Acreage:  50,281 gross acres

MHR Interest:  10%

Target Formations:  Wolfcamp, Canyon Sands, and Ellenburger

Location:  Crockett County, TX

Future Wells:  ~ 525 identified drilling locations

Success Rate:  96% success rate

Gross Prod:  ~ 23,200 Mcfe/d

Net Prod:  ~ 1,740 Mcfe/d

Operator – Approach ResourcesGross reserves of 670 MMcfe / well

Low finding costs ~ break-even <$3.00 NYMEX

Multi-year drilling program – currently running three drilling rigs

3-D seismic shoot completed and processed

Property is a candidate for divestiture over next six months

2008:  59 wells drilled

2009:  26 wells drilled

2010:  50 wells drilled to date (as of 9/1/10)