UNITED STATES BANKRUPTCY COURT DISTRICT OF DELAWARE Case No.

09-10785 Reporting Period: September 2010 MONTHLY OPERATING REPORT

In re: Pacific Energy Resources Ltd. Debtor

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Schedule of Cash Receipts and Disbursements Bank Reconciliation (or copies of debtors bank reconciliations) Schedule of Professional Fees Paid Copies of bank statements Cash disbursements journals Statement of Operations Balance Sheet Status of Postpetition Taxes Copies of IRS Form 6123 or payment receipt Copies of tax returns filed during reporting period Summary of Unpaid Postpetition Debts Listing of aged accounts payable Accounts Receivable Reconciliation and Aging Debtor Questionnaire

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Atlached.
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Attached
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I declare under penalty of perjury (28 U.S.C. Section 1746) that this report and the attached documents are true and correct to the best of my knowledge and belief.

Signature of Debtor

Date

Signature of Joint Debtor

Date

L /

Signature of Authorized Individual

October 27,2010 Date

Jennifer Kuntz Printed Name of Authorized Individual

Treasurei Title of Authorized Individual

is a partnership; a manager or member if debtor is

individual must be an officer, director or shareholder ifdebior is a corporation; limited liability company.

a partner ifdeblor

MOR
(OIJD7)

In re: Pacie Eiiergv Resourccs U. Debtor

SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS

..- --:.

V. -..........

2591

267

111,308

1.403.951

1144111

608930711

9760341

(AS}( SALES LOAMAND ADVANCES TRANSFERS OThER TOTAL RECEIPTS 3298 55 3,351
-

321

_________
-

______________.
-

3,617 516 4.134

t44

39,086299 12,472775 285232,940

462 462

321

-2

w
134,974,444 7,808,878 1,732,671 4219,321 12,607,618 8,036013

)PESA1GEXPEHSES 3(SPERSTO LOCKBOX TRANSFERS TO PAYROLL AND FLEX TRANSFERS TOPEAO TRANSFERS TOOPERATING 1?.ANSESTOSEGREGfi2 TRANSFERS 7OTRANSITION TEA SPERS TO BETA OPEP.AIING 401(X) IN1BSTPAYMENTS DEBT PAYMENTS OTALDISBURSEMENIS

218 359
-

337
-

14
-

111.3
-

_______- ______-

330.01711

321
-

_____________. -

___________
321
-

_________-

______
-

____________337 q l41

___
-

__________
__________-

6,400000

5,156,467
-

218.680

111,206

330.338

260,445,881

............................. NET CASH FLOW (215.329) (15

)1

_J1

(111.308)

462

(326.205)

4,787.0594

_____

_____ ____ ____

-

________ ________
.

sft -

OF MONTH

I u.o- I

263

25.4

1 _.,_ ______- I

______

i A A A A ll

1,144

11

5,763,102

11

57o93]

OTALDISBURSEMEN1S I _____ I LESS TRANSFERS TO DEBTOR IN POSSESSION ACCOUNTS PLUS: ESTATE DISBURSEMENTS MADE BY OUTSIDE SOURCES (i.e from meroWaccowlm rnTAL DISBURSEMENTS FOR CALCULATING U.S. TRUSTEE QUARTERLY FEES
(F) Trang&c ioBoM Operating company

_____ ____ - ______ ______ _____ - ______ ______ _____ -

330.338 3X),j7

280.44555i4 (48,832.684)! 211.613216 i

FORM MOE-i
(0017)

In re: Pacific Enerv Resources Ud. Debtor BAIK1UCONC1L1AT1ONS

Con inotioo Sheet for MOB-I

CaseNo, 09-10785 Reordng Period; September 201k

IBALANCE PBRBOOKS

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#525510,000.

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#329210,0000 #329216,000c #804S8000,

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59r.00O. #760591,000.
6760591,000,

iCD"
#740204,0,0. #122301,0,0.

1 5,763,102 5,763,102 5.763,102

4,357,048 4,357,048 _________4,357,048

4-

-[ -

243 243 243 (0)

254 254 -

-[ -

(0) 1,404,4131 0 ,404,41 1,404,413 -

1.1441 1,144 1,144

BANK BALANCE (+) DEPOSITS IN TRANSIT (-) OUTSTANDING CHECKS INIDETIFIED RECONCILING ITEM 6.DJIJSTED BANK BAWOCE Adjusted bonk b alance m ust eqoal

254 ____- _____(0) -

bi[ancopeoboolcs

FORM MOO-b

In re:

Pacific Energy Resources Ltd.

Debtor

Case No. 09-10785

Reporting Period: September

2010

SCHEDULE OF PROFESSIONAL FEES AND EXPENSES PAID

_6
Andrews Kurth LLP Archon Group Ashby & Geddes Bingham McCutchen LLP Birch, Horton, Bittner and Cherot Budget Printing Deloitte Devlin Jensen ERM-West Hartig Rhodes Haynes & Boone Jensen Lunny Jensen Lunny Lazard Loeb & Loeb Margaret M. Otico - Notary Public Merrill Millstream Omni Management Group Pachuiski Pepper Hamilton Reed W. Ferril Rutan Schully Skadden, Arps, State Feb-10 May-09 Nov-09 Oct-09 Dec-09 Mar-09 Jun-Aug09 Mar-Apr-OS May-09 Nov-09 Dec-09 June-10 June-10 Sept-Dec-09 Sep-Dec 2009 May-09 Dec-09 Dec-09 Aug-10 June-10 Jul-10 Aug-09 Jun-10 Jun-10 Nov-Dec-09

W."

____ * 01,4

WREMPIMM
202,146 2,500 54,686 981,341 72,464

PER PER PER PER PER PER PER PER PER PER PER PER 15,750 124 PER PER PER PER PER PER 13.585 85.938 5,916 PER PER PER PER PER 1,461 6.779 PER PER 10588 10571 10594 10581 10572 09115/10 09101110 09/21110 09/08110 09101110 12.667 79,511 5,542 1,424 6,779 919 6,428 374 37

10,428

1,850 41,197 2,101 1,709 12,408 16,151

174,544 43,343 8,526 52,500 606,071 10570 10575 09101/10 09/01/10 15,750 124

3,143 10,811

89,590 526,104 37 997

,

8,440 7,733 25 40

20,987 203,269 156,446 2,476,895 176.078 77.315 692,250 779,596 2,184,961

8,877 89,972 298,523 10,745 1,231 5,118 13,171 53,875

FORM MOR-ib (04/07)

In re: Pacific Energy Resources Ltd. Debtor

Case No. 09-10785 Reporting Period: September 2010 SCHEDULE OF PROFESSIONAL FEES AND EXPENSES PAID

Off
Stptoe & Johnson
Stokes & Spiehler Tetra Tech US Trustee Warren H Smith Windes Zolfo Cooper May-10 Jul-09 April-May-09 Apr-Jun 2010 June-July-IC Sep-10 Feb-10, Mar-09 adj 325 18,466 16,000 PER PER PER PER 1 10574 PER 10582 PER 10593 PER 09/01110 09/08/10 09121/10 325 18,134 16,000 723,778 17,900 8,910 156,475 136,077 333 16,000 2,203,162

150M 29 700
.

3,712 604 1,418 200,564

Tota l paid

$164,345.93

$156,256.23

$8,089.70

$12,881,909.66

$833,547.48

FORM MOR-Ib (04/07)

In re: Pacific Energy Resources Ltd. Debtor

(Income Statement)

Case No. 09-10785 Reporting Period: September 2010 STATEMENT OF OPERATIONS

lOil and gas production revenue IRoyalties Net Revenue

1$ I

65,984,197 (20,320,358 45,663,839

i\c
-

Repairs and maintenance jlariesfcommissions/fees Transportation expense Utilities Insurance Employee benefit programs Taxes - production Gravity adjustment Rent and lease expense Travel and entertainment Supplies Management fees/bonuses Taxes - payroll General and administrative Depreciation, depletion and amortization Net Profit (Loss) Before Other Income & Expenses Interest expense - cash Interest expense - noncash Stock compensation expense Accretion of discounts and amortization of deferred financing costs Realized gain/(loss) on derivatives Interest income Other revenue General exploration expense Wind down funding Gain on Beta sale Debt forgiveness Loss from nonconsolidated subsidiary Gain/loss on settlement of claims Net Profit (Loss) Before Reoranization Items

243,554
-

(243,554)
-

5,071,659 4,943,324 3,514,277 3,319,812 1,989.526 1,201,633 51,656 117,664 225,060 11,412 22,010 156,136 37,401 9,157,558 6,987,767 8.856,943 (4,983,624) (16,072,9) (4,947,575) (1,408,5) 2,928,633 719,885 (25,804) 22,177 2,708,881 138,520,567 98,049,077 457,176 9,584 224,834,500 14,140,202 5,803 210,688,495

92 (13,324)
-

327,773
-

70,987
$

GTXQNTM:Sts
Professional Fees Income taxes Net Profit (Loss) 70,987
$

Note: The cumulative income statement above includes the Companys activity for the entire month of March 2009. The Company filed for Chapter 11 protection on March 9, 2009.

FORM MOR-2
(04/07)

In re: Pacific Energy Resources Ltd. Debtor

Case No. 09-10785 Reporting Period: Splember 2010

BALANCE SHEET

IWO
Unrestricted Cash and Equivalents Restricted Cash and Cash Equivalents !counts Receivable (Net) Inventories Prepaid Expenses Professional Retainers Other Current Assets (See Attached Schedule) TOTAL CURRENT ASSETS Proved Properties Including Lease and Well Equipment In Process Development Unproved Properties 0111cc Equipment and Software Vehicles Other Equipment and Leasehold Improvements L,ess Accumulated Dcpiecration TOTAL PROPERTY & EQUIPMENT (ir Assets (See Attached Schedule)
$

4,357, 1,405,557
-

$ $

373,214 432,032,421 438 168 737

68,243,089

IThA
8 counts Payable and Accrued Liabilities TaxesPayable Wages Payabe INotes Payable - Debtor-in-possession financing [Payable to Rise Energy/Silverpoint Secured Dcbtl Adequate Protection Payments Professional Fees Fees Ilnercompany Payables IAsset Retirement Obligations Accrued Interest lOther Liabilities ITOTAL POSTPETITION LIABILITIES
$

1*

842,490
-

35,285,515
$

36,128,005

CtS S
Secured Debt Priority Debt Unsecured Debt fntercompanyPayables TOTAL PRE-PETITION LIABILITIES

reltfthi)

ir,

I
1

IS
S S

7,782,153 92,190,809 99 972962 136,100,966 20,547 36,905,612 213,954,337

-

TOTAL LIABILITIES Share Capital Contributed Surplus Warrants Additional Paid In Capital Accumulated Other Comprehensive Loss Partners! Capital Account Owners Equity Account Retained Earnings - Pre-Petition Retained Earnings - Postpetition Adjustment to owner Equity (attach schedule) Postpeition Contributions (Distributions (Draws) (attach schedule) NET SHAREHOLDERS EQUITY . 31

(137,I65,608 210,689,246
-

S
,
i" ,
-(

370,310,859
r

FoRMscsR-,

In re: Pacific Energy Resources Ltd. Debtor BALANCE SHEET - continuation sheet

Case No. 09-10785 Reporting Period: September2010

Intercompany Receivables Derivative Assets Advances Other Receivables Total Other Current Assets

Is
$

432,032,421
-

432,032,421

iAs

Performance Bonds i nvestments-Abandonment I nvestments-CAC investments-San Pedro Investments-PEAH Total Other Assets

1iL.L

LJ
-

6,125,000
$

62,118,089 68,243,089

FORM MOR-3 CONrO (04 07)

In re: Pacific Energy Resources Ltd. Debtor

Case No. 09-10785 Reporting Period: September 2010 STATUS OF POSTPETITION TAXES

Withholding

See Attestation of Regard Postpetltion Taxes

Unem ployment
Income Total Federal Taxes
......{

Withholding Sates Excise unemployment franchise Taxes ,Personal Property Total State and Local Total Taxes

SUMMARY OF UNPAID POSTPETITION DEBTS

, "010
Accounts Payable Accrued Royalties Accnied Operating Expenses Accrued ORRIs Total Postpetitiou Debts 98.035
-

/6f91k

Over 90

lofal
-

i -

28,002
-

328,244 30,088
-

454,281 388,209
-

205,451
-

130,206
-

22.464
-

303,486

130,206

50,465

358,332

842,490

FORM MOR-4 (04/07)

In re: Pacific Energy Resources Ltd. Debtor

Case No. 09-10785 Reporting Period: September 2010

ACCOUNTS RECEIVABLE RECONCILIATION AND AGING

0-3o days old 31-60 days old 61-90 days old 91+ days old Total Accounts Receivable Amount considered uncollectible (Bad Debt) Accounts Receivable (Net)

DEBTOR QUESTIONNAIRE

Have any assets been sold or transferred outside the normal course of business this reporting period? If yes, provide an explanation below.

No

Sale completed December 2009 per court docket #1239.

2. Have any funds been disbursed from any account other than a debtor in possession account this reporting period? If yes, provide an explanation below. 3. Have all postpetition tax returns been timely filed? If no, provide an explanation below. 4. Are workers compensation, general liability and oilier necessary insurance coverages in effect? If no, provide an explanation below. Note: We carry only fiduciary liability insurance. Company has only one employee. Workers comp not requred. 5. Has any bank account been opened during the reporting period? If yes, provide documentation identifying the opened account(s). If an investment account has been opened provide the required documentation pursuant to the Delaware Local Rule 4001-3.

No Yes Yes

No

FORM MOR-3
(04/07)

PACIFIC ENERGY

October 27, 2010

Office of the United States Trustee

Subject: Attestation Regard Bank Account Reconciliations The debtor, Pacific Energy Resources Ltd., hereby submits this attestation regarding bank account reconciliations in lieu of providing copies of bank statements and copies of all account reconciliations. The debtor has, on a timely basis, performed all bank account reconciliation in the ordinary course of its business. Copies of bank account statements and reconciliations are available for inspection upon request by the United States Trustees Office.

JrKuri, Treasurer

State of California County of Los Angeles

,

Subscribed and sworn to (or affirmed) before me on this 27th day of October, 2010 by
J/JAf/F/_-7L k0Q/F2.. , proved to me on the basis of satisfactory evidence to be the person(s) who

appeared before me.

My commission expires
GAIL ROPP COMMISSION # 1757533 Nolary Public. Carilorrila Z. LOS ANGELES COUNTY
My Comm. Eaprosiuly 16, 2011

Pacific Energy Resources Lid, ill West Ocean Blvd., Suite 1240 Long Beach, CA 90802, Ph: 562-628-1526 Fax: 562-628-1538

PACIFIC ENERGY

October 27, 2010

Office of the United States Trustee

Subject Attestation of Regard Postpetition Taxes The debtor, Pacific Energy Resources Ltd., hereby submits this attestation regarding postpetition taxes. All postpetition taxes for the debtor, which are not subject to dispute or reconciliation, are current. There are no material tax disputes or reconciliations.

JeAifer

State of California County of Los Angeles

Je,IN,pr?.

Subscribed and sworn to (or affirmed) before me on this 27th day of October, 2010 by kf/rz , proved to me on the basis of satisfactory evidence to be the person(s) who appeared before me.

ftbYlu -GMLROPP

My commission expires

COMMISSION #1157533 Notay Public - California

LOS ANGELES COUNTY My Comm. Expires July 16,20 11

Pacific Energy Resources Ltd, 111 West Ocean Blvd., Suite 1240 Long Beach, CA 90802, Ph: 562-628-1526 Fax: 562-628-156