UNITED STATES BANKRUPTCY COURT DISTRICT OF DELAWARE In re: Pacific Energy Alaska Operating, LIC.

Debtor MONTHLY OPERATING REPORT RpflIJ1TilI)nneIlMINIq

Case No. 09-10789 Reporting Period: June2010_

. MOR-1 MOR- la MOR- Lb

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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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MOR-2 MOR-3 MOR-4

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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

SiTpiature of

Individual*

August 2, 2010 Date

Jennifer KuriIz Printed Name of Authorized Individual

Treasurer Title of Authorized Individual

Authorized individual nnol be an officer, director or shareholder

is a partnership; a manager or member ildeblor is a limited liability company.

if dcbtor is

corporation; a partner ifdeblor

MOR (Olfl)

Iiir e : Pacific Enenv Alaska OpeIaCin, LLC,

Dthlor

Case No. 09-10789 Reporting Pejiod: June 2010_

SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS

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ccour1rs

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Kfl0X. ASIBGINNNC.OIlPEB4OD.
RECEDTS
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SRM

USID. :.

P.CAS1(
.

ACWAI..

ACTU.

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.

1.586501
. .. . ..
. ...:-...........:

:
-

..

..
.y..

CASH SALES

10,196,665

LOANS AND ADVANCES

TRANSFERS TRANSFERS FOR ESCROW OTHER
-

4.484.017
6,831M12 7,602,811
28.820b

4,053 4.053

7 7

4,0
11 4,05D

TOTAL RECEIPTS

OPERATING EXPENSES

38.710

38 .710

3.9181373 9.511

TRANSFERS TO LOCKBOX TRANSFERS TO ESCROW

R1IX4SFE8STOPEAO
. . .
.

3.753,794

230,118 1,534,801 73,741

5.769,810

TRANSFERS TO OPERATING
RA]SFERSTO DRill DEBT REDUCTION rNTEREST PAYMENTS OTHER

TOTAL DISBURSEMENTS

F
NET CASHFLOW TIECEWIS LESS DIS8O53D86IS)

1
-

38.710

38,710

15,290.863

4,063

(38,704)

(34651)
I

13.605,3J

1
ICASH-ENDOPMONT1I

1.866.0601

12,330,039

511,7801

14427.869}

14.427,865!

LRCPJIT4 EA? tAI Ved)rnlals IT Q ThI fcmi:.;%~ i il&~

,6il o

TOTAL DISBURSEMENTS
LESS: TRANSFERS TO DEBTOR IN POSSESSION ACCOUNTS

PLUS: ESTATE DISBURSEMENTS MADE BY OUTSIDE SOURCES

(ie

from escrwacconnlsl 38,710

9,888,898

TOTAIDISDURSEMENTS FOR CALCULATING U.S. TRUSTEE QUARTERLY FEES

FOSM Moo-I

In re: Pacific Energy Alaska Operating. LLC. Debtor BANK RECONCILIATIONS Continuation Sheet for MOR-I

Case No. 09-10789 Ryportin8 Period: June 2010

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-.

SIAUJY
UMS5a6x

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#8O83

C685S5(..

247-122

!BALANCE PER BOOKS

-.
1,586.050

..
12.330.039

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-

6375257
.

......

14,427,869
14,427,869

BANKBALANCE

1) DEPOSITS IN TRANSIT (ATTACH LIST) -) OUTSTANDING CHECKS (AUACH LIST) OTHER (ATTACH EXPLANATION)
ADJUSTED BANK BALANCE

1,586,050
P

Adwtcd bank balance inustequal balanreper books

511:780

12,330039

511,780

14,427,869

Pi

FOR),4 MOa-la (O4?)

lure: Pacific Energy Alaska_Qperating. LLC. Debtor SCHEDULE OF PROFESSIONAL FEES AND EXPENSES PAID
Aiate1 YEq,e7)ses

Case No. 09-10789 ReDortingNriod: June 2010

ees

ads as VMMI pesi

No profesional fees were paid post-petition.

FOPJ MOR-Ib (04/07)

In re: Pacific Energy Alaska Operating, LLC. Debtor

Case No. 09-10789 Reporting Period: June 2010_

STATEMENT OF OPERATIONS
(Income Statement)

Oil and gas production revenue Royalties Net Revenue

oE4hrG1eENs)s

167,840

19,091,568 1,182,615 20,274,183 3,209,930 7,429,298 2,814,341 6,140,266

?t

Repairs and maintenance Salaries/commissions/fees Transportation expense Utilities Insurance Employee benefit programs Taxes - production Inventory adjustment Rent and lease expense Supplies Management fees/bonuses Taxes - payroll Taxes - real estate General and administrative Depreciation, depletion and amortization Net Profit (Loss) Before Other Income & Expenses Accretion of discounts and amortization of deferred financing costs I nterest expense- non-cash - paid in kind Stock compensation expense I nterest and dividends Realized gain/(loss) on derivatives Interest expense- cash Other revenue General exploration expense Wind down funding Gain on Beta sale Loss from nonconsolidated subsidiary Gain/loss on settlement of claims Net Profit (LOSS) Before Reoranization Items Professional Fees Debt forgiveness Gain on Alaska sale Loss on Alaska abandonment Net Profit (Loss)

225

877,536
275,637 81,120 4,664,583 1,693,980 1,604 97,757 1,235,835 532,179 3,038,932 1,027 l 1,819,842)

(168 065)

4,060

(806,714 386,415 (91,932) 8,271,583 (1,188) (21,679)

28,766

28,766

(135,240)

(4,054,593)

(7,192)

(178,304,338) (1,454,755) 303,586,047 (127,881,547)

$
(128,048)

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 Enemy Alaska Operating- LLC. Debtor

Case No. 0940789 Renorting Jeriod:_June 2010

BALANCE SHEET

I
Unrestricted Cash and Equivalents tteslricicd Cash and Cash Equivalents A ccounts Receivable (Net) nvcnlones Prepaid Expenses Professional Retainers user Cwueat Assets (See Attached Schedule) TOTAL CURRENT ASSETS

M
1,586,050 12,841,819

S 6,111,511 20,539,380

P roved Properties Including Lease and Well Equipment In Process Development Unproved Properties
Office Equipment and Software Vehicles Other Equipment and Leasehold Improvements Pipeline Equipment L ess Accumulated Depreciation TOTAL PROPERTY & EQUIPMENT
d

Other Assets (See Attached Schedule)

"

u,
E Accounts Payable and Accrued Liabilities Taxes Payable Wages Payable Notes Payable - Debtor-in-possession financing P ayable to Rise Energy and Silverpoint S ecured Debt / Adequate Protection Payments ufessional Fees tsrcoinpany Payables A sset Retirement Obligations Accrued Interest 0 her Liabilities TOTAL POSTPETITION LIABILITIES S

1lOO VAJO
20,167,467

12,562,764

265,304,101

To clowdho

MOW

298,034,332

Sec ured Debt P riority Debt

Unsecured Debt

35,608,305 119,929,561 155,537,865 453,572 197

I Intercompany Payabtes
ITOTAL PRE-PETITION LIABILITIES

$
S

TOTAL LIABILITIES

rOVt/ ER -

Jirt

S hare Capital
Contributed Surplus Warrants Additional Paid In Capital Accumulated Other Comprehensive Loss artners Capital Account Ownc&a Equity Account lained Earnings - Pie-Petition Re tained Earnings -Postpctition Adjustment 10 owner Equity (attach schedule) utpeition Contributions (Distributions (Draws) (attach schedule) NET SHAREHOLDERS EQUITY

(305,151,270) (127,881,547

S (433,032,817)

nolsMaasa.-s

In re: Pacific Energy Alaska Operating, LLC. Debtor

Case No. 09-10789 Reporting Period: June 20l

BALANCE SHEET - continuation sheet

4srS OthercurvntAsscJs niercompany Recei v ables Derivative Assets Advances Other Receivables Total Other Current Assets Performance Bonds Jnvestments-Abandonment Total Other Assets
- - -

CUIN R!PO Tflc-MONI II

-

- -

5,759,540

351,971 $6,11511
$ $ -

FORM MOR-3 CONrD (O47)

In re: Pacific Energy Alaska Operating, LLC. Debtor STATUS OF POSTPETITION TAXES

Case No. 09-10789 Reporting Period: _June 2010

[withholding LFICA-Employee FICA-Employer Un emp l oyment Income Total Federal Takes Withholding Sales Excise Unemployment Real Property Personal Property Total State and Local Total Taxes

See Attestation of Regard Postpetitton Taxes

SUMMARY OF UNPAID POSTPETITION DEBTS

..

.:

iu-
Accounts Payable Non-Operated Accruals Accrued Royalties Accrued ORRIs Accrued Operating Expenses Total Postpctition Debts
-

13,731,630 1,435,837
-

18331,630 1,435.837
-

20,167,467

20,167,467

FORM MOR-4
(01107)

In re: Pacific Energy Alaska Operating, LLC. Debtor

Case No. 09-10789 Reporting Period: June 2010

ACCOUNTS RECEIVABLE RECONCILIATION AND AGING

"I 1 -

IAceonReeeIableAQInr

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)
-

DEBTOR QUESTIONNAIRE

1. Have any assets been sold or transferred outside the normal course of business this reporting period? If yes, provide an explanation below. 2. Have any finds 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 other necessary insurance coverages in effect? If no, provide an explanation below. All insurance coverage has been cancelled as the property was abandoned. 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 No Yes No

No

FORM NOR-S (04/07)

PACIFIC ENERGY

August 2, 2010

Office of the United States Trustee

Subject: Attestation of Regard Postpetition Taxes The debtor, Pacific Energy Alaska Operating. LLC., 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.

State of California County of Los Angeles Subscribed and sworn to (or affirmed) before me on this 2nd day of August, 2010 by /L)f-/TZ.- proved tome on the basis of satisfactory evidence to be the persons) who WAlP appeared before me.

9-1 6 -1)
My commission expires
GAIL ROPP COMMISSION # 1757633 Nolaly Public - Calrfoqnla LOS ANGELES COUNTY My Comm. Epos .Iuty 16. 20 11

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

0
August 2, 2010 Office of the United States Trustee

PACIFIC ENERGY

Subject: Attestation Regard Bank Account Reconciliations The debtor, Pacific Energy Alaska Operating, LLC., 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.

State of California County of Los Angeles Sjibscribed and sworn to (or affirmed) before me on this 2nd day of August, 2010 by )EW#11R1 kv//T2, proved tome on the basis of satisfactory evidence to be the person(s) who appeared before me.

Gai)Ropp, Notary

My commission expires

(%

- GLROPP COMMISSION # 1757533 Notary Public - California LOS ANGELES COUNTY My Comm. Expres July 16.

tj

Pacific Energy Resources Ltd, 111 West Ocean Blvd., Suite 1240 Long Beach, CA 90802, Ph: 562.628-1526 Fax: 562-628-1536