NOTE 19 – SUBSEQUENT EVENTS

In preparing the accompanying financial statements, we have reviewed events that have occurred after December 31, 2012, up until the issuance of the financial statements.

Amendment to the Credit Agreement

On December 20, 2012, we entered into the Fourth Amendment of our Credit Facility which, among other provisions, increased our borrowing base to $900 million from $730 million. The Fourth Amendment became effective on January 15, 2013.

Declaration and Payment of the Fourth Quarter 2012 Distributions

On January 28, 2013, the Board of Directors of QRE GP declared a $0.4875 per unit cash distribution for the fourth quarter 2012 to uniholders of record at the close of business on February 8, 2013. The aggregate amount of the fourth quarter common, and preferred unitholder distribution paid on February 15, 2013 was $32.3 million.

Conversion of Management Incentive Fee

As of December 31, 2012, the subordination period had ended and our general partner had received a management incentive fee for three full consecutive quarters. As a result, our general partner was eligible to convert up to 80% of its fourth quarter 2012 management incentive fee into Class B units. On February 22, 2013, our general partner elected to convert 80% of the fourth quarter 2012 management incentive fee and, on March 4, 2013, received 6,133,558 Class B units which were considered issued and outstanding upon conversion. Our general partner will receive a reduced fourth quarter management incentive fee of $0.7 million and is eligible for a distribution on the Class B units related to the fourth quarter 2012.

Derivative Contracts

In February 2013, we entered into new oil derivative contracts for the years 2013 through 2014. These contracts were entered into with the same counterparties as our existing derivative contracts. The table below details the newly executed contracts.


			Mar - Dec
Commodity	Index		2013		2014
Oil positions:
Swaps
Hedged Volume (Bbls/d)	WTI		469		464
Average price ($/Bbls)		$	96.55	$	93.50

			Apr - Dec
Commodity	Index		2013		2014
Oil positions:
Basis
Hedged Volume (Bbls/d)	WTS/WTI		2,400		2,400
Average price ($/Bbls)		$	(1.90)	$	(2.10)