----

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| Delaware(State or other jurisdiction of incorporation)                             |   | 20-3037840(IRS Employer Identification No.) |
|------------------------------------------------------------------------------------|--------|---------------------------------------------|
|                                                                               |   |                                        |
| 717 Texas Avenue, Suite 2900Houston, Texas(Address of principal executive offices) |   | 77002(Zip Code)                             |
|                                                                               |   |                                        |

| Large accelerated filer o | Accelerated filer o | Non-accelerated filer o                     | Smaller reporting company x |
|---------------------------|---------------------|---------------------------------------------|-----------------------------|
|                      |                | (Do not check if smaller reporting company) |

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|                                                                                                                                                           |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                           | Page   |
|                                                                                                                                                           |   |
| Part I:   Financial Information                                                                                                                      |   |
|                                                                                                                                                           |   |
|  Item 1.    Financial Statements                                                                                                           |   |
| Consolidated Balance Sheets as of March 31, 2010 and December 31, 2009                                                                               | 3      |
| Consolidated Statements of Operations for the Three Months Ended March 31, 2010 and 2009                                                                  | 4      |
| Consolidated Statement of Stockholders’ Equity for the Three Months Ended March 31, 2010                                                            | 5      |
| Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2010 and 2009                                                                  | 6      |
| Notes to the Consolidated Financial Statements                                                                                                                 | 7      |
|                                                                                                                                                           |   |
|  Item 2.    Management’s Discussion and Analysis of Financial Condition and Results of Operations                                    | 14     |
|                                                                                                                                                           |   |
|              Item 4T. Controls and Procedures                                                      | 22     |
|                                                                                                                                                           |   |
| Part II: Other Information                                                                                                                                |   |
|                                                                                                                                                           |   |
|              Item 2.    Unregistered Sales of Equity Securities and Use Of Proceeds | 23     |
|                                                                                                                                                           |   |
|              Item 6.    Exhibits                                                    | 23     |
|                                                                                                                                                           |   |
| Signatures                                                                                                                                                     | 24     |

----

| ITEM 1. | FINANCIAL STATEMENTS |
|---------|----------------------|

|                                                                                                                                            |   | March 31,   |         |   | December 31, |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------|--------------|--------|--------------|--------|
|                                                                                                                                            |   | 2010        |         |   | 2009         |   |
|                                                                                                                                            |   | (unaudited) |         |   |         |   |
| CURRENT ASSETS                                                                                                                                  |   |        |         |   |         |   |
| Cash and cash equivalents                                                                                                                       |   | $           | —      |   |         | $      | — |   |
| Accounts receivable, net of allowance of $411,324                                                                                               |   |        | 12,997,584   |   |         |   | 14,773,246 |   |
| Prepaid expenses                                                                                                                                |   |        | 65,444       |   |         |   | — |   |
| Derivative instruments                                                                                                                          |   |        | 14,190,831   |   |         |   | 9,937,697 |   |
| Total current assets                                                                                                                            |   |        | 27,253,859   |   |         |   | 24,710,943 |   |
|                                                                                                                                            |   |        |         |   |         |   |   |   |
| PROPERTY AND EQUIPMENT                                                                                                                          |   |        |         |   |         |   |   |   |
| Oil and gas properties (successful efforts method of accounting)                                                                                |   |        | 564,726,476  |   |         |   | 559,565,531 |   |
| Other property and equipment                                                                                                                    |   |        | 3,681,798    |   |         |   | 3,679,515 |   |
| Accumulated depreciation, depletion and amortization                                                                                            |   |        | (180,388,054 | )      |         |   | (170,117,319 | ) |
| Total property and equipment, net                                                                                                               |   |        | 388,020,220  |   |         |   | 393,127,727 |   |
|                                                                                                                                            |   |        |         |   |         |   |   |   |
| NONCURRENT ASSETS                                                                                                                               |   |        |         |   |         |   |   |   |
| Deposits                                                                                                                                        |   |        | 104,697      |   |         |   | 104,697 |   |
| Debt issuance cost                                                                                                                              |   |        | 3,683,448    |   |         |   | 4,347,298 |   |
| Derivative instruments                                                                                                                          |   |        | 3,890,016    |   |         |   | 2,513,369 |   |
| Total noncurrent assets                                                                                                                         |   |        | 7,678,161    |   |         |   | 6,965,364 |   |
|                                                                                                                                            |   |        |         |   |         |   |   |   |
| TOTAL ASSETS                                                                                                                                    |   | $           | 422,952,240  |   |         | $      | 424,804,034 |   |
|                                                                                                                                            |
| LIABILITIES AND STOCKHOLDERS' EQUITY                                                                                                            |
| CURRENT LIABILITIES                                                                                                                             |   |        |         |   |         |   |   |   |
| Current portion of long-term debt                                                                                                               |   | $           | 9,009        |   |         | $      | 19,014 |   |
| Accounts payable                                                                                                                                |   |        | 23,532,894   |   |         |   | 20,263,343 |   |
| Income taxes payable                                                                                                                            |   |        | 282,613      |   |         |   | 250,931 |   |
| Accrued liabilities                                                                                                                             |   |        | 4,431,277    |   |         |   | 8,852,310 |   |
| Asset retirement obligations                                                                                                                    |   |        | 332,832      |   |         |   | 330,287 |   |
| Derivative instruments                                                                                                                          |   |        | 1,596,260    |   |         |   | 872,849 |   |
| Deferred tax liability, net                                                                                                                     |   |        | 3,980,682    |   |         |   | 2,897,300 |   |
| Total current liabilities                                                                                                                       |   |        | 34,165,567   |   |         |   | 33,486,034 |   |
|                                                                                                                                            |   |        |         |   |         |   |   |   |
| NONCURRENT LIABILITIES                                                                                                                          |   |        |         |   |         |   |   |   |
| Long-term debt, net of current portion                                                                                                          |   |        | 190,767,878  |   |         |   | 192,749,751 |   |
| Asset retirement obligations                                                                                                                    |   |        | 9,501,849    |   |         |   | 9,372,366 |   |
| Derivative instruments                                                                                                                          |   |        | 748,440      |   |         |   | 1,284,105 |   |
| Deferred tax liability, net                                                                                                                     |   |        | 3,699,234    |   |         |   | 4,471,023 |   |
| Other noncurrent liabilities                                                                                                                    |   |        | 705,928      |   |         |   | 709,867 |   |
| Total noncurrent liabilities                                                                                                                    |   |        | 205,423,329  |   |         |   | 208,587,112 |   |
|                                                                                                                                            |   |        |         |   |         |   |   |   |
| Total liabilities                                                                                                                               |   |        | 239,588,896  |   |         |   | 242,073,146 |   |
|                                                                                                                                            |   |        |         |   |         |   |   |   |
| COMMITMENTS AND CONTINGENCIES                                                                                                                   |   |        |         |   |         |   |   |   |
|                                                                                                                                            |   |        |         |   |         |   |   |   |
| STOCKHOLDERS’ EQUITY                                                                                                                      |   |        |         |   |         |   |   |   |
| Common stock (par value $0.001; 200,000,000 shares authorized; 38,489,875 and 38,516,658 shares issued and outstanding, respectively) |   |        | 38,577       |   |         |   | 38,578 |   |
| Additional paid-in capital                                                                                                                      |   |        | 210,250,145  |   |         |   | 209,738,513 |   |
| Retained deficit                                                                                                                                |   |        | (26,453,076  | )      |         |   | (26,661,891 | ) |
| Treasury stock (at cost, 86,973 and 61,546 shares, respectively)                                                                           |   |        | (472,302     | )      |         |   | (384,312 | ) |
| Total stockholders’ equity                                                                                                                |   |        | 183,363,344  |   |         |   | 182,730,888 |   |
|                                                                                                                                            |   |        |         |   |         |   |   |   |
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY                                                                                                |   | $           | 422,952,240  |   |         | $      | 424,804,034 |   |

----

|                                                                    |   | Three Months Ended |       |
|-------------------------------------------------------------------------|--------|--------------------|------------|
|                                                                    |   | March 31,          |       |
|                                                                    |   | 2010               |       |   | 2009 |   |
|                                                                    |   |               |       |   |   |   |
| OPERATING REVENUES                                                      |   |               |       |   |   |   |
| Natural gas sales                                                       |   | $                  | 14,473,731 |   |   | $ | 20,648,222 |   |
| Crude oil sales                                                         |   |               | 4,716,695  |   |   |   | 7,433,175 |   |
| Natural gas liquids sales                                               |   |               | 3,294,161  |   |   |   | 2,481,987 |   |
| Operating overhead and other income                                     |   |               | 125,272    |   |   |   | 167,483 |   |
|         Total operating revenues     |   |               | 22,609,859 |   |   |   | 30,730,867 |   |
|                                                                    |   |               |       |   |   |   |   |   |
| OPERATING EXPENSES                                                      |   |               |       |   |   |   |   |   |
| Lease operating expenses                                                |   |               | 3,882,851  |   |   |   | 5,451,753 |   |
| Production and ad valorem taxes                                         |   |               | 1,702,864  |   |   |   | 2,474,742 |   |
| Exploration expenses                                                    |   |               | 495,837    |   |   |   | 729,978 |   |
| Depreciation, depletion and amortization                                |   |               | 10,423,552 |   |   |   | 13,851,886 |   |
| General and administrative                                              |   |               | 4,909,320  |   |   |   | 5,218,289 |   |
|         Total operating expenses     |   |               | 21,414,424 |   |   |   | 27,726,648 |   |
|                                                                    |   |               |       |   |   |   |   |   |
| INCOME FROM OPERATIONS                                                  |   |               | 1,195,435  |   |   |   | 3,004,219 |   |
|                                                                    |   |               |       |   |   |   |   |   |
| OTHER INCOME (EXPENSE)                                                  |   |               |       |   |   |   |   |   |
| Interest expense                                                        |   |               | (5,357,276 | ) |   |   | (4,379,069 | ) |
| Other financing cost                                                    |   |               | (728,103   | ) |   |   | (301,111 | ) |
| Unrealized gain on derivative instruments                               |   |               | 5,442,034  |   |   |   | 9,566,957 |   |
|         Total other income (expense) |   |               | (643,345   | ) |   |   | 4,886,777 |   |
|                                                                    |   |               |       |   |   |   |   |   |
| INCOME BEFORE INCOME TAXES                                              |   |               | 552,090    |   |   |   | 7,890,996 |   |
|                                                                    |   |               |       |   |   |   |   |   |
| Income tax expense                                                      |   |               | (343,275   | ) |   |   | (2,856,383 | ) |
|                                                                    |   |               |       |   |   |   |   |   |
| NET INCOME                                                              |   |               | 208,815    |   |   |   | 5,034,613 |   |
|                                                                    |   |               |       |   |   |   |   |   |
| Dividends on preferred stock(Paid 2010 — $0; 2009 — $7,875) |   |               | —    |   |   |   | (1,081,729 | ) |
|                                                                    |   |               |       |   |   |   |   |   |
| NET INCOME AVAILABLE TO COMMON STOCKHOLDERS                             |   | $                  | 208,815    |   |   | $ | 3,952,884 |   |
|                                                                    |   |               |       |   |   |   |   |   |
| NET INCOME PER SHARE                                                    |   |               |       |   |   |   |   |   |
| Basic                                                                   |   | $                  | 0.01       |   |   | $ | 0.66 |   |
| Diluted                                                                 |   | $                  | 0.01       |   |   | $ | 0.46 |   |
|                                                                    |   |               |       |   |   |   |   |   |
| WEIGHTED AVERAGE SHARES OUTSTANDING                                     |   |               |       |   |   |   |   |   |
| Basic                                                                   |   |               | 38,506,160 |   |   |   | 6,026,888 |   |
| Diluted                                                                 |   |               | 38,653,645 |   |   |   | 10,856,219 |   |

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| CRIMSON EXPLORATION INC. AND SUBSIDIARIES             |   |
|-------------------------------------------------------|--------|
| CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY |   |
| FOR THE THREE MONTHS ENDED MARCH 31, 2010(UNAUDITED)  |   |
|                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                  |   | NUMBER OF SHARES |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                  |   | COMMON STOCK |   |   | COMMON STOCK |   |   | ADDITIONALPAID-IN CAPITAL |   |   | RETAINED EARNINGS |   |   | TREASURY STOCK |   |   | TOTAL STOCKHOLDERS’ EQUITY |   |
| BALANCE, DECEMBER 31, 2009                  |   |   | 38,516,658 |   |   | $ | 38,578 |   |   | $ | 209,738,513 |   |   | $ | (26,661,891 | ) |   | $ | (384,312 | ) |   | $ | 182,730,888 |   |
| Current period net income                             |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 208,815 |   |   |   | — |   |   |   | 208,815 |   |
| Share-based compensation                              |   |   | (1,356 | ) |   |   | (1 | ) |   |   | 511,632 |   |   |   | — |   |   |   | — |   |   |   | 511,632 |   |
| Treasury stock                                        |   |   | (25,427 | ) |   |   | — |   |   |   | — |   |   |   | — |   |   |   | (87,990 | ) |   |   | (87,990 | ) |
| BALANCE, MARCH 31, 2010                     |   |   | 38,489,875 |   |   | $ | 38,577 |   |   | $ | 210,250,145 |   |   | $ | (26,453,076 | ) |   | $ | (472,302 | ) |   | $ | 183,363,344 |   |

----

|                                                                              |   | Three Months Ended March 31, |        |
|-----------------------------------------------------------------------------------|--------|------------------------------|-------------|
|                                                                              |   | 2010                         |        |   | 2009 |   |
| CASH FLOWS FROM OPERATING ACTIVITIES:                                             |   |                         |        |   |   |   |
| Net income                                                                        |   | $                            | 208,815     |   |   | $ | 5,034,613 |   |
| Adjustments to reconcile net income to net cash provided by operating activities: |   |                         |        |   |   |   |   |   |
| Depreciation, depletion and amortization                                          |   |                         | 10,423,552  |   |   |   | 13,851,886 |   |
| Asset retirement obligations                                                      |   |                         | (20,789     | ) |   |   | (202,216 | ) |
| Stock compensation expense                                                        |   |                         | 511,632     |   |   |   | 963,632 |   |
| Amortization of debt issuance cost                                                |   |                         | 680,261     |   |   |   | 258,372 |   |
| Discount on notes payable                                                         |   |                         | 18,126      |   |   |   | — |   |
| Deferred income taxes                                                             |   |                         | 311,593     |   |   |   | 2,309,439 |   |
| Dry holes, abandoned property, impaired assets                                    |   |                         | 107,794     |   |   |   | 11,234 |   |
| Gain on derivative instruments                                                    |   |                         | (5,442,034  | ) |   |   | (9,566,957 | ) |
| Changes in operating assets and liabilities:                                      |   |                         |        |   |   |   |   |   |
| Decrease in accounts receivable, net                                              |   |                         | 1,775,662   |   |   |   | 52,144 |   |
| Increase in prepaid expenses                                                      |   |                         | (65,444     | ) |   |   | (231,461 | ) |
|     Decrease in accounts payable and accrued liabilities           |   |                         | (1,123,739  | ) |   |   | (31,413,594 | ) |
| Net cash provided by (used in) operating activities                               |   |                         | 7,385,429   |   |   |   | (18,932,908 | ) |
|                                                                              |   |                         |        |   |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES:                                             |   |                         |        |   |   |   |   |   |
| Capital expenditures                                                              |   |                         | (5,271,023  | ) |   |   | (10,882,797 | ) |
| Net cash used in investing activities                                             |   |                         | (5,271,023  | ) |   |   | (10,882,797 | ) |
|                                                                              |   |                         |        |   |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES:                                             |   |                         |        |   |   |   |   |   |
| Payments on debt                                                                  |   |                         | (21,430,814 | ) |   |   | (28,603,288 | ) |
| Proceeds from debt                                                                |   |                         | 19,420,809  |   |   |   | 58,418,993 |   |
| Debt issuance expenditures                                                        |   |                         | (16,411     | ) |   |   | — |   |
| Purchase of treasury stock                                                        |   |                         | (87,990     | ) |   |   | — |   |
| Net cash (used in) provided by financing activities                               |   |                         | (2,114,406  | ) |   |   | 29,815,705 |   |
|                                                                              |   |                         |        |   |   |   |   |   |
| INCREASE IN CASH AND CASH EQUIVALENTS                                             |   |                         | —     |   |   |   | — |   |
|                                                                              |   |                         |        |   |   |   |   |   |
| CASH AND CASH EQUIVALENTS,                                                        |   |                         |        |   |   |   |   |   |
| Beginning of period                                                               |   |                         | —     |   |   |   | — |   |
|                                                                              |   |                         |        |   |   |   |   |   |
| CASH AND CASH EQUIVALENTS,                                                        |   |                         |        |   |   |   |   |   |
| End of period                                                                     |   | $                            | —     |   |   | $ | — |   |
|                                                                              |   |                         |        |   |   |   |   |   |
| Cash paid for interest                                                            |   | $                            | 8,351,063   |   |   | $ | 4,808,855 |   |
| Cash paid for income taxes                                                        |   | $                            | —     |   |   | $ | 5,000,000 |   |

----

----

| 3. | FAIR VALUE MEASUREMENTS |
|----|-------------------------|

----

|                          |   | Total          |   |   | Fair Value Measurements Using |   |
|-------------------------------|--------|----------------|--------|--------|-------------------------------|--------|
|                          |   | Carrying Value |   |   | Level 1                       |   |   | Level 2 |   |   | Level 3 |   |
| Derivatives                   |   |           |   |   |                          |   |   |   |   |   |   |   |
| Crude oil swaps and collars   | $      | (1,808,294     | )      | $      | —                       |   | $ | (1,808,294 | ) | $ | — |   |
| Natural gas swaps and collars |   | 21,906,818     |   |   | —                       |   |   | 21,906,818 |   |   | — |   |
| Interest rate swaps           |   | (4,362,377     | )      |   | —                       |   |   | (4,362,377 | ) |   | — |   |
| Total                         | $      | 15,736,147     |   | $      | —                       |   | $ | 15,736,147 |   | $ | — |   |

|                          |   | Total          |   |   | Fair Value Measurements Using |   |
|-------------------------------|--------|----------------|--------|--------|-------------------------------|--------|
|                          |   | Carrying Value |   |   | Level 1                       |   |   | Level 2 |   |   | Level 3 |   |
| Derivatives                   |   |           |   |   |                          |   |   |   |   |   |   |   |
| Crude oil swaps and collars   | $      | (1,332,084     | )      | $      | —                       |   | $ | (1,332,084 | ) | $ | — |   |
| Natural gas swaps and collars |   | 16,236,665     |   |   | —                       |   |   | 16,236,665 |   |   | — |   |
| Interest rate swaps           |   | (4,610,469     | )      |   | —                       |   |   | (4,610,469 | ) |   | — |   |
| Total                         | $      | 10,294,112     |   | $      | —                       |   | $ | 10,294,112 |   | $ | — |   |

----

|                    |   |                                                                                                                                                                                         |   |                                         |       |
|-------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------|------------|
|                    |   | Location of Gain or (Loss)                                                                                                                                                                   |   | Amount of Gain or (Loss)Recognized in Income |       |
| Contract Type           |   | Recognized in Income                                                                                                                                                                         |   | Three months ended                           |       |
|                    |   |                                                                                                                                                                                         |   | March 31, 2010                               |       |   | March 31, 2009 |   |
| Natural gas contracts   |   | Operating revenues                                                                                                                                                                           |   | $                                            | 3,581,435  |   |   | $ | 6,037,224 |   |
| Crude oil contracts     |   | Operating revenues                                                                                                                                                                           |   |                                         | 401,554    |   |   |   | 3,648,074 |   |
| Interest rate contracts |   | Interest expense                                                                                                                                                                             |   |                                         | (1,149,642 | ) |   |   | (1,003,158 | ) |
|                    |   |                               Realized gain |   | $                                            | 2,833,347  |   |   | $ | 8,682,140 |   |
|                    |   |                                                                                                                                                                                         |   |                                         |       |   |   |   |   |   |
| Natural gas contracts   |   | Other income (expense)                                                                                                                                                                       |   | $                                            | 5,670,152  |   |   | $ | 12,584,096 |   |
| Crude oil contracts     |   | Other income (expense)                                                                                                                                                                       |   |                                         | (476,210   | ) |   |   | (2,589,009 | ) |
| Interest rate contracts |   | Other income (expense)                                                                                                                                                                       |   |                                         | 248,092    |   |   |   | (428,130 | ) |
|                    |   |                              Unrealized gain     |   | $                                            | 5,442,034  |   |   | $ | 9,566,957 |   |

----

| Crude Oil                                            |   |   |       | Volume/Month                           |      | Price/Unit       |       |     | Fair Value |   |
|------------------------------------------------------|--------|--------|------------|----------------------------------------|-----------|------------------|------------|----------|------------|--------|
| Apr 2010-Dec 2010                                    |   | Swap   |       | 4,250 Bbls                             |      | $72.32           |       |   $ | (482,905   | )      |
| Apr 2010-Dec 2010                                    |   | Collar |       | 9,000 Bbls                             |      | $65.28-$70.60    |       |     | (1,213,569 | )      |
| Apr 2010-Dec 2010                                    |   | Collar |       | 7,639 Bbls                             |  (1) | $110.00-$181.25  |       |     | 1,984,507  |   |
| Jan 2011-Dec 2011                                    |   | Swap   |       | 3,300 Bbls                             |      | $70.74           |       |     | (606,038   | )      |
| Jan 2011-Dec 2011                                    |   | Collar |       | 7,000 Bbls                             |      | $64.50-$69.50    |       |     | (1,490,289 | )      |
|                                                 |   |   |       |                                   |      |             |       |     |       |   |
| Natural Gas                                          |   |   |       |                                   |      |             |       |     |       |   |
| Apr 2010-Jun 2010                                    |   | Swap   |       | 26,667 Mmbtu (1)                       |  (1) | $6.16 (2)        |       |     | 181,394    |   |
| Apr 2010-Dec 2010                                    |   | Swap   |       | 29,000 Mmbtu                           |      | $7.88            |       |     | 940,718    |   |
| Apr 2010-Dec 2010                                    |   | Collar |       | 351,000 Mmbtu                          |      | $7.57-$9.05      |       |     | 10,470,637 |   |
| Apr 2010-Dec 2010                                    |   | Collar |       | 85,556 Mmbtu                           |  (1) | $9.00-$15.25     |       |     | 3,644,062  |   |
| Jan 2011-Dec 2011                                    |   | Collar |       | 266,000 Mmbtu                          |      | $7.32-$8.70      |       |     | 6,670,007  |   |
|                                                 |   |   |       | Commodity price derivative instruments |      |             | 20,098,524 |     |
|                                                 |   |   |       |                                   |      |             |       |     |       |   |
| Interest rate                                        |   |   |       | Notional Amount                        |      | Fixed LIBOR Rate |       |     |       |   |
| Apr 2010-Dec 2010                                    |   | Swap   |       | $50,000,000                            |      | 1.50%            |       |     | (415,868   | )      |
| Apr 2010- May 2011                                   |   | Swap   |       | $150,000,000                           |      | 2.90%            |       |     | (3,946,509 | )      |
| Interest rate derivative instruments                 |   |   | (4,362,377 | )                                      |
| Total net fair value asset of derivative instruments |   | $      | 15,736,147 |                                   |

|         (1)  Average volume per month for the remaining contract term |
|--------------------------------------------------------------------------------------------------------------------|
| (2)  Average price for the remaining contract term                                                  |

| Asset Retirement Obligations Rollforward |   |
|------------------------------------------|--------|
|                                     |   |   |   |
| Beginning January 1, 2010 liability      |   | $ | 9,702,653 |   |
| Additions                                |   |   | — |   |
| Accretion expense                        |   |   | 153,096 |   |
| Revisions                                |   |   | — |   |
| Properties sold                          |   |   | — |   |
| Plugging and abandonment activity        |   |   | (21,068 | ) |
| Ending March 31, 2010 liability          |   | $ | 9,834,681 |   |

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| 7. | STOCKHOLDERS’ EQUITY |
|----|----------------------------|

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| ·   | estimates of proved reserve quantities and net present values of those reserves; |
|--------------------|----------------------------------------------------------------------------------|

| ·   | reserve potential; |
|--------------------|--------------------|

| ·   | business strategy; |
|--------------------|--------------------|

| ·   | estimates of future commodity prices; |
|--------------------|---------------------------------------|

| ·   | amounts, timing and types of capital expenditures and operating expenses; |
|--------------------|---------------------------------------------------------------------------|

| ·   | expansion and growth of our business and operations; |
|--------------------|------------------------------------------------------|

| ·   | expansion and development trends of the oil and gas industry; |
|--------------------|---------------------------------------------------------------|

| ·   | acquisitions of natural gas and crude oil properties; |
|--------------------|-------------------------------------------------------|

| ·   | production of natural gas and crude oil reserves; |
|--------------------|---------------------------------------------------|

| ·   | exploration prospects; |
|--------------------|------------------------|

| ·   | wells to be drilled and drilling results; |
|--------------------|-------------------------------------------|

| ·   | operating results and working capital; |
|--------------------|----------------------------------------|

| ·   | results of borrowing base redeterminations under our revolving credit facility; and |
|--------------------|-------------------------------------------------------------------------------------|

| ·   | future methods and types of financing. |
|--------------------|----------------------------------------|

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|   | 1. | Natural gas, crude oil and natural gas liquids sales that are proceeds from the sale of natural gas, crude oil and natural gas liquids production.  This represents over 99% of our gross revenues. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2. | Operating overhead and other income that consists primarily of administrative fees received for operating natural gas and crude oil properties for other working interest owners and for marketing and transporting natural gas for those owners. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                      |   | Three monthsended March 31,       |   |   |   |   |   |   |
|---------------------------|--------|-----------------------------------|--------|--------|--------|--------|--------|--------|
|                      |   | 2010                              |   |   | 2009   |   |   | Change |   | Percent Change |   |
| Product revenues:         |   | (in millions, except percentages) |   |
| Natural gas sales         |   | $                                 | 14.5   |   |   | $      | 20.7   |   |   | $ | (6.2 | ) |   | -30.0 | % |
| Crude oil sales           |   |                              | 4.7    |   |   |   | 7.4    |   |   |   | (2.7 | ) |   | -36.5 | % |
| Natural gas liquids sales |   |                              | 3.3    |   |   |   | 2.5    |   |   |   | 0.8 |   |   | 32.0 | % |
| Product revenues          |   | $                                 | 22.5   |   |   | $      | 30.6   |   |   | $ | (8.1 | ) |   | -26.5 | % |

|                           | Three monthsended March 31, |   |   |      |   |
|--------------------------------|-----------------------------|--------|--------|-----------|--------|
|                           | 2010                        |   |   | 2009      |   | Change |   | Percent Change |
| Sales volumes:                 |                        |   |   |      |   |   |   |   |
| Natural gas (Mcf)              | 2,080,168                   |   |   | 3,076,114 |   | (995,946 | ) | -32.4% |
| Crude oil (Bbl)                | 56,304                      |   |   | 96,305    |   | (40,001 | ) | -41.5% |
| Natural gas liquids (Bbl)      | 71,230                      |   |   | 110,242   |   | (39,012 | ) | -35.4% |
| Natural gas equivalents (Mcfe) | 2,845,372                   |   |   | 4,315,396 |   | (1,470,024 | ) | -34.1% |

----

|                                   |   | Three monthsended March 31, |   |   |   |   |   |   |   |
|----------------------------------------|--------|-----------------------------|--------|--------|--------|--------|--------|--------|--------|
|                                   |   | 2010                        |   |   | 2009   |   |   | Change |   |   | Percent Change |   |
| Average sales prices (before hedging): |   |                        |   |   |   |   |   |   |   |   |   |   |
| Natural gas (Mcf)                      |   | $                           | 5.24   |   |   | $      | 4.75   |   |   | $ | 0.49 |   |   |   | 10.3 | % |
| Crude oil (Bbl)                        |   |                        | 76.64  |   |   |   | 39.30  |   |   |   | 37.34 |   |   |   | 95.0 | % |
| Natural gas liquids (Bbl)              |   |                        | 46.25  |   |   |   | 22.51  |   |   |   | 23.74 |   |   |   | 105.5 | % |
| Natural gas equivalents (Mcfe)         |   |                        | 6.50   |   |   |   | 4.84   |   |   |   | 1.66 |   |   |   | 34.3 | % |

|                                  |   | Three monthsended March 31, |   |   |   |   |   |   |   |
|---------------------------------------|--------|-----------------------------|--------|--------|--------|--------|--------|--------|--------|
|                                  |   | 2010                        |   |   | 2009   |   |   | Change |   |   | Percent Change |   |
| Average sales prices (after hedging): |   |                        |   |   |   |   |   |   |   |   |   |   |
| Natural gas (Mcf)                     |   | $                           | 6.96   |   |   | $      | 6.71   |   |   | $ | 0.25 |   |   |   | 3.7 | % |
| Crude oil (Bbl)                       |   |                        | 83.77  |   |   |   | 77.18  |   |   |   | 6.59 |   |   |   | 8.5 | % |
| Natural gas liquids (Bbl)             |   |                        | 46.25  |   |   |   | 22.51  |   |   |   | 23.73 |   |   |   | 105.4 | % |
| Natural gas equivalents (Mcfe)        |   |                        | 7.90   |   |   |   | 7.08   |   |   |   | 0.82 |   |   |   | 11.6 | % |

|                                       |   | Three months ended March 31,      |   |   |   |   |   |   |
|--------------------------------------------|--------|-----------------------------------|--------|--------|--------|--------|--------|--------|
|                                       |   | 2010                              |   |   | 2009   |   |   | Change |   | Percent Change |   |
| Certain Operating Expenses:                |   | (in millions, except percentages) |   |
| Lease operating expenses                   |   | $                                 | 3.9    |   |   | $      | 5.4    |   |   | $ | (1.5 | ) |   | -27.8 | % |
| Production and ad valorem taxes            |   |                              | 1.7    |   |   |   | 2.5    |   |   |   | (0.8 | ) |   | -32.0 | % |
| Exploration expenses                       |   |                              | 0.5    |   |   |   | 0.7    |   |   |   | (0.2 | ) |   | -28.6 | % |
| General and administrative(1)              |   |                              | 4.4    |   |   |   | 4.2    |   |   |   | 0.2 |   |   | 4.8 | % |
| Operating expenses (cash)                  |   |                              | 10.5   |   |   |   | 12.8   |   |   |   | (2.3 | ) |   | -18.0 | % |
| Depreciation, depletion & amortization |   |                              | 10.4   |   |   |   | 13.9   |   |   |   | (3.5 | ) |   | -25.2 | % |
| Share-based compensation(1)                |   |                              | 0.5    |   |   |   | 1.0    |   |   |   | (0.5 | ) |   | -50.0 | % |
| Certain operating expenses                 |   | $                                 | 21.4   |   |   | $      | 27.7   |   |   | $ | (6.3 | ) |   | -22.7 | % |

----

|                                       |   | Three months ended March 31,      |   |   |   |   |   |   |
|--------------------------------------------|--------|-----------------------------------|--------|--------|--------|--------|--------|--------|
|                                       |   | 2010                              |   |   | 2009   |   |   | Change |   | Percent Change |   |
| Selected Costs ($ per Mcfe):               |   | (in millions, except percentages) |   |
| Lease operating expenses                   |   | $                                 | 1.37   |   |   | $      | 1.27   |   |   | $ | 0.10 |   |   | 7.9 | % |
| Production and ad valorem taxes            |   |                              | 0.60   |   |   |   | 0.57   |   |   |   | 0.03 |   |   | 5.3 | % |
| Exploration expenses                       |   |                              | 0.17   |   |   |   | 0.17   |   |   |   | — |   |   | 0.0 | % |
| General and administrative(1)              |   |                              | 1.55   |   |   |   | 0.99   |   |   |   | 0.56 |   |   | 56.6 | % |
| Operating expenses (cash)                  |   |                              | 3.69   |   |   |   | 3.00   |   |   |   | 0.69 |   |   | 23.0 | % |
| Depreciation, depletion & amortization |   |                              | 3.66   |   |   |   | 3.21   |   |   |   | 0.45 |   |   | 14.0 | % |
| Share-based compensation(1)                |   |                              | 0.18   |   |   |   | 0.22   |   |   |   | (0.04 | ) |   | -18.2 | % |
| Selected costs                             |   | $                                 | 7.53   |   |   | $      | 6.43   |   |   | $ | 1.10 |   |   | 17.1 | % |

----

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|                                     |   | March 31, 2010 |       |   | December 31, 2009 |   |       | Change |   |
|------------------------------------------|--------|---------------------|------------|--------|------------------------|--------|------------|--------|--------|
| Current assets                           |   |                |       |   |                   |   |       |   |   |
| Accounts receivable, net                 |   | $                   | 12,997,584 |   |                   | $      | 14,773,246 |   |   | $ | (1,775,662 | ) |
| Prepaid expenses                         |   |                | 65,444     |   |                   |   | —    |   |   |   | 65,444 |   |
| Derivative instruments                   |   |                | 14,190,831 |   |                   |   | 9,937,697  |   |   |   | 4,253,134 |   |
| Total current assets                     |   |                | 27,253,859 |   |                   |   | 24,710,943 |   |   |   | 2,542,916 |   |
|                                     |   |                |       |   |                   |   |       |   |   |   |   |   |
| Current liabilities                      |   |                |       |   |                   |   |       |   |   |   |   |   |
| Current portion of long-term debt        |   |                | 9,009      |   |                   |   | 19,014     |   |   |   | (10,005 | ) |
| Accounts payable and accrued liabilities |   |                | 27,964,171 |   |                   |   | 29,115,653 |   |   |   | (1,151,482 | ) |
| Income tax payable                       |   |                | 282,613    |   |                   |   | 250,931    |   |   |   | 31,682 |   |
| Asset retirement obligations             |   |                | 332,832    |   |                   |   | 330,287    |   |   |   | 2,545 |   |
| Derivative instruments                   |   |                | 1,596,260  |   |                   |   | 872,849    |   |   |   | 723,411 |   |
| Deferred tax liability, net              |   |                | 3,980,682  |   |                   |   | 2,897,300  |   |   |   | 1,083,382 |   |
| Total current liabilities                |   |                | 34,165,567 |   |                   |   | 33,486,034 |   |   |   | 679,533 |   |
|                                     |   |                |       |   |                   |   |       |   |   |   |   |   |
| Working capital (deficit)                |   | $                   | (6,911,708 | )      |                   | $      | (8,775,091 | )      |   | $ | 1,863,383 |   |

|                                                |   | Three months ended March 31, |   |
|-----------------------------------------------------|--------|------------------------------|--------|
|                                                |   | 2010                         |   |   | 2009 |   |
| Financial Measures                                  |   | (in millions)           |   |
| Net cash provided by (used in) operating activities | $      | 7.4                          |   | $ | (18.9 | ) |
| Net cash used in investing activities               |   | (5.3                         | )      |   | (10.9 | ) |
| Net cash (used in) provided by financing activities |   | (2.1                         | )      |   | 29.8 |   |
| Cash and cash equivalents                           |   | —                      |   |   | — |   |

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----

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| ITEM 2. | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS |
|---------|-------------------------------------------------------------|

| Period              |   | Total Number of Shares Purchased (1) |   | Average price Paid Per Share |   | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (1) |   | Maximum Number (or Approximate Dollar Value) of Shares That May Be Purchased Under the Plan or Programs |
|---------------------|--------|--------------------------------------|--------|------------------------------|--------|--------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------|
| January 1-31, 2010  |   | —                              |   | —                      |   | —                                                                              |   | (1)                                                                                                     |
| February 1-28, 2010 |   | 25,427                               |   | $3.46                        |   | 25,427                                                                               |   | (1)                                                                                                     |
| March 1-31, 2010    |   | —                              |   | —                      |   | —                                                                              |   | (1)                                                                                                     |
| Total               |   | 25,427                               |   |                         |   | —                                                                              |   |                                                                                                    |

| ITEM 6. | EXHIBITS |
|---------|----------|

|   |   |                                                                                                                                                 |   |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| Number |   | Description                                                                                                                                          |   |
|   |   |                                                                                                                                                 |
| 3.1    |   | Certificate of Elimination (incorporated by reference to exhibit 3.1 to Crimson Exploration Inc.'s Current Report on Form 8-K filed March 22, 2010). |
|   |   |                                                                                                                                                 |
| *31.1  |   | Certification of Chief Executive Officer pursuant to Exchange Rule13a-14(a) as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.    |
|   |   |                                                                                                                                                 |
| *31.2  |   | Certification of Chief Financial Officer pursuant to Exchange Rule 13a-14(a) as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.   |
|   |   |                                                                                                                                                 |
| *32.1  |   | Certification of Chief Executive Officer pursuant to 18.U.S.C Section 1350 pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                |
|   |   |                                                                                                                                                 |
| *32.2  |   | Certification of Chief Financial Officer pursuant to 18.U.S.C Section 1350 pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                |
|   |   |                                                                                                                                                 |
|   |   | *Filed herewith.                                                                                                                                     |

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|   |         |   |  CRIMSON EXPLORATION INC.                    |
|--------|--------------|--------|---------------------------------------------------|
|   |         |   |  (Registrant)                                |
|   |         |   |                                              |
|   |         |   |                                              |
| Date:  | May 11, 2010 | By:    | /s/ Allan D. Keel                                 |
|   |         |   | Allan D. Keel                                     |
|   |         |   | President and Chief Executive Officer             |
|   |         |   |                                              |
| Date:  | May 11, 2010 | By:    | /s/ E. Joseph Grady                               |
|   |         |   | E. Joseph Grady                                   |
|   |         |   | Senior Vice President and Chief Financial Officer |

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