Baker Energy Wins Multi-Million Contract from J.M. Huber

Baker Energy has received a second multi-million-dollar onshore contract from Huber Energy, a unit of J. M. Huber Corporation, to operate and maintain its oil and gas producing properties within Huber's Northern Business Unit, which includes production in the Powder River Basin in Wyoming. Huber will retain strategic decision-making as it relates to development and capital allocation, while Baker will focus on operations and maintenance (O&M) and capital deployment. Baker Energy began Phase One transition of the properties on Oct. 1, 2003. Baker signed its first onshore agreement with Huber's Midcontinent Business Unit in the Texas Panhandle in June 2003.

Through the signing of this four-year, evergreen contract, Baker Energy and Huber Energy have entered into a collaborative, long-term relationship designed to develop and operate Huber's current and future non-conventional gas producing properties, primarily coal bed methane (CBM). Under this performance-based relationship, Baker's compensation will be based on its ability to manage operations cash flow and capital efficiency. This contract represents an important milestone in Baker's OPCO strategy for the Rockies.

"Baker Energy is excited about the Huber opportunity in the Powder River Basin," Dick Giffhorn, president of Baker Energy, said. "This unique partnership enables Huber Energy to focus their efforts on strategic development of their assets, while Baker Energy implements the tactics and work processes that will insure successful deployment of Huber's strategies. The two organizations have operational and financial alignment and will operate in a seamless manner." BR> "This relationship allows Huber to focus on its new transaction strategy in the Powder River, other North American unconventional gas basins and the Midcontinent, while having a partner who can supply a high-quality field O&M workforce, on short notice, and also partner in implementation and/or execution to maximize value," Pam Pierce, president of Huber Energy, said.

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