UNITED STATES BANKRUPTCY COURT DISTRICT OF DELAWARE

In re: Pacific Energy Resources Ltd. Debtor

Case No. 0910785 Reporting Period: December 2010 MONTHLY OPERATING REPORT

. .

. .........-

. .

Jj

oeqt.:

. .. Schedule of Cash Receipts and Disbursements Bank Reconciliation (or copies of debto?s 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

REQUiRED DOCUMENTS:

Exp!nn(in Mf.daviUSuppicrnent NIA

N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A

. Fiirm MOR-1 MOR-la MOR-Ib -:: - .. 7.7. MOR-2 MOR-3 MOR-4

MOR-4 MOR-4 MOR-5 MOR-5

N/A __________ N/A N/A N/A N/A N/A I N/A N/A I N/A N/A N/A N/A N/A I N/A I N/A N/A / N/A

I declare under penalty of perjury (28 U.S.C. Section 146) that this report and the attached documents are true and correct to the best of any knowledge and belief.

Signature of Debtor

Date

Signature of mt Debtor

Date

Signaturiof AAlho -(9d1nd1dd -ual*

January 21. 2011 Date

Gerry Tywoniuk Printed Name of Authorized Individual

Plan Representative Title ofAuthorized Individual

Authorized individual must bean officer, director or slsaaetio!der ifdebor is a corporation; a partner ildebtor is a partnership; a manager or member if debtor is a limited liability company.

MOIc

F1ISBURSEMENTS

TRANSFERS TOLOCKBOX

TRANSFERS TO PAYROLL AND FLEX TRANSFERS TOFSAO

TRANSFERS TO OPERATING

TRANSFERS TO SEGREGATED TRANSFERS TO TRANSITION

TRANSFERS TO BETA OPERATING(A) 401 (K)

INTEREST

DEBT PAYMENTS

TOTALDISBURSEMENTS

NETCASNPLOW

(RECEIPTS LESS DEIBURSEMENTS)

CASH-END OF MONTH

TOTAL DISBURSEMENTS

- . -- - - -- - -- -- . - -- - - - - - - - --_ .()PERATINGEXPEI4SE. S -- . -- -- - -- .- -- .-- -- -- - - - --- - -- -- -- -- -- - - - - -- PAYMENTS - -- - - -- -- --- -- -- --- -- --_ _ - _II _ _ __ . . .4I.r_IM-.-.(---_ _-I ,. ..
CASH SALES LOANS AND ADVANCES TRANSFERS 128 OTHER 9,163 424 TOTALRECEIPTS 9,153 128 424

128 9,567

112,640,507

39,567,407 12,521.375

9,714
.;;. __.,. _,.

_______..

.......".
256,027

::.

... . . :

.:_,r.

..... ....., , .

":......

-..

.. __,...

....

271

256,298

128

128

-. 256425

256,155

271

(246992)

(143)

424

3.688447

I_I_1971_. 1
VUA 1

-I_-

I -L1,405,778 _I_1,144

(246711)

, -_
...........":
"

285,782,649

135,692,574

7,808,878 1,733,540

4219,321 12,607.859 8,036.013 8,028,162 0,900,000 781,606

5,150,467

70,700.699

261,665,119

4117530

5,093.56411_5,093,564
.........

..-,,z.,--i---.---..,.
oO.o

U____

T_r EKIYPES.M r

... ..

rcu)vCNACrTJAL(3)131y

.,".:. ,.

.,.," ______.;....

256425 (1281

1.555! TRANSFERS TO DEBTOR INPOSSRSSIOHACCOUNTS PLUS: ESTATE DISBURSEMENTS MADE BY OUTSIDE SOURCES(i from cscrow accoOnE)

261,665119 (49,333,773)

TOTAL DISBURSEMENTS FOR CALCULATING U.S. TRUSTEE QUARTERLY FEES (A) TranoforsoBsto Optmxiog company.

256,298

212,331,346

FORM NOR.)

(04107)

In re: Pacific Energy Resoijmvs Ltd, Debtor

CaseNo, 09-10785 Reporting Period: December 2010

BANK RECONCILIATIONS
CoiitrnuMon Slicci for MOR.I

BALANCE PEP BOOKS BANK BALANCE

IL

525tIOsoe

#292I6ccc

339316csc,

5O4tptoc

976059c.

760591occ

9760591occe

074$204oee

#=Xlco

sceoce,

0893687occ<

686,447 3,788,243
-

,-

. 197
-

., -,
-

- .
-

--

1,405,776

1,144 1,144
-

5,093,564

(+) DEPOSITS IN TRANSIT

(-) OUTSTANDING CHECKS rJTE41w RECONCILING ITEM

1,405,776
-

5,195,360
-

(101,796) 3,686,447
()

(10I.796 5,093,564
-

ADJUSTED BANK BALANCE

Adjusted bank balnncc must equal baIane per books

197 (0)

1,405,776
-

11144
-

FORM MOlt-I, (04?07)

In re: Pacific Energy Resources Ltd.

Debtor

Case No. 09-10785 Reporting Period: December 2010

SCHEDULE OF PROFESSIONAL FEES AND EXPENSES PAID

Paye

:.

:PerioiCoVered.. Feb-10 May-09 Nov-09 Oct-09 Dec-09 Mar-09 Jun-AugO9 Mar-Apr-09 May09 Nov-09 Dec-09 June-10 Sept-Dec-09 Sep-Dec 2009 May-09 Dec-09 Dec-09 Nov-10 August-10 Sept-10 Sept-10 Oct-10 Aug-09 Sep-1 0 Aug-10 Nov-Dec-09 Sept-10

Amou: 1 Approd.

Qeck Rayr. Fiurrther Dat .. PER PER PER PER PER PER PER PER PER PER PER PER PER PER PER PER PER PER PER PER PER PER PER PER PER PER PER

1 Fs 202,146 2,500 54,686 981,341 72,464

-

Exp.enses 10,428
-

Andrews Kurth LLP Archon Group Ashby &Geddes Bingham McCutchen LLP Birch, Horton, Bittner and Cherot Budget Printing Deloitte Devlin Jensen ERM-West 1-lartig Rhodes Haynes& Boone Jensen Lunny Lazard Loeb & Loeb Margaret M. Otico - Notary Public Merrill Millstream Omni Management Group Pachulski Pachulski Pepper Hamilton Pepper Hamilton Reed W. Ferri[ Rutan Schully Skadden, Arps, Slate Steptoe&Johnson

174,544 43,343 8,526 62,500 606,071 89,590 526,104 37.997

-

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

,

3,143 10,811 8,440 7,733 25 40

-

2.374 82.688 99.372 3,862 9.718

10655 10642 10656 10643 10652

12121/10 12/01/10 12/21/10 12/01/10 12107110

2,374 67,384 84 855 3,584 9,402

,

7,391 12,185

10645 10654

12/01110
_ _____

7.391 12,172

12/15/10

20,987 203,269 171,639 15,304 14,517 2,745,923 278 199.698 316 . 77,315 765,829 803,274 2.184,961 12

8,877 93.661 333,679 11,511 1,231 5,163 13,291 53.875

FORM MOR-Ib (04/07)

In re: Pacific Energy Resources Ltd. Debtor

SCHEDULE OF PROFESSIONAL FEES AND EXPENSES PAID

Case No. 09-10785 Reiortin Period: December2010

Period__ Cveied_______________I Steptoe&Johnson Stokes &Spiehier Tetra Tech USTrustee WarrenHSmith Windes Zolfo Cooper Oct-10 Jul-09 April -May-09 July-Sept 2010 Sep-10 Sep-IC Feb-1 0,Mar-09adj

:Appioyed
11,996

Ciok .PSor ;tJumber- ;Dae.

PER PER PER PER PER PER PER 10658 12/21/10

;n6ubtid.. i-h.
Ee , 11,665 Exenses.

-:.

-.,-.YearTo-iDafe.
-

______ffees

Expenses 30,382 3,712 604

-

331

800.418 17,900 8,910 167,850 157,386 16,000 2,203,162

1,686
-

200,564

Total paid

$229,587

$198,827

$30,760

$13,396,331

$874,273

FORM OR-1b (04/07)

In re: Pacific Energy Resources Ltd. Debtor

(Income Statement)

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

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.....

:
.

Cuniute.
$ -

RFNENUFS

..

..

Oil and gas production revenue Royalties Net Revenue OPATI EXP{SES Repairs and maintenance laries/commissions/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 Reorganization Items EROANE 2 AT1ON XTMS Professional Fees Income taxes Net Profit (Loss)

I$ I
17

:1 .

in

65.984.197 (20,320,358) 45,663,839 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 9,540,896 6,987,767 8.473,604 (4,983,624) (16,072,916) (4,947,575) (1,408,502) 2,928,633 721,461 (16,449) 22,177 2,708,881 138,505,435 98,049,077 457,176 9,584 224,446,961 14,140,202 5,803 210,300,956

159,920
-

(159,920)
-

587 2,009
-

9,000
-

(148,324)
$

(148,324) S

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: December 2010

BALANCE SHEET

:
Ascrc
.CIIRRRNlASSEiS IUnrestricted Cash and Equivalents (Restricted Cash and Cash Equivalents Accounts Receivable (Net) Inventories Prepaid Expenses IProfessional Retainers Ether Current Assets (See Attached Schedule) OTALCURRENTASSBTS :-.- .. S

opXyALJATElD(w. i

c-iiitritixi
3,686,644 1,406,920
-

373,214 410,961,052 416,427,830

-

JProved Properties Including Lease and Well Equipment In Process Development lUnproved Properties Office Equipment and Software Vehicles Other Equipment and Leasehold Improvements Less Accumulated Depreciation TOTAL PROPERTY & EQUIPMENT

OtHRASSRTS

..

k.

Lother Assets (Sec Attached Schedule)

68,243,089

TOTA

.--

...

484,6i0f9

I.T&It,ITJESANftO%EREQU1rY1.1AnIt.rIIsNnTsulItTIerrc. C IPflesItSv antnI;,i

Accounts Payable and Accrued Liabilities Taxes Payable Wages Payable Notes Payable - Debtor-in-possession financing Payable to Rise Energy/Silverpoint Secured Debt / Adequate Protection Payments Professional Fees Intercompany Payables Asset Retirement Obligations Accrued Interest Other Liabilities TOTAL POSTPETITION LIABILITIES wed Debt Pfioriry Debt Unsecured Debt Intercompany Payables TOTAL PRE -PETETIONLIABILITIES TOTAL LIABILITIES
.

586,295
-

14,191,868
-

14778,164
-

1.
-.

7,778,626 92,190,809

. J

.. fs
$

114747,599 20,547 48,493,822 34,318,514 213,954,337

-

Share Capital Contributed Surplus Warrants Additional Paid In Capital Accumulated Other Comprehensive Loss artners Capital Account Owners Equity Account Retained Earnings - Pre-Petition Retained Earnings- Poslpetition Adjustment to ownerEquity (attach schedule) oslpcition Contributions (Distributions (Drawn) (attach schedule) NET SHAREHOLDERS EQUITY

(137,165,6081 210,301,707

S
$ -

369,923,320 484 1Q 9191

, TO TALLLB11r1ESANb OWNERS EQ1J11Y

FORM Molt-S

In re: Pacific Energy Resources Ltd. Debtor

Case No. 09-1078S Reporting Period: December 2010

BALANCE SHEET - continuation sheet

1OOkVAIIIFA1ThDO CIJIpFNTRFPOIt i lONTJ( $

ASCT$

Other Current Mstts Intercompany Receivables Derivative Assets Advances Other Receivables Total Other Current Assets OtierAssets Performance Bonds Investments-Abandonment Investments-CAC Investments-San Pedro Investments-PEAH Total Other Assets
--

T1 0,961,052 -

$ -

410,961,052
-

6,125,000
$

62,118,089 68,243,089

FORM MOR-3 COrXD (O1fO)

In re: Pacific Energy Resources Ltd. Debtor

Case No. 09-10785 Reporting Period: December 2010 STATUS OF POSTPETITLON TAXES

.
-

Heginnng

MnOtmt

rx
I iabili(y

W,J,) oAccrued 1

Amount

[Withholding IFICA-Employee FICA-Employer [Unemployment Income Total Federal Taxes

See Attestation of Regard Postpetition Taxes

L and ocaI Sfate

7-77

Withholding Sales Excise Unemployment Franchise Taxes Personal Property Total State and Local Total Taxes

SUMMARY OF UNPAID POSTPETITION DEBTS

. I

. -

- .;

.2;

.................

2..VU

2... z-vstvu:

22,2:2

kSJ.Y

U-

Accounts Payable Accrued Royalties Accrued Operating Expenses AccruedORRls Total Postpetition Debts

109,454
-.

5,394

19,590
-

203,776
-

338,214
-

90,706
-

200,160

I 28,773 -I 34,167
-

107,016 -.
126,605

21,597 225,363

248,082
586,295

FORf MOR-4 (O4/O)

In re: Pacific Energy Resources Ltd. Debtor

Case No. 09-10785 Reporting Period: December 2010

ACCOUNTS RECEIVABLE RECONCILIATION AND AGING

...;. 0-30 days old 31-60 days old 61-90 days old 91+ days old Total Accounts Receivable Amount considered uncollectible (Bad Debt) Accounts Receivable (Net)

midiffit
-

DEBTOR QUESTIONNAIRE
Must be comIeted each month
1. Have any assets been sold or transferred outside the normal course of business this reporting period? If yes, provide an explanation below Sale completed December 2009per court docket 41239.
-

Yes/No No

2. Have any fluids been disbursed from any account other than a debtor in possession account this reporting period? If yes, provide an explanation below. 3. Have all postpelition tax returns been timely filed? If no, provide an explanation below. 4. Are workers compensation, general liability and other necessary insurance coverages in effect? If 110, provide an explanation below. Note: We carry only fiduciary liability insurance. Company has no employees. 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-5 (0410?)

0
January 21, 2011 Office of the United States Trustee

PACIFIC ENERGY

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.

Gerry TYwonifik. Plan RFsentative

State of California County of Los Angeles Subscribed and sworn to (or affirmed) before me on this 21st day of January, 2011 by _____ proved to me on the basis of satisfactory evidence to be the person(s) who appeared before me.

Gail,Ropp, Notary PubU

A& " -

,-,--/ /

My commission expires

GAIL ROPP COMMISSION # 1757533 Nolary Public - California LOS ANGELES COUNTY
My Comm. Expires July 16.2011

Pacific Energy Resources Ltd, 111 West Ocean Blvd., Suite 1240 Long Beach, CA 90802, Ph: 562-628-1526 Fax 562-628-1536

PACIFIC ENERGY

January 21, 2011

Office of the United States Trustee

Subject: Attestation of Regard PostDetition 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.

Gerry Tywoniu/, Plan Representative

State of California County of Los Angeles Subscribed and sworn to (or affirmed) before me on this 21st day of January, 2011 by

cLcRY TYIiR?Iu/Ok , proved to me on the basis of satisfactory evidence to be the person(s) who
appeared before me.

GaJ1Ropp, Notary Fullic

GAIL COMMISSION # 1757533 Nolary Public - CaIiIoqnja LOS ANGELES COUNn MyCm Expires i6ii

My commission expires

C) A.

Pacific Energy Resources Ltd, 111 West Ocean Blvd., Suite 1240 Long Beach, CA 90802, Ph: 562-628-1526 Fax: 562-628-1536