Acreage:  44,770 Gross (21,764 Net)

MHR Interest:  50%-100%

Potential Wells:  75 Wells – Eagle Ford

                                8 Wells – Austin Chalk

Trend Success Rate:  >80%

Location:  Atascosa, Gonzales, Fayette, Burleson Counties   

Focus Leasing activity in "Oil Window" of the Eagle Ford Shale (8,000'-11,000')

75+ possible EFS horizontal locations

First horizontal well drilling, the Gonzo Hunter #1 in Gonzales County, Texas.

Multiple JV opportunities

Possible EUR of 200,000 to 500,000 BO/well

Completed horizontal well cost of $5.25M - $6.25M