Recovery Energy, Inc. provided capital budget for 2013. The company's 2013 capital budget is currently projected to be approximately $15 million, but is subject to securing sufficient capital to support planned drilling and development expenses. The company anticipates that approximately 50% of this budget will be allocated toward the development of two of its unconventional prospects located in the Wattenburg field of the DJ Basin that will target horizontal drilling and development of the Niobrara shale and Codell formations.

The remainder of the company's 2013 budget is anticipated to be directed principally toward the conventional development of certain lower risk offset wells to existing production. The company also anticipates the allocation of approximately 10% of its 2013 capital budget toward higher risk exploration activities, including the procurement of seismic data and the drilling of one conventional exploratory well. The company's 2013 capital expenditure budget is subject to various factors, including availability of capital, market conditions, oilfield services and equipment availability, commodity prices and drilling results.

Results from the wells identified in the capital budget may lead to additional adjustments to the capital budget as the cash flow from the wells could provide additional capital which the Company may use to increase its capital budget.