UNITED STATES BANKRUPTCY COURT DISTRICT OF DELAWARE In re: Pacific Energy Alaska Holdings, Inc.

Debtor MONTHLY OPERATING REPORT T 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 of Postpetition Taxes Copies of IRS Form 6l23 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 MOR-1 MOR-la MOR-ib _________
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Case No. 09-10787 Reporting Period: October2010

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MOR-2 MOR-3 MOR-4

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MOR-4 MOR-4 MOR-5 MOR-5

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1 declare under penalty of peoury (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

gnalureofAu

ed JndividuaI*

November 30, 2010 Date

Jennifer Kuritz Printed Name of Authorized Individual

Treasurer Title of Authorized Individual

*Authorized individual must bean officer, director or shareholder ifdebtor is a corpomlion; a p5110cc if debtor is a partnership; a manager or member ifdebtor is a limited liability company.

MOR

(o)

In re Pacific Ene rgy Alaska Holdings. Inc Debtor

Case No. 09-10787 ReporlingPerjod October 2010

SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS

1;:. Wr .-
Pacific Energy Alaska Holdings. Inc. does not maintain any cash accounts. TOTAL RECEIPTS

IWO

TOTAL DISBURSEMENTS
I

II

IL

THE FOLLOWING SECTION MUST BE COMPLETED

FORM MOE-I

In re: Pacific Energy Alaska Holdings, inc. Debtor BANK RECONCILIATIONS Continuation Sheet for MOR-I

CaseNo, 09.10787 Reporting Period: October2010

_________________________________________________________________

BALANCE PER BOOKS

BANK BALANCE
(1-)
(-)

DEPOSITS IN TRANSIT (ATTACH LIST) OUTSTANDING CHECKS (ATTACH LIST)

EI

Orr I

Facifle Energy Alaska Holdings. Inc. does not maintain any cash accounts.

ADJUSTED BANK BALANCE Adjusted bank balanccamt equal balance per books

FORM MOE-I.
(Oi/

In re: Pacific Energy Alaska Holdings, Inc. Debtor

Case No. 09-10787 Reporting Period: _October 2010 SCHEDULE OF PROFESSIONAL FEES AND EXPENSES PAID

- -

- -

- -

-.

-.

were paid

FORM MOR-ib (04/07)

In re: Pacific Energy Alaska Holdings, Inc. Debtor

Case No. 09-10787 Reporting Period: October 2010

(Income Statement)

STATEMENT OF OPERATIONS

Oil and gas production revenue Royalty payments Net Revenue Rep!irs and maintenance alaries/commissioiis/fees Transportation expense Utilities Insurance Employee benefit programs Taxes - production Inventory change Rent and lease expense Travel and entertainment Supplies Advertising Auto and totek Bad debt ontributions Insider compensation Management fees/bonuses Office expenses ension& profit sharing plans Taxes - payroll Taxes - real estate Taxes - other 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 Income from equity investment Gain on Alaska sale Impairment expense Net Profit (Loss) Before Reorganization Items Professional Fees Loss on Alaska abandonment Net Profit Loss

(1,920,000)
$

9,665,816 (11,585,816)

Note: The Cumulative Filing to Date income statement above reflect the Companys activity for the entire month of March.

FORM MOR-2 (04107)

In re: Pacific Energy Alaska Holdings, Inc. Debtor

Case No. 09-10787 Reporting Period: October2010

BALANCE SHEET

Unrestricted Cash and Equivaleists Restricted Cash and Cash Equivalenls Accounts Receivable (Net) Inventories Prepaid Expenses Professional Retainers Other Current Assets (See Attached Schedule) ! TOTAL CURRENT ASSETS IProv1Propm1ies Including Lease and WellEqnipmmsl Asset Retirement Costs In Process Development lUnproved Properties IOffice Equipment and Software

Lr

WgWZ

50.355,233 50.355 273

Is

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S

vehicles
Other Equipment and Leasehold Tmprovementa Pipeline Equipment Less Accumulated Depreciation TOTAL PROPERTY & EQUIPMENT

OTI

Other Assets (SeeAttached Schedule)

MASS TS______35L_
)

is
(

- L41ILWI&Ai
Accounts PayableandAccruedLiabilities Taxes Payable Wages Payable Notes Payable - Debtor-itipossessionfinancing Pent Leases - Building/Equipment Secured Debt !Adequate Protection Payments Professional Fees I ntercompany Payabtea Asset Retirement Obligations AccruedInterest Other Liabilities TOTAL POSTPETITION LIABILITIES

-NW
S

w -

S S

S ecured Debt
Priority Debt Unsecured Debt Intercompany Payables TOTAL PRE-PETITION LIABILITIES [ToTAl, LIABIUTIES

S S S -

00WER

E(jlJITI_______________________________________ -,

Share Capital ContributedSurplus Warrants A dditional PaidIn Capital A c c umulated Oilier Comprehensive Loss angers CapitalAccount Owsefs Equity Account namedEarnings - Pre-Pelilion rainedEarnings - Poslpetition Adjustment (0 owner Equity (attach schedule) ostpeition Contributions (Distnbulions(Draws) (attachschedule) NETSHAREHOLDERSEQUiTY i,TOTAtLYABL1TIES AN) OWNERS EQULTY

62,t 18089

(177,000) (11,585,816)

S50,355,273

$--

2Q

3S5573

FOSM MOa-3

In re: Pacific Energy Alaska 1-loldings, Inc. Debtor

Case No. 09-10787 Reporting Period: October 2010

BALANCE SHEET - continuation sheet

_______ Intercompany Receivables _______ Derivative Assets Other Receivables Total Other Current Assets

* Wm
.

*c jJJ
$

50,355,273
-

OtherAsets
Inyestnients-PEAO Investments-CJPL Total Other Assets

S
1e 1,,

50,355,273
-

$ $

FORM M0g3 C0NFO (O4s7)

In re: Pacific Energy Alaska Holdings, Inc. Debtor STATUS OF POSTPET1TION TAXES

Case No. 09-10787 Reporting Period: October 2010

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

72
tl

I
Not Applicable

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

Not Applicable

SUMMARY OF UNPAID POSTPETITION DEBTS

Accounts Payable Wages Payable Taxes Payable Rent/Leases-Building Rent/Leases-Equipment Secured Debt/Adequate Protection Payments Professional Fees Total Postpetition Debts

I
Not Applicable

FORM MOR-4
(04107)

In re: Pacific Energy Alaska Holdings, Inc. Debtor

Case No. 09-10787 Reporting Period: October 2010

ACCOUNTS RECEIVABLE RECONCILIATION AND AGING

Total Accounts Receivable at the beginning of the reporting period + Amounts billed during the period - Amounts collected during the period Total Accounts Receivable at the end of the reporting period
CI IT

I
Not Applicable

0-30 days old 31-60 days old 61- 90 days old 91+ days old Total Accounts Receivable Accounts Receivable (Net)

IMIZAM-My"

% -

I
Not Applicable

I
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. Pacific Energy Alaska Holdings LLCs stock investment in Cook Inlet Pipeline Company was abandoned pursuant to court order in May 2010. 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 postpclition tax returns been timely filed? if no, provide an explanation below. 4. Are workers compensation, general liability and other necessary insurance coverages in effect? If no, provide an explanation below. All insurance coverage has been cancelled as the property was abandoned.

Yes

No Yes No

E
Has

bank account been opened during the reporting period? If yes, provide ntation iden1ifring the opened account(s). If an investment account has beenopened the required documentation pursuant to the Delaware Local Rule 4001-3.

No

FORM MOR.S (04/07)