Crimson Exploration

Capex

Production

Production for the fourth quarter of 2007 was 4,773,603 Mcfe of natural gas equivalents, or 51,887 Mcfe per day, compared with production of 726,516 mcfe, or 7,897 per mcfe day, in the 2006 quarter. Production for the year 2007 was 13,236,403 Mcfe of natural gas equivalents, or 36,264 Mcfe per day, compared with production in 2006 of 2,651,709 Mcfe, or 7,265 Mcfe per day, an increase of roughly 399%. The dramatic increase in production for the quarter and year is attributable to the STGC Acquisition.

Crimson produced approximately 727,000 mcfe of natural gas equivalents during the fourth quarter of 2006, and 2,652,000 mcfe for the year, compared to approximately 563,000 mcfe and 2,549,000 mcfe during the fourth quarter and year, respectively, in 2005. Production for the fourth quarter of 2005 was negatively impacted by the effects of Hurricane Rita. Exclusive of the effect of Hurricane Rita in the 2005 quarter production, the 2006 quarter was up 4%.

Reserves

Crimson's total proved reserves at December 31, 2007 are estimated at 130.2 billion cubic feet ("Bcf") of natural gas equivalents, consisting of approximately 2.9 million barrels of crude oil and 112.8 Bcfe of natural gas and natural gas liquids, as engineered by Netherland, Sewell and Associates, Inc., the Company's independent, third-party engineering firm. This compares to total proved reserves of 46.4 Bcfe at December 31, 2006. Approximately 78% of proved crude oil reserves, 75% of natural gas and natural gas liquids reserves, and 75% of natural gas equivalents were classified as proved developed at the end of 2007. The present value, using a 10% discount rate on the future net cash flows before income taxes, of the estimated total proved reserves at the end of 2007 is approximately $531 million, based on the December 31, 2007 West Texas Intermediate posted price of $92.50 per barrel for oil and natural gas liquids, and the posted Henry Hub spot market price of $6.795 per Mcf for natural gas, adjusted for average energy content, transportation fees and regional price differentials.

Crimson's total proved reserves at December 31, 2006, as estimated by its independent reservoir engineering firm, were 2.5 million barrels of crude oil and 31.4 million mcf of natural gas, or 46.4 million mcf of natural gas equivalent (based on a conversion ratio of 6 mcf of natural gas per barrel of oil), with an estimated SEC net present value, using 2006 year-end prices and discounted at 10%, of $102.4 million. Year-end reserves were 32% crude oil and 68% natural gas.

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