NOTE 14 – SUBSEQUENT EVENTS

In preparing the accompanying financial statements, we have reviewed events that have occurred after June 30, 2011, through the issuance of the financial statements.

On July 1, 2011, we granted a restricted common unit award of 1,817 units to a newly elected independent director. These units vested immediately upon grant. The fair value of the common unit award granted was calculated based on the closing price of our common units on the grant date, $20.62 per common unit.

On July 1, 2011, the Predecessor novated to the Partnership basis swaps. The basis swaps effectively limit a portion of our exposure to the differences between the NYMEX natural gas price and the price at the location where we sell our natural gas. The averages prices listed below are the amounts we will pay per MMBtu relative to the NYMEX price to “lock-in” these locational price differences. The fair value of these derivative instruments was $0.3 million of liability positions. These transactions will be recorded as other contributions in our consolidated statement of changes in partners' capital in the third quarter of 2011. The following table illustrates impact of the novation upon the notional volumes of our commodity derivative contracts:

Commodity	Index	July 1 - December 31 2011			2012			2013			2014			2015
Basis Swaps
Hedged Volume (MMBtu/d)	NYMEX		2,935			2,623			2,466			2,466			-
Average price ($/MMBtu)		$	(0.16	)	$	(0.16	)	$	(0.15	)	$	(0.15	)	$	-

On July 13, 2011 we received an interim borrowing base redetermination under our Credit Agreement which increased the borrowing base to $330.0 million. We requested and received this interim redetermination as a result of improvements in our net derivative position due to the buyup of our existing oil fixed price swap contracts in June 2011.

On July 21 and July 22, 2011, we entered into natural gas basis swaps. The basis swaps effectively limit a portion of our exposure to the differences between the NYMEX natural gas price and the price at the location where we sell our natural gas. The averages prices listed below are the amounts we will pay per MMBtu relative to the NYMEX price to “lock-in” these locational price differences.

Commodity	Index	August - December 31 2011			2012			2013			2014			2015
Basis Swaps
Hedged Volume (MMBtu/d)	NYMEX		4,400			4,100			3,500			3,300			4,300
Average price ($/MMBtu)		$	(0.11	)	$	(0.16	)	$	(0.18	)	$	(0.19	)	$	(0.17	)

On July 29, 2011, we announced the board of directors of QRE GP approved a cash distribution for the second quarter of 2011 of $0.4125 per unit. On August 12, 2011 we paid $14.8 million to unitholders of record at the close of business on August 8, 2011.