Item 8.01 Other Events

The Company has marketed its California crude oil production to various parties on a short-term basis for February and expects to continue to do so in the future while BWOC is unable to receive such production. The pricing for the Company's California crude oil production continues to range from just above the posted price for San Joaquin heavy oil to the posted price less a discount. The Company's California crude oil daily production is, on average, at levels achieved prior to BWOC's filing for bankruptcy protection under Chapter 11 of the United States Bankruptcy Code. The Company has not terminated its contract with BWOC.