Operations

Production Characteristics

Our production base is weighted 65% to natural gas. The vast majority of our production is located in areas that are accessible year round. Our oil production is light oil (38°-39° API) which is similar in grade to West Texas Intermediate, the benchmark crude.

The Trust operates or is a working-interest owner in 2,330 wells, 20 oil batteries, 4 gas plants (the gas plant at Wimborne being the most significant facility), numerous compressor stations and Vault participates in many other non-operated facilities.

During 2005, Vault invested significant time and effort in getting to know the people and assets that were new to Vault, concentrating on tying in wells and reviewing newly purchased facilities. Vault has assembled a talented group of technical staff, both in the office and in the field to exploit reserves and enhance value for our unitholders.

Vault successfully implemented low risk drilling programs, participating in 44 gross wells and 31.3 net wells in 2005 and achieved a 93% success rate. Vault's overall strategy for 2006 is to increase the recovery factor of its oil and natural gas reserves already in place through a combination of waterfloods, infill drilling and optimization operations. Vault is also focused on developing low risk exploitation and development drilling opportunities. Vault has an appetite for growth and our experience in growth through acquisitions and exploitation will assist us in our goal to grow Vault to 15,000-20,000 BOE/D in the next 18-24 months.