Horizontal Niobrara in Laramie County, Wyoming

Recovery Energy has initiated a horizontal Niobrara drilling program on its 14,400-acre contiguous block in the Chugwater area of Laramie County, Wyoming and is believed to be in part of the more intensely naturally fractured areas of the Niobrara Shale. The Company’s first initial horizontal test well is underway and additional drilling locations are being permitted. Recovery Energy is targeting the Niobrara and will drill approximately 13,000’ of total measured depth which should include a 4,500-foot lateral. The Company’s Chugwater Prospect area is in the northwest edge of the DJ Basin which has recently had more than 120 horizontal Niobrara permits being filed. It is immediately northwest of the prolific Silo field, which has produced more than 11 million barrels of oil equivalent from the Niobrara formation, and about eight miles south of Chugwater, Wyoming. Recovery Energy has a contiguous block of approximately 14,400 gross, 12,200 net acres in the Chugwater section of the DJ Basin.

Recovery Energy’s primary focus is on growing revenue, cash-flow and reserves through conventional drilling as well as unconventional drilling of the various prospective oil horizons on its leasehold. In addition to being prospective for the Niobrara oil shale formation, the Company’s asset base is comprised of current production and reserves from the J sand and possesses extensive potential for other hydrocarbon-bearing formations such as the Pierre Shale, Codell, Greenhorn and Paleozoic horizons.