BATTLE PROSPECT

Red Desert Basin
Tight Gas Resource Play

• J-W offering an industry partner the opportunity to participate in
  the development of the Battle Prospect
• Basin-centered tight gas play
• 80,000 gross contiguous acres
• 38,000 net acres to buyer
• Control of operations with dominant leasehold interests
  throughout prospect
• 80% NRI proportionately reduced to working interest owned
• Two Federal Exploratory Units (NBSU and NISROC) established
  covering nearly 50,000 acres
• Drilling permit in hand for NISROC Unit Qualifying Well
• Four J-W operated wells (not part of sale) currently producing
  from Lewis and Almond
• Gathering and processing infrastructure in place
• Two taps into Lost Creek LLC Pipeline and new, 8 mile J-W
  owned “low pressure” lateral
• Potential to develop hundreds of multi-pay wells with drilling
  density of 80 -160 acres
• Objectives starting with Ft. Union CBM, Ft. Union Sands (strat traps),
  Lance, Lewis, Almond, Ericson
• Hay Reservoir type Lewis “Turbidites” occur within the Prospect
  and can be seismically defined
• Spec 3-D seismic survey (112 square miles) covering essentially
  the entire Prospect; portions reprocessed
• Top of “Overpressure” at 10,400 feet (+/-) with Lower Lance through
  Ericson in Pressure Compartment covering approximately 43
  square miles
• Pressure Compartment developed as a result of faulting with
  seismic and surface lineament supporting evidence
• Sustained flares and mud log shows from top of Overpressure to
  TD in all wells on Prospect
• Water disposal well being permitted nearby

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.