III Exploration Company ("Exploration") was incorporated in October 1992 under the laws of the State of Idaho. Exploration was formed for the purpose of exploring for and developing oil and natural gas deposits. Its initial investments were made in joint ventures with experienced operators. In December 2000, Exploration completed the acquisition of 100% of the stock of Petroglyph Energy, Inc. ("Petroglyph"). Petroglyph is an Idaho corporation organized to develop, produce, and sell oil and natural gas as general partner for III Exploration II LP. ("IIIX LP"). The company's operations are primarily focused in the Uinta Basin of Utah. The company has non-operated properties in the Williston Basin of North Dakota and a large underdeveloped lease portion in the Raton Basin of Colorado. On September 28, 2001, Exploration entered into a transaction in which substantially all of the oil and gas property and equipment was transferred to IIIX LP. As the general partner, Petroglyph exercises complete control over the operations and governance of IIIX LP. Petroglyph is a Class A limited partner of IIIX LP. Intermountain Industries and its shareholders are Class B limited partners of IIIX LP and it is a consolidated subsidiary of Exploration. Exploration became involved in the oil and natural gas development business in 1994 investing in the Uinta Basin through a joint venture with an industry partner. The successor and principle operator of the properties is QEP Resources. IIIX LP currently has net interest in over 25,000 acres that include both oil and natural gas production. This area has significant natural gas production, but also has significant future development opportunities.