The market for semiconductor ICs has expanded rapidly over recent decades as semiconductor manufacturers have produced devices with increased functionality and smaller sizes at lower costs. Growth in the IC industry has been driven both by the development of new electronic products, such as portable music and video players, cellular phones, digital cameras and PDAs, as well as an increase in IC content in applications such as automobiles, telecommunications and home appliances. According to Gartner, an independent research firm, the overall semiconductor industry will grow from $219.9 billion in 2004 to $302.3 billion in 2008, representing a compound annual growth rate of 8.3%.

Memory has become an increasingly important part of the IC market. According to Gartner, memory has grown from $26.7 billion, or 17.4% of the total semiconductor market in 2001 to $48.0 billion, or 21.8% of the total semiconductor market in 2004. Memory is available in many different types, including dynamic random access memory, or DRAM, and flash memory, to serve a variety of different purposes. The principal advantages of flash memory over other types of memory are that it maintains its data without any external power source and that it can be easily erased and reprogrammed. Flash memory is used for fast and easy information storage in numerous end markets but has been used most effectively in consumer digital products, including portable music players, cellular phones, digital cameras, and USB flash drives.

According to Gartner, the flash memory market is expected to grow from 82.1 billion megabytes in 2004 to 1,819.8 billion megabytes in 2008, representing a compound annual growth rate of 117.0%. The rapid growth in the flash memory market is driven by the increasing proliferation of flash-intensive consumer digital products and the increasing amounts of flash memory capacity incorporated in them.

The Company also operates a water treatment facility in the Gurnee field to condition the produced water prior to injection into the pipeline and a discharge pond at the river to aerate the water prior to disposal. The Company owns and operates a 9.2-mile, 12-inch high pressure steel pipeline and a gas treatment and compression facility through which it gathers, dehydrates, and compresses its gas for delivery into the Southern Natural Gas pipeline system.

In the Appalachian Basin of southern West Virginia and southwestern Virginia, the Company has the rights to develop approximately 56,000 net CBM acres, approximately 35,100 of which are in its Pond Creek field. The Company extracts gas from up to an average of 12 coal seams within the Pocahontas and New River coal formations at depths ranging from 430 feet to 2,400 feet. At these depths overall coal thickness in this area ranges from 10 to 30 feet of high quality, low-medium volatile bituminous rank Pennsylvanian Age coal. The Company’s gas is gathered into its central dehydration and compression facility and delivered into the Cardinal States Gathering System for redelivery into the Columbia Gas Transmission Corporation gas pipeline system.

The Company’s Peace River Project is comprised of approximately 33,000 gross acres (16,500 net acres) along the Peace River near Hudson’s Hope, British Columbia. The Company has drilled three core holes targeting the Lower Cretaceous Gething coal formation. Total net coal thickness ranges from 30 to 70 feet at depths from 1,000 to 3,000 feet. At these depths, coals are medium volatile bituminous rank having seams up to nine feet in thickness. The Company has recently drilled and completed two wells and a water disposal well and testing operations are in process.

In Winn, LaSalle, and Caldwell Parishes of Louisiana, the Company is conducting an evaluation of the coals within the Wilcox Formation. The Company has also conducted 60 gas desorption tests from a sample of nine of these wells to determine the gas content of the coal and to define the potential gas resources.

Total revenues increased 101% to $42.0 million for the year ended December 31, 2005 from $20.9 million for the year ended December 31, 2004.

Total operating expense increased 210% to $41.1 million for the year ended December 31, 2005 from $13.3 million for the year ended December 31, 2004.