Questar Commences Drilling at Johnson Bottoms Unit

Pacific Energy & Mining Company announced that the initial well at the newly unitized Johnson Bottoms Unit commenced horizontal drilling on November 3, 3009. The initial well is located in Section 22, 7 South 21 East, Uintah County, Utah.

The Operator of the Unit is Questar Exploration and Production. The target zone is the H4 member of the Greenriver formation at an approximate depth of 7,000 ft. All information on the drilling of the horizontal well is being held confidential. We estimate that the well will be completed within the next 30 days. There are 6 permitted wells on the unit at an approximate cost of $2.5 million each.