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Acquisition Expands Marketing Capabilities in the Uinta Basin of Utah

DENVER, December 09, 2009 – Chipeta Processing LLC, a joint venture formed in 2008 by wholly owned subsidiaries of Ute Energy, LLC and Anadarko Petroleum Corporation, announced the acquisition of the Natural Buttes 101 Gas Processing Plant and more than five miles of 20-inch pipeline in the Greater Natural Buttes area of eastern Utah’s Uinta Basin. The $9 million acquisition of the El Paso-owned Colorado Interstate Gas (CIG) facilities provides Chipeta Processing with 125 million cubic feet per day (MMcf/d) of additional natural gas processing capacity.

“The addition of the Natural Buttes 101 Gas Processing Plant, coupled with the completion of the cryogenic plant earlier this year, expands our marketing capabilities and enhances our ability to bring these resources to consumers in an efficient and cost-effective manner,” noted Ute Energy’s President Richard Sherrill. “This acquisition continues to demonstrate the collaborative commitment and desire to work with the Ute Tribe and other stakeholders in the responsible development of these natural resources in the Greater Natural Buttes area.”

Chipeta Processing LLC is managed by Western Gas Partners, LP (NYSE: WES), a subsidiary of Anadarko Petroleum Corporation that holds a 51-percent interest. Anadarko Uintah Midstream and Ute Energy, a subsidiary of the Ute Tribe hold a 24-percent and 25-percent interest, respectively. Ute Energy is an investment of Quantum Energy Partners, Quantum Resources Management and the Ute Indian Tribe of the Uintah and Ouray Indian Reservation, Utah.

Ute Energy holds charity golf event to raise funds for tribal scholarships

June 15, 2009

On Friday June 12th, 2009 Ute Energy LLC along with the oil and gas industry, area businesses and local government came out for a day of golf to support the 1st Annual Ute Energy Classic Golf Tournament.

The Charity golf event was an effort to raise funds for scholarships to be awarded to Ute tribal college students. The event proceeds will be donated to the Ute Tribes Education Department to administer through its non-profit organization the Ute Seventh Generation Fund a 501 C 3 Corporation.

“The event was a tremendous success and raised awareness of the educational needs of Ute tribal students, we look forward to next year’s event” said Don Sinclair, President and COO of Ute Energy.

29 teams participated in this year’s charity golf event. The winner of this year’s event was Anadarko – Team: Tony Kazeck, Phil Rutledge, Alex Woodruff and Dustin David. The winners received a trophy and gift certificates to the Roosevelt Golf Store.

Second place went to Harvest Natural Resources – Team: Felix Acree, Martin Shields and James Edminston and Third Place to Team: Obie Taveapont, Anthony Appawoo, Richard Mendez and Colin Mojado.

Ute Energy and the Ute Tribe Education Department would both like to thank all the sponsors and the Roosevelt City Golf Course for hosting this year’s event.

Event Sponsors:
Platinum:
Bill Barrett Corporation
Ceritas Group
Chipeta Processing LLC
Harvest Natural Resources Inc
Newfield Exploration
Quantum Energy Partners
Questar
Ute Tribe Big Game Program
Uintah County Commission

Gold:
JP Morgan Chase Commercial Bank
Craigs Roustabout Service
Petroglyph

Silver:
Berry Petroleum Company
Buys and Associates Inc.
Fredericks Peebles & Morgan LLP
University of Utah
UBTA-UBET Communications
XTO Energy

Other:
Anadarko – Denver
Trinity Petroleum Management LLC
Utah State University – Uintah Basin Campus
Allred’s Amazing Maids Inc.
BMW Hot Oil Inc.
HOSCO Inc.
Moon Lake Electric Association
Squire & Company
Ashley Trading Post
Davis Food and Drug Store
Landmark Inn
LC Ranch
Pepsi Cola Company of Vernal

Ute Energy LLC was formed in 2005 by the Ute Indian Tribe to capitalize on the commercial rights to participate in the exploration and development of the Tribe’s mineral estate. Ute Energy is focused on oil and gas exploration and development, midstream and other facilities alongside its reputable industry partners in Utah’s Uinta Basin.

Ute Energy Drills four wells in Brundage Canyon

On October 7, 2008 Ute Energy, LLC a company majority owned by the Ute Indian Tribe completed the drilling of four new wells in Brundage Canyon. The drilling program was Ute Energy’s first as an operator in the Uinta Basin. Completions on all four wells are anticipated to be completed by the end of October.

Ute Energy is an affiliated oil and gas and midstream company of the Ute Indian Tribe along with Houston based Quantum Energy Partners and Denver based Quantum Resource Management.

“It's Ute Energy’s first attempt at becoming an operator in oil and gas development”, said Curtis Cesspooch, Chairman on behalf of the Tribal Business Committee.

"We are pleased with the early results of the four development wells and with the company’s ability to execute," said Don Sinclair, Ute Energy CEO. "The Tribe has aligned itself with successful operators in the past in a strategic step toward building their own energy company and today they are drilling wells for the very first time."

Brundage Canyon, within the Ute Tribe's reservation is governed under an Exploration and Development Agreement (“EDA”) between the Tribe and Ute/FNR LLC (a limited liability company between FIML Natural Resources, LLC as operator and Ute Energy, LLC). The EDA allows Ute Energy to propose wells and the right to operate and drill wells. Ute Energy initiated the four well Green River formation program and drilled all four wells as operator on behalf of Ute/FNR.

In the upcoming year, Ute Energy anticipates it will participate in more than 80 new wells on reservation land alongside its industry partners - Bill Barrett Corporation, Berry Petroleum, Questar, Ute/FNR, XTO, and Newfield. Ute Energy also plans to drill another 4-20 wells as an operator developing its own prospect area in Utah’s Uinta Basin.

Joint Venture Processing in the Uinta Basin of Utah

HOUSTON, June 28, 2008 – Wholly owned subsidiaries of Ute Energy, LLC (“Ute Energy”) and Anadarko Petroleum Corporation (NYSE: APC) announced that, effective June 1, 2008, they have formed Chipeta Processing LLC (“Chipeta”), a limited liability company, to operate a gas processing and delivery hub for the Greater Natural Buttes area of the Unita Basin of Utah. Ute Energy is an investment of Quantum Energy Partners, Quantum Resources Management and the Ute Indian Tribe of the Uintah and Ouray Indian Reservation, Utah. Anadarko, through its subsidiary is the operator and 75% owner, while Ute Energy holds a 25% interest in Chipeta. Chipeta owns an existing 250 MMcf/d refrigeration processing facility and is currently constructing a second 250 MMcf/d cryogenic processing facility scheduled for completion during the first quarter of 2009, and total capacity could be further expanded in the future.

This processing and delivery hub is intended to add value to Anadarko’s and the Ute Tribe’s reserves in the Uinta Basin.

Chipeta will also actively pursue and provide third-party service opportunities to other Uinta Basin producers.

“This announcement demonstrates Anadarko’s and Ute Energy’s commitment and desire to work with the Ute Tribe and other stakeholders in the responsible and profitable development of its natural resources,” Ute Energy’s President Don Sinclair said.

“The Ute Tribe Business Committee is pleased to support this investment through Ute Energy and our partner Anadarko. We believe it will lead to continued growth in the Uinta Basin” said Curtis Cesspooch, Chairman of the Ute Tribe Business Committee.