Acreage:  714 acre unit

MHR Interest:  62%

Description:

Primary:  W-1 (oil) ~ 9,300’

Secondary:  W-2 (oil) ~ 9,400’

Potential Wells:  3 Producing &     3 Injecting

Location: Cameron Parish, LA

Reserves:  285 Mboe total proved reserves

MHR Operated Property

Completed acquisition of additional working interest in 2009

Inventory of attractive locations

Total possible gross reserves of up to 2.5 MMbbls of oil

Two wells drilled and producing ~100 to ~105 bbls oil/day (gross) with flat production profile