in prices and costs and a discount
    factor more representative of the time value of money and the
    risks inherent in reserve estimates. The following summary sets
    forth Resolute's future net cash flows relating to proved
    oil and gas reserves based on the standardized measure
    prescribed by FASB ASC Topic 932:
December 31,
2009
(in thousands)
Future cash inflows
$
3,056,000
Future production costs
(1,483,000
)
Future development costs
(432,000
)
Future income taxes
(290,000
)
Future net cash flows
851,000
10% annual discount for estimated timing of cash flows
(490,000
)
Standardized measure of discounted future net cash flows
$
361,000
The principal sources of change in the standardized measure of
    discounted future net cash flows are:
2009
(in thousands)
Standardized measure, beginning of year
$
—
Sales of oil and gas produced, net of production costs
(22,000
)
Net changes in prices and production costs
(288,000
)
Purchase of minerals in place
555,000
Previously estimated development costs incurred during the year
5,000
Changes in estimated future development costs
43,000
Revisions of previous quantity estimates
(131,000
)
Accretion of discount
14,000
Net change in income taxes
122,000
Changes in timing and other
63,000
Standardized measure, end of year
$
361,000
A-123
Table of Contents
Note 16 —
Quarterly
    Financial Data (unaudited)
The following is a summary of the unaudited financial data for
    each quarter for the years ended December 31, 2009 and 2008
    (in thousands except per share data):
Three Months Ended
March 31,
June 30,
September 30,
December 31
2009
2009
2009
2009
Year Ended December 31, 2009:
Revenue
$
—
$
—
$
2,270
$
40,146
Income (loss) from operations
(3,761
)
(253
)
(11,224
)
293
Net loss
(2,209
)
(79
)
(21,406
)
(21,549
)
Basic and diluted earnings (loss) per common share:
Common stock, subject to redemption
$
0.01
$
0.00
$
(0.13
)
—
Common stock
$
(0.05
)
$
(0.00
)
$
(0.43
)
$
(0.43
)
Weighted average shares outstanding:
Common stock, subject to redemption
16,560
16,560
15,480
—
Common stock
45,105
45,105
45,418
49,905
Three Months Ended
March 31,
June 30,
September 30,
December 31,
2008
2008
2008
2008
Loss from operations
$
(324
)
$
(348
)
$
(366
)
$
(522
)
Net income
1,699
812
1,027
449
Basic and diluted earnings (loss) per common share:
Common stock, subject to redemption
$
0.03
$
0.02
$
0.02
$
0.01
Common stock
$
0.02
$
0.01
$
0.01
$
0.01
Weighted average shares outstanding:
Common stock, subject to redemption
16,560
16,560
16,560
16,560
Common stock
45,105
45,105
45,105
45,105
A-124
Table of Contents
To the Managing
    Members of
Resolute Natural Resources Company, LLC, Resolute
    Aneth, LLC, WYNR, LLC, and BWNR, LLC
and
To the Board of Directors of RNRC Holdings, Inc. and Resolute
    Wyoming, Inc
Denver, Colorado
We have audited the accompanying combined balance sheet of
    Resolute Natural Resources Company, LLC and related combined
    companies as of December 31, 2008, and the related combined
    statements of operations, shareholder's/member's
    equity (deficit), and cash flows for the period from
    January 1, 2009 to September 24, 2009, and the years
    ended December 31, 2008 and 2007. The combined financial
    statements include the accounts of Resolute Natural Resources
    Company, LLC and five related companies, Resolute Aneth, LLC,
    WYNR, LLC, BWNR, LLC, RNRC Holdings, Inc. and Resolute Wyoming,
    Inc. These companies are under common ownership and common
    management. These combined financial statements are the
    responsibility of the companies' management. Our
    responsibility is to express an opinion on the combined
    financial statements based on our audits. The combined financial
    statements give retrospective effect to a percentage of the
    acquisition of Resolute Wyoming, Inc. as discussed in
    Note 2 to the combined financial statements. We did not
    audit the balance sheet of Resolute Wyoming, Inc. as of
    December 31, 2007 or the related statements of operations,
    shareholder's equity and cash flows of Resolute Wyoming,
    Inc. for the year ended December 31, 2007, which statements
    reflect total assets constituting 19% of combined total assets
    as of December 31, 2007, and total revenues constituting
    18% of combined total revenues for the year ended
    December 31, 2007. Those statements were audited by other
    auditors whose report has been furnished to us, and our opinion,
    insofar as it relates to the amounts included for Resolute
    Wyoming, Inc., is based solely on the report of the other
    auditors.
We conducted our audits in accordance with the standards of the
    Public Company Accounting Oversight Board (United States). Those
    standards require that we plan and perform the audit to obtain
    reasonable assurance about whether the financial statements are
    free of material misstatement. The companies are not required to
    have, nor were we engaged to perform, an audit of their internal
    control over financial reporting. Our audits included
    consideration of internal control over financial reporting as a
    basis for designing audit procedures that are appropriate in the
    circumstances, but not for the purpose of expressing an opinion
    on the effectiveness of the companies' internal control
    over financial reporting. Accordingly, we express no such
    opinion. An audit also includes examining, on a test basis,
    evidence supporting the amounts and disclosures in the financial
    statements, assessing the accounting principles used and
    significant estimates made by management, as well as evaluating
    the overall financial statement presentation. We believe that
    our audits and the report of the other auditors provide a
    reasonable basis for our opinion.
In our opinion, based on our audits and the report of the other
    auditors, the combined financial statements referred to above
    present fairly, in all material respects, the combined financial
    position of Resolute Natural Resources Company, LLC and related
    companies at December 31, 2008 and the combined results of
    their operations and combined cash flows for the period from
    January 1, 2009 to September 24, 2009, and each of the
    years ended December 31, 2008 and 2007, in conformity with
    accounting principles generally accepted in the United States of
    America.
As discussed in Note 2 to the combined financial
    statements, the combined financial statements have been
    retrospectively adjusted for the change in accounting for
    noncontrolling interests.
/s/ Deloitte & Touche LLP
Denver, Colorado
March 29, 2010
A-125
Table of Contents
RESOLUTE NATURAL
    RESOURCES COMPANY, LLC,
RESOLUTE ANETH, LLC, WYNR, LLC, BWNR, LLC,
RESOLUTE WYOMING, INC.,
RNRC HOLDINGS, INC.
Combined Balance Sheet
(in thousands, except share amounts)
December 31,
2008
Assets
Current assets:
Cash and cash equivalents
$
1,935
Restricted cash
149
Accounts receivable:
Trade receivables
14,680
Derivative receivable
5,839
Other receivables
1,134
Derivative instruments
19,017
Prepaid expenses and other current assets
1,195
Total current assets
43,949
Property and equipment, at cost:
Oil and gas properties, full cost method of accounting
Unproved
12,724
Proved
348,058
Accumulated depletion and amortization
(97,726
)
Net oil and gas properties
263,056
Other property and equipment
4,682
Accumulated depreciation
(2,075
)
Net other property and equipment
2,607
Net property and equipment
265,663
Other assets:
Restricted cash
11,210
Notes receivable – affiliated entities
65
Deferred financing costs, net
6,403
Derivative instruments
18,114
Deferred income taxes
14,705
Other noncurrent assets
738
Total other assets
51,235
Total assets
$
360,847
Liabilities and Shareholder's/Member's Equity
    (Deficit)
Current liabilities:
Accounts payable and accrued expenses
46,169
Accounts payable – Holdings
1,316
Asset retirement obligations
1,713
Derivative instruments
1,141
Deferred income taxes
4,913
Contingent tax liability
532
Other current liabilities
817
Total current liabilities
56,601
Noncurrent liabilities:
Long term debt
421,150
Asset retirement obligations
8,115
Derivative instruments
20,193
Other noncurrent liabilities
457
Total long term liabilities
449,915
Total liabilities
506,516
Commitments and contingencies
Shareholder's/member's equity (deficit):
RNRC common stock, $0.01 par value, 1,000 shares
    authorized and issued
—
RWI common stock, $1.00 par value, 1,000 shares
    authorized and issued
1
Additional paid-in capital
37,594
Accumulated deficit
(29,436
)
Shareholder's/member's deficit
(153,828
)
Total Resolute shareholder's/member's deficit
(145,669
)
Total liabilities and shareholder's/member's deficit
$
360,847
See notes to combined financial statements
A-126
Table of Contents
RESOLUTE NATURAL
    RESOURCES COMPANY, LLC,
RESOLUTE ANETH, LLC, WYNR, LLC, BWNR, LLC,
RESOLUTE WYOMING, INC.,
RNRC HOLDINGS, INC.
Combined
    Statements of Operations
(in thousands)
For the 267 Day
Period Ended
September 24,
December 31,
2009
2008
2007
Revenue:
Oil
$
72,655
$
193,535
$
148,431
Gas
10,183
29,376
19,592
Other
2,506
6,261
5,320
Total revenue
85,344
229,172
173,343
Operating expenses:
Lease operating
46,771
85,990
66,731
Depletion, depreciation, amortization, and asset retirement
    obligation accretion
21,925
50,335
27,790
Impairment of proved properties
13,295
245,027
—
General and administrative
8,076
20,211
40,273
Total operating expenses
90,067
401,563
134,794
(Loss) income from operations
(4,723
)
(172,391
)
38,549
Other income (expense):
Interest expense
(18,416
)
(33,139
)
(35,898
)
(Loss) gain on derivative instruments
(23,519
)
96,032
(106,228
)
Other income
47
832
905
Total other (expense) income
(41,888
)
63,725
(141,221
)
Loss before income taxes
(46,611
)
(108,666
)
(102,672
)
Income tax benefit (expense)
5,019
18,247
(1,740
)
Net loss
(41,592
)
(90,419
)
(104,412
)
Less: net loss (income) attributable to the noncontrolling
    interest
—
177
(409
)
Net loss attributable to Predecessor Resolute
$
(41,592
)
$
(90,242
)
$
(104,821
)
See notes to combined financial statements
A-127
Table of Contents
RESOLUTE NATURAL
    RESOURCES COMPANY, LLC
RESOLUTE ANETH, LLC
WYNR, LLC
BWNR, LLC
RESOLUTE WYOMING, INC.
RNRC HOLDINGS, INC.
Combined
    Statements of Shareholder's/Member's Equity
    (Deficit)
(in thousands, except for shares)
Total
Additional
Member's
Shareholder's/
Common Stock
Paid-in
Accumulated
Equity
Noncontrolling
Member's
Shares
Amount
Capital
Deficit
(Deficit)
Interest
Equity (Deficit)
Balances at January 1, 2007
2,000
$
1
$
26,248
$
(5,656
)
$
70,944
$
2,695
$
94,232
Distributions
—
—
—
—
(100,006
)
—
(100,006
)
Adoption of ASC 740 uncertainty provision
—
—
—
(478
)
—
—
(478
)
Equity-based compensation
—
—
—
—
36,517
—
36,517
Net income (loss)
—
—
—
2,823
(107,644
)
409
(104,412
)
Balances at December 31, 2007
2,000
1
26,248
(3,311
)
(100,189
)
3,104
(74,147
)
Capital contributions
—
—
15,909
—
4,227
—
20,136
Distributions
—
—
—
(15
)
(9,224
)
—
(9,239
)
Acquisition of noncontrolling interest
—
—
1,981
945
—
(2,927
)
—
Equity-based compensation
—
—
4,160
—
3,840
—
7,999
Issuance of common stock
1,000
—
1
—
—
—
1
Resources conversion to LLC
(1,000
)
—
(10,705
)
10,705
—
—
—
Net loss
—
—
—
(37,760
)
(52,482
)
(177
)
(90,419
)
Balances at December 31, 2008
2,000
1
37,594
(29,436
)
(153,828
)
—
(145,669
)
Capital contributions
—
—
—
—
125
—
125
Distributions
—
—
—
—
(125
)
—
(125
)
Equity-based compensation
—
—
—
—
2,818
—
2,818
Net loss
—
—
—
(8,257
)
(33,335
)
—
(41,592
)
Balances at September 24, 2009
2,000
$
1
$
37,594
$
(37,693
)
$
(184,345
)
$
—
$
(184,443
)
See notes to combined financial statements
A-128
Table of Contents
RESOLUTE NATURAL
    RESOURCES COMPANY, LLC
RESOLUTE ANETH, LLC
WYNR, LLC
BWNR, LLC
RESOLUTE WYOMING, INC.
RNRC HOLDINGS, INC.
Combined
    Statements of Cash Flows
(in thousands)
For the 267 Day
Period Ended
September 24,
December 31,
2009
2008
2007
Operating activities:
Net loss
$
(41,592
)
$
(90,419
)
$
(104,412
)
Adjustments to reconcile net loss to net cash provided (used) by
    operating activities:
Depletion, depreciation and amortization
21,244
49,503
27,159
Amortization and write-off of deferred financing costs
1,809
2,481
956
Write-off of deferred offering costs
—
2,480
—
Deferred income taxes
(4,732
)
(14,540
)
1,554
Equity-based compensation
2,818
7,878
34,533
Unrealized loss (gain) on derivative instruments
25,458
(120,573
)
101,495
Accretion of asset retirement obligations
681
832
631
Impairment of proved properties
13,295
245,027
—
Loss on sale of other property and equipment
11
—
—
Other
(14
)
(16
)
(373
)
Change in operating assets and liabilities:
Accounts receivable
(630
)
28,244
(13,690
)
Other current assets
365
2,003
(207
)
Accounts payable and accrued expenses
(4,546
)
(16,027
)
24,963
Other current liabilities
(1,172
)
729
—
Accounts payable — Holdings
(56
)
(223
)
1,180
Net cash provided by operating activities
12,939
97,379
73,789
Investing activities:
Acquisition of oil and gas properties from ExxonMobil
—
—
(7,934
)
Acquisition, exploration and development expenditures
(12,904
)
(62,042
)
(86,353
)
Proceeds from sale of oil and gas properties
218
1,141
543
Proceeds from sale of property and equipment
10
25
—
Purchase of other property and equipment
(66
)
(582
)
(871
)
Other long-term assets
—
—
(1,453
)
Notes receivable — affiliated entities
7
2,070
10
Increase in restricted cash
(1,751
)
(1,483
)
(1,538
)
Other
63
(150
)
—
Net cash used for investing activities
(14,423
)
(61,021
)
(97,596
)
Financing activities:
Deferred offering costs
—
—
(1,979
)
Deferred financing costs
(1,823
)
(3,599
)
(2,726
)
Proceeds from bank borrowings
95,670
274,099
264,350
Payment of bank borrowings
(93,120
)
(312,061
)
(137,550
)
Capital contributions
125
9,273
—
Capital distributions
(125
)
(9,224
)
(100,006
)
Net cash provided (used) by financing activities
727
(41,512
)
22,089
Net decrease in cash and cash equivalents
(757
)
(5,154
)
(1,718
)
Cash and cash equivalents at beginning of year
1,935
7,089
8,807
Cash and cash equivalents at end of year
$
1,178
$
1,935
$
7,089
Supplemental disclosures of cash flow information:
Cash paid during the year for:
Interest
$
20,211
$
30,987
$
33,067
Income taxes
$
—
$
20
$
—
Supplemental schedule of non-cash investing and financing
    activities:
Increase to asset retirement obligations
$
2,641
$
1,603
$
328
Increase to oil and gas properties through capitalized
    equity-based compensation
$
—
$
122
$
1,983
Capital expenditures financed through current liabilities
$
987
$
1,181
$
3,546
Capital distributions
$
—
$
(15
)
$
—
Capital contributions
$
—
$
10,863
$
—
Acquisition of ExxonMobil properties:
Increase to accrued purchase price payable, net of accrued
    purchase price receivable
$
—
$
—
$
1,111
See notes to combined financial
    statements
A-129
Table of Contents
RESOLUTE NATURAL
    RESOURCES COMPANY, LLC
RESOLUTE ANETH, LLC
WYNR, LLC
BWNR, LLC
RESOLUTE WYOMING, INC.
RNRC HOLDINGS, INC.
Notes to Combined
    Financial Statements
Note 1 —
    Description of the Companies and Business
Resolute Natural Resources Company, LLC ("Resources"),
    previously a Delaware corporation incorporated on
    January 22, 2004 and converted to a limited liability
    company on September 30, 2008, Resolute Aneth, LLC
    ("Aneth"), a Delaware limited liability company
    established on November 12, 2004, WYNR, LLC
    ("WYNR"), a Delaware limited liability company
    established on August 25, 2005, BWNR, LLC
    ("BWNR"), a Delaware limited liability company
    established on August 19, 2005, RNRC Holdings, Inc.
    ("RNRC"), a Delaware corporation incorporated on
    September 19, 2008 and Resolute Wyoming, Inc.
    ("RWI") (formerly Primary Natural Resources, Inc.
    ("PNR")), a Delaware corporation incorporated on
    November 21, 2003 (the change of name to RWI was effective
    September 29, 2008) (together, "Predecessor
    Resolute" or the "Companies") are engaged in the
    acquisition, exploration, development, and production of oil,
    gas and natural gas liquids ("NGL"), primarily in the
    Paradox Basin in southeastern Utah and the Powder River Basin in
    Wyoming. The Companies are wholly owned subsidiaries of Resolute
    Holdings Sub, LLC ("Sub"), which in turn is a wholly
    owned subsidiary of Resolute Holdings, LLC
    ("Holdings").
Note 2 —
Basis of
    Presentation and Significant Accounting Policies
Basis of
    Presentation
The accompanying combined financial statements of Predecessor
    Resolute have been prepared in accordance with accounting
    principles generally accepted in the United States of America
    ("GAAP"). The 2009, 2008 and 2007 combined financial
    statements include the accounts of Resources and the five
    related companies: Aneth, WYNR, BWNR, RNRC and RWI. The
    conversion of Resources to an LLC and the formation of RNRC had
    no impact on the comparability of the combined financial
    statements. These companies are under common ownership and
    common management. All intercompany balances and transactions
    have been eliminated in combination.
On July 31, 2008, Predecessor Resolute acquired RWI. 87.23%
    of the acquisition of RWI was accounted for as a combination of
    entities under common control, which is similar to the pooling
    of interests method of accounting for business combinations.
    Accordingly, the combined financial statements give
    retrospective effect to these transactions, and therefore,
    Predecessor Resolute's results from January 1, 2008,
    through July 31, 2008, include 87.23% of the operations of
    RWI. The remaining 12.77% of the acquisition of RWI was
    accounted for using the purchase method. Accordingly, the
    accompanying combined financial statements reflect the 12.77% as
    not owned until the acquisition on July 31, 2008.
On September 25, 2009 (the "Acquisition Date"),
    Hicks Acquisition Company I, Inc. ("HACI")
    consummated a business combination under the terms of a Purchase
    and IPO Reorganization Agreement (the "Acquisition
    Agreement") with Resolute Energy Corporation
    ("Resolute"), pursuant to which, through a series of
    transactions, HACI's stockholders collectively acquired a
    majority of the outstanding equity of the Companies (the
    "Resolute Transaction"), and Resolute owns, directly
    or indirectly, 100% of the equity interests of Resources, WYNR,
    BWNR, RNRC, and RWI, and indirectly owns a 99.996% equity
    interest in Aneth. References to 2009 in these Notes relate to
    the 267 day period ended September 24, 2009, unless
    otherwise specified.
Subsequent to the issuance of the unaudited combined interim
    financial statements included in
Form 10-Q
for the quarterly period ended September 30, 2009 of
    Resolute Energy Corporation, management identified a
    classification error in the statement of cash flows for the
    period ended September 24, 2009. The error relates to
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the recording of a routine
end-of-period
adjustment made to changes in "accounts payable and accrued
    expenses" in the operating activities section in order to
    exclude any unpaid liabilities incurred during the period to
    acquire assets. The accompanying statement of cash flows for the
    period ended September 24, 2009 has been restated,
    resulting in a $2.8 million increase in cash flows provided
    by operating activities and cash flows used in investing
    activities, respectively.
Assumptions,
    Judgments, and Estimates
The preparation of the combined financial statements in
    conformity with GAAP requires management to make various
    assumptions, judgments and estimates to determine the reported
    amounts of assets, liabilities, revenue and expenses, and in the
    disclosures of commitments and contingencies. Changes in these
    assumptions, judgments and estimates will occur as a result of
    the passage of time and the occurrence of future events.
    Accordingly, actual results could differ from amounts previously
    established.
Significant estimates with regard to the combined financial
    statements include the estimated carrying value of unproved
    properties, the estimate of proved oil and gas reserve volumes
    and the related present value of estimated future net cash flows
    and the ceiling test applied to capitalized oil and gas
    properties, the estimated cost and timing related to asset
    retirement obligations, the estimated fair value of derivative
    assets and liabilities, the estimated expense for equity based
    compensation and depletion, depreciation, and amortization.
Fair Value
    of Financial Instruments
The carrying amount of Predecessor Resolute's financial
    instruments, namely cash and cash equivalents, accounts
    receivable and accounts payable, approximate their fair value
    because of the short-term nature of these instruments. The fair
    value to the notes receivable and payable approximate their fair
    market value. The long-term debt has a recorded value that
    approximates its fair market value since its variable interest
    rate is tied to current market rates.
Cash
    Equivalents
For purposes of reporting cash flows, Predecessor Resolute
    considers all highly liquid investments with original maturities
    of three months or less at date of purchase to be cash
    equivalents. Predecessor Resolute periodically maintains cash
    and cash equivalents in bank deposit accounts and money market
    funds which may be in excess of federally insured amounts.
    Predecessor Resolute has not experienced any losses in such
    accounts and believes it is not exposed to any significant
    credit risk on such accounts.
Concentration
    of Credit Risk
Financial instruments that potentially subject Predecessor
    Resolute to concentrations of credit risk consist primarily of
    trade and production receivables. Predecessor Resolute derived
    81% and 13% of its total 2009 revenue from Western Refining,
    Inc. and WGR Asset Holding Company, LLC, respectively.
    Predecessor Resolute derived 80% and 11% of its 2008 and 2007
    revenue from Western Refining, Inc, and WGR Asset Holding
    Company, LLC, respectively. The concentration of credit risk in
    a single industry affects the overall exposure to credit risk
    because customers may be similarly affected by changes in
    economic or other conditions. The creditworthiness of customers
    and other counterparties is subject to continuing review,
    including the use of master netting agreements, where
    appropriate. Commodity derivative contracts expose Predecessor
    Resolute to the credit risk of non-performance by the
    counterparty to the contracts. This exposure is diversified
    among major investment grade financial institutions, each of
    which is a financial institution participating in Predecessor
    Resolute's bank credit agreement. As of December 31,
    2008, Predecessor Resolute recorded an allowance for doubtful
    accounts of $0.7 million.
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Oil and Gas
    Properties
Predecessor Resolute uses the full cost method of accounting for
    oil and gas producing activities. All costs incurred in the
    acquisition, exploration and development of properties,
    including costs of unsuccessful exploration, costs of
    surrendered and abandoned leaseholds, delay lease rentals and
    the fair value of estimated future costs of site restoration,
    dismantlement and abandonment activities, improved recovery
    systems and a portion of general and administrative expenses are
    capitalized within the cost center.
Predecessor Resolute conducts tertiary recovery projects on
    certain of its oil and gas properties in order to recover
    additional hydrocarbons that are not recoverable from primary or
    secondary recovery methods. Under the full cost method, all
    development costs are capitalized at the time incurred.
    Development costs include charges associated with access to and
    preparation of well locations, drilling and equipping
    development wells, test wells, and service wells including
    injection wells; acquiring, constructing, and installing
    production facilities and providing for improved recovery
    systems. Improved recovery systems include all related facility
    development costs and the cost of the acquisition of tertiary
    injectants, primarily purchased
    CO
2
.
    The development cost related to
    CO
2
purchases are incurred solely for the purpose of gaining access
    to incremental reserves not otherwise recoverable. The
    accumulation of injected
    CO
2
,
    in combination with additional purchased and recycled
    CO
2
,
    provide future economic value over the life of the project.
In contrast, other costs related to the daily operation of the
    improved recovery systems are considered production costs and
    are expensed as incurred. These costs include, but are not
    limited to, compression, electricity, separation, re-injection
    of recovered
    CO
2
and water. Costs incurred to maintain reservoir pressure are
    also expensed as incurred.
Capitalized general and administrative and operating costs
    include salaries, employee benefits, costs of consulting
    services and other specifically identifiable costs and do not
    include costs related to production operations, general
    corporate overhead or similar activities. Predecessor Resolute
    capitalized general and administrative and operating costs of
    $0.3 million, $1.6 million and $3.5 million
    related to its acquisition, exploration and development
    activities in 2009, 2008 and 2007, respectively.
Investments in unproved properties are not depleted, pending
    determination of the existence of proved reserves. Unproved
    properties are assessed periodically to ascertain whether
    impairment has occurred. Unproved properties whose costs are
    individually significant are assessed individually by
    considering the primary lease terms of the properties, the
    holding period of the properties, and geographic and geologic
    data obtained relating to the properties. Where it is not
    practicable to assess individually the amount of impairment of
    properties for which costs are not individually significant,
    such properties are grouped for purposes of assessing
    impairment. The amount of impairment assessed is added to the
    costs to be amortized, or is reported as a period expense as
    appropriate.
Pursuant to full cost accounting rules, Predecessor Resolute
    must perform a ceiling test each quarter on its proved oil and
    gas assets. The ceiling test provides that capitalized costs
    less related accumulated depletion and deferred income taxes for
    each cost center may not exceed the sum of (1) the present
    value of future net revenue from estimated production of proved
    oil and gas reserves using current prices, excluding the future
    cash outflows associated with settling asset retirement
    obligations that have been accrued on the balance sheet, and a
    discount factor of 10%; plus (2) the cost of properties not
    being amortized, if any; plus (3) the lower of cost or
    estimated fair value of unproved properties included in the
    costs being amortized, if any; less (4) income tax effects
    related to differences in the book and tax basis of oil and gas
    properties. Should the net capitalized costs for a cost center
    exceed the sum of the components noted above, an impairment
    charge would be recognized to the extent of the excess
    capitalized costs. As a result of this limitation on capitalized
    costs, the accompanying combined financial statements include a
    provision for an impairment of oil and gas property cost in 2009
    and 2008 of $13.3 million and $245.0 million,
    respectively. No provisions for impairment were booked in 2007.
No gain or loss is recognized upon the sale or abandonment of
    undeveloped or producing oil and gas properties unless the sale
    represents a significant portion of oil and gas properties and
    the gain or loss significantly alters the relationship between
    the capitalized costs and proved oil reserves of the cost center.
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Depletion and amortization of oil and gas properties is computed
    on the
unit-of-production
method based on proved reserves. Amortizable costs include
    estimates of asset retirement obligations and future development
    costs of proved reserves, including, but not limited to, costs
    to drill and equip development wells, constructing and
    installing production and processing facilities, and improved
    recovery systems, including the cost of required future
    CO
2
purchases.
Other
    Property and Equipment
Other property and equipment are recorded at cost. Costs of
    renewals and improvements that substantially extend the useful
    lives of the assets are capitalized. Maintenance and repair
    costs which do not extend the useful lives of property and
    equipment are charged to expense as incurred. Depreciation and
    amortization is calculated using the straight-line method over
    the estimated useful lives of the assets. Office furniture,
    automobiles, and computer hardware and software are depreciated
    from three to five years. Field offices are depreciated from
    fifteen to twenty years. Leasehold improvements are depreciated,
    using the straight line method, over the shorter of the lease
    term or the useful life of the asset. When other property and
    equipment is sold or retired, the capitalized costs and related
    accumulated depreciation and amortization are removed from the
    accounts.
Asset
    Retirement Obligations
Asset retirement obligations relate to future costs associated
    with the plugging and abandonment of oil and gas wells, removal
    of equipment and facilities from leased acreage and returning
    such land to its original condition. The fair value of a
    liability for an asset retirement obligation is recorded in the
    period in which it is incurred and the cost of such liability
    increases the carrying amount of the related long-lived asset by
    the same amount. The liability is accreted each period and the
    capitalized cost is depleted on a
units-of-production
basis as part of the full cost pool. Revisions to estimated
    asset retirement obligations result in adjustments to the
    related capitalized asset and corresponding liability. See
    Note 4.
Impairment
    of Long-Lived Assets
For non-oil and gas properties, Predecessor Resolute follows
    Financial Accounting Standards Board ("FASB")
    Accounting Standards Codifications ("ASC") Topic 360,
Property Plant and Equipment,
which requires impairment
    losses to be recorded on long-lived assets used in operations
    when indicators of impairment are present and the undiscounted
    cash flows estimated to be generated by those assets are less
    than the carrying amount of such assets. In the evaluation of
    the fair value and future benefits of long-lived assets,
    Predecessor Resolute performs an analysis of the anticipated
    undiscounted future net cash flows of the related long-lived
    assets. If the carrying value of the related asset exceeds the
    undiscounted cash flows, the carrying value is reduced to its
    fair value. Other than the full cost ceiling test impairment
    discussed in the oil and gas properties accounting policy, there
    were no provisions for impairment in 2009, 2008 and 2007.
Deferred
    Financing Costs
Deferred financing costs are amortized over the estimated lives
    of the related obligations or, in certain circumstances,
    accelerated if the obligation is refinanced. The unamortized
    balance of these costs was approximately $6.4 million as of
    December 31, 2008.
Derivative
    Instruments
Predecessor Resolute enters into derivative contracts to manage
    its exposure to oil and gas price volatility. Derivative
    contracts may take the form of futures contracts, swaps or
    options. Realized and unrealized gains and losses related to
    commodity derivatives are recognized in other income (expense).
    Realized gains and losses are recognized in the period in which
    the related contract is settled. The cash flows from derivatives
    are reported as cash flows from operating activities unless the
    derivative contract is deemed to contain a financing element.
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Derivatives deemed to contain a financing element are reported
    as financing activities in the statement of cash flows.
Predecessor Resolute recognizes all derivative instruments on
    the balance sheet as either assets or liabilities measured at
    fair value. Changes in the fair value of a derivative are
    recognized currently in earnings unless specific hedge
    accounting criteria are met. Gains and losses on derivative
    hedging instruments are recorded in current earnings, depending
    on the nature and designation of the instrument. Presently,
    Predecessor Resolute's management has determined that the
    benefit of the financial statement presentation which may allow
    for its derivative instruments to be reflected as cash flow
    hedges is not commensurate with the administrative burden
    required to support that treatment. As a result, Predecessor
    Resolute marked its derivative instruments to fair value during
    2009, 2008 and 2007 and recognized the changes in fair market
    value in earnings. The gain or loss on derivative instruments
    reflected in the combined statement of operations incorporate
    both the realized and unrealized amounts.
Revenue
    Recognition
Oil revenue is recognized when production is sold to a purchaser
    at a fixed or determinable price, when delivery has occurred and
    title has transferred and if the collectability of the revenue
    is probable. Gas revenue is recorded using the sales method.
    Under this method, Predecessor Resolute recognizes revenue based
    on actual volumes of gas sold to purchasers. Predecessor
    Resolute and other joint interest owners may sell more or less
    than their entitlement share of the volumes produced. A
    liability is recorded and the revenue is deferred if Predecessor
    Resolute's excess sales of gas volumes exceed its estimated
    remaining recoverable reserves. Resolute had no significant gas
    imbalances at December 31, 2008.
RWI is party to a twenty year Well Suspension Agreement (the
    "Agreement") with Thunder Basin Coal Company, LLC and
    Ark Land Company (collectively "TBCC"). The initial
    term of the agreement does not exceed 20 years from
    October 1, 2006. However, both RWI or TBCC have the option
    to extend the agreement 10 years beyond the expiration of
    the initial term. Under the agreement, TBCC will pay RWI
    $2.6 million in exchange for suspension of well operations
    or deferral of drilling plans by RWI on certain acreage under
    lease to RWI. The non-refundable payment is payable to RWI in
    three installments over a period of three years beginning
    January 1, 2008. Revenue is recognized over TBCC's
    expected development plan or until such time the specified
    properties are released from suspension and RWI may proceed with
    exploration of these properties. RWI recognized revenue related
    to the Agreement of $0.5 million, $0.4 million and
    $0.4 million in other revenue during 2009, 2008 and 2007,
    respectively.
RWI is party to two additional well suspension agreements (the
    "Agreements"). The counterparties to these Agreements
    from time to time may submit a request to RWI to suspend well
    operations or defer drilling plans on certain acreage under
    lease to RWI in exchange for non-refundable payments. Revenue is
    recognized for these payments over the expected development plan
    or until such time the specified properties are released from
    suspension and RWI may proceed with exploration of these
    properties. During 2009, the Company recognized
    $0.1 million in income related to the Agreements.
General and
    Administrative Expenses
General and administrative expenses are reported net of
    reimbursements of overhead costs that are allocated to working
    interest owners of the oil and gas properties operated by
    Predecessor Resolute.
Income
    Taxes
Income taxes are provided based on earnings reported for tax
    return purposes in addition to a provision for deferred income
    taxes. RNRC and RWI use the asset and liability method of
    accounting for deferred income taxes. Under this method,
    deferred tax assets and liabilities are determined by applying
    the enacted statutory tax rates in effect at the end of a
    reporting period to the cumulative temporary differences between
    the tax bases of assets and liabilities and their reported
    amounts in the combined financial statements. The effect on
    deferred taxes for a change in tax rates is recognized in income
    in the period that includes the enactment date. A
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valuation allowance for deferred tax assets is established when
    it is more likely than not that some portion of the benefit from
    deferred tax assets will not be realized. Effective
    January 1, 2007, Resources (prior to converting to an
    LLC) and RWI adopted the uncertainty provision of FASB ASC
    Topic 740,
Accounting for Income Taxes
. In accordance
    with this guidance, Resources (prior to converting to an LLC),
    RNRC and RWI income tax positions must meet a
    more-likely-than-not recognition threshold to be recognized, and
    any potential accrued interest and penalties related to
    unrecognized tax benefits are recognized within interest expense
    and general and administrative expenses, respectively.
Aneth, WYNR, BWNR and Resources are limited liability companies.
    As limited liability companies, Aneth, WYNR, BWNR and Resources
    (subsequent to converting to an LLC) are tax flow-through
    entities and, therefore, the related tax obligation, if any, is
    borne by the owners.
Industry
    Segment and Geographic Information
At September 24, 2009, Predecessor Resolute conducted
    operations in one industry segment, that being the crude oil,
    gas and natural gas liquids exploration and production industry.
    Predecessor Resolute considers gathering, processing and
    marketing functions as ancillary to its oil and gas producing
    activities, and therefore are not reported as a separate
    segment. All of Predecessor Resolute's operations and
    assets are located in the United States, and all of its revenue
    is attributable to domestic customers.
Change in
    Accounting Principle
In June 2006, the FASB issued guidance which creates a single
    model to address accounting for uncertainty in tax positions.
    Specifically, the pronouncement prescribes a recognition
    threshold and a measurement attribute for the financial
    statement recognition and measurement of a tax position taken or
    expected to be taken in a tax return. The guidance also focuses
    on derecognition, classification, interest and penalties,
    accounting in interim periods, disclosure and transition of
    certain tax positions.
Resources and RWI adopted this guidance on January 1, 2007
    and RNRC adopted this guidance on September 30, 2008. As a
    result of the implementation of this guidance, Resources
    recognized a $0.5 million increase in the liability for
    unrecognized tax benefits, which was accounted for as a
    reduction to the January 1, 2007 balance of retained
    earnings and a corresponding increase in other long-term
    liabilities. There was no impact related to RWI and RNRC's
    adoption of this guidance.
Accounting
    Standards Update
Predecessor Resolute adopted Financial Accounting Standards
    Board ("FASB") Accounting Standards Codification
    ("ASC") Topic 805,
Business Combinations
on
    January 1, 2009. FASB ASC Topic 805 establishes principles
    and requirements for how the acquirer of a business recognizes
    and measures in its financial statements the contingent and
    identifiable assets acquired, the liabilities assumed, and any
    noncontrolling interest in the acquiree. The statement also
    provides guidance for recognizing and measuring the goodwill
    acquired in the business combination and determines what
    information to disclose to enable users of the financial
    statement to evaluate the nature and financial effects of the
    business combination. FASB ASC Topic 805 is effective for
    financial statements issued for fiscal years beginning after
    December 15, 2008. The nature and magnitude of the specific
    effects of FASB ASC Topic 805 on the combined financial
    statements will depend upon the nature, terms and size of the
    acquisitions consummated after the effective date. There have
    not been any acquisitions since adoption.
In April 2009, the FASB issued ASC Topic
825-10-65-1,
Interim Disclosures about Fair Value of Financial Instruments
which requires disclosures about the fair value of financial
    instruments for interim reporting periods of publicly traded
    companies as well as in annual financial statements. FASB ASC
    Topic
825-10-65-1
is effective for interim and annual reporting periods ending
    after June 15, 2009. The adoption of this pronouncement did
    not have an impact on Predecessor Resolute's combined
    financial statements, other than additional disclosures.
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In April 2009, the FASB issued ASC
820-10-65-4,
Determining Fair Value When the Volume or Level of Activity
    for the Asset or Liability Have Significantly Decreased and
    Identifying Transactions That Are Not Orderly
. FASB ASC
    Topic
820-10-65-4
provides additional guidance for estimating fair value when the
    volume and level of activity for the asset or liability have
    significantly decreased and requires that companies provide
    interim and annual disclosures of the inputs and valuation
    technique(s) used to measure fair value. FASB ASC Topic
820-10-65-4
is effective for interim and annual reporting periods ending
    after June 15, 2009 and is to be applied prospectively. The
    adoption of this pronouncement did not have an impact on
    Predecessor Resolute's combined financial statements.
Predecessor Resolute adopted FASB ASC Topic
810-10-65-1,
Noncontrolling Interests in Consolidated Financial
    Statements — an amendment to Accounting Research
    Bulletin ("ARB") No. 51
, on January 1,
    2009. FASB ASC Topic
810-10-65-1
changed the accounting and reporting requirements for minority
    interests, which are now characterized as noncontrolling
    interests and are classified as a component of equity in the
    accompanying combined balance sheet. FASB ASC Topic
810-10-65-1
requires retroactive adoption of the presentation and disclosure
    requirements for existing noncontrolling interests, with all
    other requirements applied prospectively. Accordingly,
    Predecessor Resolute has reclassified net income attributable to
    noncontrolling interests on the combined statements of
    operations, to below net income for all periods presented.
In March 2008, the FASB issued ASC Topic
815-10-65,
Disclosures about Derivative Instruments and Hedging
    Activities — An Amendment of FASB Statement 133
.
    FASB ASC Topic
815-10-65
enhances required disclosures regarding derivatives and hedging
    activities, including enhanced disclosures regarding:
    (a) how an entity uses derivative instruments; (b) how
    derivative instruments and related hedged items are accounted
    for under the derivatives and hedging Topic of the ASC, and
    (c) how derivative instruments and related hedged items
    affect an entity's financial position, financial
    performance, and cash flows. Predecessor Resolute adopted this
    pronouncement as of January 1, 2009 (see Note 10).
Predecessor Resolute adopted FASB ASC Topic 855,
Subsequent
    Events
on April 1, 2009, which established general
    standards of accounting for and disclosures of events that occur
    after the balance sheet date but before financial statements are
    issued or are available to be issued. The adoption of this
    pronouncement did not have a material impact on Predecessor
    Resolute's combined financial statements.
Predecessor Resolute adopted FASB ASC Topic
105-10-65-1,
The "FASB Accounting Standards Codification" and
    the Hierarchy of Generally Accepted Accounting Principles
on
    July 1, 2009. This pronouncement is effective for financial
    statements for interim or annual reporting periods ending after
    September 15, 2009. This pronouncement established only two
    levels of GAAP, authoritative and nonauthoritative. The ASC was
    not intended to change or alter existing GAAP, and it therefore
    did not have any impact on Predecessor Resolute's combined
    financial statements, other than to modify certain existing
    disclosures. The ASC is the source of authoritative,
    nongovernmental GAAP, except for rules and interpretive releases
    of the SEC, which are sources of authoritative GAAP for SEC
    registrants. All other nongrandfathered, non-SEC accounting
    literature not included in the ASC is considered
    nonauthoritative.
Note 3 —
Acquisitions
ExxonMobil
    Acquisition
On April 14, 2006, Aneth acquired from Exxon Mobil
    Corporation and its affiliates ("ExxonMobil") 75% of
    the ExxonMobil interests in Aneth Field, (the "ExxonMobil
    Properties") along with various other related assets,
    including ExxonMobil's interest in the Aneth gas
    compression facility, its interest in a
    CO
2
pipeline which serves the field, and office facilities
    in Cortez, Colorado.
Under the terms of the Purchase and Sale Agreement for the
    ExxonMobil Properties, Predecessor Resolute and Navajo Nation
    Oil and Gas Company ("NNOG") were required to fund an
    escrow account sufficient to complete abandonment, well
    plugging, site restoration and related obligations arising from
    ownership of the acquired interests. The contribution required
    at the date of acquisition of $10.0 million, or
    $7.5 million net to Aneth's interest, is included in
    restricted cash in the combined balance sheet as of
    December 31, 2008. Aneth is required to make additional
    deposits to the escrow account annually. Beginning in 2007 and
    continuing through
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2016, Aneth must fund approximately $1.8 million annually.
    As of September 24, 2009, Aneth had funded this annual
    obligation. In years after 2016, Aneth must fund additional
    payments averaging approximately $0.9 million until 2031.
    Total contributions from the date of acquisition through 2031
    will aggregate $53.4 million, or $40.0 million net to
    the Aneth interest. Annual interest earned in the escrow account
    becomes part of the balance and reduces the payment amount
    required for funding the escrow account each year. As of
    December 31, 2008 Aneth has funded the 2008 annual
    contractual amount required to meet its future obligation,
    approximately $1.8 million.
Net Profits
    Overriding Royalty Interest Contribution
On July 31, 2008 Predecessor Resolute entered into an asset
    contribution agreement with NGP-VII Income Co-Investment
    Opportunities, LLC ("NGP Co-Invest"), whereby NGP
    Co-Invest contributed a certain overriding net profits royalty
    interests ("NPI") in oil and gas properties of RWI to
    Holdings for a total of 2,184,445 common units (value of
    $19.7 million) as consideration.
On July 31, 2008, RWI acquired the contributed NPI from
    Holdings for $19.4 million and allocated the
    $19.4 million to oil and gas properties after normal
    purchase price adjustments. The acquisition of the NPI was
    funded with $15.4 million cash and a note payable to
    Holdings. On December 31, 2008, Holdings contributed the
    note receivable and accrued interest in the amount of
    $4.1 million to Aneth.
Primary
    Natural Resources Acquisition
On July 31, 2008, Holdings completed the acquisition of PNR
    (a Natural Gas Partners, VII, L.P. ("NGP VII")
    portfolio company). Upon closing, Holdings paid, as
    consideration, a total of 8,286,985 common units (value of
    $74.8 million) and $15.4 million in cash. NGP VII owns
    a significant equity position in Holdings.
The majority of the acquisition of PNR was accounted for as a
    combination of entities under common control, which is similar
    to the pooling of interests method of accounting for business
    combinations. Accordingly, the combined financial statements
    give retrospective effect to these transactions, and therefore,
    Predecessor Resolute's results from January 1, 2007
    through July 31, 2008, include 87.23% of the operations of
    RWI. Accordingly, the accompanying combined financial statements
    reflect the 12.77% not owned by Predecessor Resolute as a
    noncontrolling interest for results from January 1, 2007,
    through July 31, 2008.
The remaining portion of the acquisition of RWI not under common
    control, was accounted for using the purchase method in
    accordance with SFAS No. 141,
Business
    Combinations,
which was subsequently revised by FASB ASC
    Topic 805. 12.77% of the purchase price was allocated to
    acquired assets and liabilities based on their respective fair
    value as determined by management. The purchase price allocation
    is set forth below (in thousands).
December 31,
2008
Purchase price
$
11,553
Current assets
1,849
Long term assets
1,890
Oil and gas properties
18,427
Liabilities assumed
(10,613
)
Total purchase price allocation
$
11,553
The following table presents the pro forma operating results for
    years ended December 31, 2008 and 2007. The years ended
    December 31, 2008 and 2007 give effect as if the
    acquisition of PNR had occurred January 1, 2007. The pro
    forma results shown below are not necessarily indicative of the
    operating results that would have occurred if the transaction
    had occurred on such date. The pro forma adjustments made are
    based on certain
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assumptions that Predecessor Resolute believes are reasonable
    based on currently available information (unaudited; in
    thousands):
December 31,
2008
2007
Total revenue
$
229,172
$
173,343
Net income
$
(90,419
)
$
(104,412
)
Note 4—
Asset
    Retirement Obligations
Predecessor Resolute's estimated asset retirement
    obligation liability is based on estimated economic lives,
    estimates as to the cost to abandon the wells in the future, and
    federal and state regulatory requirements. The liability is
    discounted using a credit-adjusted risk-free rate estimated at
    the time the liability is incurred or revised. The
    credit-adjusted risk-free rates used to discount Predecessor
    Resolute's abandonment liabilities range from 3.90% to
    13.50%. Revisions to the liability could occur due to changes in
    estimated abandonment costs or well economic lives, or if
    federal or state regulators enact new requirements regarding the
    abandonment of wells.
The following table provides a reconciliation of Predecessor
    Resolute's asset retirement obligation (in thousands):
Period Ended
September 24,
December 31,
2009
2008
2007
Asset retirement obligations at beginning of period
$
9,828
$
8,445
$
8,866
Accretion expense
681
832
631
Additional liability incurred
—
275
148
Liabilities settled
(1,337
)
(220
)
(749
)
Revisions to previous estimates
2,641
496
(451
)
Asset retirement obligations at end of period
11,813
9,828
8,445
Less current asset retirement obligations
2,565
1,713
1,072
Long-term asset retirement obligations
$
9,248
$
8,115
$
7,373
Note 5—Related
    Party Transactions
On April 1, 2005, Holdings entered into a joint venture
    arrangement with Wachovia Investment Holdings, LLC
    ("Wachovia Investment") to form an oil and gas
    marketing and trading company, Odyssey Energy Services, LLC
    ("Odyssey"), allocating profits and losses 40% to
    Holdings and 60% to Wachovia Investment. Holdings made an
    initial capital contribution of $2.0 million, and agreed to
    be responsible for up to a total of $10.0 million of
    additional capital to cover certain potential liabilities.
    Holdings borrowed $2.0 million from Resources, which loan
    was evidenced by a note. Terms of the note included annual
    payment of interest at a rate of 4.09%. Interest income
    recognized on the note was $0.1 million in both 2008 and
    2007. This note was paid in full on September 30, 2008.
Resources has received payments due Holdings for Holdings'
    transactions not related to Predecessor Resolute. Such payments
    have not yet been reimbursed to Holdings. These payables are
    reflected on the combined balance sheet as "Accounts
    payable — Holdings" and carried a balance of
    approximately $1.3 million at December 31, 2008.
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Note 6—Long
    Term Debt
Long term debt and current portion of long term debt consisted
    of the following (in thousands):
December 31,
2008
Credit agreements:
First Lien Facility
$
196,150
Second Lien Facility
225,000
Total long term debt
421,150
Less: current portion of long term debt
—
Long term debt
$
421,150
First Lien
    Facility
Predecessor Resolute's credit facility is with a syndicate
    of banks led by Wachovia Bank, National Association (the
    "First Lien Facility") with Aneth as the borrower. The
    First Lien Facility specifies a maximum borrowing base as
    determined by the lenders. The determination of the borrowing
    base takes into consideration the estimated value of Predecessor
    Resolute's oil and gas properties in accordance with the
    lenders' customary practices for oil and gas loans. The
    borrowing base is redetermined semi-annually, and the amount
    available for borrowing could be increased or decreased as a
    result of such redeterminations. As of September 24, 2009,
    the borrowing base was $240.0 million and the unused
    availability under the borrowing base was $32.8 million. As
    of December 31, 2008 the borrowing base was
    $284.0 million and unused availability under the borrowing
    base was $77.8 million. The First Lien Facility matures on
    April 13, 2011 and, to the extent that the borrowing base,
    as adjusted from time to time, exceeds the outstanding balance,
    no repayments of principal are required prior to maturity. On
    May 12, 2009, Predecessor Resolute entered into the Fourth
    Amendment to the Amended and Restated First Lien Credit Facility
    ("Fourth Amendment") to redetermine its borrowing base
    and interest rates, and to amend its Maximum Leverage Ratio
    covenant (effective March 31, 2009). Under the terms of the
    Fourth Amendment, at Aneth's option, the outstanding
    balance under the First Lien Facility accrues interest at either
    (a) the London Interbank Offered Rate, plus a margin which
    varies from 2.5% to 3.5%, or (b) the Alternative Base Rate
    defined as the greater of (i) the Administrative
    Agent's Prime Rate, (ii) the Administrative
    Agent's Base CD rate plus 1%, or (iii) the Federal
    Funds Effective Rate plus 0.5%, plus a margin which varies from
    1.0% to 2.0%. Each such margin is based on the level of
    utilization under the borrowing base. On July 28, 2009,
    Resolute entered into the Fifth Amendment to the Amended and
    Restated First Lien Credit Facility ("Fifth
    Amendment") to amend its Current Ratio covenant. Under the
    terms of the Fifth Amendment, the Current Ratio covenant was not
    applicable for the quarters ended March 31, 2009 and
    June 30, 2009. On September 17, 2009, Predecessor
    Resolute entered into the Sixth Amendment to the Amended and
    Restated First Lien Credit Facility to amend certain terms and
    sections in the agreement in order to allow for the Resolute
    Transaction. As of September 24, 2009 and December 31,
    2008, the weighted average interest rate on the outstanding
    balance under the facility was approximately 4.0% and 5.0%,
    respectively. The First Lien Facility is collateralized by
    substantially all of the proved oil and gas assets of Aneth and
    RWI, and is guaranteed by all of the companies other than Aneth.
The First Lien Facility includes terms and covenants that place
    limitations on certain types of activities, the payment of
    dividends, and require satisfaction of certain financial tests.
    Predecessor Resolute was in compliance with all terms and
    covenants of the First Lien Facility at December 31, 2008.
    Predecessor Resolute was not in compliance with the First Lien
    Facility June 30, 2009 Maximum Leverage Ratio covenant. The
    Company entered into a waiver agreement with its First Lien
    Facility lenders on August 27, 2009, whereby the
    requirement to comply with the Maximum Leverage Ratio covenant
    for the period ended June 30, 2009 had been waived until
    the earlier to occur of (a) October 15, 2009 or
    (b) the Early Termination Date, defined as the date on
    which the lenders notify Predecessor Resolute that it has
    determined in its sole discretion that a material condition to
    the merger between Predecessor Resolute and HACI is unlikely to
    be satisfied by October 15, 2009 ("Waiver Termination
    Date"). Upon the Waiver Termination Date, the Maximum
    Leverage Ratio shall be calculated using the outstanding debt
    amount as of the Waiver Termination Date. The terms of the
    waiver allowed Predecessor Resolute to remain in compliance with
    the Maximum Leverage Ratio covenant at June 30, 2009 and
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September 24, 2009. Predecessor Resolute was in compliance
    with all other terms and covenants of the First Lien Facility at
    September 24, 2009.
On September 25, 2009, Resolute repaid $99.5 million
    outstanding under the First Lien Facility with cash received
    from the Resolute Transaction.
Second Lien
    Facility
Predecessor Resolute's term loan was with a group of
    lenders, with Wilmington Trust FSB as the agent (the
    "Second Lien Facility") and with Aneth as the
    borrower. The Second Lien Facility carries a borrowing base of
    $225.0 million which was fully utilized at
    September 24, 2009 and December 31, 2008. Balances
    outstanding under the Second Lien Facility accrue interest at
    either (a) the adjusted London Interbank Offered Rate plus
    the applicable margin of 4.5%, or (b) the greater of
    (i) the Administrative Agent's Prime Rate,
    (ii) the Administrative Agent's Base CD rate plus 1%,
    or (iii) the Alternative Base Rate, plus the applicable
    margin of 3.5%. The Second Lien Facility was collateralized by
    substantially all of the proved oil and gas assets of Aneth and
    RWI, and was guaranteed by all of the companies other than
    Aneth. The claim of the Second Lien Facility lenders on the
    collateral was explicitly subordinated to the claim of the First
    Lien Facility lenders. As of September 24, 2009 and
    December 31, 2008, the weighted average interest rate on
    the outstanding balance under the facility was approximately
    5.0% and 7.7%, respectively.
The Second Lien Facility included terms and covenants that
    placed limitations on certain types of activities, the payment
    of dividends, and require satisfaction of certain financial
    tests. Predecessor Resolute was in compliance with all terms and
    covenants of the Second Lien Facility at December 31, 2008.
    On August 28, 2009, Aneth gave notice to the lenders that
    it was in default of the Maximum Leverage Ratio covenant
    (calculated as the ratio of debt to trailing four quarter
    EBITDA), as measured at June 30, 2009. On September 1,
    2009, lenders under the Second Lien Credit Facility declared the
    loan in default and accelerated the indebtedness. As a result of
    the declaration of default on September 1, 2009, default
    interest of an additional 2% per annum was imposed and the
    Company was prohibited from utilizing the Eurodollar interest
    option in future borrowings under the facility.
On September 25, 2009, Resolute repaid all amounts
    outstanding under the Second Lien Facility with cash received
    from the Resolute Transaction.
Note 7—Income
    Taxes
Resources (prior to September 30, 2008), RNRC and RWI
    recognize deferred tax assets and liabilities for the expected
    future tax consequences of events that have been included in the
    combined financial statements or tax returns. Deferred tax
    assets and liabilities are determined based on the differences
    between the financial statement and tax basis of assets and
    liabilities using the enacted tax rates in effect for the year
    in which the differences are expected to reverse. The
    measurement of deferred tax assets is reduced, if necessary, by
    the amount of any tax benefits that are not expected to be
    realized based on available evidence. Resources (subsequent to
    September 30, 2008), Aneth, BWNR and WYNR are pass-through
    entities for federal and state income tax purposes. As such,
    neither current nor deferred income taxes are recognized by
    these entities.
Significant components of Predecessor Resolute's deferred
    tax assets (liabilities) are as follows (in thousands):
December 31,
2008
Current:
Derivative financial instruments
$
(4,913
)
Total current
(4,913
)
Long Term:
Property and equipment
10,673
Asset retirement obligation
173
Federal tax credit carryovers
60
Net operating loss carryforward
3,799
Total long term
14,705
Net deferred tax asset
$
9,792
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The provision for income taxes is as follows (in thousands):
Period Ended
September 24,
December 31,
2009
2008
2007
Current income tax expense:
Federal
$
—
$
(19
)
$
(35
)
State
(104
)
—
—
Deferred income tax benefit (expense)
5,123
18,266
(1,655
)
Valuation allowance
—
—
(50
)
Total income tax benefit (expense)
$
5,019
$
18,247
$
(1,740
)
Income tax expense (benefit) differed from amounts that would
    result from applying the U.S. statutory income tax rate to
    income before taxes as follows (in thousands):
Period Ended
September 24,
December 31,
2009
2008
2007
U.S. statutory income tax (benefit) expense
$
(4,626
)
$
(19,732
)
$
1,626
State income tax (benefit) expense
(104
)
(265
)
55
Share base compensation
—
1,456
—
Change in valuation allowance
—
—
50
Other
(289
)
294
9
Total tax (benefit) expense*
$
(5,019
)
$
(18,247
)
$
1,740
*
Tax expense (benefit) is calculated based on taxable income of
    RNRC and RWI, which are taxable entities. Aneth, Sub, BWNR and
    WYNR are pass-through entities for federal and state income tax
    purposes. As such, neither current nor deferred income taxes are
    recognized by these entities.
As of September 24, 2009 and December 31, 2008, RNRC
    had no regular tax loss carryforward. As of September 24,
    2009 and December 31, 2008, RWI had regular tax loss
    carryforwards of $11.3 million and $10.6 million,
    respectively.
Resources and RWI adopted the uncertainty provisions of FASB ASC
    Topic 740,
Accounting for Income Taxes,
on
    January 1, 2007 and RNRC adopted the uncertainty provisions
    of FASB ASC Topic 740 on September 30, 2008. As a result of
    the implementation of this guidance, Resources recognized
    approximately $0.5 million, including accrued interest and
    penalties of $0.1 million, as a contingent liability and an
    increase to the January 1, 2007 balance of accumulated
    deficit. As of December 31, 2008 the total contingent
    income tax liabilities and accrued interest was approximately
    $0.5 million and is reflected in current liabilities in the
    combined balance sheet in "Contingent tax liability."
    During 2009, the previously unrecognized tax benefit in the
    amount of $0.4 million related to the uncertain tax
    position was recognized. Previously accrued interest and
    penalties were also reversed. This recognition and reversal
    resulted from the expiration of the applicable statute of
    limitations on September 15, 2009.
Resources (prior to September 30, 2008), RNRC and RWI
    recognize interest and penalties related to uncertain tax
    positions in interest expense and general and administrative
    expense, respectively. RWI and RNRC had no uncertain tax
    positions. Resources and RWI file income tax returns in the
    U.S. federal jurisdiction and various states.
    Resource's 2007 tax return is currently under examination
    in the U.S. Federal jurisdiction. Furthermore, Resources
    and RWI's tax years of 2006 and forward are subject to
    examination by the federal and state taxing authorities.
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The following table summarizes the activity during the years
    related to the liability for unrecognized tax benefits (in
    thousands):
Balance at January 1, 2007
$
386
Increases in unrecognized tax benefits
—
Decreases in unrecognized tax benefits
—
Balance at December 31, 2007
386
Increases in unrecognized tax benefits
—
Decreases in unrecognized tax benefits
—
Balance at December 31, 2008
386
Increases in unrecognized tax benefits
—
Decreases in unrecognized tax benefits
(386
)
Balance at September 24, 2009
$
—
Note 8 —
Shareholder's/Member's
    Equity and Equity Based Awards
Common
    Stock
At September 24, 2009 and December 31, 2008, RNRC and
    RWI each had 1,000 shares of common stock, par value $0.01
    and $1.00 per share, authorized, issued and outstanding,
    respectively.
Member's
    Equity
At September 24, 2009 and December 31, 2008,
    member's equity included Aneth, WYNR, BWNR and Resources.
Incentive
    Interests
Resources
"Incentive Units" were granted by Holdings to certain
    of its members who were also officers, as well as to other
    employees of Resources. The Incentive Units were intended to be
    compensation for services provided to Resources. The original
    terms of the five tiers of Incentive Units are as follows.
    Tier I units vest ratably over three years, but are subject
    to forfeiture if payout is not realized. Tier I payout is
    realized at the return of members' invested capital and a
    specified rate of return. Tiers II through V vest upon
    certain specified multiples of cash payout. Incentive Units are
    forfeited if an employee of Predecessor Resolute is either
    terminated for cause or resigns as an employee. Any Incentive
    Units that are forfeited by an individual employee revert to the
    founding senior managers of Predecessor Resolute and, therefore,
    the number of Tier II through V Incentive Units is not
    expected to change.
On June 27, 2007, Holdings made a capital distribution of
    $100 million to its equity owners from the proceeds of the
    Second Lien Facility. This distribution caused both the
    Tier I payout to be realized and the Tier I Incentive
    Units to vest. As a result of the distribution, management
    determined that it was probable that Tiers II-V incentive unit
    payouts would be achieved.
Predecessor Resolute recorded $2.8 million,
    $3.7 million and $34.5 million of equity based
    compensation expense in general and administrative expense in
    the combined statements of operations for 2009, 2008, and 2007,
    respectively. An additional $0.1 million and
    $2.0 million of equity compensation expense was capitalized
    and recorded in oil and gas properties during 2008 and 2007,
    respectively. No equity compensation expense was capitalized in
    2009.
Predecessor Resolute amortizes the estimated fair value of the
    Incentive Units over the remaining estimated vesting period
    using the straight-line method. The estimated weighted average
    fair value remaining of the Incentive Units was calculated using
    a discounted future net cash flows model. No Incentive Units
    vested during 2009 and 2008. In 2007, 11.6 million
    Incentive Units vested.
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At December 31, 2008, there were 17,797,801 incentive units
    outstanding, of which 6,190,539 were not vested and have a
    weighted average grant date fair value of $2.08 per unit. There
    were no grants or forfeitures during 2009, 2008 and 2007.
Total unrecognized compensation cost related to Predecessor
    Resolute's non-vested Incentive Units totaled
    $5.3 million and $8.1 million as of September 24,
    2009 and December 31, 2008, respectively. Total
    unrecognized compensation cost related to Predecessor
    Resolute's non-vested Incentive Units as of
    September 24, 2009 is expected to be recognized over
    weighted-average periods of 0.75 years, 1.75 years,
    2.75 years and 2.75 years for the Tier II,
    Tier III, Tier IV and Tier V Incentive Units,
    respectively.
Resolute Wyoming,
    Inc.
The Primary Natural Resources Holdings, LLC ("PNRH")
    Operating Agreement (the "Operating Agreement")
    provided for the issuance of up to 900,000 "PNRH Incentive
    Interests," consisting of 844,000 Incentive Units and
    56,000 Incentive Options. PNR was wholly owned by PNRH prior to
    the PNR acquisition. There were two categories for Incentive
    Units, described as Tier I and Tier II. There was one
    category for Incentive Options described as Tier I.
    Tier I Incentive Units received preferential payout over
    Tier II. Of the 844,000 Incentive Units, 484,000 and
    360,000 were classified as Tier I and Tier II,
    respectively. Holders of Incentive Units were entitled to cash
    distributions following the sale, merger or other transaction
    involving the stock or assets of PNR after the recovery of
    capital contributions plus a rate of return, specified as payout
    levels in the Operating Agreement. The 844,000 Tier I and
    Tier II Incentive Units were granted in January 2004 to
    certain members of PNR's management.
Due to the acquisition of PNR on July 31, 2008, the
    performance criteria related to the PNRH Incentive Interests was
    achieved and the Incentive Interests fully vested. As a result,
    $4.2 million of equity based compensation expense was
    recorded in general and administrative expense in 2008. No
    further equity based compensation expense will be recorded
    related to these Incentive Interests.
Equity
    Appreciation Rights
In November 2006 and May 2008, 2,500,000 and 3,000,000 Equity
    Appreciation Rights ("EARs") were authorized,
    respectively. The EARs are periodically granted by Sub to
    certain of Predecessor Resolute's employees. The EARs
    represent contract rights to a certain portion of future
    distributions of cash by Sub.
Upon consummation of the Acquisition Agreement on
    September 25, 2009 the EARs plan was cancelled. Predecessor
    Resolute has not assigned any value or recognized any share
    based compensation expense related to the EARs because no
    distributions were made in respect of such EARs prior to the
    plan termination.
On May 29, 2008, Resources, on behalf of Sub, entered into
    Agreements with several employees permitting those employees to
    make an offer to exchange for cash some or all of the EARs
    issued in 2007 and prior under the EARs Plan, dated
    November 27, 2006. The participant could elect to offer to
    exchange all or any portion of their EARs for time vested cash
    awards equal to $2.00 per unit plus simple interest of 15% per
    annum, effective January 1, 2008. During 2008, a total of
    395,000 units were exchanged from employees under this
    agreement.
Also on May 29, 2008, Resources, on behalf of Sub, granted
    incentive awards allowing employees to elect to receive a
    certain number of EARs or an amount of time vested cash awards
    of $1.00 per unit plus simple interest of 15% per annum,
    effective January 1, 2008. During 2008, a total of
    1,659,000 EARs were granted and 213,700 time vested cash award
    units were issued.
All of the cash awards are payable in three installments on
    January 1, 2009, 2010 and 2011. Compensation expense
    related to the time vested cash awards of $0.2 million,
    $0.5 million and $0 was recognized, during 2009, 2008 and
    2007, respectively. The time vested cash awards are accounted
    for as deferred compensation. The annual payments are paid based
    on the employee's tenure with Resources and there is
    potential for forfeiture of the time vested payment, therefore
    Predecessor Resolute will accrue for each time vested payment
    and related return for the respective year on an annual basis.
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Table of Contents
A summary of the activity associated with the EARs plan during
    2007, 2008 and 2009 is as follows:
EARs
January 1, 2007
1,487,000
Granted
581,000
December 31, 2007
2,068,000
Granted
1,659,000
Forfeited
(256,000
)
Purchased
(395,000
)
December 31, 2008
3,076,000
Forfeited
(113,000
)
September 24, 2009
2,963,000
The EARs plan was terminated on September 25, 2009, and all
    outstanding EARs were cancelled due to the Resolute Transaction.
    The time vested cash awards were not terminated.
Note 9 —
Defined
    Contribution Plan
Predecessor Resolute offers a 401(k) plan for all eligible
    employees. For the periods ended September 24, 2009 and
    December 31, 2008 and 2007, Predecessor Resolute
    contributed $0, $0.2 million and $0.8 million
    respectively, in connection with matching of employee
    contributions made in 2009, 2008 and 2007, respectively.
Note 10 —
Derivative
    Instruments
Predecessor Resolute enters into commodity derivative contracts
    to manage its exposure to oil and gas price volatility.
    Predecessor Resolute has not elected to designate derivative
    instruments as cash flow hedges under the provisions of FASB ASC
    Topic 815,
Derivatives and Hedging
. As a result, these
    derivative instruments are marked to market at the end of each
    reporting period and changes in the fair value are recorded in
    the accompanying combined statements of operations. Realized and
    unrealized gains and losses from Predecessor Resolute's
    price risk management activities are recognized in other income
    (expense), with realized gains and losses recognized in the
    period in which the related production is sold. The cash flows
    from derivatives are reported as cash flows from operating
    activities unless the derivative contract is deemed to contain a
    financing element. Derivatives deemed to contain a financing
    element are reported as financing activities in the statement of
    cash flows. Commodity derivative contracts may take the form of
    futures contracts, swaps or options.
As of September 24, 2009, Predecessor Resolute had entered
    into certain commodity swap contracts. The following table
    represents Predecessor Resolute's commodity swaps with
    respect to its estimated oil and gas production from proved
    developed producing properties through 2013:
Gas (NYMEX HH)
Oil (NYMEX WTI)
Weighted Average
Weighted Average
MMBtu per
Hedge Price per
Year
Bbl per Day
Hedge Price per Bbl
Day
MMBtu
2009
3,900
$
62.75
1,800
$
9.93
2010
3,650
$
67.24
3,800
$
9.69
2011
3,250
$
68.26
2,750
$
9.32
2012
3,250
$
68.26
2,100
$
7.42
2013
2,000
$
60.47
1,900
$
7.40
Predecessor Resolute also uses basis swaps in connection with
    gas swaps in order to fix the price differential between the
    NYMEX Henry Hub price and the index price at which the gas
    production is sold. The table below sets forth Predecessor
    Resolute's outstanding basis swaps as of September 24,
    2009.
Weighted Average
Hedged Price
MMBtu per
Differential per
Year
Index
Day
MMBtu
2009 – 2013
Rocky Mountain
NWPL
1,800
$
2.10
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As of September 24, 2009, Predecessor Resolute had entered
    into certain commodity collar contracts. The following table
    represents Predecessor Resolute's commodity collars with
    respect to its estimated oil and gas production from proved
    developed producing properties:
Gas (NYMEX HH)
Oil (NYMEX WTI)
Weighted Average
Weighted Average
MMBtu per
Hedge Price per
Year
Bbl per Day
Hedge Price per Bbl
Day
MMBtu
2009
250
$
105.00-151.00
3,288
$
5.00-9.35
2010
200
$
105.00-151.00
—
—
For financial reporting purposes, Predecessor Resolute does not
    offset the fair value amounts of derivative assets and
    liabilities with the same counterparty. The table below
    summarizes the location and fair value amounts of Predecessor
    Resolute's commodity derivative instruments reported in the
    combined balance sheet (in thousands):
December 31,
2008
Assets:
Current assets: derivative instruments
$
19,017
Other assets: derivative instruments
18,114
Total assets
37,131
Liabilities:
Current liabilities: derivative instruments
(1,141
)
Noncurrent liabilities: derivative instruments
(20,193
)
Total liabilities
(21,334
)
Net derivative fair value
$
15,797
Because Predecessor Resolute's derivative instruments are
    not designated and do not qualify as hedging instruments under
    FASB ASC Topic 815, the gains and losses are included in other
    income (expense) in the combined statements of operations. The
    table below summarizes the location and amount of commodity
    derivative instrument gains and losses reported in the combined
    statements of operations for the periods presented below (in
    thousands):
Period Ended
September 24,
December 31,
2009
2008
2007
Other income (expense)
Realized (losses) gains
$
1,939
$
120,573
$
(101,495
)
Unrealized gains (losses)
(25,458
)
(24,541
)
(2,470
)
Amortization of commodity derivative premiums
—
—
(2,263
)
Total: gain (loss) on derivative instruments
$
(23,519
)
$
96,032
$
(106,228
)
Credit Risk
    and Contingent Features in Derivative
    Instruments
Predecessor Resolute is exposed to credit risk to the extent of
    nonperformance by the counterparties in the derivative contracts
    discussed above. With the exception of one contract, all
    counterparties are also lenders under Predecessor
    Resolute's First Lien Facility. For these contracts,
    Predecessor Resolute is not required to provide any credit
    support to its counterparties other than cross collateralization
    with the properties securing the First Lien Facility. The
    counterparty that is not among Predecessor Resolute's
    lenders is a multinational energy company with a corporate
    credit rating of AA as classified by Standard and Poor's.
    Predecessor Resolute's derivative contracts are documented
    with industry standard contracts known as a Schedule to the
    Master Agreement and International Swaps and Derivative
    Association, Inc. Master Agreement ("ISDA"). Typical
    terms for the ISDAs include credit support requirements, cross
    default provisions, termination events, and set-off provisions.
    Predecessor Resolute has set-off provisions with its lenders
    that, in the event of counterparty default, allow Predecessor
    Resolute to set-off amounts owed under the First Lien Facility
    or other general obligations against amounts owed for derivative
    contract liabilities.
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The maximum amount of loss in the event of all counterparties
    defaulting is $0.3 million as of September 24, 2009,
    after netting any amounts payable by Predecessor Resolute to its
    counterparties.
See Note 11 for further discussion of derivative
    instruments.
Note 11 —
Fair Value
    Measurements
FASB ASC Topic 820
, Fair Value Measurements and Disclosures
clarifies the definition of fair value, establishes a
    framework for measuring fair value, and expands disclosures
    about fair value measurements. During 2008, Predecessor Resolute
    elected to not apply FASB ASC Topic 820 to nonrecurring fair
    value measurements of nonfinancial assets and nonfinancial
    liabilities, including nonfinancial long-lived assets measured
    at fair value for an impairment assessment and asset retirement
    obligations initially measured at fair value.
Predecessor Resolute fully adopted FASB ASC Topic 820 as it
    relates to all nonfinancial assets and liabilities that are not
    recognized or disclosed on a recurring basis (e.g. those
    measured at fair value in a business combination, the initial
    recognition of asset retirement obligations, and impairments of
    goodwill and other long-lived assets) as of January 1,
    2009. The full adoption did not have a material impact on
    Predecessor Resolute's combined financial statements or its
    disclosures.
FASB ASC Topic 820 defines fair value as the price that would be
    received to sell an asset or paid to transfer a liability (an
    exact price) in an orderly transaction between market
    participants at the measurement date. The statement establishes
    market or observable inputs as the preferred sources of values,
    followed by assumptions based on hypothetical transactions in
    the absence of market inputs. The statement establishes a
    hierarchy for grouping these assets and liabilities, based on
    the significance level of the following inputs:
•
Level 1 – Quoted prices in active markets for
    identical assets or liabilities.
•
Level 2 – Quoted prices in active markets for
    similar assets and liabilities, quoted prices for identical or
    similar instruments in markets that are not active and
    model-derived valuations whose inputs are observable or whose
    significant value drivers are observable.
•
Level 3 – Significant inputs to the valuation
    model are unobservable.
An asset or liability subject to the fair value requirements is
    categorized within the hierarchy based on the lowest level of
    input that is significant to the fair value measurement.
    Predecessor Resolute's assessment of the significance of a
    particular input to the fair value measurement in its entirety
    requires judgment and considers factors specific to the asset or
    liability. Following is a description of the valuation
    methodologies used by Predecessor Resolute as well as the
    general classification of such instruments pursuant to the
    hierarchy.
As of September 24, 2009 and December 31, 2008,
    Predecessor Resolute's commodity derivative instruments
    were required to be measured at fair value. Predecessor Resolute
    used the income approach in determining the fair value of its
    derivative instruments, utilizing present value techniques for
    valuing its swaps and basis swaps and option-pricing models for
    valuing its collars. Inputs to these valuation techniques
    include published forward index prices, volatilities, and credit
    risk considerations, including the incorporation of published
    interest rates and credit spreads. Substantially all of these
    inputs are observable in the marketplace throughout the full
    term of the contract, can be derived from observable data or are
    supported by observable levels at which transactions are
    executed in the marketplace and are therefore designated as
    Level 2 within the valuation hierarchy.
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The following is a listing of Predecessor Resolute's assets
    and liabilities required to be measured at fair value on a
    recurring basis and where they are classified within the
    hierarchy as of December 31, 2008 (in thousands):
December 31,
Description
Level 1
Level 2
Level 3
2008
Assets:
Current portion of commodity derivative assets
$
—
$
19,017
$
—
$
19,017
Non-current portion of commodity derivative assets
—
18,114
—
18,114
Total
$
$
37,131
$
$
37,131
Liabilities:
Current portion of commodity derivative liabilities
$
—
$
(1,141
)
$
—
$
(1,141
)
Non-current portion of commodity derivative liabilities
—
(20,193
)
—
(20,193
)
Total
$
$
(21,334
)
$
$
(21,334
)
Note 12 –
Commitments
    and Contingencies
CO
2
Take-or-Pay
Agreements
Resolute entered into two
take-or-pay
purchase agreements, each with a different supplier, under which
    Resolute has committed to buy specified volumes of
    CO
2
.
    The purchased
    CO
2
is for use in Resolute's enhanced tertiary recovery
    projects in Aneth Field. In each case, Resolute is obligated to
    purchase a minimum daily volume of
    CO
2
or pay for any deficiencies at the price in effect when delivery
    was to have occurred. The
    CO
2
volumes
    planned for use on the enhanced recovery projects exceed the
    minimum daily volumes provided in this
take-or-pay
purchase agreement. Therefore, Resolute expects to avoid any
    payments for deficiencies. Predecessor Resolute acquired
    $8.9 million of
    CO
2
during the period ended September 24, 2009.
One contract was effective July 1, 2006, with a four year
    term. As of December 31, 2008, future commitments under
    this purchase agreement amounted to approximately
    $1.9 million in 2009 and $1.9 million for 2010, based
    on prices in effect at December 31, 2008. The second
    contract was entered into on May 25, 2005, and was amended
    on July 1, 2007, and had a ten year term. Future
    commitments under this purchase agreement amounted to
    approximately $27.8 million through June 2016 based on
    prices in effect on December 31, 2008. The annual minimum
    obligation by year is as follows (in thousands):
Year
Commitments
(millions)
2009
$
8.4
2010
6.9
2011
5.0
2012
3.9
2013
3.8
Thereafter
3.5
Total
$
31.5
Operating
    Leases
For the period ended September 24, 2009, and the years
    ended December 31, 2008 and 2007,
month-to-month
office facilities rental payments charged to expense under the
    terms of non-cancelable operating leases was approximately
    $0.5 million, $1.0 million and $0.8 million,
    respectively. Future rental payments for office facilities under
    the remaining terms of non-cancelable operating leases as of
    December 31, 2008 were approximately $410,000, $460,000,
    $399,000, $0 and $0 for the years ending December 31, 2009,
    2010, 2011, 2012 and 2013.
Predecessor Resolute is also party to several field equipment
    and compressor leases used in the
    CO
2
project. Rental expense for these leases for 2009, 2008 and 2007
    was $1.3 million, $1.3 million and $0.1 million,
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respectively. Future payments under these leases as of
    December 31, 2008 were approximately $1.4 million in
    2009, $2.7 million from 2010 through 2013 and
    $8.5 million thereafter.
Escrow
    Funding Agreement
Under the terms of Predecessor Resolute's purchase of the
    ExxonMobil Properties, Predecessor Resolute and Navajo Nation
    Oil and Gas Company were required to fund an escrow account
    sufficient to complete abandonment, well plugging, site
    restoration and related obligations arising from ownership of
    the acquired interests. The contribution net to Aneth's
    working interest is approximately $1.8 million per year
    until 2016. In years after 2016, Aneth must fund approximately
    $0.9 million per year until 2031. Escrow funding payments
    are included in other assets: restricted cash in the combined
    balance sheet of December 31, 2008. As of December 31,
    2008, Aneth had funded the 2008 annual contractual amount of
    approximately $1.8 million required to meet its future
    obligation.
NNOG
    Purchase Options.
In connection with acquisition of the ExxonMobil Properties and
    the acquisition from Chevron Corporation and its affiliates
    ("Chevron") of 75% of Chevron's interest in Aneth
    Field ("Chevron Properties") in 2005, pursuant to the
    terms of the Cooperative Agreement, Predecessor Resolute granted
    to NNOG three separate but substantially similar purchase
    options. Each purchase option entitles NNOG to purchase from
    Predecessor Resolute up to 10% of Predecessor Resolute's
    interest in the Chevron Properties and the ExxonMobil
    Properties. Each purchase option entitles NNOG to purchase, for
    a limited period of time, the applicable portion of Predecessor
    Resolute's interest in the Chevron Properties and the
    ExxonMobil Properties, at Fair Market Value (as defined in the
    agreement), which is determined without giving effect to the
    existence of the Navajo Nation preferential purchase right or
    the fact that the properties are located within the Navajo
    Nation. Each option becomes exercisable based upon Predecessor
    Resolute's achieving a certain multiple of payout of the
    relevant acquisition costs, subsequent capital costs and ongoing
    operating costs attributable to the applicable working
    interests. Revenue applicable to the determination of payout
    includes the effect of Predecessor Resolute's hedging
    program. The options are not exercisable prior to four years
    from the acquisition except in the case of a sale of such assets
    by, or a change of control of, Aneth. In that case, the first
    option for 10% would be accelerated and the other options would
    terminate. Assuming the purchase options are not accelerated due
    to a change of control of Aneth, Predecessor Resolute expects
    that the initial payout associated with the purchase options
    granted will occur no sooner than 2013.
The following table demonstrates the maximum net undivided
    working interest in each of the Aneth Unit, the McElmo Creek
    Unit and the Ratherford Unit that NNOG could acquire upon
    exercising each of its purchase options under the Cooperative
    Agreement. The exercise by NNOG of its purchase options in full
    would not give it the right to remove Predecessor Resolute as
    operator of any of the units.
McElmo
Ratherford
Aneth Unit
Creek Unit
Unit
Chevron Properties:
Option 1 (100% Payout)
5.30%
1.50%
0.30%
Option 2 (150% Payout)
5.30%
1.50%
0.30%
Option 3 (200% Payout)
5.30%
1.50%
0.30%
Total
15.90%
4.50%
0.90%
McElmo
Ratherford
Aneth Unit
Creek Unit
Unit
ExxonMobil Properties:
Option 1 (100% Payout)
0.75%
6.00%
5.60%
Option 2 (150% Payout)
0.75%
6.00%
5.60%
Option 3 (200% Payout)
0.75%
6.00%
5.60%
Total
2.25%
18.00%
16.80%
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Crude
    Production Purchase Agreement
Predecessor Resolute sells all of its crude oil production from
    the Aneth field to a single customer, Western Refining
    Southwest, Inc. ("Western"), a subsidiary of Western
    Refining, Inc. Predecessor Resolute and Western entered into a
    new contract on August 27, 2009, effective
    September 1, 2009. The new contract provides for a minimum
    price equal to the NYMEX price for crude oil less a fixed
    differential of $6.25 per Bbl. The contract provides for an
    initial term of one year and continuing
month-to-month
thereafter, with either party having the right to terminate
    after the initial term, upon ninety days written notice. The
    contract may also be terminated by Western after
    December 31, 2009, upon sixty days written notice, if
    Western is not able to renew its
right-of-way
agreements with the Navajo Nation or if such
rights-of-way
are declared invalid and Western is prevented from using such
rights-of-way.
Note 13 –
Oil And Gas
    Producing Activities
Costs incurred in oil and gas property acquisition, exploration
    and development activities are summarized as follows (in
    thousands):
Period Ended
September 24,
December 31,
2009
2008
2007
Development costs
$
15,018
$
52,331
$
78,430
Exploration
10
239
3,677
Acquisitions:
Proved
209
19,448
9,045
Unproved
113
344
510
Total
$
15,350
$
72,362
$
91,662
Net capitalized costs related to Resolute's oil and gas
    producing activities were as follows (in thousands):
December 31,
2008
Proved oil and gas properties
$
348,058
Unevaluated oil and gas properties, not subject to amortization
12,724
Accumulated depletion, depreciation and amortization
(97,726
)
Oil and gas properties, net
$
263,056
Note 14 —
Supplemental
    Oil and Gas Information (unaudited)
Oil and Gas
    Reserve Quantities:
The following table presents our estimated net proved oil and
    gas reserves and the present value of such estimated net proved
    reserves as of September 24, 2009, December 31, 2008,
    and 2007. The reserve data as of December 31, 2008 and 2007
    were prepared by Predecessor Resolute and 100 percent and
    90 percent, respectively, were audited by Netherland,
    Sewell & Associates, Inc., independent petroleum
    engineers. Users of this information should be aware that the
    process of estimating quantities of proved oil and gas reserves
    is very complex, requiring significant subjective decisions to
    be made in the evaluation of available geological, engineering
    and economic data for each reservoir. The data for a given
    reservoir may also change substantially over time as a result of
    numerous factors, including, but not limited to, additional
    development activity, evolving production history and continual
    reassessment of the viability of production under varying
    economic conditions. As a result, revisions to existing reserves
    estimates may occur from time to time. Although every reasonable
    effort is made to ensure reserves estimates reported represent
    the most accurate assessments possible, the
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subjective decisions and variances in available data for various
    reservoirs make these estimates generally less precise than
    other estimates included in the financial statement disclosure.
Presented below is a summary of the changes in estimated
    reserves (in thousands):
(3)
Oil
Oil
Gas
Equivilant
(Bbl)
(Mcf)
(Boe)
Proved reserves as of January 1, 2007:
92,301
51,761
100,928
Production
(2,127
)
(3,175
)
(2,656
)
Extensions, discoveries and other additions
208
611
310
Improved recovery
2,427
635
2,533
Revisions of previous estimates (1)
(14,239
)
(25,351
)
(18,464
)
Proved reserves as of December 31, 2007:
78,570
24,481
82,651
Purchases of minerals in place
212
3,240
752
Production
(2,049
)
(4,029
)
(2,721
)
Extensions, discoveries and other additions
12
—
12
Revisions of previous estimates (2)
(30,375
)
(5,911
)
(31,360
)
Proved reserves as of December 31, 2008:
46,370
17,781
49,334
Production
(1,464
)
(2,971
)
(1,959
)
Extensions, discoveries and other additions
3,154
17,113
6,007
Revisions of previous estimates (2)
23,881
20,278
27,261
Proved reserves as of September 24, 2009
71,941
52,201
80,643
Proved developed reserves:
As of December 31, 2007
40,481
22,135
44,170
As of December 31, 2008
28,760
17,949
31,751
As of September 24, 2009
46,105
17,675
49,050
1)
The oil revision is due to a reduction in the anticipated
    performance of the Aneth field, Aneth drilling program and the
    tertiary recovery, all amounting to approximately 35% of the
    total. The majority of the remaining oil revision and the gas
    revision are attributable to performance of the Wyoming
    properties, all of which are partially offset by an increase in
    product pricing.
2)
The oil and gas revisions are attributable to the changes in
    prices of oil and gas.
3)
Includes NGL volumes.
Standardized
    Measure of Discounted Future Net Cash Flows Relating to Proved
    Oil and Gas Reserves:
The following summarizes the policies used in the preparation of
    the accompanying oil and gas reserves disclosures, standardized
    measures of discounted future net cash flows from proved oil and
    gas reserves and the reconciliations of standardized measures
    from year to year. The information disclosed is an attempt to
    present the information in a manner comparable with industry
    peers.
The information is based on estimates of proved reserves
    attributable to Predecessor Resolute's interest in oil and
    gas properties as of September 24, 2009 and
    December 31, 2008 and 2007. Proved reserves are estimated
    quantities of oil and gas that geological and engineering data
    demonstrate with reasonable certainty to be recoverable in
    future years from known reservoirs under existing economic and
    operating conditions.
The standardized measure of discounted future net cash flows
    from production of proved reserves was developed as follows:
1)
Estimates were made of quantities of proved reserves and future
    periods during which they are expected to be produced based on
    year-end economic conditions.
2)
The estimated future cash flows was compiled by applying
    year-end prices of crude oil and gas relating to Resolute's
    proved reserves to the year-end quantities of those reserves.
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Table of Contents
3)
The future cash flows were reduced by estimated production
    costs, costs to develop and produce the proved reserves and
    abandonment costs, all based on year-end economic conditions.
4)
Future income tax expenses were based on year-end statutory tax
    rates giving effect to the remaining tax basis in the oil and
    gas properties, other deductions, credits and allowances
    relating to Predecessor Resolute's proved oil and natural
    gas reserves.
5)
Future net cash flows were discounted to present value by
    applying a discount rate of 10%.
The standardized measure of discounted future net cash flows
    does not purport, nor should it be interpreted, to present the
    fair value of Predecessor Resolute's oil and gas reserves.
    An estimate of fair value would also take into account, among
    other things, the recovery of reserves not presently classified
    as proved, anticipated future changes in prices and costs and a
    discount factor more representative of the time value of money
    and the risks inherent in reserve estimates.
The following summary sets forth Resolute's future net cash
    flows relating to proved oil and gas reserves based on the
    standardized measure prescribed by FASB ASC Topic 932,
Extractive Activities — Oil and Gas
:
Period Ended
December 31,
September 24, 2009
2008
2007
(in thousands)
Future cash inflows
$
4,476,000
$
1,821,000
$
7,040,000
Future production costs
(1,663,000
)
(994,000
)
(2,282,000
)
Future development costs
(555,000
)
(265,000
)
(561,000
)
Future income taxes (1)
(10,000
)
(4,000
)
(70,000
)
Future net cash flows
2,248,000
558,000
4,127,000
10% annual discount for estimating timing of cash flows
(1,462,000
)
(310,000
)
(2,501,000
)
Standardized measure of discounted future net cash flows
$
786,000
$
248,000
$
1,626,000
(1)
Future income taxes are related to RWI's oil and gas
    properties. Aneth is a pass through entity, therefore, there are
    no future income taxes associated with its oil and gas
    properties.
The principal sources of change in the standardized measure of
    discounted future net cash flows are:
September 24,
December 31,
2009
2008
2007
(in thousands)
Standardized measure, beginning of year
$
248,000
$
1,626,000
$
1,235,000
Sales of oil and gas produced, net of production costs
(33,000
)
(147,000
)
(99,000
)
Net changes in prices and production costs
319,000
(1,432,000
)
711,000
Extensions, discoveries and other, including infill reserves in
    an existing proved field, net of production costs
8,000
—
7,000
Improved recoveries
—
—
52,000
Purchase of minerals in place
—
24,000
—
Previously estimated development cost incurred during the year
12,000
45,000
88,000
Changes in estimated future development costs
(151,000
)
163,000
(222,000
)
Revisions of previous quantity estimates
352,000
(230,000
)
(419,000
)
Accretion of discount
18,000
164,000
123,000
Net change in income taxes
(3,000
)
35,000
88,000
Changes in timing and other
16,000
—
62,000
Standardized measure, end of period
$
786,000
$
248,000
$
1,626,000
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PART II
INFORMATION NOT REQUIRED IN PROSPECTUS
Item 13. Other Expenses Of Issuance And Distribution
The expenses payable by us in connection with the offering described in this
registration statement were as follows:
SEC registration fee
$
—
Accounting fees and expenses
55,000
Legal fees and expenses
20,000
Printing expenses
6,000
Transfer agent fees and expenses
5,000
Miscellaneous fees and expenses
15,000
Total
101,000
Item 14. Indemnification Of Directors And Officers
Under Section 145 of the Delaware General Corporation Law (the "DGCL"), the Company has broad
powers to indemnify its directors and officers against liabilities they may incur in such
capacities, including liabilities under the Securities Act. The Company's Amended and Restated
Certificate of Incorporation, as amended, and Amended and Restated Bylaws include provisions to
(i) eliminate the personal liability of its directors and officers for monetary damages resulting
from breaches of their fiduciary duty to the extent permitted by Section 102(b)(7) of the DGCL, and
(ii) require the Company to indemnify its directors and officers to the fullest extent permitted by
Section 145 of the DGCL, including circumstances in which indemnification is otherwise
discretionary. Pursuant to Section 145 of the DGCL, a corporation generally has the power to
indemnify its present and former directors, officers, employees and agents against expenses
incurred by them in connection with any suit to which they are or are threatened to be made, a
party by reason of their serving in such positions so long as they acted in good faith and in a
manner they reasonably believed to be in or not opposed to, the best interests of the corporation
and with respect to any criminal action, they had no reasonable cause to believe their conduct was
unlawful.
In addition, pursuant to the Section 102(b)(7) of the DGCL, each director will continue to be
subject to liability for (1) breach of loyalty to the Company or its stockholders, (2) acts or
omissions not in good faith or which involve intentional misconduct or a knowing violation of law,
(3) any transaction from which the director derived an improper personal benefit or (4) any payment
of unlawful dividends or an unlawful stock repurchase or redemption. The provision also does not
affect a director's responsibilities under any other law, such as federal securities laws or state
or federal environmental laws.
In accordance with Section 102(b)(7) of the DGCL, Section 8.1 of the Company's charter
provides that no director shall be personally liable to the Company or any of its stockholders for
monetary damages resulting from breaches of their fiduciary duty as directors, except to the extent
such limitation on or exemption from liability is not permitted under the DGCL. The effect of this
provision of the Company's charter is to eliminate the Company's rights and those of its
stockholders (through stockholders' derivative suits on the Company's behalf) to recover monetary
damages against a director
for breach of the fiduciary duty of care as a director, including breaches resulting from
negligent or grossly negligent behavior, except as restricted by Section 102(b)(7) of the DGCL.
However, this provision does not limit or eliminate the Company's rights or the rights of any
stockholder to seek non-monetary relief, such as an injunction or rescission, in the event of a
breach of a director's duty of care.
If the DGCL is amended to authorize corporate action further eliminating or limiting the
liability of directors, then, in accordance with the Company's charter, the liability of the
Company's directors to the Company or its stockholders
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will be eliminated or limited to the fullest
extent authorized by the DGCL, as so amended. Any repeal or amendment of provisions of the
Company's charter limiting or eliminating the liability of directors, whether by the Company's
stockholders or by changes in law, or the adoption of any other provisions inconsistent therewith,
will (unless otherwise required by law) be prospective only, except to the extent such amendment or
change in law permits the Company to further limit or eliminate the liability of directors on a
retroactive basis.
Section 145(a) of the DGCL empowers a corporation to indemnify any director, officer, employee
or agent, or former director, officer, employee or agent, who was or is a party or is threatened to
be made a party to any threatened, pending or completed action, suit or proceeding, whether civil,
criminal, administrative or investigative (other than an action by or in the right of the
corporation) by reason of his service as a director, officer, employee or agent of the corporation,
or his service, at the corporation's request, as a director, officer, employee or agent of another
corporation or enterprise, against expenses (including attorneys' fees), judgments, fines and
amounts paid in settlement actually and reasonably incurred by such person in connection with such
action, suit or proceeding provided that such director or officer acted in good faith and in a
manner reasonably believed to be in or not opposed to the best interests of the corporation, and,
with respect to any criminal action or proceeding, provided that such director or officer had no
reasonable cause to believe his conduct was unlawful.
Section 145(b) of the DGCL empowers a corporation to indemnify any person who was or is a
party or is threatened to be made a party to any threatened, pending or completed action or suit by
or in the right of the corporation to procure a judgment in its favor by reason of the fact that
such person is or was a director, officer, employee or agent of the corporation, or is or was
serving at the request of the corporation as a director, officer, employee or agent of another
enterprise, against expenses (including attorneys' fees) actually and reasonably incurred in
connection with the defense or settlement of such action or suit provided that such director or
officer acted in good faith and in a manner he reasonably believed to be in or not opposed to the
best interests of the corporation, except that no indemnification may be made in respect of any
claim, issue or matter as to which such director or officer shall have been adjudged to be liable
to the corporation unless and only to the extent that the Delaware Court of Chancery or the court
in which such action or suit was brought shall determine upon application that, despite the
adjudication of liability but in view of all the circumstances of the case, such director or
officer is fairly and reasonably entitled to indemnity for such expenses which the court shall deem
proper.
Section 145 of the DGCL further provides that to the extent a director or officer of a
corporation has been successful in the defense of any action, suit or proceeding referred to in
Section 145(a) or Section 145(b) of the DGCL or in the defense of any claim, issue or matter
therein, he shall be indemnified against expenses (including attorneys' fees) actually and
reasonably incurred by him in connection therewith, provided that indemnification provided for by
Section 145 of the DGCL or granted pursuant thereto shall not be deemed exclusive of any other
rights to which the indemnified party may be entitled, and empowers the corporation to purchase and
maintain insurance on behalf of a director or officer of the corporation against any liability
asserted against him or incurred by him in any such
capacity or arising out of his status as such whether or not the corporation would have the
power to indemnify him against such liabilities under Section 145 of the DGCL.
The Company has entered into indemnification agreements with all of its directors and
executive officers. Under these agreements, the Company will indemnify its directors and executive
officers against amounts actually and reasonably incurred in connection with actual or threatened
proceedings if any of them may be made a party because of their role as a director or officer. The
Company is obligated to pay these amounts only if the officer or director acted in good faith and
in a manner that he or she reasonably believed to be in or not opposed to the Company's best
interests. For any criminal proceedings, the Company is obligated to pay these amounts only if the
officer or director had no reasonable cause to believe his or her conduct was unlawful. The
indemnification agreements also set forth procedures that will apply in the event of a claim for
indemnification thereunder.
The Company maintains insurance coverage for the purpose of providing indemnification benefits
in certain circumstances.
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Table of Contents
Item 15. Recent Sales Of Unregistered Securities
None.
Item 16. Exhibit Index
Exhibit
No.
Description
2.1†
Purchase and IPO Reorganization Agreement, dated as of August 2, 2009, among
Hicks Acquisition Company I, Inc., Resolute Energy Corporation, Resolute
Subsidiary Corporation., Resolute Holdings, LLC, Resolute Holdings Sub, LLC,
Resolute Aneth, LLC and HH-HACI, L.P. (incorporated by reference to
Annex A
to the Registration Statement in Form S-4 filed on August 6, 2009 (File No.
333-161076) (the "Initial S-4"))
2.2
Letter Agreement amending Purchase and IPO Reorganization Agreement, dated
as of September 9, 2009, among Hicks Acquisition Company I, Inc., Resolute
Energy Corporation, Resolute Subsidiary Corporation., Resolute Holdings,
LLC, Resolute Holdings Sub, LLC, Resolute Aneth, LLC and HH-HACI, L.P.
(incorporated by reference to
Annex A
to the Initial S-4)
2.3
Purchase and Sale Agreement between Exxon Mobil Corporation, ExxonMobil Oil
Corporation, Mobil Exploration and Producing North America Inc., Mobil
Producing Texas & New Mexico Inc. and Mobil Exploration & Producing U.S.
Inc. and Resolute Aneth, LLC — 75% and Navajo Nation Oil and Gas Company —
25% dated January 1, 2005 (incorporated by reference to Exhibit 2.2 to the
Initial S-4)
2.4†
Asset Sale Agreement Aneth Unit, Rutherford Unit and McElmo Creek Unit,
San Juan County, Utah between Chevron U.S.A. Inc. (as seller) and Resolute
Natural Resources Company and Navajo Nation Oil and Gas Company, Inc. (as
buyer) dated October 22, 2004 (incorporated by reference to Exhibit 2.3 to
the Initial S-4)
2.5†
Stock Purchase Agreement dated June 24, 2008, between Primary Natural
Resources, Inc. (as seller) and Resolute Acquisition Company, LLC (as buyer)
(incorporated by reference to Exhibit 2.4 to the Initial S-4)
3.1
Amended and Restated Certificate of Incorporation of Resolute Energy
Corporation, filed September 25, 2009 (incorporated by reference to Exhibit
3.1 of the Annual Report on Form 10-K filed on March 30, 2010)
3.2
Amended and Restated Bylaws of Resolute Energy Corporation (incorporated by
reference to Exhibit 3.2 of the Annual Report on Form 10-K filed on March
30, 2010)
4.1
Warrant Agreement between Resolute Energy Corporation and Continental Stock
Transfer and Trust Company dated September 25, 2009 (incorporated by
reference to
Annex D
to the Initial S-4)
4.2
Registration Rights Agreement dated September 25, 2009, among Resolute
Energy Corporation and certain holders (incorporated by reference to Exhibit
4.4 to Amendment No. 2 to the Initial S-4 filed on September 8, 2009)
5.1*
Opinion of Davis Graham & Stubbs LLP regarding the validity of the securities
10.1
Second Amended and Restated Credit Agreement dated March 30, 2010, between
Resolute Energy Corporation as Borrower and certain of its Subsidiaries as
Guarantors, Wells Fargo Bank, National Association, as Administrative Agent,
Bank of Montreal as Syndication Agent, Deutsche Bank Securities Inc., UBS
Securities LLC and Union Bank, N.A. as Co-Documentation Agents, and The
Lenders Party Hereto, Wells Fargo Securities, LLC and BMO Capital Markets as
Joint Bookrunners and Joint Lead Arrangers (incorporated by reference to
Exhibit 10.1 of the Annual Report on Form 10-K filed on March 30, 2010)
10.2#
2009 Performance Incentive Plan (incorporated by reference to Exhibit 10.7
to Amendment No. 1 to the Initial S-4 filed on August 31, 2009)
10.3#
Form of Indemnification Agreement between Resolute Energy Corporation and
each executive officer and independent director of the Company (incorporated
by reference to Exhibit 10.7 to Amendment No. 1. to the Initial S-4 filed on
August 31, 2009)
10.4††
Cooperative Agreement between Resolute Natural Resources Company and
Navajo Nation Oil and Gas Company dated October 22, 2004 (incorporated by
reference to Exhibit 9 to the Initial S-4)
10.5††
First Amendment of Cooperative Agreement between Resolute Aneth, LLC
and Navajo Nation Oil and Gas Company, Inc. dated October 21, 2005
(incorporated by reference to Exhibit 10.10 to the Initial S-4)
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Table of Contents
Exhibit
No.
Description
10.6††
Carbon Dioxide Sale and Purchase Agreement by and between ExxonMobil
Gas & Power Marketing Company (a division of Exxon Mobil Corporation), as
agent for Mobil Producing Texas & New Mexico, Inc. (Seller) and Resolute
Aneth, LLC (Buyer) dated July 1, 2006, as amended July 21, 2006
(incorporated by reference to Exhibit 10.11 to Amendment No. 1 to the
Initial S-4 filed on August 31, 2009)
10.7††
Product Sale and Purchase Contract by and between Resolute Natural
Resources Company (Buyer) and Kinder Morgan CO
2
Company, L.P.
(Seller) dated July 1, 2007, as amended October 1, 2007 and January 1, 2009
(incorporated by reference to Exhibit 10.12 to Amendment No. 1 to the
Initial S-4 filed on August 31, 2009)
10.8
Gas Sales and Purchase Contract — Conventional & Residue Gas dated April 12,
1995, between Rim Offshore, Inc., as producer, and Western Gas Resources,
Inc., as processor (Contract #6690), as amended July 27, 2006 and March 6,
2009 (incorporated by reference to Exhibit 10.13 to Amendment No. 1 to the
Initial S-4 filed on August 31, 2009)
10.9
Consent Decree, entered into June 2005, relating to alleged violations of
the federal Clean Air Act (incorporated by reference to Exhibit 10.16 to the
Initial S-4)
10.10
Consent Decree, entered into August 2004, relating to alleged violations of
the federal Clean Water Act (incorporated by reference to Exhibit 10.17 to
the Initial S-4)
10.11
Crude Oil Purchase Agreement dated August 27, 2009 between Western Refining
Southwest, Inc., as purchaser, and Resolute Natural Resources Company, as
seller (incorporated by reference to Exhibit 10.18 to Amendment No. 1 to the
Initial S-4 filed on August 31, 2009)
10.12
Form of Retention Award Agreement between Resolute Energy Corporation and
certain award recipients (incorporated by reference to Exhibit 10.19 to
Amendment No. 2 to the Initial S-4 filed on September 8, 2009)
10.13
Form of Restricted Stock Award Agreement for Non-employee Directors
(incorporated by reference to Exhibit 10.13 of the Annual Report on Form
10-K filed on March 30, 2010)
10.14#
Form of Confidentiality and Non Compete Agreement among Resolute Holdings,
LLC and certain employees dated as of January 23, 2004.
21.1
List of Subsidiaries of Resolute Energy Corporation (incorporated by
reference to Exhibit 21 of the Annual Report on Form 10-K filed on March 30,
2010)
23.1*
Consent of Deloitte & Touche LLP
23.2*
Consent of KPMG LLP
23.3*
Consent of Grant Thornton
23.4*
Consent of Netherland, Sewell & Associates, Inc.
23.5*
Consent of Davis Graham & Stubbs LLP (included in Exhibit 5.1)
24.1*
Powers of Attorney (included on signature page)
99.1
Report of Netherland, Sewell & Associates, Inc. regarding the registrant's
reserves as of December 31, 2009 (incorporated by reference to Exhibit 99.1
of the Annual Report on Form 10-K filed on March 30, 2010)
99.2
Report of Grant Thornton dated May 9, 2008 (incorporated by reference to
Exhibit 99.2 of the Annual Report on Form 10-K filed on March 30, 2010)
*
Filed herewith.
†
The Purchase and IPO Reorganization Agreement filed as Exhibit 2.1, the Purchase and
Sale Agreement filed as Exhibit 2.3, the Asset Sale Agreement filed as Exhibit 2.4,
the Purchase and Sale Agreement filed as Exhibit 2.5 and the Cooperative Agreement
filed as Exhibit 10.4 omit certain of the schedules and exhibits to each of the
Purchase and IPO Reorganization Agreement, Purchase and Sale Agreements, the Asset
Sale Agreement and the Cooperative Agreement in accordance with Item 601(b)(2) of
Regulation S-K. A list briefly identifying the contents of all omitted scheduled and
exhibits is included with each of the Purchase and Sale Agreement, the Asset Sale
Agreement and the Cooperative Agreement filed as Exhibit 2.1, 2.3, 2.4, 2.5 and
10.4, respectively. Resolute agrees to furnish supplementally a copy of any omitted
schedule or exhibits to the Securities and Exchange Commission upon request.
††
Confidential treatment has been granted for portions of this exhibit.
#
Management contract, compensation plan or agreement.
II-4
Table of Contents
Item 17. Undertakings
(A) The undersigned registrant hereby undertakes:
(1) To file, during any period in which offers or sales are being made, a post-effective
amendment to this registration statement:
(i) To include any prospectus required by Section 10(a)(3) of the Securities Act of 1933;
(ii) To reflect in the prospectus any facts or events arising after the effective date of the
registration statement (or the most recent post-effective amendment thereof) which, individually or
in the aggregate, represent a fundamental change in the information set forth in the registration
statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered
(if the total dollar value of securities offered would not exceed that which was registered) and
any deviation from the low or high end of the estimated maximum offering range may be reflected in
the form of prospectus filed with the Commission pursuant to Rule 424(b) if, in the aggregate, the
changes in volume and price represent no more than a 20 percent change in the maximum aggregate
offering price set forth in the "Calculation of Registration Fee" table in the effective
registration statement;
(iii) To include any material information with respect to the plan of distribution not
previously disclosed in the registration statement or any material change to such information in
the registration statement.
(2) That, for the purpose of determining any liability under the Securities Act of 1933, each
such post-effective amendment shall be deemed to be a new registration statement relating to the
securities offered therein, and the offering of such securities at that time shall be deemed to be
the initial bona fide offering thereof.
(3) To remove from registration by means of a post-effective amendment any of the securities
being registered which remain unsold at the termination of the offering.
(4) For the purpose of determining liability under the Securities Act of 1933 to any
purchaser, if the registrant is subject to Rule 430C, each prospectus filed pursuant to Rule 424(b)
as part of a registration statement relating to an offering, other than registration statements
relying on Rule 430B or other than prospectuses filed in reliance on Rule 430A, shall be deemed to
be part of and included in the registration statement as of the date it is first used after
effectiveness. Provided, however, that no statement made in a registration statement or prospectus
that is part of the registration statement or made in a document incorporated or deemed
incorporated by reference into the registration statement or prospectus that is part of the
registration statement will, as to the purchaser with a time of contract of sale prior to such
first use, supersede or modify any statement that was made in the registration statement or
prospectus that was part of the registration statement or made in any such document immediately
prior to such date of first use.
(B) Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be
permitted to directors, officers and controlling persons of the registrant pursuant to the
foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the
Securities and Exchange Commission such indemnification is against public policy as expressed in
the Securities Act of 1933 and is, therefore, unenforceable. In the event that a claim for
indemnification against such liabilities (other than the payment by the registrant of expenses
incurred or paid by a director, officer or controlling person of the registrant in the successful
defense of any action, suit or proceeding) is asserted by such director, officer or controlling
person in connection with the securities being registered, the registrant will, unless in the
opinion of its counsel the matter has been settled by controlling precedent, submit to a court of
appropriate jurisdiction the question whether such indemnification by it is against public policy
as expressed in the Securities Act of 1933 and will be governed by the final adjudication of such
issue.
II-5
Table of Contents
SIGNATURES
Pursuant to the requirements of the Securities Act, the registrant has duly caused this
registration statement to be signed on its behalf by the undersigned, thereunto duly authorized, in
the City of Denver, State of Colorado, on April 16, 2010.
RESOLUTE ENERGY CORPORATION
By:
/s/ James M. Piccone
Name: James M. Piccone
Title: President, Secretary and General Counsel
POWER OF ATTORNEY
Each person whose signature appears below appoints James M. Piccone, Nicholas J. Sutton and
Theodore Gazulis, and each of them, his true and lawful attorney-in-fact and agent with full power
of substitution and re-substitution, for him/her and in his name, place and stead, in any and all
capacities to sign any or all amendments (including, without limitation, post-effective amendments)
to this Registration Statement, any related Registration Statement filed pursuant to Rule 462(b)
under the Securities Act of 1933 and any or all pre- or post-effective amendments thereto, and to
file the same, with all exhibits thereto, and all other documents in connection therewith, with the
Securities and Exchange Commission, granting unto said attorney-in-fact and agent, full power and
authority to do and perform each and every act and thing requisite and necessary to be done in and
about the premises, as fully for all intents and purposes as he or she might or could do in person,
hereby ratifying and confirming that said attorney-in-fact and agent, or any substitute or
substitutes for him, may lawfully do or cause to be done by virtue hereof.
Pursuant to the requirements of the Securities Act of 1933, this registration statement has
been signed by the following persons in the capacities and on the dates indicated.
Signature
Title
Date
/s/ Nicholas J. Sutton
Nicholas J. Sutton
Chief Executive Officer
(Principal Executive
Officer) and Director
April 16, 2010
/s/ Theodore Gazulis
Theodore Gazulis
Vice President of
Finance, Chief Financial
Officer and Treasurer
(Principal Financial and
Accounting Officer)
April 16, 2010
/s/ James M. Piccone
James M. Piccone
President and Director
April 16, 2010
/s/ Kenneth A. Hersh
Kenneth A. Hersh
Director
April 16, 2010
/s/ Richard L. Covington
Richard L. Covington
Director
April 16, 2010
/s/ William J. Quinn
William J. Quinn
Director
April 16, 2010
/s/ William H. Cunningham
William H. Cunningham
Director
April 16, 2010
/s/ Thomas O. Hicks, Jr.
Thomas O. Hicks, Jr.
Director
April 16, 2010
/s/ Robert M. Swartz
Robert M. Swartz
Director
April 16, 2010
/s/ James E. Duffy
James E. Duffy
Director
April 16, 2010
II-6