UNITED STATES BANKRUPTCY COURT DISTRICT OF DELAWARE In re: Petrocal Acquisition Corp.

Debtor MONTHLY OPERATING REPORT Case No. 09-10786 Reporting Period: _October 2010

at
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 Fomi 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-1 MOR-la MOR-lb I
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MOR-2 MOR-3 MOR-4

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

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MR&
MOR-4 MOR-4 MOR-5 MOR-5

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It1ie 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

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

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

Signature of Authorized Individual*

November 30. 2010 Date

Jennifer Kuritg Printed Name of Authorized Individual

Treasurer Title of Authorized Individual

*Authorized individual must be an officer, director or shareholder if debLor is corporation a partner if debtor is a partnership; a manager or member ifdebtor is a limited liability company.

MOR (Ot/O7)

In re: _PeRocal Acquisition Corp. Debtor

Case No. 09.10786 Recorling Period: October 2010

SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS

Petrocal Acquisition Corp. does not maintain any cash accounts. TOTALREcEIPTS
4.

TOTAL DISBURSEMENTS

I
I II I
OICW1RF.NTM&I1I

I..
II I
$0.00
$000

THE FOLLOWING SECTION MUST BE CO%IPLETED

IiISffiJRSEMF.NTS P0R CA1CIJL1I1G us. TRUSrEE (IUAISTRRLYFEFS

ACr1(.nUik,4n

TOTAL DISBURSEMENTS
LESS: TRANSFERS TO DEBTOR IN POSSESSION ACCOUNTS PLUS:

ESTATE D1SBURSEKNTS MADE BY OUTSIDE SOURCES (i.e. from escrow accounts) FOR CALCULATING U.S. TRUSTEE QUARTERLY FEES

$0.00 $0.00

TOTAL DISBURSEMENTS

SORMMOR-I W1)

In re: Peirocal Acquisition Corp. Debtor BANK RECONCILIATIONS

Continuation Sheet for MOR-I

Case No. 09 -10786 Rct,ortinR Period: October 2010_

IBALANCE PER BOOKS BANKBALANCE DEPOSITS IN TRANSIT (ATTACH LIST) (-) OUTSTANDiNG CHECKS (ATTACH LIST) ADJUSTED BANK BALANCE
(f)

Potrocal Acquisition Corp. does not maintain any cash accounts.

Adjusted bank balance must equal balance per books

FORM MOR-I

tonal)

In re: Petrocal Acciuisition Corp. Debtor SCHEDULE OF PROFESSIONAL FEES AND EXPENSES PAID

Case No. 09-10786 Reporting Period: October 2010

fT1 No

were

FORM MOR-ib (04107)

In re: Petrocal Acquisition Corp. Debtor

Case No. 09-10786 Reporting Period: October 2010_ STATEMENT OF OPERATIONS

(Income Statement)

R epairs and maintenance

lariesFcommissions/fecs Transportation expense Utilities I nsurance Employee benefit programs Taxes - production I nventory change Rent and lease expense Travel and entertainment S upplies Taxes - other General and administrative Depreciation, depletion and amortization Net Profit (Loss) Before Other income & Expenses OTflER II(COME ANDR1S)S) [Accretion of discounts and amortization of deferred financing costs Interest expense- non-cash- paid in kind Stock compensation expense Interest and dividends Realized gain/(loss) on derivatives { In terest expense- cash Other revenue General exploration expense Net Profit (Loss) Before Reorganization Items O1fGtNIZflON Professional Fees Reorganization Interest Net Profit (Loss)

25
-

$ $

(25)
-

(25)

FORM MOR-2
(0410?)

In re Peirocal Acquisition Corn. Debtor

Case No. 09-10786 Reporiina Period: Octobcr2010_ BALANCE SHEET

IL
Unrestricted Cash and Equivalents

y
-

Restricted Cash and Cash Equivalents Accounts Receivable (Net)

Inventories Prepaid Expenses Professional Retainers Other Current Assets (See Attached Schedule) TOTAL CURRENT ASSETS

$ $

15,762,849 15,162,849
-

PICO PORTWAM Proved Properties Including Lease and Well Equipment Asset Retirement Costa

In Process Development Unproved Properties

Office Equipment and Software

Vehicles Other Equipment and Leasehold Improvements Pipeline Equipment Less Accumulated Depreciation TOTAL PROPERTY & EQUIPMENT
QTE)ASSMS
t -

$
5
,

Other Assets (See Attached Schedule) TOTAL ASS1S

r

I51~ 849

6. ccounta Payable and Accrued Liabilities T axes Payable Wages Payable

rites Payable- Debtor-in-possession financing Rent Leases - Building/Equipment S ecured Debt I Adequate Protection Payments Professional Fees ercompanyPayablcs Asset Retirement Obligations Accrued Interest O ther Liabilities

TOTAL POSTPETITIONLIABILITIES IA11LmESSUBJcrTO COMOMtSE(1 1re-Fehtton)

S
.-

Secured Debt i Pr iority Debt Uns ec ured Debt In t ercompany Paysbles

TOTAL PRE-PETITION LIABILITIES COTAL LIABILITIES
I.
i:

25

S
$ S
-

25
25 ..j
-

S hare Capital Contributed Surplus

lzlsnts

A dditional Paid In Capital

Accumulated Other Comprehensive Loss artners Capital Account Ownefu Equity Account R etained Earnings - Pro-Petition Retained Earrings - Poatpetition Adjustment to owner Equity (attach schedule) osipeitiors Contributions (Distributions (Draws) (attach schedule)

15,762,849 (25)
-

NET SHAREHOLDERS EQUITY TOTAL WAND-OWISES EQUITY

. .

15,762,824
-,

151621849

EORMI-4OR.3
(OOi)

In re: Petrocal Acquisition Corp. Debtor

Case No. 09-10786 Reporting Period: October 2010_

BALANCE SHEET - continuation sheet

-,
-

BOO

EN

I L

Intercompany Receivables Derivative Assets Advances Other Receivables Total Other Current Assets

15,762,849
-

15,762,849

NORM

MOR-3 CONTD
(G4IO)

In re: Petrocal Acquisition Corp. Debtor STATUS OF POSTPETITION TAXES

Case No. 09-1076 Reporting Period: October2010

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MA.
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Withholding FICA-Employee FICA-Employer Unemployment Income Total FederalTaxes

I
Not Applicable

Im.
c

W".1r.

Sttc atioal
Withholding Sales Excise Unemployment Real Property Personal Property Total State and Local Total Taxes

I I I
Not Applicable

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SUMMARY OF UNPAID POSTPETITION DEBTS

lx.

Accounts Payable Wages Payable Taxes Payable Rent/Leases-Building Rent/Leases -Equipment Secured Debt/Adequate Protection Payments Professional Fees Total Pos(pelltlon Debts

Not Applicable

FORM MOR-4 (04(01)

In re: Petrocal Acquisition Corp. Debtor

Case No. 09-10786 Reporting Period: October 2010_

ACCOUNTS RECEIVABLE RECONCILIATION AND AGING

Total Accounts Receivable at the beginning of the reporting period + Amounts billed during the period - Amounts collected during the period Total Accounts Receivable at the end of the reporting period tccUs Rceiyable Agbg 0-3o days old 31 -60 days old 61 - 90 days old 91+days old Total Accounts Receivable Accounts Receivable (Net)
-.

I
Not Applicable

A1cflht

I
N ot Applicable

I
DEBTOR QUESTIONNAIRE
q
.

L 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 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 postpelition tax returns been timely filed? If no, provide an explanation below.

No
No

Yes
Yes

4. Are workers compensation, general liability and other necessary insurance

coverages in effect? If no, provide an esplanation 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

FORM MOR-5 (04/07)