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

Operations:  Drilled successful well

MHR Operated Property

First well drilled and producing ~ 80 to 90 bbls oil/day (gross)

Recent acquisition of additional interest

Inventory of attractive locations

Total possible reserves of up to 2.5 MMbbls of oil