UNITED STATES BANKRUPTCY COURT DISTRICT OF DELAWARE In re: Pacific Energy Alaska Operating, LLC Debtor MONTHLY OPERATING

REPORT Case No. 09-10789 Reporting Period: Senternber 2010_

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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 ofPostpetition 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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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

SlEnature of

Individual*

October 27, 2010 Date

Jennifer Kuritz Printed Name of Authorized Individual

Teasurer Title of Authorized Individual

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

MOR
(O4l7)

In cc: Pacific Energy Alaska ODeraling. LLC, Debtor

CaseNo. 09-I089 ReeoiIerg Perio: Seoteniber 2010

SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS

4 AR 4031

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12338419 I

511.3701

- II
-

14,138.191 )I

522,5271

IN
CASH SALES LOANS AND ADVANCES TRANSFERS TRANSFERS OTHER

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10,196,665 4.464,917 5.631812 7645,455

11 11

FOR ESCROW

TOTAL RECEIPTS

- __________. __________ 4,057 26,688 4.057 260 -

30,756

30,756
212

2893849
4,220,450 0,511

OPERATING EXPENSES
TRANSFERS TOLOCKBOX

PS- _________.
3,296

. .
-

212

TRANSFERS

TO ESCROW

RJiNSFERSTOPEAO

. -

. -

TRANSFERS TO OPERATING
RANSFERSTOORRI DEBT REDUCTION KrEREST PAYMENTS ThER

3.296
-

3,753,764 230,118
1,538,097

__________.

"

73,741 5.759.510

TOTAL DISBURSEMENTS
NETCASHFLOW
rEcEseLers enaasaennas

3296

2121
(201)l

3,509

10,718
15,595937

_23,392

_. _4,057

u
-

21,248

13,342,9121

ICASII- END

OFINIONM

I_1.311,7951_ .1_12 ,342.476 )

611,168 1

11

14,165,439

14,165,4301

[AL DISBURSEMENTS

15,595,937 (3,2961 (605,26l

LESS: TRANSFERS TO DEBTOR IN POSSESSION ACCOUNTS PLUS:ESTATE DISBURSEMENTS MADE BY OUTSIDE SOURCES (i Seal alCXOW .cceuaLs) TOTAL DISBURSEMENTS FOR CALCULATING US. TRUSTEE QUARTERLY FEES

212

FOaM MOE- I
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In re: Pacific Energy Alaska QMratin g. Debtor BANK RECONCILIATIONS

Continuation Shei for MOR-1

Case No. 09-10789 Reportin? Period September 2010

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IALANCE PER BOOKS
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1,311,7951
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12,342,476
-

511,168
511,168
-

14,165439
7

BANK BALANCE

1,311,795
-

12,342,4761
-

14,165,439
-

f+) DEPOSITS IN TRANSIT (ATFACH LIST)

OUTSTANDING CHECKS (ATTACH LIST) OTHER (ATTACH EXPLANATION) ADJUSTED BANK BALANCE Adjusted bank balance most equal balance per books
(.)

1,311,795
-

12,342,476
-

511,168
-

14,165,439
-

FORM MOR-ta (04/07)

In re: Pacific Energy Alaska Operating, LLC. Debtor

Case No. 09-10789 ReportillgYeriod: September 2010

SCHEDULE OF PROFESSIONAL FEES AND EXPENSES PAID

:......

No profesional fees were paid

FORM MOR-ib (04/07)

In re: Pacific Energy Alaska Operating, LLC. Debtor

(Income Statement)

Case No. 09-10789 Reporting Period: September 2010

STATEMENT OF OPERATIONS

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 Interest expense- non-cash - paid in kind Stock compensation expense Interest and dividends Realized gain/(Loss) on derivatives Interest expense- cash Other revenue General exploration expense Wind down funding Gain on Alaska sale Loss from nonconsolidated subsidiary Gain/loss on settlement of claims Net Profit (Loss) Before Reorganization Items
$4 4

212 (212 4,068 (9,917) (6,061)1 r1 (29,164) $

3,209,930 7,429,298 2,814,341 6,140,266 877,536 275,637 81,120 4,664,583 1,693,980 1,604 97.757 1,235,835 599,885 3,042,865 1,027 (11,891,481) (806,714 398,877 (91,932) 2,304 (21,679) 28,766 (4.110,276) (178,304,338) (1,483,919) 303,586,047 (127,908,067)

Professional Fees Debt forgiveness Gain on Alaska sale Loss on Alaska abandonment Net Profit (Loss)

23,103 $

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 ro: Pacific Ener8v Alaska Operating. LLC,

Case No. 09-10789

Debtor BALANCE SHEET

Reporting Period_September 2010

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Unrestricted Cash and Equivalents Restricted Cash and Cash Equivalents

_____________ 1,311,795 S
12,853,645
-

Accounts Receivable (Net)

Inventories
Prepaid Expenses
Professional Retainers Other Current Assets (See Attached Schedule)
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6,149,095

TOTAL CURRENT ASSETS

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20,314,534
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1A2EQtPNI

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IProved Properties JncludingLease and Well Equipment

[In P rocess Development

lUnproved Properties
10ffice Equipment and Software
-

Ivehicles
L2!cr Equipment and Leasehold tmprovemenls Pipeline Equipment Lees Accumulated Depreciation

TOTAL PROPERTY & EQUIPMENT

Other Assets (See Attached Schedule)

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* i,
Accounts Payable and Accr u ed Liabilities Taxes Payable Wages Payable Notes Payable - Debtor-in.posscssion financing Payable 10 Rise Energy and Silvcrpoint S ecured Debt! Adequate Protection Payments Professional Fees
rtcrcompany Payables

19,911,008

-_

12,572,705

265,341,685
-

Asset Retirement Obligations

Accrued Interest

Other Liabilities TOTAL posrPRTmoN LIABILITIES

S
S

297,825,398

S ecured Debt
Priority Debt

Unsecured Debt

35,618,913
119,929,561

In tercompany Payables
TOTAL PRE-PETITION LIABILITIES
S

S S
S

155.548,473
453,373,871
-

TOTAL LIABILITIES
hare Capital

Contributed Surplus
Warrants

Additional Paid In Capital Ac cumulated Other Comprehensive Loss P artners! Capital Account rners Equity Account Retained Earnings - Pm-Petition R etained Earnings - PottpeIition
tjustnsent to owner Equity (attach schedula)

(305,15 t,270 (127908,067)

ostpeilion Contributions (Distributions (Draws) (attach schedule) NET SHAREHOLDERS EQUITY

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-

(433,059,337)

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2 3I44

FORM MOR-3

In re: Pacific Energy Alaska Operating, LLC. Debtor

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

BALANCE SHEET - continuation sheet

Intercompany Receivables Derivative Assets Advances Other Receivables Total Other Current Assets Performance Bonds InvesLments-Abandonment Total Other Assets

5,759,540
$ $

389,555 6,149 095

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FORM M0R-3 CONTD (0110?)

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

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

Withholding FICA-Employee FICA-Employer Unemployment Income Total Federal Taxes

See Attestation of Regard Postpetition Taxes

WAR MWl M
Withholding Sales Excise Unemployment Real Property Personal Property Total State and Local Total Taxes

-)- 3 -

SUMMARY OF UNPAID POSTPETLTION DEBTS

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

18,475,171 1,435,837
-

18,475,171 1,435,837
-

19,911,008

19,911,008

FORM MOR-4 (04107)

In re: Pacific Energy Alaska Operating, LLC. Debtor

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

ACCOUNTS RECEIVABLE RECONCILIATION AND AGING

O-30 days old 31-6O days old 61-9O 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 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 postpctition lax returns been timely filed? lfno, provide an explanation below. 4. Are workers compensation, general liability and ocher necessary insurance coverages in effect? If no, provide an explanation below. 411 insurance coverage has been cancelled as the properly was abandoned. 5. Has any bank account been opened during the reporting period? If yes, provide documentation identi1ing 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 MOR.5 (04/07)

PACIFIC ENERGY

October 27, 2010

Office of the United States Trustee

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.

JerKuriTreasurer

State of California County of Los Angeles Subscribed and sworn to (or affirmed) before me on this 27th day of October, 2010 by

JEAMPER AOI I TL. , proved to me on the basis of satisfactory evidence to be the person(s) who
appeared before me.

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Ropp,
GAIL ROPP

My commission expires coMMissloN

. # 1757533 o Notary Public. CalifornIa LOS ANGELES COUNTY nm. E*pios July 16. 2011

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

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October 27, 2010
Office of the United States Trustee

PACIFIC ENERGY

Subject: Attestation of Regard Postpetition Taxes The debtor, Pacific Energy Alaska Operating. LLC., hereby submits this attestation regarding postpetitiori 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.

Jeffnifer Kurltz, Treasurer

C-1

State of California County of Los Angeles Subscribed and sworn to (or affirmed) before me on this 27th day of October, 2010 by JeA11V1 rEg, eNJ 12, proved to me on the basis of satisfactory evidence to be the person(s) who appeared before me.

c..-.

My commission expires
GATLROPP COMMISSION # 1757533 Pu Notary bIc . care

Pacific Energy Resources Ltd, 111 West Ocean Blvd., Suite 1240 Long Beach, CA 90802, Ph: 562-626-1526 Fax: 562-628-1536