FAYETTEVILLE FAIRWAY SHALE
Non-Operated Producing Wells and Leasehold

Cleburne, Conway and Van Buren Counties

• Current Operations
  • 49 non-operated producing wells
  • Majority of wells operated by Seeco, Inc.
    • Other operators include XTO Energy, Inc., Petrohawk
      Operating Company and KCS Resources, Inc.
  • Projected January 2009 production / cash flow
    • 57,000 gross MCFPD / 970 net MCFPD
    • $190,966 net monthly cash flow
  • 95.41 BCF gross reserves / 1.54 BCF net reserves
     
• Undeveloped Potential
  • Fayetteville down-spacing model in place
    • Nine wells per section
  • 750+ gross additional Fairway locations left to be developed
    • Currently drilling 40+ locations annually
  • Well established type curve of 2.2 BCF recoverable per well
  • 29 net Flatirons locations remaining, under 10% developed
    • 64.45 BCF net P3 reserves
       
• Land
  • ~2,230 net acres
  • Working interest ranges from <1.0% to 26.56%
  • Gross lease net revenue interest ranges from 78% to 83%
  • Majority of leases expire 2010 – 2013
  • Leases not HBP are paid-up for primary terms