FAYETTEVILLE SHALE
NON-OPERATED POSITION
Located in Cleburne, Conway, Faulkner, Independence, Pope,
Van Buren and White Counties, Arkansas

- Non-Operated interests in approximately 400 producing wells
- Consistent 2.5% W.I. in 232 governmental sections
- Average net revenue interest: 83%
- All acreage held by production
- All rights being conveyed
- Strong, experienced operators: Chesapeake & SEECO
- Nearly all wells are horizontal
- Effective date 11/01/08
Existing Production:
- 6,610 MCFD net sales projected for November, 2008
- $1,133,396 net cash flow projected for November, 2008
Expected Near-Term Development Potential
- 100 wells currently drilling or completing
- Additional 690 horizontal wells to be drilled by end of 2011
- 10-well-per-section drainage pattern approved by AOGC
Upside:
- Distributed ownership throughout the core of the Fayetteville Shale play
- Non-Fayetteville development and discoveries, currently unidentified
- Additional access to gas markets with planned Fayetteville Express Pipeline
- Possible incremental reserves from the refrac of existing Fayetteville
perforations after 3 years of life.

NOTE: a Confidentiality Agreement (“CA”) must be executed prior to receiving the data
Package. Upon receipt of this request, Meagher will furnish to you a CA for execution.
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