July 15, 2009 • Volume 20, no. 6

PlS, inc., P.o. Box 4987houston, TX 77210

PROSPECTS & PROPERTIESA current compilation of prospects, properties, overrides for sale and promotional insight.

–e&p

chevron turns deepwater frade field on streamChairman O’Reilly predicts demand recovery

Chevron Corp. has begun crude production from the Frade field, the com-pany’s first operated deepwater development in Brazil. The $3.0-billion proj-ect, with continuing development drilling, is expected to achieve peak

production of 90,000 BOEPD in 2011.Chevron has 51.74% operating interest in the Frade field,

which contains an estimated 200 to 300 MMBO of recoverableoil. The field is situated in the Campos Basin in 3,700 feet of

water, 230 miles northeast of Rio de Janeiro. Frade is a subsea developmentwith wells tied back to a floating production, storage and offloading vessel.Crude oil production is planned to be exported to world markets, and gas pro-duction is expected to be provided fordomestic use in Brazil.Other partners in the project are

Petrobras (30%) and Frade JapãoPetróleo, a joint-venture company of INPEX, Sojitz and JOGMEC (18.26%).Elsewhere, Chevron confirmed another discovery within the Moho-

Bilondo license in the Republic of the Congo. The Moho Nord Marine-4 well,in which Chevron holds 31.5% WI, is 46 miles offshore in 3,537 feet of water.Moho Nord Marine-4 was drilled to 13,907 feet TD and proved a 535 foot

(163 meter) column of high-quality oil flowing at 8,100 BOPD. The discoveryfollows two previous successful exploration wells, Moho Nord Marine-1 and2, drilled in the permit area in 2007, and the positive appraisal well MohoNord Marine-3 in 2008.The permit area's deepwater Moho-Bilondo project, which began produc-

tion April 2008, consists of subsea well clusters that flow into a floating pro-cessing unit. Maximum production of 90,000 BOPD is expected in 2010.Chevron's partners on the permit area are Société Nationale des Pétroles

du Congo (15%) and Total (operator and 53.5%).

Photo courtesy of Larry Lee Photography - www.larrylee.com

NEW ALBANY SHALE PROJECT28,752-Gross Acres. 24,238-Net Acres.ILLINOIS BASIN300 To 400 Feet Of New Albany Shale---Shallow Oil Potential < 2,700 Ft.Majority Of Leases Expiring In 2010-2012.100.0% OP. WI; ~82.5% NRI 28,752 Est Total Rsrv Potential: >100 BCFE ACRESBIG OFFSET PLAYERS IN AREACALL PLS FOR MORE DETAILS

DV 4249PP

ATASCOSA CO., TX PROPERTY2-Oil Wells. 2-SWD. 3-SI. 1,299-Acres.PLEASANTON FIELDEdwards & Anacacho Production.4 Offset Drilling Locations Identified.67.5%-92.5% WI; 50.6%-75.4% NRIGross Production: 36 BOPD & 47 MCFDNet Production: 22 BOPD & 27 MCFD 26No Long-Term Sales Contracts. BOEDNet Proved Rsrvs: 252 MBO & 152 MMCFAnalogous Wells Have High Cumm's.Workover Potential for SI Wells.BID DUE DATE JULY 15, 2009

PP 4157

JEFFERSON CO., TX SALES PKG5-Wells.CONSTITUTION & HATHAWAY FIELDSYegua & Hardy Production.NonParticipating Royalty For Sale.Gross Prod: 2.4 MBOPD & 41.3 MMCFDNet Production: 440 MCFED 440Avg Net Revenues: $74,057/Mn MCFEDPDNP Possible Plus New DrillingActive Area: 3-New Offset Permits

RR 4270

Featured Listings

Apache’s north Sea well flows 10,500 BoPdDrills another 8,000 BOPD well in Egypt

Apache Corp. brought its Forties Charlie 6-3 well in the North Sea onproduction at a rate of 10,500 BOPD. The well is the seventh developmentwell brought on production at Forties in 2009, and its initial production rate

is the field's highest since 1994."The well helped confirm the potential for similar

stranded oil accumulations in close proximity to the Char-lie platform," said Rod Eichler, Apache's co-COO and international president."Three similar targets are among Apache's current inventory of 79 drillingtargets at Forties."An eighth well - the Forties Alpha

2-5 - recently logged 115 feet of payand is being completed.Since acquiring Forties in 2003, Apache has invested over $1.2 billion to-

wards infrastructure-related projects that have significantly improved thefield's operating efficiency and process system reliability. At the time of theacquisition, Forties was producing about 40,000 BOPD. Currently, the fieldis producing more than 70,000 BOPD.Apache owns 97.14% interest in Forties, which is the largest single oil ac-

cumulation discovered and is currently the second-highest producing field inthe United Kingdom sector of the North Sea.The field produced 60,940 BOEPD net to Apache in the first quarter of

2009, which was actually down 2% from the fourth quarter of 2008 due toplanned downtime. Last quarter, Apache brought online three new wells,which added average production of 4,870 BOEPD during the first quarter.The FA4-5 well started production in January and was still flowing more than5,000 BOEPD three months later.The company said targets at Forties are generated through 4-D (time-lapse)

seismic and AVO-inversion techniques which monitor fluid saturation and move-ment within the reservoir. Currently, Apache has 60 targets in the field ranging insize from less than 0.5 MMBOE to 1.5 MMBOE.

PlS discusses Pyrenees & winter discoverieswith newfield exploration VP John Jasek

Newfield Exploration has assembled a number of exploration prospectsin the deepwater Gulf of Mexico over the last several years. Since the begin-ning of 2008, the company has drilled seven successes out of eight exploration

attempts in the deepwater Gulf.Most recently, Newfield reported

two new deepwater GOM discoveries,known as Pyrenees and Winter. ThePyrenees discovery, which sits in 2,100 ft. of water in GardenBanks Block 293, encountered 125 ft. of net pay in three inter-vals. The well has been temporarily abandoned as the partnersconsider field development plans. Delineation drilling is

planned for the second half of 2009. Newfield operates the development (40%WI) with partners Stone Energy (15% WI), Ridgewood Energy (15%), Arena Ex-ploration (15%) and Deep Gulf Energy (15%). Speaking exclusively to PLS, Newfield’s Exploration VP for the Gulf of

Mexico, John Jasek, said the company’s success is due to its high quality re-gional seismic datasets. “These allow us to identify the

best remaining prospects. We usethese regional datasets along with ourexperienced exploration staff to com-pare our prospects to analogs in existing discoveries,” Jasek said.Meanwhile, the Winter discovery, located in 3,400 ft. of water in Garden Banks

Block 605, encountered 44 ft. of net pay in two sands. This well also was tem-porarily abandoned to consider development options. Newfield is operator with30% WI with partners Apache (25%), Deep Gulf (25%) and Royal Offshore (20%).“Both the Winter and Pyrenees prospects were internally generated and

acquired through lease sale in 2008,” Jasek added. Predrill estimates for thetwo projects were 200 BCFe each.

(337) 234-1125www.ilandman.com

Frade is expected to achieve peakproduction of 90,000 BOEPD in 2011.

Apache averaged 60,000 BOEPDfrom its Forties field last quarter.

Newfield has spent $10.8 MM neton these two discoveries thus far, outof a total gross cost of $88 MM.

Pioneer Natural Resources hascompleted its first horizontal well inthe Eagle Ford Shale play in SouthTexas. The Friedrichs Gas Unit #1, inDewitt Co., had an initial flowrate of 3.7 MMCFeD, including2.7 MMCFD and 160 BOPDafter partially completing onlyfive stages of a planned eight-stagecompletion.Mechanical problems in the origi-

nal lateral required a sidetrack with amodified well path significantly reduc-ing the well’s exposure to the mainreservoir section. Pioneer estimatesthat only two stages of the frac, repre-senting less than 500 feet of the 3,000-foot lateral, penetrated the shale andare contributing to gas production.

CEO Scott Sheffield said thecompany has drilled more than 150vertical wells through the Eagle FordShale, where it has 310,000 grossacres. But Pioneer is now changingits focus to horizontal drilling.“We will drill a second Eagle

Ford horizontal well more than 40miles southwest of the first locationin the third quarter. We then plan todrill additional wells to high grade

our acreage, including anotherwell in the Friedrichs area,”Sheffield added.Pioneer has a 2009 capital

budget of $250 to $300 million, withonly 10% devoted to South Texas thisyear. But the company is devoting thelargest chunk of its spending, or35%, to its Oooguruk project on theNorth Slope of Alaska, where recentresults have been more encouraging. Currently, operations are under-

way to drill four horizontal laterals inthe Nuiqsut formation during thesecond and third quarters. Two ofthese laterals will be fracture-stimu-lated producing wells and two will bewater injection wells.The first water injection well was

completed and is being produced tem-porarily to measure the unstimulatedproductive capability of the Nuiqsutformation. It was tested at an initialrate of 2,500 BOPD and has been puton production at a stabilized rate of1,000 BOPD.

Pioneer has already drilled over150 vertical Eagle Ford Shale wells.

Late last year GMX Resourceswas an exclusive driller of verticalCotton Valley wells. Now, the com-pany is using its East Texas experienceto help develop the Hay-nesville Shale play under-lying its 42,000 net acres.The effort has led to thebest wells in GMX’s history.Most recently, GMX completed the

Blocker Ware 19H Haynesville hori-zontal well with a 4,446-ft. lateral and

12-stage frac. The well posted an initial24-hour production rate of 8.9MMCFD. The company then com-pleted the Blocker Heirs 12H well witha 4,934-foot lateral and 14-stage frac,posting an IP rate of 9.4 MMCFD.In fact, GMX’s last five horizon-

tal Haynesville wells have averaged

IP rates greater than 8.9 MMCFD,and the first three such wells with lat-eral lines greater than 4,000 feet havecollectively averaged more than 5.8

MMCFD in the first 30-day period.The company is cut-

ting drilling costs in theplay as well by reducing drillingtimes and improving frac techniques.Since the start of 2009, per well costshave fallen from $9.5 million downto $7.5 million, as GMX has reducedspud-to-sales drilling times from 100days to 75 days. By year end, GMXexpects drilling costs to fall furtherdown to $5.5 million with only 50days elapsing from spud to sales.Since transforming itself in No-

vember 2008, GMX has alreadycompleted eight Haynesville hori-zontals and it has a total of 12 suchwell completions planned for 2009,targeting 65 BCFe of proved devel-oped reserves.

Since the start of 2009,Haynesville well costs have fallenfrom $9.5 million down to $7.5 MM.

Venoco raises ‘09production guidancePlans 70 wells inSacramento Basin

Venoco, Inc. has raised its annualproduction guidance 6.6% from its pre-vious estimate to 20,250 BOEPD,

while at the same time re-ducing its operating expenseguidance 10% from its pre-vious estimate to 13.50/boe.

As a comparison, LOE was $19/boe inthe fourth quarter of 2008.The company’s 2009 capex re-

mains the same at $150 million, butits liquidity has increased since clos-ing the $201-million sale of its Hast-ings Complex to Denbury Resourcesback in February. Denbury plans towaterflood the field in the first halfof 2010, and Venoco will retain 23%WI after payout, which could even-tually yield between 15 and 30MMBO net to Venoco.

Immediately to the west of Hast-ings is the Manvel field, which Venococalls a “Hastings look alike” as it con-tains the same Frio Sands. The com-pany said it will leverage its experienceat Hastings and hopes to conduct CO2floods on the field next year.But 54% of Venoco’s 2009 capex

budget is allocated to the SacramentoBasin, where the company plans todrill 70 gross development wells andundertake more than 150 workoversthis year. Venoco is currently runningthree rigs in the play, where it is pro-ducing 10,208 BOEPD on its200,000 net acres in the Basin. Since2005, Venoco has drilled more than300 wells in the Sacramento Basin.The company is also cutting costs by25% in the area this year.

Venoco calls the Manvel field a“Hastings look-alike” on whichwaterflooding could begin next year.

Pioneer drills first eagle ford horizontalLatest North Slope well better than expected

GMX continues haynesville transformationLatest shale wells exceed 9.0 MMCFD each

newfield continues on page 7

APAche continues on page 14

cheVron continues on page 9

Venoco continues on page 3

Pioneer continues on page 11

GMX continues on page 9

For more information, contactRichard Martin at713-650-1212

PAGE 2 JULY, 2009

–e&p

• Adventure energy is pur-chasing 50% WI in the Petrowar-rior-Stout recompletion project inPottawatomie and Seminole Coun-ties, Oklahoma, from BuccaneerEnergy. The project consists of 13previously completed wells whichwill be reworked. Adventure alsohas the option to drill up to fivenew wells.

• Allied energy began a fourwell project in Pawnee Co., Okla-homa, at the end of 2008 and is

now putting all fourwells into production.The third well was the

Eric Foust 9-9, drilled to a depth of3,000 feet, which had both oil andgas shows. Given the successfulgas test of the well, Allied startedcompletion of the Prue formationand perforated from a reported2,162-70 feet.

• International engineering firmAMec was appointed by BP toprovide engineering services forthe Tubular Bells and Kodiak dis-coveries in deep-water Gulf ofMexico. The con-tract is AMEC's first deepwaterwork to be executed under theglobal agreement with BP and fol-lows the announcement in No-vember 2008 of the contract forsupport on the BP Clair project inthe UK North Sea.

• American Petro-hunter isplanning to spud the #1 Lutterswell at the Poston Prospect inTrego Co., Kansas. The operator is S& W Oil & Gas, LLC of Wichita. Thelocation showed a significant 3DSeismic anomaly pinpointing anoil bearing zone. In addition, the750 acre lease block has the po-tential for a multi-well programwith 2 to 3 offset locations possi-ble to fully exploit the acreage. Fulldevelopment of the field couldproduce up to 400 BOPD of lightoil.

• ATP oil & Gas had its highbid for deepwater Green CanyonBlock 344 at the Central GOMLease Sale in March accepted by

the MMS. GreenCanyon Block 344is in 3,244 ft. of

water near ATP’s Clipper develop-ment (Green Canyon Blocks299/300). ATP acquired the blockfor $227,990 and will serve as op-erator.

• Avro energy is acquiring oiland gas interests in northernLouisiana. The company will re-complete the existing wells to in-crease production.

• Basic earth Science Systemsreports that the Roscoe 2H-8 well,a horizontal well in the BanksProspect in eastern McKenzie Co.,North Dakota, came online at 543BOPD and 1.185 MMCFD from theBakken formation.The well is cur-rently flowing at300 BOEPD. Basic Earth’s partner,Tulsa-based Panther Energy Co.,drilled the well and is the opera-tor, with Basic Earth retaining6.5% in the well.

• Bronco drilling co. said uti-lization for its drilling fleet was31% for the month of May com-pared to 34% for the previousmonth and 58% for the first quar-ter. The company had an averageof 45 marketed drilling rigs inMay. The average dayrate as ofMay 31 was $16,900 compared to$17,000 as of April 30 and $16,708for the first quarter of 2009. Uti-lization for the company’sworkover fleet was 14% for themonth of May compared to 14%for the previous month and 24%for the first quarter.

E&P BriefsAnadarko finds oil with deepwater Samurai wellAnadarko Petroleum announced a Miocene discovery at the Samurai

prospect in the deepwater Gulf of Mexico in Green Canyon block 432. The dis-covery well, located 12 miles north of the Marco Polo platform, encountered more

than 120 feet of net oil pay in several high-quality sands.Samurai is Anadarko’s third discovery in the deep-

water Gulf of Mexico this year. The well is close toexisting infrastructure, and the company said it will

drill a sidetrack appraisal well withinthe next year. “The continued success of our

worldwide exploration program rein-forces our expectations of discovering 350 MMBOE of net resources in 2009,which is a 50% increase from our initial expectations,” said SVP Bob Daniels.Samurai was drilled using the Belford Dolphin drillship. The well sits in

3,400 feet of water and was drilled to a depth of 31,700 feet. Anadarko oper-ates the block with 33.33% WI. Partners in the discovery include Murphy Oil

and Samson Offshore Co., each with 33.3% WI.Anadarko is also currently drilling the Vito

prospect in the Gulf of Mexico, a Miocene test inMississippi Canyon block 984, and expects to have results soon. Anadarkooperates the Vito exploration well with 20% WI. Also in the deepwater GOM,development drilling is planned in the third quarter at the company’sCaesar/Tonga complex, with first production anticipated in early 2011.In addition, the company is now moving the Belford Dolphin drillship to

West Africa to spud its Venus prospect in Block SL-6/07 (50% WI) offshoreSierra Leone followed by its South Grand Lahou prospect in Block 105(55.88% WI) offshore Côte d’Ivoire. Both prospects have seismic signaturesand characteristics similar to the Jubilee field offshore Ghana. Following thesedrilling activities, Anadarko plans to move the drillship to begin the com-pany’s multi-well, deepwater drilling program offshore Mozambique.Anadarko qualified its recent successes by adding that its drilling activities

at the Turtle Lake Lower-Tertiary prospect (20% WI) in the Gulf of Mexico andthe Gouda pre-salt prospect (30% WI) offshore Brazil were unsuccessful.

Anadarko expects to discover 350 MMBOE of net resources this year.

Anadarko's Deepwater Samurai Discovery

Gulf of Mexico

APC ACREAGE

EXISTING INFRASTRUCTURE 3 Miles

478

563 564

384

474

561 562

429 432

476

518 519 520

605 606 607 608

FRONT RUNNER

MARCO POLO

K2 Field

SHENZI

SAMURAIDISCOVERY

Offshore

A&D Transactions + MarketAlerts $595/yr Asset newsletter published 18-20x/per year covering the active property and override marketplace. Includes who bought who and what they paid. A&D’s sister product, the MarketAlert is available by email. Contains updated news, analysis and insight on the A&D marketplace.

Prospects & Properties + ProspectCentre $545/yr A monthly newspaper on the E&P market with drilling and discovery news. Each issue carries 200-400 listings of prospects, farmouts and properties for sale. Prospect members also get the ProspectCentre, an E&P focused electronic report published as an email update to the P&P. It includes late breaking news, analysis and prospects for sale.

CapitalMarkets $395 $445/yr This newsletter is published every 2-3 weeks and covers the energy finance sector with news on budgets, banking and sources of capital. Report includes timely interviews with capital providers.

MidstreamNews $345 $395/yr PLS’ midstream newsletter is published every 3 weeks and covers transactions, activities and market moves. The product compliments PLS’ E&P and A&D publications and is a must-read for executives.

QuickPrice (w/any other 2009 subscription) Free PLS’ newest report will be published every Monday morning beginning June 2009 and covers the prior week’s moves regarding pricing, hedging and trading. Recaps Nymex, current transactions and polling results.

Bundled Reports + Web Offer $295/yr I already signed up for OR receive one (1) or more reports, please UPGRADE me for the web!

Web Membership $495/yr PLS offers clients full web access for streaming/archived news and listings. Certain premium services include the name change database, public company presentations, financial data and a transactional database.

Total Reports + Web $1,880 $2,665/yr

2009 Specials & Bundle Options(Please choose one option below. Free listings and access rightsgranted after the purchase of two (2) or more publications.)

Check any 2 boxes and get the PLS web for free.

Check any 3 boxes and get a Conference Pass for free to any PLS forum including Marketmakers, Dealmakers or Playmakers events.

/

/

/

Beau KelleyDirector of Advertising & Corporate Communications

Cell: 713.600.0111 Fax: 713.658.1922OR access www.plsx.com

­­­­

Subscriber’s Information (Please print clearly)

FAX IT BACK! 713.658.1922 OR 713.600.0197

Name Title

Email Company

Billing Address City State Postal (Zip) Code

Phone Fax

Payment Information (Completing the following authorizes PLS, Inc. to charge your credit card, if applicable.)

AMEX VISA MasterCard Check (Payable to PLS Inc. Insert membership type on memo line.)

Name as it appears on card Card Number Exp. Date CCV

Signature of Cardholder

� Date / /Mail To: PLS, Inc., P.O. Box 4987, Houston, TX 77210

Subscribe Now! (Bundled Pricing)We cover acquisitions and divestitures, exploration and production, capital, midstream & pricing marketplace

�

Royalties & Overrides PLS has developed a powerful niche as

the industry’s leading marketing firmfor selling royalties and overrides.

Samurai Discovery -Green Canyon Block 432

PROSPECTS & PROPERTIES PAGE 3

–e&p

ContentsVolume 20 • Issue 5

PAGE 2 −Anadarko finds oil with deepwaterSamurai well

PAGE 3 −Indigo becomes major Gulf CoastplayerGastarcontinues lower Bossier successEXCO ups Haynesville antePenn Virginia drills best everLower Bossier wellContango completes Mary Rose wellMariner achieves first productionat GeauxpherProbe hits East Cameron discoveryMcMoRan ponders future of Am-mazzo, Blackbeard

PAGE 4 −St. Mary develops Eagle FordacreageAbraxas returns South Texas wellto production

PAGE 5 −Playmakers Feature Story:Goodrich goes deep

PAGE 6 −American Energy hits oil withtwo wells in KansasClayton Williams restarts Permian drillingSandRidge brings in partner atPinon

PAGE 7 −Kodiak drills two Bakken producersWhiting brings in private partnerat sanishBill Barrett strengthens Rockies presenceMarathon cuts Cook Inlet drilling plansGeoResources eyes higher Bakkenvolumes

PAGE 8 −Williams steps up Marcellus presence

PAGE 9 −Shell streamlines corporatestructureCabot closes Denver, opens Pennsylvania officeEnCana hedges volumes, shuts in wellsOPEC production rises in May

PAGE 11 −Goldman Sachs predicts $90 oilearly next yearDrilling Info highlights success in“non-core” Barnett

PAGE 12 & 13 −Most recently updated listings

PAGE 14 −IHS CERA expects upstream costs tocontinue to fallIEA predicts energy use to growfrom 2006 to 2030

PAGE 15 −Eagle Ford arrives as latest hotshale playMarketAlerts & Special Reports

PAGE 17 −Marcellus ramping up. Led Zeppelin& Statoil linked?What the Analysts are saying

PAGE 18 −People on the Move

McMoran ponders future of Ammazzo, BlackbeardMcMoRan has deemed its exploratory deep gas Ammazzo well to be non-

productive, despite encountering a sand section with high quality reservoirrock below 24,500 feet, although it was determined to be wet.

Ammazzo, which was spud last November, is on SouthMarsh Island Block 251 in the Gulf of Mexico and was drilledto 25,431 ft. TVD. The well will be temporarily abandoned as

future plans are considered. McMoRan’s second-quarter expense includes$23 million associated with Ammazzo. McMoRan’s partners in the well in-cluded PXP and Energy XXI.Co-Chairman James Moffett said the data from Ammazzo plus information from

the Blackbeard West well and McMoRan’s extensive 3-D database, allows the com-pany to correlate the depositional trendsfrom onshore and the deepwater, enablingit to continue to pursue a major new ex-ploration frontier on the Shelf.Meanwhile, McMoRan said the

Cordage deep gas exploratory well, which was spud in March, is now drillingbelow 17,400 feet towards 19,500 ft. TD. Cordage, which sits in 50 feet of wateron West Cameron Block 207, is targeting Rob-L and Rob-M (Operc) sands in theMiddle Miocene. McMoRan owns 38% WI and operator Mariner holds 50% WI. Upon completion of operations at Cordage, the rig will be moved to the

Sherwood prospect on High Island Block 133 to begin exploration drilling.McMoRan owns 29.3% WI in Sherwood.The company has also re-entered a previously existing well bore to sidetrack

the Blueberry Hill deep gas prospect on Louisiana State Lease 340 in 10 feetof water. The well is drilling below 14,700 feet to 24,000 ft. TD. Way back in2005 McMoRan encountered four pay sands in the Gyro section below 22,200feet in the original exploratory well but completion efforts in 2007 were unsuc-cessful. The sidetrack currently in-progress is targeting the same Gyro sands,but with better technology. McMoRan owns 42.9% WI in the well.Elsewhere, McMoRan is considering to re-enter a previously abandoned well bore

to evaluate the Davy Jones ultra-deep prospect located in 20 feet of water, northwestof Ammazzo. This exploratory well, which McMoRan will operate, has a proposeddepth of 28,000 feet and will test the Eocene and Paleocene (Wilcox) sections.McMoRan’s Blackbeard saga continues as well, with the company being forced

to get an MMS Suspension of Operations grant in order to extend its leases in theBlackbeard area (South Timbalier Block 168). The decision will provide time forseismic re-processing and allow the company to evaluate whether to drill deeperat Blackbeard West, drill an offset location or complete the well to test the existingzones. McMoRan has already spent $31 million on the ultra-deep exploratory well,which it operators with 23.3% WI with partners PXP and Energy XXI.McMoRan also plans to bring its fifth and sixth wells at Flatrock (OCS 310

on South Marsh Island Block 212) on stream by mid-year 2009. The Flatrock#6 well was flow tested at a gross rate of 22 MMCFD and 485 BPD of conden-sate (4.5 MMCFeD net to McMoRan). The well is estimated to have gross pro-duction capability of 50-60 MMCFeD. Gross production from the six wells inthe field is estimated to ultimately reach 335 MMCFeD (63 MMCFeD net toMcMoRan). Current production is 200 (41 net) MMCFeD from four wells.

McMoRan has already spent $23 million on Ammazzo and $31 million on Blackbeard.

Mariner achieves first production at GeauxpherMariner Energy has begun producing from Geauxpher, a deepwater devel-

opment project in the Gulf of Mexico on Garden Banks Block 462. Geauxpherlies in water depths of 2,700 feet more than 150 miles from the Louisiana coast.

The development includes two wells with current gross produc-tion of 115 MMCFeD. The wells are connected via a 40-mile sub-sea tieback to a third-party operated platform on Garden Banks

Block 72. Mariner holds 60% WI and operates the Geauxpher field, whileApache Corp. holds the remaining 40% WI."We are realizing production from Geauxpher less than a year after its discovery,

which is exceptional for a deepwater proj-ect of this magnitude. Even more impres-sive, first production could have occurredas early as last fall but for disruptionscaused by Hurricane Ike," said Mariner Chairman Scott Josey. Field development wasexpedited after the June 2008 discovery at the Apache-generated prospect. With the startup of the Geauxpher field, half of Mariner's production of

390-400 MMCFeD now comes from the deepwater. (See PLS Market Alert,June 3, 2009, Mariner Sails On.)In another joint venture with Apache,

Mariner is currently drilling an exploration wellon the Arden prospect on Garden Banks Block949. Mariner operates the well, which is ex-pected to reach its targeted depth over the nexttwo to three months, and holds 50% WI.

Half of Mariner’s volumes nowcome from the deepwater.

Probe resources hits east cameron discoveryHouston-based Probe Resources discovered commercial gas reserves in

its East Cameron 37 #1 well (52% WI) in the Gulf of Mexico. The wellreached 12,039 ft. measured depth and logged 50 ft. of net pay, exceeding the

company's expectations. Partners include Petrodome Energy, a pri-vately-held Houston firm that holds 44% WI.The well was drilled from the same surface location as the previ-

ously announced East Cameron 36 #1 discovery. A production test facilityhas been constructed and will be installed on location in the next few months.Production is expected to commence in the fourth quarter of 2009. Additionally, the company has relinquished its interest in Brazos Block

434 due to the impending expiration of its drilling commitment and in orderto accelerate development of its previous discoveries.

indigo becomes major Gulf coast playerPrivately-owned Indigo Minerals – which was formed in late 2006 as a venture

between Yorktown Partners, the Martin Companies, Bank of America Capital In-vestors and Indigo Management – has established itself as one of the largest private

companies operating onshore the U.S. Gulf Coast.The company recently bolstered its position to include

more than 150,000 net acres in North Louisiana, East Texas,Alabama and Arkansas by purchasing 120,000 acres from Chesapeake Energy. In the last year and a half, Indigo has participated in drilling 36 new wells with

a 100% success rate. The company also acquired 519 producing wells in over 60fields from Chesapeake (which retainedthe Haynesville Shale rights), bringingits net production to 40 MMCFeD andproved reserves to 220 BCFe.Indigo will be taking over operations

in 219 Chesapeake wells and will gain a working interest in another 300 non-op-erated wells in the region. The operated properties represent about 85%of the $218-million transaction value and Indigo plans to drill hundredsof development wells in the future within existing well units and on the

largely contiguous 40,000 net undeveloped acres also being acquired.This Indigo acquisition follows a successful divestment phase for the com-

pany in 2008/early 2009. Previous divestments involving various HaynesvilleShale mineral and leasehold positions have netted Indigo $611 million in thepast year. Despite the recent divestitures, Indigo still owns some 635,000 netfee mineral and royalty acres in the Upper Gulf Coast.

In the last year and a half, Indigohas participated in drilling 36 newwells with a 100% success rate.

Gastar continues deep Bossier successGastar Exploration completed the Wildman Trust #5 well (67% WI) in one

lower Bossier zone at a restricted gross rate of 15 MMCFD in East Texas. The wellwas drilled to 19,000 feet TD and logged 60 net feet of pay, but was completed inonly the deepest lower Bossier zone, which has tested at over 25 MMCFD and is ca-

pable of higher rates. Further completions will be delayed until gas pricesimprove. The well has cost $9.5 million to drill and complete thus far.Gastar also recompleted the nearby Donelson #3 well (62.3% WI) in

three additional lower Bossier zones. The shallowest zone recompleted,the Lanier Sand, is currently flowing 19.1 MMCFD gross. As the flowing pressuredeclines, Gastar plans to co-mingle thetwo remaining recompleted zones andthe original completion which was mak-ing 5.5 MMCFD when shut in. The costof recompleting in the three lower Bossier zones was $1.5 million. First quarternet production from the Hilltop area in East Texas averaged 25.3 MMCFeD. Gastar has more than 41,000 net acres in the Marcellus Shale play, where it drilled

10 shallow wells, including three in the first quarter. Seven of the wells are on pro-duction, and the remaining wells will come online this year. Gastar said it will notdrill additional wells until it secures a joint venture partner or gas prices improve.Net production from Appalachia averaged 500 MCFeD in the first quarter.The company is still “exploring all avenues to bolster liquidity and is cur-

rently involved in numerous conversations with potential partners and asset pur-chasers in each of its three primary asset areas.” Gastar has already identifieda potential JV partner in the Marcellus Shale, with a deal to be finalized shortly.Internationally, Gastar has increased production from the Bibblewindi multi-

lateral production pilots in its coal seam gas project in New South Wales, Aus-tralia, to 250 MCFD. It is expected that production will climb over comingmonths as dewatering continues. Gastar holds 35% WI in the project with thebalance held by its joint development operating partner, Eastern Star Gas.

The Wildman Trust well tested at arestricted rate of 15 MMCFD.

eXco resources ups haynesville anteEXCO Resources has now put nine operated horizontal Haynesville Shale

wells on production, with another eight operated vertical wells drilled andcompleted. The company also plans to start drilling and completing 21 addi-

tional operated horizontal wells by the end of 2009. EXCO has also unveiled its newly constructed Haynesville

Shale field office and has begun constructing a new Hay-nesville Shale gas gathering and treating facility.

“We have committed over 2/3 of our 2009 drilling and completion budgetto continue developing the 85,000 net acres we have in the play,” said Chair-man Doug Miller. “In addition to our production and development plans, weare committed to spend over $100 million in 2009 on our midstream businessto add treating capability and throughput capacity in excess of 500 MMCFDby early 2010 in our Haynesville shale area,” Miller added.As we went to press, EXCO entered into two transactions to reduce its more

than $2.0 billion debt. First, EXCO first sold pro-ducing assets in the Midcontinent and East Texasto Encore Acquisition Co. for $375 million. Thenext day, EXCO sold 50% of its Haynesville Shaleand related midstream assets to the BG Group ina joint venture deal worth a total of $1.05 billion.

contango completes Mary rose wellHouston-based Contango Oil & Gas completed the workover on its Mary

Rose #2 well, in the Gulf of Mexico, and company production is 95 MMCFDnet. The company added that it remains debt-free and has $23 million of cash

on hand, and $50 million of unused borrowing capacity.Mary Rose No. 2 is on State Lease #19226 in Louisiana

state waters. It, along with Contango's other three Mary Rose wells, producesto Contango's platform on Eugene Is-land Block 11 in the Gulf of Mexico.Meanwhile, Contango founder

and CEO Kenneth Peak recently en-tered into a trading plan for the saleof 200,000 Contango shares over the next 12 months, which equals about 6%of the total shares owned and controlled by Peak. After the sale, he will con-tinue to own ~19% of Contango's fully diluted shares. The company, however, has no major expenditures planned until at least No-

vember of this year, when it will spud the Ship Shoal 263 prospect (Nautilus).

Contango’s chairman is selling200,000 of his shares over the next12 months.

Ark-La-Tex

Penn Virginia drills best ever lower Bossier wellPenn Virginia Corp. tested the Steele #2-H well (100% WI) at an initial rate

of 11.4 MMCFD. The well had a 4,000-foot lateral and was stimulatedwith 2.5 million pounds of sand and bauxite over ten stages. This wellhas the highest initial production rate of any Lower Bossier Shale well

Penn Virginia has drilled to date on its Harrison County acreage in east Texas.

Venoco raises production guidance"We've had very good results from our workover program in the Sacra-

mento Basin and we've also seen oil production continue to rise at our WestMontalvo field," CEO Tim Marquez said.

In Southern California, Venoco plans to spud a total of four develop-ment wells at its West Montalvo field this year. Since acquiring the fieldin 2007, Venoco has doubled production from less than 700 BOEPD tomore than 1,400 BOEPD today. Proved reserves have doubled in that

period as well, reaching 12.2 MMBOEat year-end 2008. Total net productionin Southern California averaged 8,865BOEPD in the first quarter of the year.Second quarter production is ex-

pected to be slightly lower than first quarter volumes after Venoco had to shut-ina portion of its Sacramento Basin production for nearly six weeks in April andMay due to a PG&E pipeline repair. The company estimates that the effect of theshut-in will be to reduce production by 500 BOEPD in the second quarter.In addition, Venoco's previous acquisition of Aspen Exploration's assets in the

Sacramento Basin was approved by Aspen shareholders. The Aspen assets will in-crease Venoco's leasehold primarily in the Greater Grimes area. Production volumesrelated to the acquisition are expected to contribute 250 BOEPD for the full year.

Venoco plans 70 developmentwells and 150 workovers in theSacramento Basin this year.

Venoco cont. from pg 1

See ProspectCentre datedJune 3, 2009

For more, see MarketAlertdated July 1, 2009

PAGE 4 JULY, 2009

–e&p

DATA LIBRARY WITH A DIFFERENCE

Explore the promise of the Gulf Coast CGGVeritas develops and maintains an extensive library of 3D multi-client seismic datashot in the most promising regions of the United States and Canada. The US key areasinclude: Gulf Coast, West Texas, Mid-Continent, and Western US. Let CGGVeritas giveyou the edge you need to make informed drilling decisions.

Gulf Coast

Scott Tinley

+1 832 351 8544

scott.tinley@cggveritas.com

Cheryl Oxsheer

+1 832 351 8463

cheryl.oxsheer@cggveritas.com

Western US

Rick Trevino

+1 832 351 1051

rick.trevino@cggveritas.com

Mid-Continent

Dennis Langlois

+1 832 351 1052

dennis.langlois@cggveritas.com

cggveritas.com/landlibraryContact:

Houston +1 832 351 8300

St. Mary develops eagle ford acreageSt. Mary Land & Exploration completed its first operated horizontal

Eagle Ford shale well, the Briscoe G 1-H (WI 100%) in Webb Co., Texas. Thewell produced at an average rate of 5.6 MMCFED over a seven-day period,

during which the well was facility constrained. The well was drilled to a depth 7,500 feet TVD

(11,350 feet MD) and completed with a 3,200-foot lat-eral using a ten-stage frac. While this initial well cost

$5.2 million to drill and complete, St. Mary anticipates future well costs willbe in the range of $3.5 to $4.5 million, depending on well depth.St. Mary currently has a total of 225,000 net acres with potential for the Eagle

Ford shale in Dimmitt, LaSalle, Maverick and Webb Co., Texas. Of this total,66,000 acres relate to acreage earnedthrough its joint venture with AnadarkoPetroleum and TXCO Resources.The company has the ability to

earn an additional 20,000 net acresthrough the joint venture. The remaining 159,000 net acres are outside thejoint venture, where St. Mary has 100% WI.St. Mary is currently operating two drilling rigs in this program in an effort

to further delineate the potential of its acreage position. One rig is drilling inWebb County on St. Mary’s 100% WI acreage while the other rig is drillingon joint venture acreage in Dimmitt County. St. Mary has already drilled and cased another horizontal test on joint venture

acreage, the Shape Ranch 1-H in Dimmitt Co., which is awaiting completion. Forthe remainder of 2009, the company plans to drill two additional horizontal wellson its 100% acreage and two additional horizontal wells on the joint ventureacreage, as well as complete and interpret its ongoing 3D seismic efforts.CEO Tony Best said St. Mary’s Eagle Ford acreage is shallower compared

to some other areas of Eagle Ford activity in the Maverick Basin, which willallow for shorter drill times and less expensive wells.

St. Mary’s first Eagle Fordhorizontal flowed at a restricted rateof 5.6 MMCFeD.

Abraxas returns South Texas well to productionAbraxas Petroleum has returned its Nordheim #2H well (75% WI) in South

Texas to production. The horizontal Edwards well came on-line in January at6.0 MMCFD from the first section of the lateral before being choked back to

3.0 MMCFD. After a six-stage frac, the well was returned to pro-duction and is capable of producing in excess of 10 MMCFD, butis being restricted to 4.6MMCFD due to low gas prices.

Meanwhile, Abraxas Petroleum andAbraxas Energy Partners LP have agreed to merge, with Abraxas Petroleum ac-quiring the outstanding common units of Abraxas Energy for $6.00 per commonunit. The merger should allow the combined entity to increase its drilling activityby reinvesting a greater portion of its cash flow into organic growth projects.The merger is also expected to reduce general and administrative ex-

penses. Abraxas Energy Partners is a San Antonio-based upstream MLP.Based on first quarter results, the combined company will have 25.1MMBOE of proved reserves located in the Haynesville, Woodford, Barnett

and Bakken Shales plus the Wolf-berry Trend and South Texas.Abraxas Petroleum averaged pro-

duction of 867 BOEPD in the firstquarter of the year, up 30% from 667

BOEPD in Q4 2008. This year, the company drilled its first well at BrooksDraw in Converse Co., Wyoming, where it has 14,000 net acres. The Lake-side 1H well posted an IP rate of 250 BOPD. Abraxas currently has 11 pro-ducing wells in the play, including six horizontals.

South Texas

Abraxas Petroleum is mergingwith Abraxas Energy Partners toincrease drilling activity.

• cobra oil & Gas intends topurchase 20% lease assignmentfrom Enercor, which holds a con-

tract with Exxon Mobil re-garding the conversion ofExxon’s 26,000 acres owned

by the BLM in Utah purported tohold an estimated potential of upto 1.4 BBO in its tar sands. Thecontract provides that Cobra useits resources to convert thoseleases into Combined Hydrocar-bon Leases and then it will havethe right to exploit the tar sandson at its expense, paying a 1/16royalty to Exxon Mobil on top ofthe 8% royalty that is due to theBLM.

• daybreak oil and Gas drilledits Sunday #2 development well atits East Slopes Project in Kern Co.,California. The well encountered25 feet of oil pay in the Veddersands at 1,900 feet and is currentlybeing completed. The Sunday #1well is currently producing 80BOPD. The Bear #1 well has alsobeen completed at 50 BOPD. Day-break recently sold 25% WI in theEast Slopes project to O&G EnergyPartners for $1.2 million. O&G willalso assign to Daybreak 25% in14,100 acres in Kern Co., immedi-ately north of the East Slopes Proj-ect.

• dril-Quip, inc., was awardeda three-year contract valued at$180 million for the supply ofsubsea wellhead systemsto Petrobras for drillingdeepwater wells offshoreBrazil. Initial orders under thecontract are valued at $80 millionand will be included in Dril-Quip'sbacklog at the end of the secondquarter of 2009.

• east resources, inc., a pri-vately-owned E&P company basedin Pennsylvania, has received a sig-nificant investment from privateequity funds of global investmentfirm Kohlberg Kravis Roberts & Co.which the company will use tohelp develop its 650,000 net Mar-cellus Shale acres. East Resourcesoperates over 2,400 producingwells in New York, Pennsylvania,West Virginia, Colorado, andWyoming and has active ex-ploratory drilling programs under-way in Wyoming. for more newson private-equity investments ine&P, see our capitalMarketsnewsletter.

• encore energy Partners lP ispurchasing producingproperties in the Vine-garone field in Val VerdeCo., Texas, for $28 million.

In addition, the partnership ispurchasing from Encore Acquisi-tion Co. producing properties inthe Williston Basin for $25.8 mil-lion. Encore will gain productionof 926 BOEPD, plus 4.4 MMBOE inproved reserves (97% PDP,64% gas).

• endeavor Power hasbrought on stream all 14 wells onits Patrick Henry Lease with part-ner Federated Energy. Productionis 20 BOPD, expected to increaseas the salt water injection systemcontinues to add pressure to theformation.

• enerJex resources andPharyn resources are undertak-ing a 20-well develop-ment program onEnerJex’s Brownrigglease in Linn Co., Kansas. EnerJexwill contribute the 320-acre prop-erty in exchange for a 10% carriedWI. Pharyn will contribute up to$700,000 in initial capital. EnerJexwill develop the project and re-main the operator of the prop-erty. EnerJex previously engagedC.K. Cooper & Co. to explorestrategic alternatives includingcreating joint ventures or restruc-turing debt. Formed in 2005, En-erJex operates in theMidcontinent where its gross pro-duction is 270 BOPD.

E&P Briefs

Listing, News, Opportunities & InsightPLS is the industry’s leading portal to find assets for sale,what’s sold and prices paid.Contact PLS at (713) 650-1212 or visit www.plsx.com forrates and available placement in PLS’ publications or onlineList with PLS– To find out how PLS can help you sell your assets and

connect you with buyers, call: 713-650-1212 or access www.plsx.com

www.plsx.com

PROSPECTS & PROPERTIES PAGE 5

–e&p

Goodrich goes deep Interview by Kyle Francis

Seeks to leverage prolific Haynesville rightsAfter years of Cotton Valley drilling,

Goodrich Petroleum is now honing its shale drilling techniques. Goodrich recently brought on stream its second operated

horizontal Haynesville Shale wellin East Texas at 9.0 MMCFD. The Lutheran Church 5HR well is inthe Beckville/Minden area of

Panola Co., Texas, where Goodrich has beenquietly amassing a position since 2003, andwhere the company now has more than40,000 net acres. The Lutheran well followsGoodrich’s first horizontal Haynesville well inEast Texas, the J.K. Williams 7H, which tested at 7.0 MMCFD. Both wells helped the companyto ramp up total volumes to 80 MMCFeD in

the first quarter ofthe year. Goodrich is operator of all itsEast Texas acreagewith 100% WI.

Goodrich islearning the shaleplay ropes from industry stalwartChesapeake Energy. The two companieshave a joint venture in North Louisiana,under which

Goodrich has participated in five Chesapeake-operated wells in DeSoto Parish that flowed11 to 15 MMCFeD. The two companies arecurrently completing three additionalHaynesville horzionals in the field, the Brian25H-1 (13% WI), the Johnson 32H #1 (31%WI) and the Wallace 36H-1 (37% WI).

Since the start of the second quarter, Goodrich has used its acquired knowledgeto complete its second Haynesville well inthe Longwood field (Caddo Parish). TheSharp 1H-1 (17% WI), had an IP rate of 8.6MMCFD.

Goodrich’s President and COO is robertTurnham. Turnham has served as COO sinceAugust 1995 and became president in February2003. From 1981 to 1984 Turnham served asa financial analyst for Pennzoil. In 1984 heformed Turnham Interests, Inc. to pursue oiland gas investment opportunities. From 1993to August 1995 he served as president ofLiberty Production Company, an oil and naturalgas exploration and production company.

When did Goodrich begin developing theHaynesville on its acreage? What does the company see for the future of the play? Inorder to answer these and other questions,PLS caught up with Turnham to gain moreinformation about Goodrich’s emerging Haynesville play.

PlS: Goodrich has enjoyed a 99% successrate in drilling 441 cotton Valley wells to date. what preparations are necessary toensure such a high success rate? is thisknowledge easily transferable to the haynesville play?

Goodrich: In 2003 we made the strategic decision to begin building an acreage positionin East Texas and North Louisiana, where we saw the potential for multiple productive horizons, high success rates, repeatabilityand the ability to build a multi-year drilling

inventory. We felt we could apply our geologicand operational expertise, implement improvedfrac technology and realize higher gas prices, which would allow us to achieve very good rates of return. Our 99% success rate was dueto identification of the prospective acreage, and putting in place a very good technical team with extensive experience and expertisewho could execute our strategy.

Our experience drilling and completingover 400 wells during the last five years iscertainly helpful in our Haynesville Shale development. We also entered into a joint venture with Chesapeake Energy to develop a portion of our Haynesville acreage in NorthLouisiana, which has allowed for us to absorbsome of their extensive technical expertise asit relates to drilling and completing high pressured horizontal wells.

PlS: how many operated and non-op-erated haynesville wells has Goodrichparticipated in, and what has Goodrichgained from its joint venture partner(s)?when did Goodrich begin participating inhaynesville wells?

Goodrich: As of the end of June, we haveparticipated in 14 non-operated horizontal Haynesville wells in North Louisiana and fouroperated horizontal Haynesville wells in EastTexas, with a fifth well currently drilling. Priorto horizontal Haynesville drilling, whichcommenced in late 2008, we drilled approximately ten vertical wells, which gaveus log, core and frac data to set us up for ourhorizontal development. As to our joint venture, we have a development committeewhich meets quarterly, which is designed to exchange drilling and completion informationas well as establish quarterly budgets.

PlS: what is Goodrich finding to be the optimal drilling and completion techniquesin the haynesville in terms of costs versus reward (i.e. frac stages, lateral lengths, etc.)?

Goodrich: In North Louisiana, we are currently targeting approximately 4,600 footlaterals with ten stage fracs, and are verypleased with the results and the return onour investment. Frac costs have come downover 50% over the last four months, and wehave continued to tweak our drilling andcompletion procedures, with improving results. In East Texas, we have the option todrill longer laterals due to more flexible voluntary unitization capabilities, and with thelonger laterals, we expect more frac stages butpotentially higher EURs and rates of return.

PlS: is Goodrich’s haynesville play stilleconomic at current gas prices? how is Goodrich controlling costs in the play? does the company have access to adequateinfrastructure in the area?

Goodrich: We currently have approximately 75% of our natural gas hedged at a minimumprice of $8.61 through the end of the year. When factoring in current prices for the remaining 25% of gas, we are still realizingover $7.00 for our gas in 2009. As to the

economics of Haynesville wells, we estimatea 10% internal rate of return for a 6.5 Bcf wellat an $8 million completed well cost at$3.50/Mcf gas prices. It is certainly way tooearly to predict with certainty the EUR forthese wells, and we expect variabilitythroughout the play, but we are encouragedby what we have seen to date.

Costs have come down pretty dramaticallyover the last six months. For example, drillingrig rates have dropped by 30-50%, dependingon specifications, with pipe prices, fuel and inparticular completion costs showing significant decreases.

As to infrastructure expenses, we do nothave any material infrastructure costs in either East Texas or North Louisiana due todrilling within existing facilities or third partygathering obligations.

PlS: how many rigs will Goodrich average in the play this and/or next year?what is Goodrich’s net production guid-ance for the haynesville in 2009 and 2010?

Goodrich: We will average 5.5 gross (3.5net) rigs running full time in the Haynesvillein 2009, which will yield us 33 gross, 19 netwells for the year. In addition, in the first halfof 2009 we drilled 13 gross (11 net) shallow wells, primarily driven by Cotton Valley Taylorsand horizontals, for a total 46 gross (30 net) wells planned for the year. From that drillingprogram, which is estimated to cost ~$230 million, we are expecting 15-25% productionvolume growth for the year.

As to 2010, we will establish our capital expenditure budget in December, with thelevel dependent on operating margins, which are obviously predicated on commodity prices and costs.

PlS: what advantages does Goodrichenjoy over its peers in other domesticshale plays?

Goodrich: I would like to emphasize again that the play is early, but the preliminaryeconomics of the Haynesville Shale comparevery favorably to the other shale plays. Theleverage that Goodrich Petroleum enjoys isthe reserve potential from the play relativeto our enterprise value. With over 66,000 netacres identified as prospective for the Haynesville, and assuming 4.5 Bcf to 6.5 Bcfof reserves per well on 80 acre spacing, the company has 2.7 – 3.8 Tcf of reserve exposurein addition to our shallow reserve exposure.The value of those reserves compared to ourcurrent enterprise value of approximately $1.5 billion provides great leverage. In addition, we currently have a very good balance sheet with net debt to capital of18%, which provides us with plenty of liquidity to continue to execute our plan.

Robert TurnhamPresident & COO

"We estimate a 10% internal rate ofreturn per well even at $3.50/Mcf gas."

“Frac costs have come down over 50% overthe last four months, while drilling rig rateshave fallen 35-50%.”

Potential impact of haynesville Shale (horizontals) Per well Gross reserve estimates (BCFe)

4.5* 6.5* 8.5*

Gross Probable net ProbableArea & Possible wells** & Possible wells** Potential net impact on GdP reserves (BCFe)

Bethany Longstreet 328 165 527 761 996

Greenwood-Waskom 40 31 98 141 184

Longwood 134 67 226 327 427

Beckville 154 147 496 717 937

Total 1,112 789 2,657 3,845 5,027

Source: Goodrich Petroleum Presentation

* Per well gross reserve estimates are based SOLELY on information publically provided by other industry participants. Goodrich Petroleum makes no representations with respect to the veracity of these estimates. The estimates used herein are meant to reflect the broad range of possible outcomes andshould not be considered as geological or scientific estimates provided by the company.

** All gross and net probable and possible well locations calculated using 80-acre spacing on 63,500 net acres. Excludes 2,900 net acres on Caddo Pine Island.

Of The E&P Sector

PlaymakersDon’t Fumble This Date–

10/20/2009@ Hilton Americas,

Houston, TX

PLS’ Playmakers Symposiumand E&P Summit is back andgearing up for another excitingevent on October 20, 2009 atthe Hilton Americas Downtown,Houston, TX. The Summit willfeature an all-star line-up of industry professionals activelyinvolved in exploration and production.

This stellar event is a chance tohear from today's industry leaders and playmakers whohave been weathering outvolatile energy markets and despite current conditions, haveexciting E&P plans ahead for2009 and beyond.

By attending this event you will gain valuable insight on onshore,offshore and unconventional E&Pinitiatives such as who’s expanding exploration efforts,accessing capital in tight creditmarkets, facilitating E&P throughJVs and much more...

This unique Summit also includes an exclusive Playmakers Exposition for sponsors and select prospect generators offering year-end prospects and projects for sale. The E&P Summit is the event for active industryexecutives, explorationists, deal-takers and playmakers.View our past playmakersagenda for more information at www.plsx.com/playmakers2008

This is an exciting event youwon’t want to miss! For more information contact Samara Silverman at ssilverman@plsx.com.

Samara SilvermanDirector of Communications & Conferences

(713) 650-1212ssilverman@plsx.com

PAGE 6 JULY, 2009

–Listings For Sale

American energy hits oil with two wells in KansasAmerican Energy Resources discovered oil with its Bonita Springs 4A

well in Gove Co., Kansas. This is the company’s second successful well inthe last month using 3-D seismic. The Bonita well was drilled to 4,700 ft. TD.

Initial projections estimate that the well will pro-duce 150 BOPD.American Energy also discovered a second-

ary oil reserve in Lane Co., Kansas. The oil well,known as Doyle's Dome #7, is an offset well to the Doyle's Dome #1 well,which had initial production of 282BOPD. The #7 is also expected to ex-ceed 200 BOPD. "This is the second largest well

American Energy Resources has ever drilled," said Don Allen, president andfounder of American Energy Resources. "Our use of 3-D seismic mappingtechnology allows the company to hit 'sweet spots' with multiple pay zones."In total, the company has more than 30,000 leased acres in Kansas and

another 47,000 gross acres in the Denver Julesberg Basin.

“This is the second largest wellAmerican Energy has ever drilled.”

Kansas

clayton williams restarts Permian drillingClayton Williams Energy has increased capital spending for the remain-

der of 2009 in response to lower drilling and completion costs and higher oilprices. The company now plans to begin two major drilling projects during

the last half of the year in the Permian Basin and AustinChalk, two of its core areas. The two projects will utilize up to five drilling rigs

owned by Desta Drilling, which is the operating name for Larclay LP, awholly-owned subsidiary of Clayton Williams.The company now plans to spend $107.7 million on E&D

activities this year, up from the previous estimate of $78.5million. Of this total, 46%, or $49.3 million will go towards Permian drilling,while $6.5 million will be spent in the Austin Chalk. In addition, ClaytonWilliams will spend $23.3 million in South Louisiana and $19.9 million in

East Texas’ Bossier play.In May, Clayton Williams fraced

the Sunny Unit #1, a 17,300-foot ex-ploratory well in Burleson Co., Texas.

The well was drilled to the Deep Bossier formation, and completed in themiddle Bossier sands. To date, the company has incurred drilling and com-pletion costs of $17.7 million on this well (100% WI). Production volumeshave not yet been released.Also in May, Clayton Williams had to abandon the drilling of the Miami

Corp. #1, its exploratory test well in the Bayou Sale field on its Liger Prospectin St. Mary Parish, Louisiana, due to down hole mechanical problems. The company has since moved the drilling rig 20 feet north to drill the

Miami Corp. #2 as a replacement well, targeting the same lower Miocenesands at 17,500 ft. The company estimates that the combined drilling cost ofboth wells will be $15 million. Clayton Williams and BP each own 50% WIin any production established by this well.

Sandridge brings in partner at PinonU.S. Drilling Capital Management LLC is investing up to $75 million

in SandRidge Energy’s development drilling in the Pinon Field in the WestTexas Overthrust (WTO). The agreement calls for an initial $15 million com-

mitment, and, subject to a mutual option, could aggregate$75 million over the next 12 to 18 months.The Pinon Field, discovered in 1983, is SandRidge’s

core play. Located along the leading edge of the WTO in Pecos and TerrellCounties, the primary reservoirs arethe Tesnus sands (3,500 to 5,000feet), the Upper Caballos chert (5,000to 8,000 feet) and the Lower Caballoschert (7,000 to 10,000 feet).At the end of the first quarter SandRidge had four rigs running in the

Pinon field, where it drilled around 40 operated wells in the first quarter.Back in March, SandRidge sold its gathering system at Pinon for $200 mil-lion. The company also sold its Haynesville rights in East Texas for $60 mil-lion in an effort to improve liquidity and raise funds for Century Plant, beingconstructed with Occidental Petroleum in Pecos County.When the plant is complete in 2012, SandRidge expects its net volumes

to reach 500 MMCFeD in West Texas, up from around 300 MMCFeD cur-rently. The company’s new partner, U.S. Drilling, was founded last Novemberby Philip Epstein, Jonathan Feldman and Bill Cassidy.

The company now plans to spend$107.7 MM on E&D activities this year.

West Texas

SandRidge expects its netvolumes to reach 500 MMCFeD inWest Texas.

EAST TEXASBOWIE CO., TX PROSPECT2,300-Net Contiguous Acres.TALCO FAULT SYSTEMPettit, Paluxy, Rodessa, Smackover.100% OPERATED WI; 78%+ NRI MULTIZONEANALOGS SHOW HIGH POTENTIALLeases Expire: September 2013Gravity,Magnetics,& Other Data Available.DV 2278

CHEROKEE CO., TX PROSPECT8,500-Acres. 1-ReEntry. 1-New Well.Targeting Travis Peak & Cotton Valley.Proposed Depth: 13,400 Ft.Seller Will Deliver 79.3% NRI. 3.0 BCF/Analogue Production: 210 BCF WELLEst Well Reserves: 3.0 BCFG&G Costs: $250,000Total Land Cost: $2,876,480DV 5687

EAST TEXAS GATHERING SYSTEM8-Mile Gas Pipeline.MARSHALL/HARRISON AREANear Penn Virginia Well.MultiPay East Texas Reservoirs.Cotton Valley, Travis Peak.Haynesville Development Possible. PIPELINEPipeline Capacity: 10,000 MCFD Multiple Line Right-Of-Way.High Pressure Line.Interconnects w/ Two Main ETX Lines.SUBJECT TO PRIOR SALEG 1425PL

EAST TEXAS LEASE 2-Counties. 1,425-Net Leasehold Acres.HAYNESVILLE SHALE POSITIONMultiple Target Potential.SHELBY COUNTY:—-746.5 Net Acres.—-3 Years + 2 Year Option NACOGDOCHES COUNTY: LEASE—-680 Net Acres.—-3 Years + 2 Year Option100% OPERATED WI; 75% NRISurrounded By Large Independents.Seller Has Set Asking Price.CALL PLS FOR DATA PACKAGEDV 5753L

EAST TEXAS LEASEHOLDS~5,915-Net Mineral Acres.SABINE & SAN AUGUSTINE CO.Primary Objective: Haynesville Shale Secondary Objective: James Lime LEASEAcreage Is Available For Lease.CALL PLS TO LEARN MOREL 5771

EAST TEXAS PROSPECT OFFERING50-Potential Wells. ~8,000-Acres.SABINE & ST. AUGUSTINE CO.Haynesville & James Lime Targets.Defined By SubSurface Geology.50%+ WI Available; ~37.5%+ NRI HAYNESVILLEOperations Available To Qualified Partner.Est Reserves/Well: ~8.0 BCFEst Reserves/Project: >1.0 TCFDV 5280

FREESTONE CO., TX PROSPECT2-Potential Wells.Cotton Valley Targets Identified.Generated With SubSurface Geology.100% OPERATED WI; 75% NRI COTTONEst Reserves/Well: 1.5 BCF VALLEYEst Reserves/Project: 3.0 BCFLAND DEPT HAS MORE DATADV 5716

HARRISON CO., TX MINERALS~1,484-Gross Acres. ~468-Net Acres.HAYNESVILLE SHALE12-Properties. Minerals For Lease. LEASEVery Active Area: Bossier-Haynesville Play.Unleased Mineral Interest Available.L 3389

EAST TEXASHARRISON CO., TX SWD SERVICECommercial SWD & Trucking Business.HAYNESVILLE / COTTON VALLEY4-SWD Facilities Available. SERVICE20-Water Hauling Tractor/Trailers.SWD 5085

LEON CO., TX PROSPECT 13,800-Gross & 11,800-Net Acres.Targeting Ponderosa Knowles Carbonate.Prospect Defined By 2-D Seismic Data.Analogous Fields Cumm’d ~100 TCFE.Potential Reserves: 747 BCF PONDEROSAUpside Exceeds 1.6 TCF. KNOWLESDHC: $6,650,000; Compl: $8,620,000CALL PLS FOR DETAILED SHOWINGDV 6351

LEON CO., TX SHALLOW OIL500-Acres. 6 To 10-Possible Locations.Field Extension Project. 3-D Defined.Targeting Woodbine Formation. 6,500 Ft.Offsetting Test Cored/Logged 25 Ft. Pay.NEVER COMPLETED WOODBINE100 Ft. Of Structural Gain Possible.Seller Will Deliver 75% NRI.Est Reserves/Well: 150-200 MBODV 6424

LIMESTONE CO., TX DISPOSAL11-Pit Permits. 53-Acres.For Water-Based Drilling Muds/Fluids. PERMITSAdd’l 670-Acres Available (50% Minerals).CALL AUSTIN BROKER FOR INFOSWD 5092

LIMESTONE CO., TX FACILITY1-Commercial SWD Facility (Active).Recent Casing & Tube WorkOver.2-Water Hauling Tractor/Trailers. SWDCurrent Flow: ~4,666 BPD FACILITYLast Reported Cash Flow: $45,000/MnSWD 5094

NACOGDOCHES & RUSK CO., TX4,796-Acres Available. Farmout.HAYNESVILLE SHALE PLAYCOTTON VALLEY LIME HAYNESVILLEFormation Depth: 10,400-11,400 Ft.100% OPERATED WI. Negotiable FarmoutArea Wells/Initial Volumes: 5-10 MMCFeDNear Devon & Cabot Exploration Efforts.Well Reserves: 5-7 BCFE/80 Acre SpacingHaynesville Produces 37-45 BCFE/Section.Total Recoverable Rsrvs: 277-337 BCFEDV 5181

NACOGDOCHES CO., TX PROSPECT88-Acres.NACONICHE CREEK W FIELDTargeting Pettit A1 & C ZoneTarget Depth: ~8,400 Ft (TVD) PETTIT100% OPERATED WI; 76.4% NRIAnalog Field Cumm’d ~74.5 MBC ——28.8 BCFPotential Reserves: 2.0 BCFREADY TO DRILLDV 6316

PANOLA & RUSK CO., TX ACREAGE14 Units. >4,000 Net Deep Acres.CARTHAGE AND MINDEN FIELDS HAYNESVILLE SHALE OPPORTUNITY—-Majority HBP Acreage TRADE100% OPERATED WI; 75% NRI /SELLSeller Looking To Trade/Sell Deep Rights.CONTACT PLS FOR INTRODUCTIONL 4518

PANOLA CO., TX ACREAGE HAYNESVILLE SHALE330+ Acres. HAYNESVILLEUnit Has Offset Haynesville Production.Acreage Is In North-South Configuration.Cotton Valley & Travis Peak Rights HBP——Could Be Made Available.CALL PLS FOR SELLER CONTACTDV 5664

EAST TEXASPANOLA CO., TX LEASEHOLD~3,200-Gross & 2,600-Net Acres.SE CARTHAGE FIELDBossier-Haynesville Targets.All Depth Rights. LEASESeller Will Deliver 75% NRI.Very Active Area.TEXAS AGENT HAS DETAILSL 2365

PANOLA CO., TX SWD PERMITSEast Texas Disposal.TEXAS/LOUISIANA BORDERProlific Haynesville Shale Play. SWDActive Drilling/Production In Area. PERMITCurrent Flow: 5,000 BPDCONTACT BROKER FOR DETAILSSWD 5091

ROBERTSON CO., TX PROJECT339-Acre Tract.BOHLWHITE FIELDTwo Cotton Valley Lime Locations—- READYOne Location Permitted & Ready to Drill. TOUp To 8-Bossier Sand Locations (40-Ac Sp) DRILL100% OPERATED WI; 73% NRIGENERATOR HAS UPDATED AFEDV 2489

RUSK CO., TX DEVELOPMENT6-Development Wells. 3,400-Acres.Obj 1: Travis PeakObj 2: Cotton ValleyObj 3: Bossier Shale50% WI Available; 40% NRIField Production: 4,700 MCFD MULTIZONENet Production: 1,250 MCFDEstimated Net Reserves: 138 BCFInfrastructure In Place.CONTACT GENERATOR FOR DETAILSDV 6444PP

RUSK CO., TX OVERRIDE SALE60-Wells. 30-Gas Units. 19,791.68-Acres.MINDEN FIELDBossier, Cotton Valley, Haynesville——& Travis Peak. ETX ORRIOverriding Royalty Interest Available.BROKER HAS MORE INFORR 5154

SABINE CO., TX ACREAGE2,454-Contiguous Acres.Located Amongst Major Company Activity.Seeking Partners To Drill.Seller Will Deliver 80% NRI. ACREAGELeases Expire: End of May 2013CONTACT TO LEARN MOREDV 2331

SAN AUGUSTINE CO., TX PROSPECT146,000-Acres.Targeting James Limestone Horizontal.Hydraulic Fracture Play.Significant Horizontal Opportunity. JAMESPotential Reserves: 4.5 BCF LIMEVery Experienced In Horizontal Drilling.SELLER HAS MORE INFORMATIONDV 6192 HZ

UPSHUR CO., TX PROSPECT5-Potential Wells. 700-Acres.Obj 1: Bossier Sand. 11,500 Ft.Obj 2: Cotton Valley Lime. 12,000 Ft.Generated With GeoPhysics. BOSSIER75% OPERATED WI; 78% NRI (Lease)Est Reserves/Well: 1.0-3.0 BCFEst Reserves/Project: 10 BCFDHC: $1,400,000; Compl: $900,000DV 5722

WOOD CO., TX PROJECT 790-Gross Acres. 250-Net Acres.PINE MILLS EAST FIELDSub-Clarksville And Woodbine Sands.Located On Structural High.Total Depth: 6,000 Ft. PINE50% WI For Sale; 37.5% NRI MILLSOperations Available Or Seller Will Operate.Producing Wells Have Cumm’d 129.6 MMBO.Total Est Reserves: 1,000,000 BOGENERATOR HAS UPDATED AFEDV 9357

WOOD CO., TX PROSPECT1-Drilling Prospect.Rodessa, Kirkland, Goyd, & Hill Gas.Also Targeting Sub-Clarksville Oil.Proposed Depth: 8,500 Ft. (TD) MULTIPAY100% OPERATED WI For Sale.Est Reserves: 20 MBO & 1.2 BCFCALL BROKER TO LEARN MOREDV 5077

HAwkeye GeoSenSinGHAwkeye GeoSenSinG

Helping You Know Where NOT to Drill!

• Providing cost efficient hydrocarbon mapping solutions

• Real time satellite data analyzed by patented algorithm

• Detects hydrocarbons at a fraction of the cost of seismic

• Eleven years of verifiable results worldwide

Marcia kyanka

marcia@hawkeyegeo.com

(512) 913-4290

Hawkeye Geosensing USA, LLC

603 w. 13th St, Ste. 1A-268

Austin, TX 78701

www.hawkeyegeo.com0.5 0 0.5 1 1.5

Miles

Low HighHydrocarbon Intensity Scale

Case Study Sample Map

1250 NE Loop 410, Suite 1100,San Antonio, TX 78209

210-826-0700

Wanted

Permian Basinassets

Advertise with PLS. Call (713) 650-1212

PROSPECTS & PROPERTIES PAGE 7

–e&p

Kodiak drills two Bakken producersDenver-based Kodiak Oil & Gas reported two new producing Bakken

wells on its Dunn Co., North Dakota, lease in the Williston Basin. The wellson are the Fort Berthold Indian Reservation (FBIR).The Two Shields Butte (TSB) #16-8-7H well (37.5% WI, operated) posted a

24-hour IP rate of 1,626 BOPD and 1.38 MMCFD (1,856BOEPD). The well was drilled to 10,350 ft. TVD with an8,995-foot lateral and completed with a 15-stage frac.

The second well, TSB #16-8-16H (50% WI, operated), posted a 24-hour flowrate of 811 BOEPD. Both wells were drilled from the same drilling pad and weredrilled on 320-acre spacing. The #16-8-16H was drilled to 10,350 ft. TVD with a4,465-foot lateral and completed with a five-stage frac.Kodiak now has four producing wells, one well awaiting completion and

is drilling ahead on another well. The well awaiting completion is TSB #14-33-6H (50% WI), which was drilled to 10,560 feet TVD with a 4,163 foot lat-eral on 320-acre spacing. Completion will begin in the middle of the thirdquarter. Kodiak has since spud the TSB #14-33-28H (50% WI) off of the samedrilling pad. This well is being drilledon 1,280-acre spacing with a 9,000-foot lateral.Meanwhile, Kodiak is acquiring an

additional 31.25% WI in the generalarea and at the same time will convey 3,300 acres to a JV partner. After netting thecosts to acquire the extra WI, Kodiak will realize $1.85 million in cash from thesell-down, and will pay 50% of the first five wells drilled in the Twin Buttes areain order to earn 60% WI. If each of these transactions close, Kodiak will control 54,000 (33,350

net) acres on the lease. Kodiak operates all of its acreage on the FBIR lease,besides 18,000 (9,000 net) acres that are in a participating area previously es-tablished with another operator. Kodiak currently has 17 approved drillingpermits and two drilling pads built and awaiting drilling activities.Drilling is expected to commence on the CE #1-22-10H (55.78% WI) in

July. The well is in the southeastern portion of Kodiak's leasehold and will bedrilled on 1,280-acre spacing to 10,230 feet TVD and 19,900 feet TMD. Af-terwards, Kodiak will spud the CE #1-22-23H (60% WI) from the same pad.This well will be drilled to 10,230 feet TVD and 14,430 feet TMD.CEO Lynn Peterson said recent oil prices around $70 per barrel WTI equate to

around $60 per barrel in the Williston, net of differentials, transportation and mar-keting. He added the company will evaluate the results from longer laterals com-pared to the shorter laterals on the same pad to gain better understanding of per-welleconomics from the alternative drilling and completion methods after a few monthsof production. Since the fourth quarter of 2008, Kodiak has closed transactions toensure that it is in line with the $15.3 million preliminary 2009 capex budget.

whiting brings in partner for Bakken program Whiting Petroleum has found a privately-owned partner to help fund its

Bakken Shale activity. The companies created an area consisting of twenty-five1,280-acre units and one 640-acre unit in the western Sanish field in Mountrail

Co., North Dakota. The private company will pay 65% of Whiting'snet WI completed well cost to receive 50% of Whiting's WI and NRIin the first and second wells planned for eachof the units. Whiting will remain operator.

There are 18 wells drilling on the 26 units coveredby the agreement, and 12 more wells are planned in 2009 on these units, whichwould result in the private company participating in 30 wells in the Sanishfield in 2009 and 21 wells thereafter. Whiting expects to have four rigs run-ning in the Sanish field through the remainder of the year. At the closing of the transaction, the private company paid Whiting $107.3

million, representing $6.4 million foracreage costs, $65.8 million for 65%of Whiting's cost in the 18 wellsdrilled and $35.1 million for 50% inWhiting's Robinson Lake gas plant

and gathering system. Whiting used these proceeds to repay debt. After thistransaction, Whiting expects its borrowing base to remain at $1.1 billion.Whiting currently owns an interest in 93 total units in Sanish field, 26 of which

are covered by the JV agreement. On the remaining units, Whiting has interestsin 30 operated producing wells and 20 non-operated producing wells. Another 27non-operated infill wells are planned under current spacing. Whiting also retains18 operated and two non-operated units where 38 wells could be drilled.Whiting believes that this agreement will allow it to continue to increase

production while prudently managing its capital resources by repaying debt.The agreement will permit its planned 2009 capital expenditures to come inline with expected cash flow.As a result of the 65% for 50% cost sharing arrangement under the trans-

action, Whiting's finding cost of all producing wells drilled under the agree-ment will improve by 30%. Whiting has also lowered its estimated 2009capital budget by 60.5 million down to $398.3 million. In addition, Whitingnow expects net production to total ~4.9 MMBOE in the second quarter and18.9 MMBOE for full year 2009.

Recent oil prices around $70 per barrel WTI equate to around$60 per barrel in the Williston Basin.

By bringing in a partner, Whitinglowered its 2009 capex by $60.5 MMdown to $308.3 MM.

Marathon updates industry drilling plansMarathon Oil is cutting its drilling program in half at the gas project in

Alaska's Cook Inlet Basin. The company now plans to drill only four or fivewells in the area this year after drilling nine wells last year.

Marathon has spent $450 million in Alaska over the last sixyears, participating in 75% of the new Cook Inlet wells in thatperiod. Still, total volumes in the play are falling, after produc-ing 200 BCF per year from 1980 to 2005, Cook Inlet produc-

tion is slated to total 150 BCF in 2011 and 100 BCF in 2013 – despite thefact that as much as 15 TCF is still recoverable.Meanwhile, Marathon has participated in the deepwater Oberon discovery

well in the southern area of Block 31offshore Angola. Oberon isMarathon's 30th discovery on AngolaBlocks 31 and 32. The Oberon dis-covery well is 250 miles off the Angolan coast, and is less than three milesnortheast of the Dione discovery, announced in October 2008.The well was drilled in about 5,300 feet of water to 12,300 ft. TMD. Test

results confirmed the capacity of the reservoir to flow in excess of 5,000BOEPD, but first production isn’t targeted until 2012.The concessionaire of Block 31 is Sonangol, Angola's state-owned oil

company. Marathon holds 10% in Block 31, with BP holding 26.67%. Theother interest owners are Esso Angola with 25%, Sonangol with 20%, Statoil

with 13.33%, and Total with 5%.Elsewhere, Marathon is selling to

Vermilion Energy Trust its 18.5% inter-est in the Corrib natural gas develop-ment offshore Ireland. The final sale

proceeds will range between $235 million and $400 million, subject to the timingof first commercial gas at Corrib. An initial payment of $100 million will be madeat closing, with the remaining balance due at the time of first commercial gas. The operator expects first gas to occur between late 2010 and late 2011.

Vermilion will assume its share of future capital expenditure obligations inorder to reach first gas, which are anticipated to range up to $300 million netto the acquired interest. These capital costs are primarily for the completionof the facilities necessary to bring this gas on-stream. Marathon's total net proved reserves associated with the Corrib develop-

ment as of year-end 2008 were 98 BCF. Shell serves as the operator holding45%; Statoil Hydro holds 36.5% WI.As a result of this agreement and the previously announced sale of its

wholly owned subsidiary Marathon Oil Ireland Limited, Marathon's Irish E&Pbusiness will be reported as a discontinued operation. Additionally, an after-tax loss on the sale, currently estimated at $150 million, will be reported inthe second quarter of 2009.

Marathon now plans to drill fouror five wells at Cook Inlet this year.

Marathon’s latest discoveryoffshore Angola has the potential toflow 5,000 BOPD.

Georesources eyes higher Bakken volumesGeoResources said it expects to drill or participate in 45-50 Bakken Shale

wells over the next 18 months in North Dakota. The company has already par-ticipated in 16 operated joint venture wells on its acreage with a 100% success

rate, which is in addition to a number of non-operated wells. The JV recently drilled the Nightcrawler 1-17H (4.7% WI) flow-

ing at 700 BOPD; the Banshee 1-1H well (5.5% WI) flowing at 450BOPD and 450 MCFD, with production increasing as the well cleans

up; and the Wombat 1-25H well (8.5% WI) with initial production of 800 BOPD. In addition, the Jericho 1-5H well (2.8% WI) completed drilling in late Feb-

ruary and is producing 300 BOPD, while several other wells are awaiting fracs,including the Raptor 1-6H (10% WI), the Bandit 1-29H (7.5% WI), and the Colt1-16H well (9.1% WI). The company is now participating in the drilling of theMamba 1-20H (9.3% WI). GeoResources recently acquired

15% in 60,000 additional net acresand 59 producing wells in theBakken. The acquisition was madethrough its existing joint venture with Slawson Exploration and participantsNorthern Oil & Gas and Lario Oil & Gas. GeoResources gained in excess of300,000 BOE of proved producing reserves in addition to numerous provedundeveloped and probable locations. The acquisition adds net production of180 BOPD. Consideration was $10.4 million.The company now has 10% to 15% WI in a total of 100,000 net acres in

the Williston Basin, with 59,000 net acres in Mountrail County alone. Thejoint venture is presently running one drilling rig and plans to add two rigs inJuly and possibly a fourth drilling rig by the first quarter of 2010. GeoResources’s drilling costs for Bakken wells on 640-acre units have de-

creased over the past year due to reductions in service costs and improvementsin drilling and completion techniques. Recent single-lateral wells have beencompleted for under $4.0 million, or 25% less than wells completed last year.

GeoResources’s drilling costs inthe Bakken have fallen 25% thisyear to under $4.0 million per well.

Bill Barrett strengthens rockies presenceBill Barrett Corp. is working to strengthen its Rockies presence. After

producing a record 77.6 BCFe in 2008, the Denver-based company is nowtargeting volumes of 87 BCFe in 2009. First quarter production of 22.1 BCFewas already 21% higher than the year ago.This year, Bill Barrett is devoting almost 50% of its $350 million capex

to its Piceance Basin play, where it recently paid $60 million to ac-quire 90% WI in 40,300 undeveloped acres in Cottonwood Gulch(western Colorado). The company expects the acquisition to addmore than 2.0 TCFe to its probable and possible resource base.At the adjacent Gibson Gulch field, volumes have risen to 100 MMCFeD

net. The company has 372 BCFe of proved reserves at Gibson Gulch and an-other 1.1 TCFe of unrisked 3P reserves in the field, where it controls 17,200net acres. Bill Barrett is currently running a two-rig program in the play in aneffort to drill 75-80 wells this year. The field is being developed on 10-acrespacing. To date, well costs have averaged $1.8 million to drill and complete,with each well having an estimated ultimate recovery of 1.0-1.2 BCFe.The company added that increasing Rockies takeaway capacity coupled with

a falling rig count should cause regional prices to improve in the near term.

PlS talks discoveries with newfield“Winter was spud in January 2009 and Pyrenees was spud in February

2009 with the same rig in a continuous drilling program. Newfield has in-vested a total of $10.8 million net in drilling of both these projects, and the

gross investment for both wells was over $88 million,”Jasek told PLS, adding that Newfield was able to pro-mote both these prospects to industry peers and signif-icantly lower its net investment in the exploratory phase

of the project. Work remains to be done, however, before either of theseprospects sees first production.“For Winter, we are currently bidding out the subsea construction work and

will likely be jointly developing the field with another subsea project in thearea. Pyrenees will require some additional delineation drilling so that we cansize the production system appropriately. We expect this additional drilling tobegin in Q4 2009. These discoverieswill be developed as single or stackedgravel packed subsea completions indeviated wellbores,” Jasek said.The company owns interests in 88

deepwater blocks (500,000 grossacres). Newfield plans to drill 3-5 deepwater Gulf of Mexico wells each yearover the next several years. Jasek said Newfield operates just over half of itsproven deepwater prospects. “We have always had partners on our prospects and will likely continue

that way in the future. We look for partners that have a similar strategy andthat have technical expertise to compliment our own.”“This portfolio is a mix of lower risk amplitude plays and large upside

subsalt and fold belt plays. This inventory will keep us active in the deepwaterfor at least the next three to five years and we are adding new projects everyyear that will carry us into the future,” Jasek added.

“Both the Winter and Pyreneesprospects were internallygenerated and acquired throughlease sales in 2008.”

• epsilon energy initiated gasproduction from the MarcellusShale in northeastern Pennsylva-

nia. Epsilon is operatorwith 100% WI on 12,000acres on which it has

drilled three vertical and five hori-zontal wells. Epsilon also sold ofits legacy Amber Bank and BlueJacket properties in West Virginiafor $14 million.

• eV energy Partners alongwith partnerships managed byEnerVest, Ltd., will acquire 15.15%WI in properties in the AustinChalk from an undisclosedseller for $12.2 million. EVwill gain 276 producingwells in Central Texas, including 9BCFe of proved reserves and netproduction of 1.8 MMCFeD.

• falcon oil & Gas acquired25% WI in PetroHunter's four ex-ploration permits covering sevenmillion acres in the Beetaloo Basinof the Northern Territory, Australia.

The acquisition will bringFalcon's WI to 75%. Con-sideration was $5.0 mil-

lion and Falcon is now operator ofthe project. In addition, Falcon re-assigned to PetroHunter 25% WIpreviously acquired in five wells inPetroHunter's 20,000-acre Buck-skin Mesa Project in the PiceanceBasin, Colorado.

• fieldPoint Petroleum ac-quired 25-50% WI in four gaswells in the South Vacuum fieldin Lea Co., New Mexico, for ~$1.0million. In the same county,FieldPoint increased productionat the Bilbrey North field well #7to 470-500 MCFD. FieldPoint has50% WI in this well and Cono-coPhillips, the operator, owns theother 50%.

• ford Spoleti holdings ac-quired eagle oil holding com-pany, an oil production companywith an oil field in East Texas. Thecompany expects to change itsname to eagle energy, inc. Cur-rently Eagle Oil has four oil wellsin production and the field con-tains more than 100 wells for re-completion. The field reportedlycontains over 12 MMB of recover-able oil.

• Galloway energy said itsWest Texas Project gas well is pro-ducing 200 MCFD. The operatorhas estimated reserves of 0.5 BCFfor the well, which is the first of 20wells that are planned on theacreage.

• Ge oil & Gas won a three-year agreement valued at $250million to supply 250 subsea well-head systems to Petrobras. Interms of number of well-heads, this is the largestcontract awarded to datein the industry. GE also won an$11 million deal to supply foursubsea wellhead systems to OGXPetroleo e Gas Ltda., the largestindependent oil company inBrazil. OGX operates nine ex-ploratory blocks offshore Brazil,where several subsea exploratorywells will be drilled within thenext three years.

• GeoPetro resources is cur-rently producing 11 MMCFD itsMadisonville Field in East Texas.Subject to funding, the companyplans to workover the Mitchell #1well during 2009 to further en-hance production.

• Oklahoma City’s Gulfportenergy corp. sold certain Bakkenassets for $13 million. The sale in-cludes 12,270 net acres in NorthDakota and 190 net BOEPD ofproduction. Gulfport will retain6,740 net acres, interests in fourgross wells, and up to a 7.5%ORRI.

E&P Briefs

The Land Rig Clearinghouse, LLC

(469) 384-3813landrigclearinghouse.com

Divestments Made Simple!Call (713) 650-1212 for detailsor access www.plsx.com.

newfield cont. from pg. 1

Rockies

PAGE 8 JULY, 2009

–Listings For Sale

Money is chasing oil and gas projects at a record pace. But the typical finance committee can bring even the most promising project to a screeching halt.

Patriot Exploration is different. Our team of in-house oil and gas experts has the experience and knowledge needed to make evaluations and decisions fast. Our straightforward approach lets us close deals in a matter of days, not months.

So why wait for the capital you need? If you are a small- to mid-sized operator with a project in the $1 million to $20 million range, contact Patriot Exploration.

Jack Bayless: jbayless@patriotexploration.comTom McCarroll: tmccarroll@patriotexploration.comHouston, Texas: 713-800-5700

www.patriotexploration.com

Copyright © 2008 by Patriot Exploration Co., Inc. All rights reserved.Opportunity driven.

Most lenders take forever to put a deal together.

Not us.

williams steps up in Marcellus with rex JVRex Energy has brought in The Williams Companies to help develop

Rex’s acreage in the Marcellus Shale. Williams is gaining 50% interest in Rex’s44,000 acres in Westmoreland, Clearfield and Centre Co., Pennsylvania.

Rex will receive $33 million through a "drill to earn" struc-ture. In effect, Williams will bear 90% of all costs and expensesincurred in the drilling and completion of all wells jointly drilled

in the areas until Williams has invested a total of $74 million ($33 million onbehalf of Rex and $41 million for Williams' 50% share of the wells). Williams must also fund all of the carry until year-end 2011 after which

the companies will share all costs of joint venture operations on a 50/50basis. The first of five horizontalwells is now drilling in Westmore-land County. The JV owns 15,500acres in the county (20% developed),where the Marcellus is found atdepths of 8,000 ft. and typical shale wells hold about 3.0 BCF and cost $4-$4.5 million to drill and complete. In Butler County, where the companiescontrol 21,000 acres, the shale is shallower (5,000 ft.), resulting in cheaperwell costs of $3-$3.5 million, targeting 1.6 BCFe per well.

After year-end 2009, Williams will become the operatorof all the assets in the Marcellus Shale.Ralph Hill, who leads Williams' exploration and production

business, said the company has extensively studied the Marcellus Shale."We're excited about the opportunity from a technical perspective, especiallywith being able to leverage our knowledge and expertise in ramping up ac-tivity in other unconventional gas plays," Hill said.Analysts at Tudor Pickering Holt said the deal gives Rex a “capex cush-

ion,” as its budget drops from $49 million to $40 million. “Williams nowfoots the bill for $20 million of 2009 Marcellus capex and Rex drills a fewmore oil wells,” the analysts said. Shortly before teaming with Rex, Williams obtained a midstream presence

in the Marcellus as well. The company signed a joint venture with AtlasPipeline Partners, which will be known as Laurel Mountain Midstream LLC,and which includes 1,800 miles of intrastate gas gathering lines in the Ap-palachian Basin servicing 6,900 wells.Williams contributed $100 million and issued a $25.5-million note payable

to Laurel Mountain in exchange for 51% ownership interest in the joint ven-ture. Williams is also operating the gathering system. Atlas Energy Resources,a leading producer in the Marcellus, will be the anchor tenant on the system.

“Williams usually starts small in a given area, but likes to be big/leaderover time,” analysts at TPH said. With two deals in the span of two weeks,the company is not wasting any time.

Williams obtained a midstreampresence in the Marcellus via a JVwith Atlas Pipeline.

Property Review?PLS offers quick turnaround on engineering and technical property reviews. Contact Richard Martin, 713-650-1212.

Rates $75-$250 per hour

• harvest natural resourcesis drilling the Bar F No. 1-20-3-2well on its Antelope project in

the Uinta Basin of north-eastern Utah. The per-mitted depth of thisexploration well is

18,000 feet. Harvest is the opera-tor and has 50% WI. The companyhas 52,000 (26,000 net) acres inthe area

• hess corp. participated inthe Guarani well on the BM-S-22license in the Santos Basin off-shore Brazil in morethan 7,000 ft. ofwater. The well wasdrilled to a measureddepth of ~17,000 ft. and drillingcontinues with a sidetrack andcoring of the well. Hess holds 40%WI in the license in partnershipwith Exxon Mobil (40%) andPetrobras (20%). Exxon Mobil isoperator of the license.

• Kentucky USA energytested its Francis Grace #1 at 100MCFD, its Francis Grace #3 at 110MCFD and its Hunter Wells #1 at105 MCFD, all from the New Al-bany shale formation in Ap-palachia.

• Magellan energy brought itsThomas Martin and Robert Ander-son leases on stream in Morgan Co.,Tennessee. Production was not dis-closed. Magellan also signed a par-ticipation agreement with TMDEnergy for the Lankford Lease inMorgan Co. The lease consists ofeleven gas producing wells. Magel-lan has an option to frac two shalewells in the future. In total, Magel-lan is now producing from 24 wells.

E&P Briefs NORTH TEXASARCHER CO., TX MINERALS258-Acres For Lease.Gunsight Sands Target.Mississippi Zone.Depth: 1,200 Ft MINERALSMINERALS FOR LEASESeller Will Deliver 80% NRI.CONTACT SELLER TO LEARN MOREL 5546FO

BARNETT SHALE CARRIED WI 21-Immediate Wells. 2,400-Net Acres.NEWARK EAST FIELD (JOE POOL)East Northeast Mansfield Area.Barnett Shale Target. 8,000 - 8,500 Ft.47 Total Wells On 50-Acre Spacing.Downspacing To 20-Acre Possible.NonOp Carried & Lookback WI for Sale. Buyer Has Right To Propose Wells. BARNETTArea IP’s Range 3.0-7.0 MMCFED.Est Gross Reserves: 3.0-5.0 BCF/WellNet Reserves (21 Wells): 9.0 - 15.0 BCFNet PV10 Value (21 Wells): $12,000,000FYI: Drill & Complete $3.0MM - $3.5MM3rd Party Engineering NSAI Report Available.DV 5160 PLS

COOKE CO., TX DISPOSAL1-Producing Well. 1-Pending Permit.80,000 Barrels Per Month Injection.100 Barrels Per Month Skim Oil. DISPOSALLast Reported Cash Flow: $40,000/MnCurrently Only Operating 12-Hour Days.AUSTIN BROKER HANDLING SALECALL LAND DEPT TO LEARN MORESWD 5076

CORYELL CO., TX DEVELOPMENT5-ShutIn. 1,066-Acres.TOGA FIELDObj 1: Cisco Strawn. 900 Ft.Obj 2: Scully Strawn. 1,800 Ft.Gas Contractor Commits Full Capacity.Deeper Potential Identified.100% OPERATED WI; ~75% NRI DEVELOPAdditional Acreage Available.Total Proved Rsrvs: ~11.4 BCFENet PV10 Value: $68,000,000+DV 5837

DENTON CO., TX PROSPECT2-Proposed Wells. 100-Acres.BARNETT SHALEAll Surrounding Tracts Are HBP.Proposed Drilling Depth: 9,000 Ft.Contiguous Mineral Tract. BARNETT75% OPERATED WI; 75% NRISeeking Proven Operator For Purchase.2-Year Lease Term.DV 6268

EASTLAND & BROWN CO., TX SALE2-Wells.Mississippian Duffer Limestone. 3,200 Ft.Strong Mud Log Shows. Logged Pay.80% WI Available; 77% NRI MISS-Estimated IP: 4.0 BOPD & 250 MCFD DUFFEREst Reserves: 20 MBC & 600 MMCFTotal Est Completion: $346,300DV 5616

EASTLAND CO., TX FARMOUT180-Acres To FarmOut.CrossCut Sands Target. 990-1,075 Ft.Marble Falls Potential. 3,100-3,330 Ft.Acreage Has Proven Geology. FARMOUTSEEKING DRILLING PARTNERSSignificant Shallow Resource Play.SELLER HAS MORE INFO AVAILABLEFO 5740

HAMILTON CO., TX PROSPECT95-Wells. 14,359-Net Acres.7 Mi NE Of HamiltonTargeting Barnett Shale. 3,780 Ft.Well Count On Horizontal Drilling.Defined w/ Core Analysis. BARNETT80% OPERATED WI; 74% NRIEst Reserves/Well: ~1.2 BCFTotal Est Reserves: ~54 BCFDHC: $850,000; Compl: $800,000DV 6380

JACK CO., TX PROSPECT233-Acres.ABSTRACT 1560 & 2102Located On Barnett Shale Trend.Seller Will Deliver 76% NRI. BARNETTOne Year Lease Term Remaining.ESTABLISHED PRICE PER ACREDV 5661

JACK CO., TX PROSPECT 100-Acres.Seller Will Deliver 75% NRI.2 Year Lease Term. LEASECONTACT PLS FOR PRICINGDV 5143

JOHNSON CO., TX DISPOSAL1-Commercial SWD Permit.Active Barnett Shale Drilling In Area.Disposal Is Pad Built. DISPOSAL3-Acres Of Land Sold w/ Permit.Permitted For 25,000 BPD.SWD 5082

NORTH TEXASJOHNSON CO., TX PROSPECT135-Acres.CLEBURNE AREAHorizontal Barnett Shale Objective.Depth: 7,000 Ft. (TVD); 10,000+ Ft. (MD)95% OPERATED WI; 75% NRI BARNETTEst Well Reserves: 2.0 - 4.0 BCF HZEst Well Cost: $2,000,000PROSPECT GENERATOR HAS INFODV 5292HZ

JOHNSON CO., TX SWD FACILITY1-SWD Facility. ~5.5-Acres.ACTIVE BARNETT AREACurrent Flow: 18,000-19,000 BPDPermitted For 25,000 BPD. BARNETTEstablished Customer Base. SWDCONTACT AUSTIN BROKER FOR INFOSWD 5084

LAMPASAS CO., TX PIPELINE12.5-Miles Pipeline Project Needed.COPPERAS COVEExcavation Has Begun.Completion Expected In 90 Days.SEEKING PROJECT PARTICIPANTS100% WI Possible For Pipeline.Active w/ New Production. PROJECTNeeds Max Capacity: 12 MMCFDPotential Cash Flow: $270,000/MnProved Reserves In Area.Operator Has Drilling Plan—-—-Needs Pipeline Development.CALL FOR MORE INFORMATIONG 6389PL

LAMPASAS CO., TX WILDCAT1-Proposed Well.LAMPASAS RANCHObj 1: Strawn Formation. 900 Ft.Obj 2: Marble Falls. 2,500 Ft.SubSurface Geology & GeoPhysics.25% NonOperated WI; 75% NRI STRAWNEst Reserves/Well: ~1.0 BCFDHC: $600,000; Compl: $120,000CALL AGENT FOR STATUS UPDATEDV 2318

NORTH TEXAS PROSPECT SALE3-Proposed Wells. 200-Acres.JACK & PALO PINTO CO.Horizontal Opportunity On 2 Wells.Targeting Barnett Shale.Proposed Depth: 5,900 Ft.Geology, Geophysics, & Well Control.UpHole Potential Identified. BARNETT75% NonOperated WI; 56.25% NRIFirst Well Completed.Est Reserves/Well: 2.0 BCFEst Reserves/Project: 20 - 25 BCFDV 5727

PALO DURO BASIN PROJECT45,444-Gross & 34,509-Net Acres.NEW PROLIFIC PRODUCING BASINPenn Granite Wash Shale - Source RockTargeting Penn Lime & Penn GW Sands.Proposed Depth: 8,000 Ft Basement2-D Seismic Leads. Excellent 3-D Potential.Need Add’l 9,000-10,000 Acres To Shoot.Backup Zones: St Andres, Brown Dolomite,—-& Wolfcamp Potential OILSeller Will Deliver 80% NRI. PROJECTAnalogs Produce ~100 MBO/Well.One Analog Has Cumm’d 3.5 MMBO.Prospect Is 20 Mi South Of Analog Fields.Seismic Option Available For Acreage.DV 2329

PALO PINTO CO., TX PKG 4-PDP. 12-PDBP. 1-SWD.BEND ARCHSTRAWN, POSIDIAN, NEWARK, E FIELDSMarble Falls, Ellenburger, Bend Conglomerate,Barnett Shale, Duffer Production.100% OPERATED WI; 75% NRIGross Production: 8.0 BOPD & 315 MCFDNet Production: 272 MCFED 272Avg Revenue: $35,000 - $40,000/Mn MCFEDNet Proved Rsrvs: 25 MBO & 4,175 MMCF3rd Party Engineering Available.New Durable Equipment in Place.PP 4236

PALO PINTO CO., TX PROJECT 5-ReComplete. 5-Deepen/Frac. 1-SWD.BARNETT SHALE RECOMPLETION4-Leases. 563-Acres.Varying Shallow Depths <5,000 Ft.Big Saline & Strawn Potential Identified.Significant Behind Pipe Upside.SEEKING JV PARTNERS BARNETTOperations Available To Right Partner.Needs Gathering Line Extension.CALL PLS FOR MORE INFORMATIONDV 6408PP

PALO PINTO CO., TX PROSPECT160-Acres.FORT WORTH BASINObj 1: Barnett Shale. 4,800 Ft.Obj 2: Conglomerate. 3,500 Ft. BARNETTExcellent MultiZone Potential.Defined w/ SubSurface Geology.87.5% OPERATED WI; 77% NRIEst Reserves/Well: ~1.5 BCFDHC: $350,000; Compl: $200,000DV 6477

For additional listings ormore information access: www.plsx.com

ANNOUNCINGROYALTY FREE

DISCSLARRY LEEwww.larrylee.com

To learn more about PLS,

access www.plsx.com

PROSPECTS & PROPERTIES PAGE 9

–e&p

Shell streamlines corporate structureRoyal Dutch Shell announced a series of senior management changes

designed to streamline operations. Peter Voser will take over from Jeroenvan der Veer as CEO. Shell's upstream activities will be consolidated from

three separate organizations - E&P, Gas & Power and Oil Sands– down to two businesses: Upstream Americas covering Northand South America, and Upstream International covering the

rest of the world. Marvin Odum, currently Shell's EVP for EP Americas,will become Director for Upstream Americas. Malcolm Brinded, currentlyShell's Executive Director E&P, will become Executive Director of Up-stream International.Meanwhile, the downstream segment will be expanded to include Trading

and Alternative Energy activities, excluding Wind, which will be part of Up-stream. In addition, a new business - Projects & Technology - will combineall of Shell's major project delivery, technical services and technology capa-bility covering both upstream and downstream. Matthias Bichsel, who is cur-rently EVP for E&P technology, will be the director of this business.Corporate functions will be refocused, with activities reallocated directly

into the businesses, or consolidated into the portfolios of CFO Simon Henryand the Human Resources Director Hugh Mitchell.

encana hedges volumes, shuts in 400 MMcfedEnCana Corp. said it has hedged 35% of expected gas production for

2010, comprising about 1.39 BCFD at an average price of $6.21/Mcf. For thefirst five months of this year, the company’s hedging program has generating

close to $2.0 billion in cash flow above what market priceswould have delivered. EnCana has hedged about two-thirds of expected gas

production, or 2.6 BCFD, through October of this year at $9.13/Mcf, whichis more than two times the current spot price. Meanwhile, the company has also shut in wells producing “a couple of

hundred million cubic feet” in each of Canada and the U.S. because of lowprices, CEO Randy Eresman said. EnCana has also opted not to bring certainnew wells on stream.

chevron predicts demand recoveryMeanwhile, Chevron Chairman Dave O’Reilly has predicted that an in-

crease in energy demand will accompany the global economic recovery.Speaking at the company’s 2009 annual stockholders meeting, O’Reilly addedthat Chevron’s strategy is “look past the downturn to keep our focus on long-term growth. Experts say that by 2030 energy demand will increase as much

as 30% to 40%. When the world starts growing, it will need allthe energy it can get. Chevron will be there to supply it.”Chevron’s $22.8 billion capital and exploratory expenditure

program for 2009 will fund large, multi-year projects with about75% of program dollars marked forworldwide E&P projects and 20%dedicated to the company’s down-stream business.EVP George Kirkland added that

Chevron has a portfolio with 11.2 BBO of proved reserves and 2.7 MM-BOEPD of production capacity. Kirkland noted that in 2008 Chevron addedmore than 1.7 billion barrels and, since 2002, more than 8.5 BBOE throughexploration efforts. The nine major capital projects that started up in 2008 areexpected to contribute 350,000 BOEPD in 2009.Kirkland also spoke about Chevron’s queue of 40 major capital projects, each

of which represents a net investment of more than $1.0 billion. Chevron’s full in-ventory includes 93 projects each representing an investment of over $200 million.Finally, Kirland noted that Chevron plans to continue exiting non-strategic

markets and selling less profitable assets. In 2008, the company exited morethan 20 fuels markets and reduced its lubricant product line by over 40% ver-sus 2005 – a move that has reduced costs and more than tripled profitability.

Experts say that by 2030 energydemand will increase as much as30% to 40%.

oPec production rises in MayOPEC increased crude production by 300,000 BOPD to 28.39 MMBOPD

in the month of May, according to a Platts survey of OPEC members, oil in-dustry officials and analysts. This is an increase from 28.09 MMBOPD in April.

Production had risen in April for the first time since last Au-gust. According to the May production estimate OPEC-11 (thosebound by production quotas) is at only 72% compliance with its4.2 MMBOPD in crude output cuts agreed late last year. This is

down from 78.7% compliance in April and 81.8% in March.May production increases totaling 320,000 BOPD from Angola, Iran,

Nigeria, Qatar, Saudi Arabia, the UAE and Iraq were slightly offset by a20,000 BOPD decline in Venezuelan output."With the recent increases in crude oil prices, the drumbeat that we're on

our way back to $100-per-barrel-oil has been growing louder," said JohnKingston, Platts global director of oil. "But this month's surge in output showsthat OPEC has a lot of productive ca-pacity that it can bring on the marketrelatively quickly, and that should cer-tainly prove a hurdle to any moveback to three-digit oil prices."Before April, OPEC production had fallen steadily in response to the

plunge in oil demand caused by the global economic recession. OPEC-11 out-put failed to drop to this year's 24.845 MMBOPD target. The latest estimatesleave the OPEC-11 about1.14 MMBOPD in excess of this target.Although seven countries increased production in May, most overpro-

duction occurred in Angola, Iran and Venezuela. Saudi Arabia, despite hav-ing boosted production by 110,000 BOPD between March and May, waswithin its quota.Initial output cuts by the OPEC-11 subject to the ceiling for 2009 were

sizeable -- 970,000 BOPD between December 2008 and January 2009 and820,000 BOPD between January and February. OPEC is next scheduled tomeet in September.Crude futures prices have been on a broadly upward trend since mid-Feb-

ruary, and according to some observers, this may have encouraged over-quotaproduction. OPEC's own crudes, for example, stood at $38.14/bbl on February19. On June 11, had risen to $70.87/bbl.

GMX continues transformationTo help transport this gas to market, GMX also owns the Endeavour

Pipeline, which includes a gathering and salt water disposal system with over140 miles of pipeline in the East Texas area.

In total, GMX’s acreage – in Cass, Marion, Harrisonand Panola Co. as well as Caddo Parish – holds 465BCFe of proved reserves and as much as 4.4 TCFe oftotal 3P reserves.

Currently, GMX is completing the TJT Simpson 1H well with a 4,606 footlateral, while the K 5H well is currently drilling and is expected to be com-pleted in July. Unfortunately, the company’s drilling success has not yet beenreflected in its earnings statements.Although second quarter results arepending, in the first quarter of theyear GMX reported a net loss of$124.4 million.To improve liquidity (and as a result of reduced drilling costs) the company

also cut its capital expenditures budget for 2009 from $220 million to a rangeof $132 to $145 million. Most of that capital, or $71.7 million, was spent in thefirst quarter. GMX also expects to raise as much as $50 million by the thirdquarter via monetization of several non-core assets, including some midstreamassets and excess pipe inventory.Back in the first quarter of the year, total company production was 3.2

BCFe (35.5 MMCFeD) in Q1, up 10% from a year ago but down 3% sequen-tially. The company said it also expects to produce 3.2 BCFe in the secondquarter, reaching 14.9 BCFe (40.8 MMCFeD) for full year 2009.

GMX has 12 horizontalcompletions planned for 2009,targeting 65 BCFe .

"The drumbeat that we're on ourway back to $100-per-barrel-oil hasbeen growing louder."

• Mainland resources is ac-quiring up to 8,000 net acres inMississippi that it says is prospec-

tive for the HaynesvilleShale. Mainland will own100% WI in the acreageand will be the operator.

According to available well logsfrom drilling, the HaynesvilleShale is demonstrated to be over2,500 feet thick. In addition,Mainland has drilled the Steven-son Douglas 16 #1 well in DesotoParish, Louisiana, to 10,700 ft. Thelateral portion will be drilledsoon.

• The Meridian resourcecorp. Placed the Weeks Bay #15well (92% WI) on production at330 BOPD and 120 MCFD.This well, located inIberia Parish in the WeeksIsland field, was side-tracked and drilled to 8,900 feetmeasured depth and logged 43feet of pay in the Miocene sandsection. Current company pro-duction is ~38 MMCFeD.

• Dallas-based Mesa energydrilled the Gipson #1 well in Se-quoyah Co., Oklahoma. Three pro-ductive zones were identified, withthe Hunton zone posting initial re-sults of 1.42 MMCFD. The Atoka for-mation is expected to flow 100-200MCFD. Consultant geologists esti-mate reserves to be 200 MMCF inthe Atoka, 500 MMCF in the BrentSand and in excess of 1 BCF in theHunton.

• Miller Petroleum acquiredassets from privately owned Ky-Tenn Oil, including 35,325 acres inthe Chattanooga Shale and 173producing wells in Tennessee.Miller also gains access to over100 wells that could be recom-pleted. In a separate deal, Milleracquired 100% of the stock ofEast Tennessee Consultants,which includes 377 wells and5,000 acres on Tennessee's Chat-tanooga Shale. Consideration was$250,000 in shares. The acreagecould yield over 150 additionalwells.

• Morgan creek energy has anoption to earn 60% WI of BonanzaResources’ 85% in the North Fork3-D prospect in Beaver Co., Okla-homa. If exercised, Morgan Creekwould be required to pay $2.4 mil-lion in exploration and drilling ex-penditures during the one-yearoption period.

• nitro Petroleum is re-complet-ing and deepening the Sharon #1well to increase production. The wellis in Garvin Co., Oklahoma and, wasinitially completed in the Oil CreekSandstone.

E&P Briefs

M INL NDRESOURCES, INC.

V V

energy Capital Services

PLS’ Energy Capital Servicesprovides capital sourcing

and strategic advisory services to both public

and private companies.

Contact: Rich Bernardy

rbernardy@plsx.com

713-600-0136

www.plsx.com

GMX cont. from pg. 1

cheVron cont. from pg. 1

GMX's haynesville horizontal wells initial Production

Callison #9H 2,000’ Lateral 7.7 MMCF/d

Bosh #11H 3,100’ Lateral 7.6 MMCF/d

Baldwin #17H 4,400’ Lateral 8.7 MMCF/d

Verhalen “A” #2H 4,260’ Lateral 8.5 MMCF/d

Baldwin #17H 4,420’ Lateral 9.2 MMCF/d

Blockbuster Ware #19H 4,450’ Lateral 8.9 MMCF/d

Blocker Heirs #12H 5,100’ Lateral 9.4 MMCF/d

KSH Currently Drilling July 2009

Beckville 4,750’ Lateral August 2009

Thinking of selling? Think PLS.To find out how you can monetize your producing properties, call PLS:

713-650-1212 or email Richard Martin at rmartin@plsx.com

Beau Kelley ‑ Advertising & PublishingOffice: 713.600.0111 Fax: 713.658.1922Email: bkelley@plsx.com www.plsx.com

Advertise with PLS and drive traffic to your booth!Call for information about pricing and placement inour special bonus NAPE issues.

Make A

Splashat

cabot closes denver, opens Pennsylvania office Cabot Oil & Gas is streamlining operations by closing both its

Charleston, West Virginia, and Denver, Colorado, regional offices by the endof summer. The company will open a new regional office in Pittsburgh to han-dle its Pennsylvania and West Virginia assets, along with overseeing the Rock-

ies area, from this newly designated North Region office. “These organizational changes, while seemingly somewhat

modest, signal a continued commitment toward a more focused ap-proach to Cabot's key assets in the Marcellus and East Texas,” said MichaelHall of Stifel Nicolaus & Co.Phil Stalnaker, previous West Region

(Rockies and Midcontinent areas) man-ager, will become North Regional Man-ager. Also, Cabot’s Gulf Coast assets willbe combined with its Midcontinent assets to form a new South Region. This regionwill be managed by Matt Reid, who is currently the Gulf Coast Regional Manager."With our West Region drilling program already complete for the year and

our expanding Marcellus program in need of technical personnel, it was a nat-ural progression to better utilize our talented work force. Current plans includeproviding transfers to more than half the impacted staff, with the majoritybeing asked to move to Pittsburgh to assist in furthering our Marcellus effort."CEO Dan Dinges said.When asked if Cabot was exiting its Western region, Dinges responded,

"I firmly believe there is a future for conventional gas resources and as suchwe have no plans to sell either our Rockies or Midcontinent reserves.”Hall also noted that, “Maintaining the assets seems fair enough at this

time; that said, we suspect Cabot could still be a seller for the right price.”Speaking for investors, analysts at Tudor Pickering Holt noted that Cabot’s

“tremendous leverage to the Marcellus puts this $3.8-billion market cap E&Pin our top picks bucket.”

“Tremendous leverage to theMarcellus puts this $3.8-billionmarket cap E&P in our top picks.”

PAGE 10 JULY, 2009

–e&p

• north American energy re-sources recompleted a well inWashington Co., Oklahoma, post-ing an IP rate of 24 BOPD. The wellis expected to stabilize at 3-5BOPD which is in line with theother wells on the Steeler Lease.Recompletion costs were less than$10,000. The company has over400 wells that can be re-enteredwithin a two mile radius of itspipeline.

• northern explorations is ne-gotiating 63% WI in the OzonaGas Project in Crockett Co., Texas,that it is undertaking with Swiss-based resource management cor-poration Dominus Energy AG.Norex will also receive 47.5% NRIin all gas production from theproject, which encompasses9,000 acres. The companies planto drill 20 wells.

• northern oil and Gas haspurchased 5.0% WI in 60,000 netundeveloped acres and 14% WI in59 gross Bakken and Three Forkswell bores in North Dakota withcurrent production of 1,200BOPD. Associated proved reservesare 300,000 barrels. Acreage is inthe Parshall Field. The operator,Slawson, is expected to drill up to45 gross wells on the acquiredacreage through 2010.

• Precision Petroleum corp.acquired an interest in a produc-ing Hunton Limestone well inSeminole County. The Heath #1 -adjacent to the recently acquired

Karsyn #1 well - had at-tained maximum flowrates of 85 BOPD and hasnow been cut back to 30

BOPD and 30 MCFD. Precision willalso drill one additional well onthe 40 acre plot of land.

• Quest resource corp. wasforced to admit its ability to con-tinue is a going concern. Con-tributing factors include QRCP'srecurring losses from operations,stockholders' accumulated deficit,and inability to generatesufficient cash flow tomeet its obligations andsustain its operations. As a resultthe company may be delistedfrom NASDAQ. Quest owns pro-ducing properties in the Ap-palachian Basin.

• reoStar energy is acquiring13,000 acres of Eagle Ford Shaleleasehold in South Texas for $5.5million. The transaction alsogrants ReoStar the right to ac-quire an additional 30,000 adja-cent acres within an AMI knownas the Hackberry Prospect and in-cludes access to 44 miles of seis-mic data covering the same.Potential reserves are estimatedat 500 BCFe in the initial 13,000-acre block.

• Savoy energy is acquiring100% WI in the Wright Well inGonzalez Co., Texas, from LucasEnergy, increasing its WI by 65%.The well rests on 485 acres withestimated oil reserves of 81,780bbls and gas reserves of 29MMCF. Savoy estimates the well’spotential production will be 40 to50 BOPD.

• Seneca resources’ partnereoG resources tested its latestMarcellus Shale well at over 3.0MMCFD for 7 days. Seneca holds50% WI in the well. Seneca plansto operate 10 vertical wells andtwo to three horizontal wells infiscal 2009, and participate in an-other eight to 10 wells to be oper-ated by EOG Resources. Seneca isa sub of National Fuel Gas Co.

E&P Briefs

MIDSTREAMNEWSSubscribe Today! Call (713) 650-1212or access www.plsx.com.

The

Quick&TheQuiet

The

Quick&TheQuiet

Assure a Successful Transaction!Let PLS market your properties

In today's soft oil & gas market many companies need quick and quiet ways to raise cash. PLS can help.

As an experienced marketeer with more than $2 billion in sales under its belt, PLS has the data-handling capabilities, packaging skills, market knowledge and buyer relationships to quickly andefficiently organize your package, prepare it for market and contact the right buyers on an aggressivebut discreet basis.

Over the years, PLS has learned the three most important factors in completing successful transactionsare package presentation, quality of buyers and the negotiating process. It’s not always necessaryor wise to shout the loudest, especially if confidentiality and corporate goals mandate a "quick andquiet" sale.

Of course the risk in a quick, quiet sale is a lower price. At PLS we minimize the value risk by leveragingour experience and contacts to assure the right buyers with cash participate.

Don't just sell to the first buyer, under the gun. Maximize your profit opportunity by letting PLS organize a quick, quiet and honest sale. Call PLS today to learn more about our sale services.

Providing quick, quiet marketing and divestment services.Phone: 713.650.1212 • Fax: 713.658.1922 • www.plsx.comIn Canada, Call 403.294.1906

PROSPECTS & PROPERTIES PAGE 11

–Listings For Sale

Goldman Sachs predicts $90 oil early next yearWith the credit dislocation in timespreads reversed and the risk of breaching

storage capacity reduced, analysts at Goldman Sachs have raised their oil priceforecasts in the near term. The analysts said that a cyclical bull market resulting

from economic stabilization has led them to raise their WTI oil pricefrom $65/bbl up to $85/bbl for year-end 2009; while a structural bullmarket resulting from ongoing OPEC supply cuts has led them to raisetheir WTI price for the first half of 2010 from $70/bbl up to $90/bbl.

The analysts said that the recent oil price rally was driven mostly bycredit normalization, and the markethas not yet priced in an economic re-covery or the effects of supply cutsand a decline in rig rates.“WTI prices rallied to our end-

of-year target of $65/bbl by the end of May, as timespreads strengthened inthe face of rising inventories,” wrote the analysts. “In our view, this unusualbehavior, suggests that the rally was driven by the unwinding of pricing dis-locations caused by the credit crisis and the avoidance of breaching storagecapacity.”“Because this rally has been largely a reversal of pricing dislocations, we

view it as the prologue to the rally in WTI prices that we continue to expectwill accompany the economic recovery.” They added that the recent rally inoil is likely to be only the first stage in the oil price rally expected to accom-pany a recovery in economic activity.WTI crude prices have rallied dramatically this year, more than doubling

their February lows and reaching Goldman Sach’s $65/bbl end-of-year targetby the end of May. Over the past two months, WTI timespreads have strength-ened even as US total petroleum inventories were building. “This has convinced us that the recent rally in WTI prices has been a com-

bination of a reversal of the pricing dislocations caused by the credit crisisand an avoidance of a potential dislocation due to oil inventories breachingstorage capacity constraints due to ample floating storage capacity,” the ana-lysts concluded.

“WTI prices rallied to our end-of-year target of $65/bbl by theend of May. “

drilling info highlights success in “non-core” BarnettAlthough drilling and new well permits are down 40% since the first of

the year within the Barnett Shale play, a portion of the play long consideredoutlier and non-economic has seen a significant increase in activity, according

to information released by Drilling Info. The new ac-tivity has resulted from production successes of EOGResources and DTE Energy in their acreage in Palo

Pinto, Montague, Jack, and adjacent counties."This is an interesting development in the Barnett," stated Ramona Hovey,

Drilling Info Energy Strategy Partners' Managing Director. "EOG and DTEhave drilled over 30 wells in the last several months that have averaged nearlythree times as much as wells in similar acreage were producing a year ago, or1,500 MCFD compared to 666MCFD. This acreage is very oily, andthe shale fairly thin, so conventionalwisdom said this area wasn't core."These findings are part of Drilling

Info's Barnett Research Platform, comprised of deep data and analysis of theplay as it emerges, including a full ranking of acreage probable productivity,acreage potential graded by operator, and relative operator efficiencies withintheir graded acreage. The update shows EOG to be holding onto its top spot as

"Best Barnett Shale Operator.""From a non-normalized point of view, EOG comes in with a 100%

rating, which correlates to the relative amount of hydrocarbon pro-duced per well," added Hovey. In comparison, Chesapeake is second with a98% rating. However, Chesapeake's acreage position is predominately gradedto have much higher production potential acreage than EOG's according toDrilling Info's GPA study."We use the analogy that EOG gets a little more soda from a 12 ounce can

as the others get from a 16 ounce can," said Hovey. "When you normalize foracreage grade, looking at current best practices and removing geologic vari-ability, EOG's 100% rating increases over its second place rivals by 15% ormore. What many people miss in these types of plays is that operations matter,and they matter in a big way. A good operator can produce up to five times asmuch hydrocarbon from given acreage as a bad operator," according to Hovey."XTO and Quicksilver are the best operators in high GPA acreage, with

100% ratings in our top two acreage grades, while EOG and Chesapeake excelin the mid grade acreages. Although they haven't drilled enough wells to beranked as yet, Burnett Oil and Endeavor are showing spectacular results rightnow. They appear to have figured something out," Hovey concluded.

“A good operator can produce upto five times as much from givenacreage as a bad operator."

Pioneer’s latest well beats expectationsPioneer’s net production from Oooguruk was originally forecast to average

5,000 BOPD in 2009 and gradually increase to 10,000 to 14,000 BOPD in2011 as development drilling continues. As a result of recent successes, how-

ever, Pioneer plans to reevaluate its production profile to incorpo-rate higher than expected performance from its Kuparuk wells,early waterflood results and the performance of the planned frac-ture-stimulated Nuiqsut wells.

Pioneer said its net resource potential at Oooguruk is between 120 and 150MMBOE. The company operates theproject with 70% WI, while Italian en-ergy company Eni holds 30% WI.Pioneer’s most recent quarterly

report showed that it averaged salesvolumes of 127,005 BOEPD in the first quarter, including 34,050 BOPD,22,699 BPD of NGLs and 422 MMCFD. Second quarter volumes are fore-casted to fall slightly to an of average 117,000 to 122,000 BOEPD, largely asa result of reduced drilling in its Spraberry and Wolfberry plays in West Texas.Financially, Pioneer reported a $15 million net loss in the first quarter

of the year, reflecting lower commodity prices, although it is now workingto reduce costs including lowering its lease operating expenses by 15% from2008 to 2009.

Pioneer should now exceed its5,000 BOPD guidance for North Slopevolumes this year.

• South Texas oil updated itsoperations and now owns 23,766(18,960 net) acres with currentvolumes of 250 BOEPD from 120producing well bores. In SouthTexas, Giddings field productionis 212 BOEPD. South Texas Oil hasalso regained compliance withcontinuing listing requirementsfor the Nasdaq Global Marketafter being warned of its delistingafter failing to meet minimum re-quirements.

• Stone energy participatedwith 15% WI in Newfield’s deep-water Pyrenees discovery on Gar-den Banks Block 293 in the Gulf ofMexico. Thewell encoun-tered 125 feetof net pay inthree zones. Delineation drillingon the Pyrenees Discovery isplanned for the second half of2009 (See related cover story formore information). Stone has atotal of 64 deepwater blocks inthe Gulf and expects to partici-pate in several deepwater explo-ration wells in 2010.

• Strategic American oilcorp. has identified a Frio Sandgas target in South Texas throughits recently acquired 172 sq. mile3D seismic database. The com-pany plans to lease 1,000 acresover the target and hopes to drill1-2 wells. Strategic has alsoleased 372 acres in a field in Illi-nois that previously produced 1.5MMBO during the 1940s and 50s.Nearby waterflood operations inthe same zones have yielded a 1:1recovery. The company plans touse existing injection wells whiledrilling new recovery wells to4,000 feet.

• Sun river energy secured$1.0 million from Europa Securitiesto fund further evaluation for ex-ploration on its acreage in ColfaxCo., New Mexico.

• French project engineeringfirm Technip has been awarded acontract for Anadarko’s K2 fieldexpansion project in the Gulf ofMexico. Two additional wells willbe tied back to the existing sub-

sea equipmentand to theMarco Polo

platform with production flow-lines. These wells are located inGreen Canyon Blocks 562 and606, at a water depth of 4,000feet.

• Universal Property devel-opment and Acquisition corp. isnegotiating with EOG Resourcesto farm out the drilling of 13 Bar-nett Shale wells on propertyowned by UPDA in North Texas.EOG estimates the wells will pro-duce a minimum of 65 MMCF.

• U.S. energy corp. said itspartner Houston Energy reached11,100 ft. TD on the first welldrilled under the partnership inSouth Texas. The well hit 35 ft. ofnet pay and is now being com-pleted. The next well will be spudsoon.

• Yuma exploration and Pro-duction co. tested the McIlhennyNo. 1 ST2 well on its Cote de MerProspect in Vermilion Parish,Louisiana. The Operator, EnergyXXI, drilled the well to 23,300 ft.and tested one pay zones in theLower Miocene sandsat a stabilized rate of15.8 MMCFD. Initially,that zone also pro-duced oil at non-stabilized ratesbetween 800 and 2,000 BOPD. Al-though other pay zones havebeen identified, no further testingwas conducted. The well is shut inpending the installation of pro-duction facilities and flow lines.Yuma has 6.25% WI BPO and23.44% WI APO in the prospect.

E&P BriefsNORTH TEXASPALO PINTO CO., TX PROSPECTS3-Adjoining Leases. 530-Acres.DEVELOPMENTTargeting Barnett Shale. 4,600 Ft.Leases Held By Shallow Strawn. BARNETTAcreage 3 Miles SE Of Palo Pinto, TX.Major WI Available; 80% NRICurrent Net Production: 40-53 MCFDNew Pecan Pipeline Joins Leases——Along With Enbridge Line.DV 6423

PALO PINTO CO., TX PACKAGE7-Wells. 1,129-Net Acres.FORT WORTH - BARNETT SHALETargeting Barnett Shale. 4,000 Ft.3-D Seismic. SubSurface Geology. BARNETT80% OPERATED WI; 75% NRIDHC: $900,000; Compl: $850,000DV 6379

PARKER CO., TX RE-ENTRY 1-ShutIn Well. ~69.4 Acres.FT WORTH BASINOld Caddo Conglomerate Pay Zone.Now Targeting Lower Barnett Shale.Several Additional Potential PayZones.100% OPERATED WI For Sale. RE-ENTRYEstimated IP: 1,000 MCFDOffsets 7,000 MCFD Devon Well.Minimal Drilling Costs.Quick PayOut Possible Says SellerDHC: $698,000; Completion: $702,000DV 5322RE

TARRANT CO., TX LEASE7.5-Net Acres.BARNETT SHALE PLAYFay A-530 Abstract. MINERALS50% MINERAL INTEREST AVAILABLEL 3609M

TARRANT CO., TX PROSPECT1-Proposed Well, Possibly 2. 85-Acres.BARNETT SHALETargets At 8,000 Ft.Immediate Drilling Opportunity.Very Active Area. BARNETT100% OPERATED WI Available.Est Reserves: 3.0 - 5.0 BCFCONTACT SELLER FOR MORE INFODV 5294

WISE CO., TX DEVELOPMENT5-Development Wells. ~240-Net Mineral Ac.BARNETT SHALESignificant Development Opportunity. BARNETTUpHole Conglomerate Potential.Seller Will Deliver 75% NRI.DV 5854

WISE CO., TX PROJECT40-Acres For Lease.FORT WORTH BASINBARNETT SHALE. LEASEAll P&NG Rights Excluding Conglomerate.CONTACT CALIFORNIA PRINCIPALDV 1528

WISE CO., TX PROSPECT ~732-Total Acres. 1-Proposed Well.READY TO DRILLHorizontal Barnett Shale. ~2,500 Ft.232-Acres Are HBP.100-Acres On An Offset Barnett Tract.3-D Seismic Available.SEEKING JV PARTNERS BARNETTSeller Will Deliver 80% NRI.Two Additional Wells If Successful.Est Rsrvs (1st Well): 3.0 MBO & 1.2 BCFEstimated AFE/Well: $2,500,000VIRTUAL DATA ROOM OPENDV 2280

YOUNG CO., TX PROSPECT400-Acre Project.NORTH TEXASGunsight Sand & Lime. 1,200 Ft.Significant Development Upside In Drilling.39 Degree API Oil.Be Drilled On 5-10 Acre Spacing. GUNSIGHT100% OPERATED WI FOR SALE.Estimated IP: 5.0-10 BOPDEst Well Reserves: 5,000 BODrill & Completion Costs: $70,000CONTACT CALIFORNIA PRINCIPALDV 1380

SOUTH TEXASARANSAS CO., TX PROSPECT4-Proposed Wells. 960-Acres.COPANO BAYObj 1: Frio Sands. 9,000 Ft.Obj 2: Anomalina. 13,000 Ft.Area Has Prolific Deep Production.30-50 Shallow Sands Prospective.3-D Seismic & AVO Confirmation. FRIO50% OPERATED WI; 73%-75% NRIEst Reserves/Well: 25 - 50 BCFEst Reserves/Project: 100 - 200 BCFDHC: $2.0MM To $3.0MM; Compl: $1.0MMCALL ENGINEER FOR MORE INFODV 5928

BEE CO., TEXAS PROSPECTTargeting Upper Wilcox. 15,000 Ft.Prospect Defined By 3-D Seismic Data.50% OPERATED WI; 75% NRI UPPERPotential Reserves: 7-20 BCFE WILCOXCONTACT SELLER FOR MORE INFODV 6336

CALHOUN CO., TX PROSPECTS3,200-Acre Leases.>20-Prospects Identified.Targeting Frio / Miocene Trend.133-Sq Mi Of Proprietary 3-D Seismic.Drill 1 Deep Frio Prospect - Earns 3-D.87.5% Working Interest Available. FRIO/3-D18-Month Option On Acreage/Seismic.Area Of Mutual Interest Identified.Est Reserves: >500 BCF & 3.0 MMBOPROSPECT GENERATOR HAS INFODV 6460

DEEP WILCOX PROSPECTNormanna Field Area.BEE CO., TX4-Way Structural Closure.Middle & Lower House Sand Targets.Seller Will Deliver 75% NRI. NORMANNA25% Back-In After 2x Pay-Out.Potential Reserves: 50 BCFSELLER HAS DATA TO REVIEWDV 5065

DIMMIT CO., TX PROSPECT20 To 25-Potential Wells. 2,340-Acres.Obj 1: Eagle Ford Shale. 7,500 Ft.Obj 2: Pearsall. 11,500 Ft.On Trend With Recent Discoveries. EAGLE100% OPERATED WI; 75% NRI FORDEst Reserves/Well: 3.0-4.0 BCFEEst Reserves/Project: 60-80 BCFEPROSPECT GENERATOR HAS INFODV 5244

DUVAL CO., TX PROSPECT~527-Acres.Targeting Upper Wilcox Formation.Proposed Depth: 12,500 Ft.4-Way Faulted Closure.Defined By 3-D Seismic Data. WILCOX50% Working Interest; 75% NRIEst Spud Date: Q1 2009DHC: $3,200,000; Compl: $1,100,000DV 5044

FRIO CO., TX NON-OP DEVELOPMENT1-Well Recompletion; 318-Acres.2-Additional PayZones Identified2.0% NonOperated WI Available. 3-PAYZONESCurrent Lease Production: 2.0 BOPDStimulation Should Double Production.SELLER HAS EXTENSIVE DATADV 5116PP

FRIO CO., TX PROSPECT5-Proposed Wells. 200-Acres.SOUTH TEXASMultiPay Zones. SubSurface Geology.Obj 1: Edwards Limestone. 4,200 Ft.Obj 2: Georgetown, Buda, Austin Chalk,Serpentine, San Miguel & Olmos Sand 50% OPERATED WI; 75% NRI (Lease)Objectives Support Commercial- EDWARDSHydrocarbon ProductionEst Rsrvs: 144,000 BO & 172,800 MCFStrong Potential For Development-In Naturally Fractured Edwards.Dry Hole: $239,000 Compl: $171,000DV 8638L

FRIO CO., TX PROSPECT OFFERING1-Proposed Well. 325-Acres.Obj 1: Edwards Lime. 4,200 Ft.Obj 2: Detrital Reef. 3,140 Ft.Obj 3: Georgetown PotentialSubSurface Geology. Great Well Control.2-Additional Locations Identified.90% Working Interest; 75% NRI EDWARDSOperations Are Not Available.Est Reserves/Well: 144 MBO & 72 MMCFEst Reserves/Proj: 500 MBO & 250 MMCFDHC: $302,000; Compl: $184,000SELLER HAS PACKAGE FOR REVIEWDV 6463

GOLIAD & KARNES CO., TX GAS1-Proposed Test Well.NEAR PETTUS, TEXASTargeting Hackney Sands. HACKNEY25% Working Interest; 74%-75% NRI.Est Reserves: 140,000 MBO & 9.4 BCFDry Hole: $2,200,000; Compl: $800,000CONTACT LANDMAN FOR MORE INFODV 5471

ENERGY TRADEPRODUCERSERVICES

713.874.8400dteenergy.com

MATAGoRDA Co., TX LeASeThe City of Palacios, TX offers to Quali-

fied Bidders an Oil & Gas Lease Covering

City-Owned Property:

2 Tracts, ~1,500 Acres.

Bids packages available through

City Secretary,

keri Berger (361) 972-3605SeALeD BiDS ARe DUe 10:00 a.m.,

July 31, 2009

oil & Gas Lease Available

Pioneer cont. from pg. 1

(713) 650-1212

MidstreamPLS can put its experience, marketing and publishing resources to workto sell your midstream assets.For more information on how PLS can help you sell yourassets, call (713) 650-1212 or access www.plsx.com

PAGE 12 JULY, 2009

–Listings For Sale

SOUTH TEXASGOLIAD CO., TX PROSPECT5 To 50-Potential Wells. 2,500-Acres.Obj 1: Edwards Formation. 18,750 Ft.Obj 2: Sligo Formation. 21,500 Ft.3-D Seismic & SubSurface Geology. EDWARDS75% OPERATED WI Available. SLIGOEst Reserves/Well: 25 - 50 BCF Est Reserves/Project: 250 BCF - 2.0 TCFGENERATOR HAS MORE INFODV 5760

GONZALES CO., TX PROPERTY1-Oil Well. 423-Acres. 1-SWD Permitted.FIRST SHOT FIELD5 Mi Southwest Of SmileyAustin Chalk. 11,550 Ft. (Horizontal)Ready For New Directional Drilling—-—Austin Chalk from + -8,300 Ft. AUSTIN100% OPERATED WI; 75% NRI CHALKWell Has Cumm’d 126 MBO + GasProspect Includes Site Equipment.CONTACT FOR DETAILSDV 9781PP

JEFFERSON CO., TX PROSPECT320-Acres.MIDDLE FRIOObj 1: Nodosaria A. 11,280 Ft.Obj 2: Nodosaria B. 11,800 Ft.3-D Seismic. SubSurface Geology.100% OPERATED WI; 75% NRI FRIOOffset Well Producing From Intervals.Est Rsrvs/Well: 142 MBO & 5.0 BCFDHC: $1,900,000. Compl: $800,000CALL PLS FOR INTRO TO SELLERDV 5170

JIM HOGG CO., TX PROSPECT3 To 5-Proposed Wells. 650-Acres.Obj 1: Lower Reklaw. 11,700 Ft.Obj 2: 1st & Lower Hinnant. 13,200 Ft.3-D Seismic, AVO, SubSurface Geology.80% WI Available; 59.2% NRI REKLAWOperations Available To Qualified Partner.Est Reserves/Well: 7.0 BCF Est Reserves/Proj: 30-50 BCF DHC: $3,647,000; Compl: $1,673,000EXPLORATION MGR HAS MORE DATADV 5284

KARNES CO., TX PROJECT20-Potential Wells.Targeting 2nd Reklaw. 7,000 Ft.Defined By SubSurface Geology.75% OPERATED WI; 77% NRI (Lease) ~11.8Est Rsrvs/Well: 7.0 MBO & 550 MMCF BCFEEst Rsrvs/Project: 140 MBO & 11 BCFDHC: $300,000; Compl: $150,000CALL GEOLOGIST TO LEARN MOREDV 5732

KARNES CO., TX PROSPECT4-Well Program. 875-Acres.Upper Wilcox L Series Targets.Reklaw Carrizo Behind Pipe (7 Locations).3-D Seismic Data & Well Control.Low Pressure Gas Line Available On Lease.85% WI Available; 77% NRI 20-WELLSEstimated IP: 34 BOPD & 2.0 MMCFDEst Reserves: >38 BCF & >645 MBCDHC: $907,000; Compl: $419,000DETAILED FINANCIALS AVAILABLEDV 5261

LA SALLE CO., TX ACREAGE66-Potential Wells. 5,300-Acres.Obj 1: Eagle Ford ShaleObj 2: Austin ChalkOPEN ACREAGE FOR LEASE EAGLE100% OPERATED WI Available. FORDEst Project Reserves: ~350 BCFAGENT HAS MORE INFOL 2290DV

LAVACA CO., TX PROSPECT±121-Acres.Targeting Upper Wilcox. 10,000 Ft.Defined By AVO Response.50% OPERATED WI; 75% NRI (Lease) Est Reserves: 2.4-8.7 BCFE WILCOXDHC: ~$850,000; Compl: ~$450,000CALL GENERATOR FOR MORE INFODV 2316

LIVE OAK CO., TX PROSPECT160-Acres.Targeting Queen City Formation. 7,000 Ft.READY TO DRILLHigh Porosity & Permeability.Well Control Available.90% WI Available; 75% NRI DRILL Seller Will Invest Heads Up w/ Buyer. READYOperations Are Available.Estimated IP: 2.0 MMCFDEst Reserves: 1.0-4.0 BCFSELLER LOOKING FOR OPERATORDV 5435

RECENTLY UPDATED LISTINGSEAST TEXAS - RRC 5 & 6

EAST TEXAS PROPERTY

FOR SALE89-Active Wells.

18.59% NonOp WI13.64% NRI

Net Production: 39 BOPD & 1,417 MCFD

STILL AVAILABLETHROUGH BURKS

PP 2046DV

SHELBY CO., TX

PROPERTY

3-Active Wells. ~5,017-Acres.

100% OPERATED WI75% NRI

Agent Has ProductionDetails.

CALL TEXAS AGENTTO LEARN MORE

PP 2379DV

NORTH TEXAS - RRC 7B

ARCHER CO., TX PROPERTY

62-Total Wells 21-NewWells. 2-New SWD

100% OPERATED WI75% NRI

Net Production: 42 BOPD

CALL CALIFORNIAAGENT FOR INFO

PP 9253DV

ERATH CO., TX PROPERTY

4-Active Wells. 1-SWD.779-Net Acres.

80% OPERATED WI74% NRI

Net Production: 1.2 BOPD & 122 MCFD

PP 6359

NORTH TEXAS NONOP PKG

60-Active Wells.NonOperated WorkingInterest Available.

Last Reported CashFlow: ~$150,000/Mn

CONTACT BROKERFOR SHOWING

PP 9923DV

PALO PINTO CO., TXPROPERTY

4,600-Contiguous Acres.Seller Will Deliver HighNRI.

Net Production: 170 MCFD

EXPLORATIONSELLER HAS DETAILS

PP 5766DV

PALO PINTO CO., TXPROPERTY

1-Active Well.80% OPERATED WI75% NRI

Net Production: 1.2 BOPD & 132 MCFD

PP 6381

STONEWALL CO., TXPROPERTY

2-Active.1-SWD. 925-Gross/Net Acres.

100% OPERATED WI83%-86% NRI

Net Production: 18 BOPD

CONTACT SELLER TOLEARN MORE

PP 2350DV

WISE CO., TX ROYALTY SALE

4-Wells.0.004% Royalty InterestAvailable.

Net Cash Flow:$1,500/Mn

CALL SELLER FORMORE DETAILS

RR 2310

SOUTH EAST NEW MEXICO

LEA CO., NM PROPERTY SALE

5-Active Wells. 4-ShutIn.±1,040-Acres.

Abo/Abo Reef Formation.8,000-9,000 Ft.

Net Production: ~56 BOPD & 135 MCFD

AGENT HAS MOREINFO

PP 2361

SOUTH TEXAS - RRC 1, 2

ATASCOSA CO., TXPROPERTY

2-Oil Wells. 2-SWD. 3-SI. 1,299-Acres.

67.5%-92.5% WI 50.6%-75.4% NRI

Gross Production: 36 BOPD & 47 MCFD

CONTACT PLS BROKER FOR DETAILS

PP 4157

BEE CO., TX PROPERTY

1-Proposed Gas Well.~121-Acres.

3.5% NonOperated WI~2.6% NRI

Net Production: 290MCFD & 2.3 BOPD

SELLER HAS MORE DATA

PP 2300DV

SOUTH TEXAS PROPERTY

1-Well Location Identified.

100% OPERATED WIAvailable.

Seller Can Operate ForNew Buyer.

LUBBOCK AGENT HASTHIS LEAD

PP 9714DV

SOUTH TEXAS STRIPPER WELLS

90-Wells. 3,160-Acres.100% OPERATED WI75%-87.5% NRI

Net Production: ~115 BOED

CALL BROKER FORMORE INFO

PP 5912DV

SOUTH EAST TEXAS - RRC 3

COLORADO CO., TXPROPERTY

2-Wells.95.0% OPERATED WI~68.88% NRI

Gross Production: 572 MCFD

REDUCED PRICE EX-PECATIONS.

PP 5949

HARRIS CO., TX OVER-RIDE

1-Well. Small ORRI Available.CALL TEXAS BROKERFOR INFO

RR 6413

JEFFERSON CO., TXSALES PKG

5-Wells.NonParticipating RoyaltyFor Sale.

Avg Net Revenues:$74,057/Mn

RR 4270

WEST TEXAS - RRC 7C, 8

NORTH PECOS CO., TXPROPERTY

30-Active Wells. 13-Injection. 2-Shutin.

100% OPERATED WI75% NRI

Avg Net Production: ~80 BOPD

AGENT HAS MORE DETAILS

PP 2362DV

TOM GREEN & IRIONCO., TX PACKAGE

19-Wells. ~32,800-Acres+/-. Numerous PUD.

~100% OPERATED WI75% NRI

Net Production: ~94 BOPD & ~2.4 MMCFD

CONTACT AGENT TOREQUEST DATA

PP 4638DV

WARD CO., TX PROPERTY

1,920-Acres.100% OPERATED WI75% NRI

Net Production: 25 BOPD

PROPERTY AVAILABLE- CALL AGENT

PP 4828DV

ALABAMA

ESCAMBIA CO., ALPROPERTIES

14-Gas Wells.Varying NonOperatedWI Available.

Net Production: 1,725 MCFD

STILL ENTERTAININGOFFERS

PP 6299DV

MISSISSIPPI

FORREST CO., MS ROYALTY

4-Tracts. 40+ Net Royalty Acres.

Targeting Hosston Formation.

Estimated Payout Term:±10 Months

SELLER HAS MOREINFO AVAILABLE

RR 6436DV

MULTISTATE

GULF COAST ORRI PKG

4-Counties.WHARTON & LEONCO., TX

Net Cash Flow:$12,000/Mn

AGENT HAS MORE DETAILS

RR 2351

NORTH LOUISIANA

BEINVILLE PH., LA ROYALTIES

240-Net Royalty Acres.CALL AGENT TOLEARN MORE

RR 2347

BOSSIER PH., LA PROPERTIES

5-Wells.100% OPERATED WI77% NRI

Net Production: 654 MCFD

CALL AGENT FOR STATUS UPDATE

PP 5262DV

Lasserdata.comQuality Oil and Gas Production Data Online

FREE TRIAL - A $300 Value!

Call 1.800.489.DATA for more information.

SOUTH TEXASMCMULLEN CO., TX PROJECT13-Potential Wells. ~709-Acres.SOUTH TEXAS GULF COASTObj 1: Navaro. 11,000 Ft.Obj 2: Wilcox. 6,000-9,000 Ft.Eagle Ford Shale Potential Also Identified.High Quality 3-D Seismic & Geology. 100% WI Available, 75% NRI NAVARO100% OPERATED WI Available.Proven Productive Oil & Gas Sand.Development Drilling, Ready To Drill.Title Options Available.Est Reserves: 4.8 MBO & 8.3 BCFDV 8488

MCMULLEN CO., TX PROSPECT3-Proposed Wells. 1,926-Acres.LA JOLLA RANCHLower Sligo Formation Development.Proposed Depth: ~16,800 Ft.Eagle Ford Shale & Edwards Potential.Prominent 3-D Seismic Data. LA JOLLASeller Will Deliver 75% NRI.Est Well Reserves: 35-45 BCFEst Project Reserves: 100+ BCFDV 5088

NUECES CO., TX PROSPECT 2-Prospects.SAXET FIELDObj 1: Middle Frio SndsObj 2: Anomalina & Tex-Miss Sands12.5% NonOperated WI; 73% NRIAnalog Field Cumm’d 0.75 BCF. NONOPPotential Rsrvs: 2.0 MMBO & 40 BCFDHC: $1,080,000CALL PLS FOR MORE INFORMATIONDV 6378

VAL VERDE CO., TX MINERALS3,500-Net Mineral Acres.MINERALS FOR LEASE LEASEFAX LEASE INQUIRIES TO OWNERL 2349

VICTORIA CO., TX PROSPECT766-Acres.Targeting Upper Wilcox. 15,000 Ft.PSDM 3-D, AVO Response.Large 3-Way Fault Upthrown Closure.60% OPERATED WI; 75% NRI (Lease)Analogs IP’ed: 2.0-9.0 MMCFD—- WILCOX—- & 20-30 BOPDEst Spud: 2H 2009Est Reserves: 85-200 BCFEDHC: ~$3,560,000; Compl: ~$1,577,000DV 2314

WEBB CO., TX PROSPECT5 To 8-Proposed Wells. 1,011-Acres.LOBO TRENDTargeting Claiborne Sands. 7,400 Ft.Wilcox Potential Identified.3-D Seismic, AVO, SubSurface Geology.80% WI Available; 59.2% NRI LOBOOperations Available To Qualified Partner.Est Reserves/Well: 2.0 BCFEst Reserves/Proj: 10 BCFDHC: $581,000; Compl: $583,000DV 5285

WEBB CO., TX PROSPECT SALE4-Potential Wells. 1,000-Acres.LOBO TRENDLobo Targets Identified. 11,000 Ft.3-D Seismic, AVO, SubSurface Geology.Low-Risk Trend.80% WI Available; 59.2% NRI LOBOOperations Available To Qualified Partner.Est Reserves/Well: 2.0 BCFEst Reserves/Proj: 11 BCFDHC: $1,712,000; Compl: $1,015,000DV 5286

ZAPATA CO., TX PROJECT10-Wells. 640-Acres.SOUTH TEXAS EOCENEObj 1: Cook Mountain. 3,000 Ft.Obj 2: Mirando. 1,900 Ft.Defined By Subsurface Geology. COOK100% OPERATED WI; 75% NRI MOUNTAINCook Mountain Well Rsrvs: 50 MBOMirando Well Rsrvs: 500 MMCFTotal Net Project Rsrvs: ~1.0 MMBOEDHC: $300,000; Compl: $410,000DV 2269

ZAPATA CO., TX PROSPECT6-Potential Wells. ~665-Acres.Charco Target Identified. 9,800 Ft.Very Active Area.3-D Seismic, AVO, SubSurface Geology.80% WI Available; 59.2% NRI CHARCOOperations Available To Qualified Partner.Est Reserves/Well: ~2.0 BCFEst Reserves/Project: ~12 BCFDHC: $1,800,000; Compl: $952,000DV 5283

Your full serviceTechnical Sales FirmBurks Oil & Gas Properties, Inc.

Specializing in Texas, Louisiana & Gulf Coast

Ph: (281) 580-4590 • Fax: (281) 537-2121

www.burksoilandgas.com

PROSPECTS & PROPERTIES PAGE 13

–Listings For Sale

SOUTHEAST TEXASBRAZORIA CO., TX PROSPECT1-Proposed Well. 400-Acres.RATTLESNAKE MOUNDObj 1: Big Gas Sand. 10,300 Ft.Obj 2: Grubbs Sand. 10,500 Ft.3-D Seismic & SubSurface Geology. NON OPField Extension Fault Block.35% NonOperated WI; 74% NRI (Lease)Offset To Excellent Recent Well.Est Reserves: 28 BCFDHC: $5,200,000; Compl: $2,000,000DV 5423

COLORADO CO., TX PROSPECTS~814-Gross Acres. ~673-Net Acres.SOUTHEAST TEXASTest Drill Deeper Pool of Mid Wilcox— Structure below McKinley #1 (11,700 Ft.)Cruel and Priscilla Targeted.Targets Productive in Two Nearby Fields. Objectives Are Strong Producers On DEEP— Trend Nearby in Colorado County. SEEKING PARTNERS TO DRILLProspect is Predominantly a Downthrown— 3 Way Fault Closure w/Amplitude Support.Est Reserves: 31 BCFYegua, Frio, and Miocene Potential.Dry Hole: $4,366,400; Compl: $1,937,800DV 3817

FORT BEND CO., TX PROJECT1-Proposed Well. 171-Acres.YEGUA TRENDObj 1: 1st Yegua. 7,500 Ft.Obj 2: 4th Yegua. 7,800 Ft.Defined By SubSurface Geology. YEGUA100% OPERATED WI; 75% NRIOperations Available If Qualified.Est Reserves/Well: 250 MBOEst Reserves/Proj: 1.1 MMBODHC: $514,940; Compl: $401,970DV 6426

FORT BEND CO., TX PROSPECT2-Possible Wells. 121-Acres.ROSENBURG (10 PAYS) Obj 1a: Frio Sands. 4,620-5,600 Ft.Obj 1b: Vicksburg. 6,270 Ft.Obj 2: Frio Sands. 5,020-5,340 Ft.Defined By SubSurface Geology.Some Offset Or Area 2-D Seismic.100% OPERATED WI; 75% NRI FRIOWells FARO 322-2,036 MCFDInitial Flow Rate of 750 MCFDFour-Way Dip Anticline.Est Well Reserves: 1.5+ BCFEst Proj Reserves: ~10.6 MBC & 6.5 BCF9-Individual Frio Sands Plus VicksburgGenerator & Land Expect 3/16th Carry.DHC: $519,470; Compl: $392,690READY TO DRILL - CALL PLS FOR INFODV 5208

GALVESTON CO., TX PROSPECT3-Potential Wells. 1,284-Acres.Obj 1: Big Gas Sand. 10,500 Ft.Obj 2: Grubbs Sand. 10,800 Ft.3-D Seismic & SubSurface Geology.75% OPERATED WI; 74% NRI (Lease) 3-DEst Reserves/Well: 25 BCF PROSPECTEst Reserves/Proj: 100 BCFDHC: $5,000,000; Compl: $2,000,000DV 5424

GRIMES CO., TX PROSPECT2-Potential Lateral Gas Wells.AUSTIN CHALK1,025-Acres.Top Of Chalk ~14,300 Ft.Two 5,000 Ft Laterals. AUSTIN2-D Seismic & SubSurface Geology. CHALK20% NonOperated WI; 75% NRI (Lease)Est Reserves/Well: 6.0-8.0 BCFDHC: $6,650,000; Compl: $7,560,000DV 6349HZ

LIBERTY CO., TX PROSPECT1-ProspectObj 1: Vicksburg. 8,400 Ft.Obj 2: Vicksburg. 8,500-8,000 Ft.Defined By 3-D Seismic. VICKSBURG50% Operated WI; 75% NRI (Lease) Potential Reserves: 261 MBODHC: $900,000; Compl: $450,000DV 6282

MATAGORDA CO., TX LEASES2-Tracts. 1,500-Acres.CITY OF PALACIOSExploration & Development Leases.Bids Accepted In Order Of Highest— CITY—Rental Proposal. LEASEAGENT HAS MORE LEASE DATAOFFERS ARE DUE JULY 31, 2009L 6388

MATAGORDA CO., TX PROSPECT30-Potential Wells. 7,247-Acres (HBP).MATAGORDA BAYObj 1: Cib Hazz. 11,000 Ft.Obj 2: Tex Miss & Anomalina. 18,000 Ft.ReDrill Of PUD Location. MATAGORDA3-D Seismic & SubSurface Geology. BAY100% OPERATED WI; 75% NRI Expected IP: 9-10 MMCFeDEst Reserves/Well: 25 BCFEEst Reserves/Proj: 760 BCFEDHC: $9,000,000; Compl: $2,000,000DV 5422

SOUTHEAST TEXASSOUTHEAST TEXAS ACREAGE7-Counties. >400,000-Net Acres (HBP).FAYETTE, BURLESON, LEE, BRAZOS,GRIMES, WASHINGTON & AUSTIN CO.Wilcox & Yegua Formation Targets. Other Targets Have Been Identified. ACREAGEShallow Drilling Depths. Normal Pressures.3-D & 2-D Seismic Data Available.SEEKING PARTNERS FOR EXPLOITGEOLOGIST HAS MORE DETAILSDV 5554

SOUTHEAST TEXAS FARMOUT1,500+ Acres.BRAZOS, FAYETTE, LEE& BURLESON CO.Eagle Ford Target. 8,000-11,000 Ft.Deep Bossier Potential (~20,000 Ft.)— EAGLE—In Burleson & Lee Co. FORDDefined By Isopach Maps.100% OPERATED WI; 75% NRIAnalogs Estimate ~250 MBOE/Well.CALL FOR FARMOUT DETAILSFO 6431

SOUTHEAST TEXAS PACKAGE>40-Prospects Identified.FAYETTE, LEE, BURLESON, BRAZOS,GRIMES, WASHINGTON,& AUSTIN CO.>400,000-Net Acres HBP.Wilcox, Yegua, & Other Targets. MULTIPAYMultiple Zone Potential.Shallow Drilling Depths. Normal Pressure.Proprietary 3-D & 2-D Seismic Data.SEEKING DRILLING PARTNERSDV 2325

WALLER CO., TX ACREAGE6,233-Net Acres.KATY FIELDYegua Formation. 5,000-7,000 Ft. YEGUAMultiple Horizons.Reprocessed 2-D Seismic.LAND MANAGER HAS MORE INFODV 5466

WALLER CO., TX EXTENSION1,500-20,000 Acres Possible.KATY FIELD EXTENSIONObj 1: Wilcox. 10,400-12,500 Ft.Obj 2: Yegua. 6,700-7,500 Ft.Located On 4-Way Closure. 3-D MULTI PAY2-D & 3-D Seismic Available.Some Frio Potential ExistsCONTACT LANDMAN FOR DETAILSDV 5464

WALLER CO., TX OFFERING100-Proposed Wells. 16,032-Net Acres.Obj 1: Wilcox Formation. 10,000 Ft.Obj 2: Yegua Formation. 7,000 Ft.Multiple Objectives Identified.Defined By 3-D & 2-D Seismic. G&G. WILCOX50% OPERATED WI; 36.3% NRIDry Hole Cost: $1,570,000LAND DEPT HAS MORE DETAILSDV 5836

WALLER CO., TX PROJECTSOUTH TEXAS BASINWilcox Targets. SETX/DVSubSurface, GeoChemistry, GeoPhysics.& Hydrocarbon Microseepage Surveying100% OPERATED WI FOR SALEDV 2426

WALLER CO., TX PROSPECT4,097-Net Acres.KATY FIELDObj 1: Frio Formation. 2,000-3,000 Ft.Obj 2: Vicksburg. 3,000-4,000 Ft.Obj 3: Wilcox. 8,000-9,000 Ft. FRIOMultiple Horizons. UnTested.Q4 2008 Spud Date.Reprocessed 2-D Seismic.DV 5467

WALLER CO., TX PROSPECT OFFER5,915-Net Acres.KATY FIELDObj 1: Yegua Formation. 6,000-8,000 Ft.Obj 2: Wilcox. 10,300-11,750 Ft.Reprocessed 2-D Seismic. >5,900 ACRESLocated On Downthrown Fault Closures.Wants To Spud ASAP.LAND MANAGER HAS SHOWINGDV 5465

WALLER CO., TX PROSPECTS70-Well Potential. 20,958-Net Acres.KATY FIELD EXTENSIONWilcox, Yegua & Frio Targets.66.67% OPERATED WI; 72.5% NRI (Lease)Field Has Cumm’d: >10 TCF EXTENSIONEst Reserves: 4-8 BCF/WellDHC: $1,528,000; Compl Cost: $387,000PART OF PACKAGE HAS BEEN SOLDDV 1574

WHARTON CO., TX PROSPECT200-Acres.FRIO PRODUCING TRENDTotal Depth: 6,200 Ft.75% Net Lease Available.Analogous Wells Cumm’d 3.25 BCF. FRIOEstimated IP: 1,000 MCFD & 5.0 BOPDPotential Rsrvs: 7.0 MBO & 2.8 BCFDHC: $495,000. Compl: 795,000.DV 5184

RECENTLY UPDATED LISTINGSSOUTH LOUISIANA

BEAUREGARD PH., LAPROPERTY

1-Well.12.5% NonOperated WI~9.22% NRI

Gross Production: 8.0 BOPD & 75 MCFD

SELLER HAS MORE INFORMATION

PP 6427DV

BEAUREGARD PH., LAPROPERTY

311-Developed Acres.100% OPERATED WI72%-74% NRI

Net Production: 15BOPD & 170 MCFD

CALL FOR UPDATESTATUS

PP 5987DV

IBERIA PH., LA PROP-ERTY

1-Active Well.24.98% NonOperatedWI 18.8% NRI

May 2009 Production:~133 BOPD

AGENT WANTS OFFERS JULY 8, 2009

PP 2360DV

LAFOURCHE PH., LAPROPERTIES

4-Wells. 669-Acres.80.5% OPERATED WIAvg 60.4% NRI

Net Production: 75BOPD & 3,693 MCFD

CONTACT BURKS FORMORE INFO

PP 5828DV

LOUISIANA SALEPACKAGE

7-Properties. 3-Parishes.400-Net Acres.

2.0%-11% NonOp WI1.1%-9.1% NRI

Net Production: 8.0BOPD & 141 MCFD

AGENT HAS MOREDATA FOR REVIEW

PP 5561DV

SABINE PH., LA PROPERTIES

17-Wells. 3,476-Gross/Net Acres.

100% OPERATED WI75% NRI

Net Production: 1.0BOPD & 1,300 MCFD

AGENT HAS UPDATEDINFORMATION

PP 3916DV

ARKANSAS

ARKANSAS MINERALSFOR SALE

5-counties. 7,420-NetMineral Acres.

& Cleburne Counties.Net Cash Flow:$20,000/Mn

AGENT HAS MOREINFO

M 2340

WHITE CO., AR MINERALS

159-Net Mineral Acres.Major IndependentDrilling 1 Section West.

M 2348

WHITE CO., AR PROPERTY

2-Horizontal Wells. 4.18-Acres.

Small NonOperated WI& NRI.

Gross Production: 2,581 MCFD

BIG OFFSETOPERATORS IN AREA

PP 2317

KANSAS

SOUTHEAST KANSASSALE PACKAGE

144-Wells 80-PDP.75,000-Gross Acres.

100% OPERATED WI~82% NRI.

Net Production: 10 BOPD & 1,100 MCFD

Engineering DatabaseAvailable.

PP 4248DV

KANSAS & OKLAHOMA

KANSAS & OKLAHOMAPACKAGE

>100+ Wells.100% OPERATED WI~80% NRI

Gross Production: 37BOPD & 645 MCFD

PP 4257

OKLAHOMA

ATOKA CO., OK MINERALS

3-Tracts. ~1,000-Acres.Mineral Interests For Sale.

Government SurveyOver Lands.

CALL PLS FOR INTROTO SELLER

M 5380

CREEK CO., OK PROPERTY

2-Wells. 80-Acres.100% OPERATED WI80% NRI

Net Production: ~13 BOPD

CALL AGENT WITH OFFERS

PP 2355DV

ELLIS CO., OKPRODUCTION

18-Oil & Gas Wells. 1-ShutIn.

Delivers An Average80% NRI.

Net Production: ~18 BOPD & 823 MCFD

AGENT HAS UPDATEAVAILABLE

PP 6409DV

KINGFISHER CO., OKPROPERTY

4-Wells.Small NonOperated WI& NRI.

CALL SELLER TOLEARN MORE

PP 2311

MCCLAIN CO., OKPROJECT SALE

6-Wells. 21-Drilling Lo-cations.

100% OPERATED WI78% NRI

Net Production: ~85 BOPD & 372 MCFD

CONTACT PLS TOLEARN MORE

PP 6450DV

NOBLE CO., OK WATERFLOOD

6-Well Bores. 760-Leasehold Acres.

100% OPERATED WI75% NRI

Recoverable Rsrvs: 1.1 MMBO & 6.0 BCF

SUMMARY PACKAGEAVAILABLE

PP 3896WF

OSAGE CO., OK WATERFLOOD

5-Active Wells. 1-SWD.720-Contiguous Acres.

100% OPERATED WIt80% NRI

Cumm'd Oil To Date:2,137 MBO

CALL AGENT FORSALE STATUS

PP 3956WF

WOODS CO., OK ROYALTY

7-Oil & Gas Wells.1,280-Acres.

0.1% Interest Available0.09% NRI

Net Cash Flow:$3,600/Mn

CALL SELLER FORMORE INFO

RR 2312

PENNSYLVANIA

BRADFORD CO., PAMINERALS

1,054-Net Mineral AcresFor Sale.

1/8th Royalty Available.Lease Assigned To ChiefO&G - 3/09

CALL PLS FOR INTROTO SELLER

M 5365

MULTISTATE

APPALACHIAN BASINDIVESTMENT

2-Packages. Package 2:---75% Minerals In Marcells Fairway

AGENT WANTS OFFERS JULY 8

M 2382

COLORADO

RIO BLANCO CO., COPROPERTIES

14-Gas Wells. 2,720-Acres.

Various WI & NRI For Sale.

Gross Prod: 64 MCFD(Before ReWork)

CONTACT PLS FORUPDATED PKG

PP 9307DV

UTAH

UINTAH & GRAND CO.,UT PROJECT

17-PDP, 1-PDBP, 14-PDNP, 14-PUDs

Operated & NonOperatedWI For Sale.

Gross Prod: 8.0 BOPD &6,500 MCFD

3rd Party EngineeringReport Available.

PP 4214DV

WYOMING

SWEETWATER CO., WYPROPERTY

2-Gas Wells. 1-ShutIn.2,040-Acres.

100% OPERATED WI~75% NRI

Gross Production: 250 MCFD

AFFORDABLE UPSIDEOPTION

PP 5725DV

MULTISTATE

ROCKY MOUNTAINPROPERTIES

>900-Wells. ~246,000-Net Acres.

Avg 53% Working InterestAvg 43% NRI

OPERATED & NonOperated.

DATA ROOMS OPENMID-JULY

PP 2380DV

GULF COAST & MIDCONTINENT

MID-CONTINENT SALE PKG

2-Key Areas. 360-Wells. >36,000-Net Acres.Net Production: ~16 MMCFED

AGENT HAS UPDATESTATUS

PP 6458DV

To find out how you can gain more exposure by advertising with PLS, call: 713-650-1212 or email Beau Kelley at bkelley@plsx.com

PAGE 14 JULY, 2009

–Listings For Sale

Apache drills another 8,000 BoPd Elsewhere, Apache has tested its Phiops-5 appraisal well in Egypt's West-

ern Desert at 8,279 BOPD and 400 MCFD from the Cretaceous Alam ElBuieb (AEB) formation - one of the highest test ratesever measured in the Western Desert.Phiops is the largest of five fields discovered by

Apache and its joint venture partner, Khalda PetroleumCo., in the Faghur Basin of the Western Desert since 2006. This emergingJurassic and Lower Cretaceous oil play in the extreme southwest part of theWestern Desert will be further ex-plored through additional wildcatdrilling and acquisition of 180,000acres of new 3-D seismic data.A new pipeline from Phiops to the

Khepri-Sethos facilities is expected to be completed in July. New high-pres-sure pumps and additional storage at Kalabsha and Khepri-Sethos are ex-pected to increase production capacity in the Kalabsha area from 4,000 BOPDto 20,000 BOPD in early 2010.The Phiops-1X discovery, drilled in late 2008, encountered 173 feet of oil pay

in the AEB formation. It was completed earlier this year as an oil producer in theJurassic Safa formation after testing 2,278 BOPD and 5.16 MMCFD. Apache cur-rently is drilling two additional wells at Phiops with three more planned for 2009.

Apache has 60 targets at Fortiesranging in size from less than 0.5 MMBOE to 1.5 MMBOE

ihS cerA expects upstream costs to continue to fallA long surge in the costs of building and operating oil and gas production

facilities has reversed course, according to two proprietary indexes. The IHSCERA Upstream Capital Costs Index, which uses 2000 as a baseline with

a value of 100, fell 8.5% to 210 during the six months between thethird quarter of 2008 and first quarter of 2009. The index trackscosts of building oil and gas facilities.

In addition, the IHS CERA Upstream Operating Costs Index, with thesame baseline for operating costs, fell 8% to an index value of 187. “The firstsigns of a downward shift in costs were evident in a moderation that we ob-served in the last 2 months of the third quarter,” said IHS CERA ChairmanDaniel Yergin.The dip in capital costs reflects cuts in upstream activity and a decline in

the cost of steel and subsea equipment, IHS CERA said. Upstream steel costsfell 25.2% in the last six months after rising by 32% in the prior six-monthperiod. Operating costs fell because of “a slackening of project activity andlower levels of resource utilization,” IHS CERA said. Some of the largest cost declines were in transportation and consumables,

reflecting falling energy prices and the slumping global economy. Costs ofwell services also dropped. Although costs of offshore operations didn’t fallas much as those for onshore work—6% vs. 15%—between third-quarter2008 and first-quarter 2009. And in that same period, operating and capitalcosts didn’t fall as much as crude oil prices did, IHS CERA noted. One reasonis the tendency of some costs, such as those for personnel and deepwater ves-sels, to resist downward pressure. IHS CERA expects upstream capital and operating costs to continue

falling because of further declines in materials costs and slackening demand.The firm’s Upstream Capital Costs Index covers equipment, facilities, mate-rials, and skilled and unskilled personnel used in construction of a geograph-ically diverse group of 28 onshore, offshore, pipeline, and LNG projects.

ieA predicts energy use to grow from 2006 to 2030World marketed energy consumption is projected to grow by 44% between

2006 and 2030, driven by strong long-term economic growth in the develop-ing nations of the world, according to the reference case projection from the

"International Energy Outlook 2009" released by the EnergyInformation Administration (EIA). The current global economic downturn will dampen world

energy demand in the near term, as manufacturing and consumer demand forgoods and services slows. However,with economic recovery anticipatedto begin within two years, most na-tions are expected to see energy con-sumption growth at pre-recessionrates. Total world energy use will rise from 472 quadrillion Btu’s in 2006 to552 quadrillion Btu’s in 2015 and then to 678 quadrillion Btu’s in 2030. World oil prices have fallen sharply from their July 2008 high mark. As

the world's economies recover, higher world oil prices are assumed to returnand to persist through 2030. In the study, world oil prices rise to $110 per bar-rel in 2015 and $130 per barrel in 2030. Total liquid fuels and other petroleumconsumption in 2030 is projected to be 22 MMBOPD higher than the 2006level of 85 MMBOPD. In the study, OPEC contributes 8.2 MMBOPD to thetotal increase in world liquid fuels production, while non-OPEC countriesadd another 3.4 MMBOPD. In addition, unconventional resources (including biofuels, oil sands, extra-

heavy oil, coal-to-liquids, and gas-to-liquids) are expected to become increas-ingly competitive. World production of unconventional resources, whichtotaled 3.1 MMBODP in 2006, increases to 13.4 MMBOPD in 2030 in thestudy, accounting for 13% of total world liquids supply in 2030.

World oil prices are predicted torise to $110/barrel in 2015 and$130/barrel in 2030.

WEST TEXASCOCHRAN CO., TX PROSPECT4-Proposed Wells. 160-Acres.PERMIANSan Andres Target. 5,100 Ft.Defined By Subsurface Geology.Direct Offsets To Producers. PERMIANNonOperated Working Interest.Est Reserves/Well: 75 MBOEEst Reserves/Project: 300 MBOEDHC: $400,000; Compl: $250,000GENERATOR HAS MORE DETAILSDV 2255

CULBERSON CO., TX PROSPECT21,595-Gross & 17,635-Net Acres.DELAWARE BASINWolfcamp-Atoka Carbonate Debris Flow.Seller Will Deliver 75%-80% NRI.Proximal To Source. WOLFCAMPPotential Reserves/Well: 2.0-5.0 BCFCONTACT SELLER FOR MORE INFODV 6245

HOCKLEY CO., TX PROSPECT1-Prospect Offering.Obj 1: Wolfcamp. 9,000 Ft. (TVD)Obj 2: Clearfork & Abo WOLFCAMP100% OPERATED WI Available.Estimated Reserves/Well: 300 MBOSELLER HAS MORE INFORMATIONDV 6243HZ

LOVING CO., TX PROSPECTWEST TEXASTarget is 19,000 TD Feed.100% OPERATED WI; 76% NRI DRILL READY TO DRILL READYBROKER PROVIDING ADD’L DATADV 3970

MIDLAND CO., TX LEASE SALE80-Potential Wells. ~3,500-Net Acres.WOLFBERRY TRENDSpraberry / Wolfcamp. 8,000-10,000 Ft.Devonian Formation. 12,000 Ft. WOLFBERRYResource Play. Development Drilling.Defined By SubSurface Geology.100% OPERATED WI; 77% NRILeases Expire: March 2010L 5754DV

PECOS CO., TX LEASE3-Leases. 960-Gross Acres. 827-Net Acres.DELAWARE BASINWolfcamp & Atokan. 11,000-16,000 Ft.Barnett Shale Target. 17,000 Ft. LEASE20-Mi 2-D. High-Standing Fault Blocks.75% NRI Available.Area Has Cumm’d 1.2 MMBO & 10 BCFMINERAL LEASES FOR SALEDV 9194L

PECOS CO., TX PROJECTUp to 5-Wells. 1-Show Well. 900-Acres.CHENOT FIELD. FORT STOCKTONPrimary Zone: Granite Wash Fault TrapAlso Targeting Wichita-Albany & WolfcampAll Zones < 6,500 Ft. TD PROJECT25% WI For $284,000 Casing PointShow Well Tested At 1.0 MMCFD In 1986.Planned Drill Date: December 2009Est Reserves: 23 BCFDV 5271

PECOS CO., TX PROSPECT13,000-Net Acres.Obj 1: MississippianObj 2: First Bone SpringDepth: 11,000-16,000 Ft. RE-ENTRY93.75% Working Interest Available.Potential Reserves: ~5.0-10 MMBORe-Entry-DHC: $2.0MM. Compl: $1.0MMNew Drill-DHC: $3.0MM. Compl: $1.0MMDV 6244

REAGAN & IRION CO., TX PROSPECT8,700-Contiguous Acres. 108-Well Project.MIDLAND BASINQ-MAN FIELDPenn. Canyon Sand Test. 9,000 Ft.Fine-Grained Turbidite Sediments. CANYON20% OPERATED WI; 75% NRI (Lease) SANDEstimated IP/Well: 2,600 MCFD Analogous Well Cumm’d: 1.2 BCFEst Well Reserves: 1.0 BCFDrill & Completion: $1,200,000DV 2240

REEVES & WARD CO., TX PROSECT~10,000-Gross & ~6,000-Net Acres.DELAWARE BASINPermo-Penn/Atoka: ~16,000 Ft.Seller Will Deliver 75% NRI. TX GASTarget Size: 350 BCFEst Reserves/Well: 7.0 BCFCONTACT PROSPECT GENERATORDV 5857

WARD & REEVES CO., TX PROSPECT9,000-Gross & 5,000-Net Acres.DELAWARE BASINThird Bone Spring Sands. ~10,500 Ft.Deeper Wolfcamp & Atoka Potential. THIRDSeller Will Deliver 75% NRI. BONETarget Size: 14 MMBO & 20 BCFEst Reserves/Section: 2.0 MMBODV 5860

TEXAS AREASTEXAS SALE PACKAGECorporate Sale Of Assets.PERMIAN & SOUTH TEXAS161-Oil & Gas Wells. CORPORATELarge Proprietary 3-D Seismic Database.South Texas Exploration ComponentSALE OF ASSETS OR WHOLE ENTITYNet Production: 600 BOEDPackage Is 15% Operated WI & 67% OilEst Reserves: 7,945 MBOENet PV10 (Proved): $105,800,000CO 5346PP

MISSISSIPPIJONES CO., MS PROSPECT30-Wells. 1,050-Acres.INTERIOR SALT BASINObj 1: Rodessa Formation. 10,500 Ft.Obj 2: Cotton Valley. 12,000 Ft.Surface Geology & Geophysics. RODESSA100% OPERATED WI; 75%-78% NRINRI Depends On The Tract.Est Reserves/Well: 350 MBOEst Reserves/Project: 30 MMBODHC: $2,000,000; Compl: $2,800,000DV 2276

NORTH LOUISIANANORTH LOUISIANA MINERAL LEASE~671-Net Mineral Acres.BOSSIER PARISHHaynesville, Bossier, Smackover,Cotton Valley & Hosston Targets. LEASELease Will Deliver 75% NRI.CALL TO LEARN ACREAGE COSTL 6402

NORTH LOUISIANA PROJECT 1-Initial Proposed Well. 530-Acres.KINGS SALT DOME AREAJames Lime Target @ 7,500 Ft.Field Originally Discovered By El Paso100% OPERATED WI; 75% NRI JAMES—-Offsets A Well That IP’d 15 MMCFD LIMEEst Reserves: 5.4 BCF/Well (20 Ft of Pay)Seller Has Access To Additional Acreage.DHC: $1,000,000 & Compl: $175,000DV 5272

SABINE PH., LA LEASE SALE ~11,533-Acres.HAYNESVILLE SHALEAll Acreage Is Contiguous.100% OPERATED WI; 75% NRI ACREAGELeasehold Is Available For Sale.CALL PLS TO LEARN MOREL 5773

SABINE PH., LA PROJECT1,052-Net Acres.HAYNESVILLE3-Year Term On 1/4 Royalty. HAYNESVILLESeller Has Set Asking Price.DV 2346

SABINE PH., LA PROSPECT50-Potential. ~13,000-Acres.Haynesville & James Lime Targets.SubSurface Geology. HAYNESVILLE50%+ WI Available; ~37.5%+ NRI Operations Available To Qualified Partner.Est Reserves/Well: ~8.0 BCFEst Reserves/Project: >1.0 TCFEXPLORATIONIST HAS INFODV 5281

SOUTH LOUISIANAACADIA PH., LA PROSPECT262-Acres.SOUTH LOUISIANA AREACamerina Thru Miogypsinoides Sands.MultiPay Fault Block Traps.3-D Seismic. MULTIPAY100% OPERATED WI; 72.5% NRI Est Reserves: 247 MBO & 4.24 BCFEst Dry Hole Cost: $3,140,000GENERATOR HAS MORE DETAILSDV 0845L

ASSUMPTION PH., LA OFFERING~500-Acres.Targeting Stacked Pays.Plus 4 Secondary/Development Targets.Proposed Total Depth: 13,900 Ft.3-D Seismic Controlled. MULTIPAYSEEKING PARTNER TO DRILLPotential Rsrvs: 50 BCF Plus CondensateGENERATOR HAS MORE INFODV 2324

ASSUMPTION PH., LA PROJECT~500-Acres.Prolific Field - Shallow Stacked Pays.Four Shallower Secondary Targets.Proposed Total Depth: 13,900 Ft.4-Way Anticlinal Closure. STACKEDDefined By 3-D Seismic. PAYSEEKING PARTNERS TO DRILL~125 Ft. High To 100 Ft. Thick Sand.Est Reserves: 50 BCF Plus CondensateGEOLOGIST HAS MORE INFODV 5553

SOUTH LOUISIANAASSUMPTION PH., LA PROSPECT~558-Acres.NORTHWEST OAKLEY FIELDTargeting Lower Miocene Of Robulus L.Multiple Objective Upside. L. MIOCENESubsurface Data & 3-D Seismic Available.Total Est Reserves: ~763 MBO & 1.41 BCFTotal Est Dryhole Cost: $2,696,000OFFERING IS PARTIALLY SOLDCALL FOR AVAILABLE INTERESTDV 5666

ASSUMPTION PH., LA PROSPECTS~470-Acres.EAST LAKE VERRET FIELDMarg A Target. 11,680 Ft.Marg A 2 Sand3-D Seismic. 3-D PROSPECTS75% OPERATED WI; 75% NRIEst Reserves: >150 MBO & ~15 BCFDry Hole Cost: $3,520,000.00GENERATOR HAS MORE INFODV 2089

CALCASIEU PH., LA OIL PROSPECT5-6 Well Potential Project.YEGUAUp To 6 Possible Drill Sites.Large Undrilled Yegua Structure. 15,000 Ft.3-D Seismic Including AVO Attributes.Key Acreage Under Lease/Options. YEGUA100% OPERATED WI Available. Estimated Potential: 11 MMBO & 22 BCFFavorable Economics At Current Prices.DALLAS GEOLOGIST CAN SHOW DEALDV 5829

EAST BATON ROUGE PH., LA OFFER~10-Potential Wells. 6,480-Contiguous Acres.GULF COAST EMBAYMENTTuscaloosa Objective. 17,700 Ft.Secondary Targets Upon Presentation.Initial Test Is A Re-Entry. TUSCALOOSA2-D Seismic, SubSurface, Petrophysical.75% Working Interest; 78% NRI (Lease) Potential Rsrvs/Well: 30-48 BCFE 1/8 Carry On Re-Entry ONLY.The Rest Is Heads Up.Completion Cost: $4,000,000SELLER HAS MORE INFO TO REVIEWDV 5606

IBERIA PH., LA PROSPECT2,840-Acres (13 & 14S 6E).GULF COAST LOWER MIOCENE Planulina. 20,500 Ft. L. MIOCENE3-D Seismic. SubSurface. GeoPhysics.80% WI Available; 74%-75% NRI (Lease)Est Well Reserves:10-50 BCFEst Project Reserves: 200-1,000 BCFDry Hole: $11,700,000; Compl: $14,000,000DV 2499

JEFFERSON DAVIS PH., LA PROSPECT220-Acres.Targeting Camerina Sand. 13,200 Ft.Seller Will Deliver 72% NRI.Analog Well Cumm’d: ~85 MBO & 3.6 BCFEst Reserves: 256 MBO & 11.13 BCF LADry Hole Cost: $3,740,000 PROSPECTCALL LANDMAN FOR MORE INFODV 5863

JEFFERSON PH., LA PROSPECT1,947-Acres.BAY DE CHENEMiddle Miocene Targets. 18,000 Ft. (TVD)Located On Three-Way Closure Trap.Defined By A Proprietory 3-D PSDM.1,500 Ft Of Structural Closing. MIOCENE75% WI Available; 73.25% NRIPotential Rsrvs: 45-200 BCFEProspect Holds Considerable Potential.DHC: $10,345,000. Compl: $4,428,233SELLER HAS MORE INFODV 5610

LAFOURCHE PH., LA PROSPECT700-Acres.Targeting Rob 43 Sand.READY TO DRILL DRILL-READY100% OPERATED WI; 75% NRIBROKER HAS MORE DATA AVAILABLEDV 5156

POINTE COUPEE PH., LA PROSPECT2,791-Acres.JUDGE DIGBY FIELDTuscaloosa Sands Test. 22,000 Ft. (TVD)3-D Seismic Data Available.Additional Prospects On Acreage. TUSCALOOSAMinority Working Interest Available. Well Spudded January 2009.Est Reserves: 90 BCF & 592 MBODHC: $19,646,000; Compl: $7,224,500CONTACT OPERATIONS MANAGERDV 5752

2.8

www.phdwin.com

TRC Consultants, LC now offers the complete solution for evaluating, managing, and reporting reserves and performance data

NOW EVEN MORE POWERFUL WITH

ANNOUNCINGROYALTY FREE

DISCSLARRY LEEwww.larrylee.com

The Land RigClearinghouse, LLC

(469) 384-3813landrigclearinghouse.com

ProspectsPLS finds buyers for prospects so Geologists can spend moretime finding oil and gas.

For more information on how PLS can help you sell yourassets, call (713) 650-1212 or access www.plsx.com

APAche cont. from pg. 1

PROSPECTS & PROPERTIES PAGE 15

–e&p

www.plsx.com

MarketAlerts& Special Reports

EXCO deleverages balance sheet, ups Haynesville drillingAppeared in Market Alert, June 30, 2009, Vol. 20, Issue 11Saddled by >$2.0 billion in debt, EXCO Resources is having to

make some tough decisions. Of course, when cash is top priority, thesetwo latest deals are not so much “strategic decisions” as theyare “forced tactics”. Wall Street responded to the moves witha cheer, sending EXCO’s stock price up more than 15%.Early this week, EXCO first sold producing assets in the

Midcontinent and East Texas to Encore Acquisition Co. for $375 mil-lion. The next day, the company initiated a bigger deal selling 50% ofits Haynesville Shale and related midstream assets to BG Group in ajoint venture worth at least $1.055 billion.The irony of the past is that since going public (for the second time!)

in 2005, EXCO went on an almost non-stop spending spree to acquirethese very assets. It is now being forced to monetize what it acquired inorder... roll with me now... to pay down the debt used to get them therein the first place. One of our analysts termed EXCO’s predicament intoday’s reduced price environment as a “Pretzel” but we can get to thatin a minute.

Marcellus ramping up. Led Zeppelin and Statoil linked?Appeared in ProspectCentre, June 29, 2009, Vol. 20, Issue 18Statoil & Chesapeake’s recent announcement to expand JV overseas

is another milestone in the evolution of industry. Some of the best oiland gas analysis comes from the most unlikely sources.Take, for example, the cryptic lyrics of Led Zeppelin’s Im-migrant Song, which outlines the strategy of Norway’scrown jewel, StatoilHydro ASA: We come from the land of

the ice and snow/ From the midnight sun where the hot springsblow./The hammer of the gods will drive our rigs to new lands/To fightthe horde, sing and cry: Marcellus, I am coming!Marcellus? Wait, isn’t that an onshore unconventional play where

major development is a half-decade or more into the future? And isn’tStatoilHydro an offshore specialist, who is angling for longterm growthin deepwater markets through expensive farm-ins and joint ventures?The answer to both, of course, is yeah!

Eagle Ford Shale has arrived as the latest hot shale playAppeared in ProspectCentre, June 24, Vol. 20 Issue 18That Eagle Ford Shale play in South Texas is developing clarity. Yes, the

IPs are noteworthy. Early wells—and there have been a half dozen—havecome in at IPs of 7.0 to 9.0 MMCFeD, not quite double digitIPs found in the Haynesville, but respectable nonetheless. Yes,future prospects look good. Petrohawk is on record saying therocks are better than the Haynesville in terms of productive ca-

pacity. No wonder the financial community is watching Petrohawk to see ifthis is the next big thing. Petrohawk is operating two horizontal rigs in theEagle Ford Shale, completing two wells during the first quarter. The Donnell#1H (McMullen) initially flowed at 6.1 MMCFeD, while the Brown Trust#1H flowed at 9.3 MMCFeD.

Weatherford matches Schlumberger's revenue in RussiaAppeared In MarketAlert, Vol. 20 Issue 10, Jun 18, 2009You can be forgiven for whistling Lara's Song these days. That Dr.

Zhivago tune is appropriate background music for digesting the significanceof Weatherford's $450 million all-stock purchase of TNK-BP's75-rig services unit in north central Russia. It is a move not with-out risk. If Venezuela is "high-speed nationalization", Russia isnationalization in "slow motion". Just ask Shell or, for that mat-

ter, BP-comrades who have had enough From Russia With Love, though BPis more diplomatic when discussing their deteriorating situation. Jack up theprice of oil and strong national pride about Mother Russia becomes palpable,particularly in the minds of Russia's ruling class who covet the revenues as-sociated with their role as the world's largest oil producing nation. It's nothard to imagine Weatherford's CEO Bernard Duroc Danner as the youngDr. Zhivago who becomes enamored with the beautiful, but flawed Lara-inthis case the unrealized potential of future serviceintensive Russian oil pro-duction. Whether this deal produces finely crafted economic poetry or achild of the revolution, well, only time will tell.

Chesapeake raising money the old fashioned wayAppeared In MarketAlert, Vol. 20 Issue 9, Jun 12, 2009Recent headlines about Chesapeake have celebrated its ever increasing

presence in the Big Four Shale Plays - the Marcellus, Haynesville, Fayet-teville and Barnett - and its propensity for structured financeincluding creative and profitable joint ventures and the use ofEnron's infamous old high-profile VPPs. But they have at thesame time failed to highlight an implicit corollary to this pres-

ence - that unconventional plays cost money, and Chesapeake appears willing(or forced) to monetize or divest any asset necessary to raise drilling capital.Earlier this year the company said it was in the process of completing asmuch as $3.5 billion in divestitures or monetizations over the next two years.The company has already signed five VPP (Volumetric Production Payment)transactions since the start of 2008, beginning with assets in West Virginiaand Kentucky ($1.1 billion), followed by the Woodford Shale ($623 million)and the Arkoma ($605 million) last year. Since the beginning of 2009, thecompany has sold another VPP in the Arkoma ($412 million) followed byone in South Texas ($475 million).

Order Your Back IssuesCall PLS at (713) 650-1212 OR email: btaylor@plsx.com

Forest Capital Mineral

Management invites you to

explore oil & gas

development opportunities

on 265,000 acres of proven

productive land in

southwest Louisiana. To

learn more, please contact

Martha Kernohan.

Forest Capital Partners, LLC Mineral Management111 SW Fifth Avenue, Suite 3850Portland, OR 97204503.200.2730www.forestcap.com

A&D TransactionsThe latest news articles online:

Gulfport Energy sells Bakken assets for $13 million

EXCO places Mid-Continentpackage on the market.

South Texas closes sale of DJBasin assets to Longview.

Talisman eyes HaynesvilleShale play.

Encore buys producing assetsfor $54 million

Eni teams with Quicksilver inBarnett's Alliance field

MacLondon acquires San JuanBasin properties from Anadarko

TXCO Resources files voluntarybankruptcy petition

Talon Oil & Gas buys stake inDenbury's Barnett position

Search & Seek– Access our online library for past and/orpresent publications.

not a member? Membershipsstart at $295; includes access toPLS’ publication archives ANDlisting database. Sign up today!Call (713) 650-1212

A&D

noble’s raises Tamar resource potential to 6.3 Tcf Noble Energyhas raised the gross mean resource estimate for its Tamar discovery

offshore Israel to 6.3 TCF, up 26% from its previous estimate, after drilling results forits appraisal well considerably reduced the uncertainty in previous resource estimates.

The Tamar appraisal well, known as Tamar-2, is in the Matan li-cense. At a total depth of 16,880 feet and in 5,530 feet of water, thewell is 3.5 miles northeast of the original discovery, Tamar-1. Drilled

on the flank of the structure with the intent of confirming reservoir quality andcontinuity, the appraisal was also designed to confirm the projected gas/watercontact; it subsequently encountered no water contact in the top reservoir.Analysts at Tudor Pickering Holt said they expect Noble to spend a total of

$1.6 billion to develop Tamar based on a 16-well development plan with grossper well recoveries of 350-375 BCF.The wells are expected to cost about$75 million each, with the field slowlybeing developed over the next 15 years. TPH added that Noble has limited its

2009 Israel exploration program to those prospects where 3-D data is available(Tamar and Dalit). “We also believe Noble has identified at least two other verybig structures using 2-D data across its 3 million gross acre position, where thecompany may drill 3-5 wells in the second half of 2009 (both development andexploration) pending results from its 3-D shoot.”The First phase of production for Tamar is targeted for 2012. Noble operates

the Matan license with 36% WI. Other owners are Isramco Negev 2 (28.75%),Delek Drilling (15%), Avner Oil Exploration (15%) and Dor Gas Exploration (4%).Noble and its partners are also acquiring 1,200 square miles of 3D seismic

data over several leads on their acreage in the Levantine basin. The seismicprogram will begin in the third quarter.There may be additional upside to the Mediterranean exploration story in

2010 if Noble chose to pursue additional opportunities. “The Levantine Basin’sproximity to Europe suggests an export option could be competitive with alter-native sources of imported gas [such as Russia],” the TPH analysts added.

“Wells at Tamar may cost as muchas $74 million each, but are estimatedto hold up to 375 BCF per well.”

U.S. rig count rises for third week According to Baker Hughes’ weekly rig count data released July 2, the number

of drilling rigs running in the U.S. is climbing. At 928, the count is now up 5%from the total on June 12. While this less than half of the 1,921 rigs that were run-

ning one year ago, the increases in late June/early July are pos-sibly a sign—according to some analysts—that the collapse inU.S. drilling is beginning to recover.

On a monthly basis, Baker Hughes’ US rig count for June 2009 was 895, down23 from the 918 counted in May 2009 and down 1,006 from the 1,901 counted inJune 2008. The Canadian rig count for June, however, rose by 53 rigs from Mayto reach 125, which was still down 141 from the 266 counted in June 2008.Internationally, the rig count for June 2009 was 967, down 26 from the 993

counted in May 2009, and down 135 from the 1,102 counted in June 2008. Theinternational offshore rig count for June 2009 was 269, down 3 from the 272counted in May 2009 and down 52 from the 321 counted in June 2008.The worldwide rig count for June 2009 was 1,987, up 4 from the 1,983

counted in May 2009 and down 1,282 from the 3,269 counted in June 2008.

A&D

E&P

E&P

A&D

A&D

PAGE 16 JULY, 2009

–Listings For Sale

Looking For BuyersFor Your Properties, Overrides, Prospects Or Farmouts?

No Commission. List Today!PLS’ Listing Platform Reaches New Buyers Everyday

Petroleum Listing Service is a simple, easy and discreet network for sellers to reach new buyers24:7:365 and it works.

Over the past 20 years, PLS has listed thousands of listings resulting in hundreds of thousands of introductions and hundreds of properties, prospects and royalty sales.

The service includes 2,500 members buyers and sellers who use the U.S. and Canadian network for the latest news, analysis, transaction, metrics and business opportunities.

Don’t miss out! Don’t miss a buyer!

List Today! Call 713.650.1212 to list your prospect, property, royalty or midstream assets. Listings appear in applicable PLS reports and online at www.plsx.com.

Ross Benoche www.plsx.comListing DepartmentOffice: 713.600.0141 Fax: 713.658.1922Email: rbenoche@plsx.com Canada Contact: 403.294.1906

SOUTH LOUISIANARED RIVER PH., LA LEASES175-Acres Within Section/Unit(Acreage is Only Available Drillsite in Unit— Encana Leases All Other Acreage)208-Mineral Acres(6-Miles West of Encana Wells) LEASES655-Mineral Acres(Under CHK Discovery Well & CHKWells Drilling in South Caddo Parish)SELLER HAS ADDITIONAL INFORMATIONL 3964

SOUTH LOUISIANA LEASES 30-Sections. 6,000-Acres.IBERIA, TERREBONNE & ST. MARY’SMINERALS AVAILABLE FOR LEASE MINERALSPLS HAS LEASE LOCATIONSL 2038

SOUTHWEST LOUISANA PROSPECT15,000-Acres.BEAUREGARD & CALCASIEU PH.Obj 1: Wilcox Formation. 15,000 Ft.Obj 2: Cockfield, Yegua, Frio. 10,000 Ft.3-D Seismic. SubSurface Geology. 8.5% Working Interest; 6.38% NRI WILCOXEst Reserves/Well: 2.0-5.0 BCFEDHC: $2.0-$4.0MM; Compl: $0.6-$1.0MMSELLER HAS MORE INFO AVAILABLEDV 5530

ST. CHARLES/JEFFERSON PH., LA835-Acres.Targeting Cib Op Sands.Proposed Depth: 10,500 Ft. (TVD)Defined By 3-D Seismic Data. 3-DStratigraphic/Structural Trap. PROSPECT100% OPERATED WI For Sale.Est Reserves: ~2.7 MMBO & 25.1 BCFDHC: $3,544,900; Compl: $1,124,500DV 5503

ST. MARTIN PH., LA PROJECT1-Potential Well.ANSE LA BUTTE FIELDObj 1: Patin SandObj 2: Breaux SandWell Depth: 4,600 Ft. (TVD)100% OPERATED WI; 72% NRI MULTIZONEAnalogous Field Cumm’d 210 MBO. Potential Reserves: 333 MBODHC: $699,200; Compl: $387,970CONTACT GENERATOR FOR MOREDV 2254

ST. MARTIN PH., LA PROSPECT1-Re-Entry Well.Obj 1: Patin SandObj 2: Martin SandProposed Well Depth: 5,300 Ft.100% OPERATED WI; 70% NRITotal Production: 550 MBO RE-ENTRYUpside Potential Identified.Potential Reserves: 100 MBODHC: $306,620; Compl: $163,565CONTACT GENERATOR FOR MOREDV 2252

ST. MARY PH., LA DIVESTMENT17-Proposed Wells. >4,000-Acres.PLANULINA / MIOCENEMultiPay Targets. 7,000-15,000 Ft.67 Documented Pays In Area.3-D Seismic, Geology & Geophysics.Exploration & Exploitation; ReDrilling. LOW RISK DEVELOPMENT MULTIPAYVarying NonOperated WI & NRI.Total Reserves: ~81 MMBO & 490 BCFDeep Potential Can Add Another 200 BCF.DHC: ~$11-$16MM; Compl: $3.25-$4.5MMLAND MANAGER HAS INFO TO REVIEWDV 6455RE

ST. MARY PH., LA OFFERING10-Well Project. 50-Sq Miles.SOUTH LOUISIANA MIOCENEMULTI PAY RESERVOIRSMiocene Targets. 7,000 Ft. & 15.000 Ft.67 Documented Pays.Geology & Geophysics DefinedDefined By Proprietary 3-D Seismic.25% NonOperated WI Available MULTIPAYLOW RISK EXPLOITATION PLAYGenerator Can Deliver 72.5%-80% NRIDEEP EXPLORATION POTENTIALWell Reserves: 500 MBO & 15 BCFProject Reserves: 78 MMBO & 430 BCFLOW RISK EXPLOITATIONDHC: $3.0-$8.0MM; Compl: $0.75-$2.0MMDV 5552

ST. MARY PH., LA PACKAGE3-Well Prospect. ±645-Acres.PLANULINAObj 1: Planulina 68. 14,400 Ft.Obj 2: Planulina 69. 14,700 Ft.3-D Seismic & SubSurface Geology.25% NonOperated WI; 72.5% NRI PLANULINAOriginal Well Made: 2.0 MMCFDREDRILL OF WELL 3.25 BCF & 49 MBOWell Reserves: 216 MBO & 14 BCFProject Reserves: 750 MBO & 50 BCFDHC: $6,330,000; Compl: $2,060,000DV 5560RE

SOUTH LOUISIANAST. MARY PH., LA PROJECT1-Prospect. 260-Acres.BAYOU SALETargeting Operc 4 & 5.Analogous Fields Cumm’d 2.5 TCFE. PROJECTEstimated Reserves: 2.0-2.5 MMBODHC: $3,600,000SELLER HAS MORE INFORMATIONDV 6342

ST. MARY PH., LA PROSPECT404-Acres.LITTLE BAYTargeting Cib Op. 80 Ft.Defined By Sufsurface Mapping & ———— 3-D Seismic.Analogs Cumm’d 13 BCF & 1.6 MMBO. 3-DEstimated Reserves: 27 BCFE PROSPECTDHC: $12,300,000CONTACT SELLER FOR MORE INFODV 6341

ST. MARY PH., LA PROSPECTS4-Sidetrack Prospects. 3,000-Acres.MIOCENEMiddle Miocene Targets. 10,900-11,500 Ft.Deep Gas Exploratory Potential.Engineered Field ReDevelopment.Surface & SubSurface Geology Defined75% NonOperated WI; 75% NRIProposed Sidetracks Existing SI Wells NONOPNonPressured Objectives. Well Reserves: ~300-750 MBOProject Reserves: ~2.5 MMBO & ~10 BCFDeep Potential Adds 150-200 BCFDry Hole: $2,000,000; Compl: $400,000CONTACT HOUSTON LANDMANDV 5603

TERREBONNE PH., LA PROSPECTS1-Potential Well. 342-Acres.Sandstone Targets. 6,800-7,200 Ft.3-D Seismic & SubSurface Geology.60% NonOperated WI; 71% NRI (Lease)Est Rsrvs/Well: 1,234 MBO & 3.5 BCF Est Rsrvs/Proj: 2,468 MBO & 7.0 BCF NONOPDHC: $1,600,000; Compl: $1,200,000WITH 24.25% CWI TO CASING POINTLAND DEPT HAS MORE INFODV 5532

VERNON PH., LA LEASE SALE ~8,343-Net Acres. 1-Contiguous Block.HAYNESVILLE SHALE100% OPERATED WI; 75% NRI HAYNESVILLELeasehold Position Available For Sale.CALL PLS FOR INTRO TO SELLERL 5772

ARKANSASARKANSAS ACREAGE OFFERING2,300-Acres.FAYETTEVILLE SHALE PLAY Prospect Has Proven Reserves.8 Counties w/ Established Fields. FAYETTEVILLEFOR ASSIGNMENT OR JOINT VENTURECALL PLS FOR INTRO TO SELLERDV 5500L

ARKANSAS LEASES FOR SALE2-Wells(P&A). 17,000-Gross/13,000-Net Ac.WOODRUFF, CROSS, & JACKSON CO.Arkoma Shale Gas.Fayetteville Shale. 5,000 Ft50+% OPERATED WI; 80% NRI LEASEIf An Operator, High NRI Across Block.Data CD Available.5-Yr Term w/ 5-Yr Option To Extend.Leases Within First Two Years Of Term.L 8643

ARKANSAS MINERALS FOR LEASE7,180-Gross Acres. 4,700-Net Acres.MOST ACREAGE IN UNION CO.Additional Small Tracts In: Columbia, MINERALSLincoln, Calhoun, And Jefferson Co.MINERALS FOR LEASEL 3779

CONWAY CO., AR PROSPECT18,000-Gross & 9,200-Net Acres.Fayetteville Shale w/ Conventional Upside.2-D Seismic. Offset Well Control.WithIn 3 Miles Of Analog: 2.0 MMCFDREADY TO DRILL FAYETTVILLEPotential Reserves: 250-500 BCF Infrastructure In Place.Operations Are Available.SELLER HAS MORE INFORMATIONDV 5240

PHILLIPS CO., AR PROSPECT1-Test Well. 12,095-Acres.WILDCAT IN OUACHITA FOLD BELTObj 1: Knox Dolomite (Ordovician)Obj 2: Devonian Chert 2-10 BCF/WellObj 3: Fayetteville ShaleLarge Faulted Anticline Identified WILDCAT-- From 2D Seismic.Will Deliver 80% NRI Leases.Est Rsrvs (Knox Dolomite): 6-50 BCF/WellEst Rsrvs (Devonian Chert): 2-10 BCF/WellSELLER HAS ASKING PRICEDV 1156L

FOREST CAPITALPARTNERS, LLC

www.forestcap.com

PropertiesSelling properties is the last

chance to make money on anasset...maximize the opportunity.

Call (713) 650-1212

MidstreamNewsThe latest news articles online:

PNGS increases Gulf Coast storage capacity

Flying J looks to sell Bakersfieldrefinery

SemGroup eyes third quarterbankruptcy exit

Valero pays $725 million for European refinery stake

Enbridge gains support forLaCrosse Pipeline

BENTEK: Midcon prices improveon new pipeline capacity

NGAS sells 50% of Appalachiagathering system

Atlas' SW Pennsylvania gatheringsystem is valued at $250 million.

DCP completes pipeline repairs

EnCana commits to ETP's Tigerpipeline

MarkWest opens another Marcellus plant

Regency reduces capex budget

TransCanada constructing $300-million pipeline in Mexico

Search & Seek– Access our online library for past and/orpresent publications.not a member? Membershipsstart at $295; includes access toPLS’ publication archives ANDlisting database. Sign up today!Call (713) 650-1212

To subscribe to PLS’ MarketAlerts,call 713-650-1212 or accesswww.plsx.com for additional information.

central GoM sale 208, finalizes $690 MM in high bidsMMS rejects 19 bids as insufficiently highThe Minerals Management Service (MMS) has accepted high bids val-

ued at $690 million and awarded 328 leases to the successful high bidderswho participated in Central Gulf of Mexico Lease Sale 208.The leases were awarded following the completion of an extensive, two-

phase bid evaluation process to ensure that the Federal government receivesa fair monetary return for the public mineral resources it makes available.

Seventy companies submitted 476 bids on 348 tracts in thesale, held March 18, 2009. The total for high bids submitted onall tracts was $703 million.

Interestingly, the MMS actually rejected high bids totaling $12.6 millionon 19 tracts as insufficient for fair market value. In addition, an unidentifiedsuccessful high bidder forfeited the lease and the 1/5 bonus which was sub-mitted with the bid. As a result, $52,800 of the $264,200 bid on the forfeitedtract has been collected by MMS.MMS records show that 12 of the

19 rejected bids were in the deepwa-ter, mostly in Garden Banks (westernGulf) and Walker Ridge (southernGulf). The seven shallow-water bids that were rejected involved the ShipShoal area offshore central Louisiana.

Companies have 11 business days from the date they are noti-fied by MMS that a bid is officially accepted to make full paymentof the bonus.

The highest bid accepted on a tract was $65.6 million submitted by Shellfor Mississippi Canyon, Block 721. This tract is in deep water (2,620 - 5,240feet) and received 2 bids.Shell also had the highest number of bids accepted, 39, and spent the most

overall, at $153.6 million. Not far behind was fellow major BP, which had 25high bids accepted, paying a total of $77 million.Shell and BP are also jointly working to get their deepwater Perdido proj-

ect on stream. Shell operates Perdido, which also began with a lease sale backin 1996. After years of development work, the facility is near first production,and is expected to ramp up to 130,000 BOEPD.Most recently, Shell installed the drilling and production platform atop

a 555-foot spar floating in about 8,000 feet of water 200 miles from Hous-ton in an isolated sector of the Gulf of Mexico. It is the deepest such facilityin the world.To get the oil and gas to market required installing 77 miles of oil

pipelines and 107 miles of gas pipelines to connect to the existing offshorepipeline infrastructure. The Perdido Development has already set a worldwater depth record in drilling and completing a subsea well 9,356 feet (1.77miles) below the water's surface. The project intends to drill an even deeperwell at 9,627 feet.Returning to the latest sale - rounding out the top five, BHP had 28 bids

accepted ($50.4 million), Ecopetrol had 22 bids accepted ($18.7 million) andNoble Energy had 22 bids accepted ($54 million). In addition, althoughMarathon had relatively few bids accepted, at 16, the company still spent atotal of $62.4 million.

Twelve of the 19 rejected bids werein the deepwater, mostly in GardenBanks and Walker Ridge.

PROSPECTS & PROPERTIES PAGE 17

–e&p

Still early, but Eagle Ford play gaining momentum Recent buzz surrounding the Eagle Ford has gained significant momentum

on the Street recently. While it is still very early on in the development of theplay, we point out a number of key players who stand to benefit from continuedpositive datapoints coming from the play. Some of the top acreage holders inthe area include Anadarko (349,000 gross/175,000 net acres), Pioneer (310,000net acres), PetroHawk (160,000 net acres), and Rosetta Resource (25,000 net).Apache also has 450,000 net acres prospective for the formation, although itsacreage is northeast of all the current activity. In addition, St. Mary has completed its first operated horizontal Eagle

Ford Shale well at 5.6 MMCFeD, giving it a catalyst in catalyst-driven mar-ket—Saint Mary currently is one of the larger holders of acreage in the re-gion, with a total position of 210,000 net acres. The latest well represents asolid rate, in our opinion, given that the well was tested over a seven-dayperiod and was facility-constrained. While the IP rate was slightly belowthose reported by Petrohawk (three at 8 MMCFeD), the target was muchshallower and therefore significantly cheaper to drill. Moreover, we do not know if the IP rates by Petrohawk were 24-hour or 7-day

rates. Saint Mary is targeting well costs between $3.5-4.5MM, which comparesto Petrohawk at $4-7 MM for 5-6 Bcfe and Pioneer, which is targeting $6MM.The lower cost projections versus competitors, according to Saint Mary, reflectsthe shallower depth of the shale under its acreage compared with its peers.

-David Tameron, Wachovia Capital Markets

U.S. LNG imports off the April peakLNG imports make up only around 2-3% of total U.S. supply, but they can

affect and have affected the price of gas in the U.S. significantly. Imports (send-outs) for the past seven days have averaged around 1,370 MMCFD, in-linewith the prior week’s average of 1,357 MMCFD. We estimate imports in Juneare averaging 1,483 MMCFD, down from our May estimate of 1,577 MMCFDbut up from last June’s average of 1,102 MMCFD. For most of 2009, U.S. imports are up year over year, but they have

pulled back since the April 2009 peak. We are assuming higher LNG im-ports in 2009 and 2010, leading to an oversupplied market. We estimate2009 average LNG imports of 1.6 BCFD, close to the five-year averageof 1.6-1.7 BCFD and up versus 2008's 1.0 BCFD. We are estimating afurther rise of LNG imports in 2010 to 2.3 BCFD. LNG likely one of the key drivers in the gas market, with large, new LNG

liquefaction plants are ramping-up (Sakhalin, Qatargas 2) and several morescheduled to start-up through this year and next. Global gas prices already havedropped significantly and could fall further with excess supply on the globalgas market. Given the oversupplied U.S. market in 2009, LNG imports likelyare less of a factor this year than they will be in 2010 and especially in 2011.

-Joseph Allman, JP Morgan Chase

North Dakota Bakken and Three Forks/Sanish: play getting better in many waysThe Bakken play still is relatively early in its development. Results from

the Three Forks/Sanish (TFS) suggest that that formation is at least as produc-tive as the Bakken. IP rates are increasing across the play. For the Bakken andTFS wells drilled during 2008 and YTD 2009, the average IP rate is 836 Boepd,a 65% improvement from the 2007 average rate of 507 Boepd. Though operators in the play have drilled more “monster” wells beginning in

2008, they also have drilled fewer weak wells and, in 2008, began developing theTFS formation. The TFS in fact could double the resource. Since the beginningof 2008, operators have released results from 304 North Dakota wells: Bakken(266 wells) and TFS (38 wells). Across some tested areas, the Bakken and theTFS wells tend to generate similar initial production rates. However, around thenorthern and southern ends of the Nesson Anticline, the TFS results look better.Although it is early in the development of the TFS formation, it appears

as though it is at least as good as the Bakken. However, the play still needsmore data points across a wider area to ultimately judge the relative pro-ductivity of the TFS and Bakken formations. Regardless, the TFS formationadds significant potential resource to operators in the play.

-Xin Liu, JP Morgan Chase

EIA reports 94 BCF fillThe EIA reported a 94 Bcf refill for the week ended June 19 compared

to last year’s 85 Bcf refill, the 84 Bcf 5-year average fill and the 100 Bcfconsensus fill (range: 92-105 Bcf). Weather was a relatively neutral factorfor the week as Cooling Degree Days were 52, up 2% vs. normal but 9%below last year. Storage now stands at 2,651 Bcf, which is 482 Bcf (22.2%)above the 5-year average and 631 Bcf (31.2%) above last year. With persistent demand weakness and supply declines more muted than ex-

pected, storage refills continue to track well above normal and since May 1st weestimate the market is ~3 Bcf/d loose versus last year. Post today's report, the Julycontract is trading at $3.84 per MMBtu (down 8% wk/wk) while the 2010 striphas fallen to $6.10 per MMBtu (down 5% wk/wk) after hovering in the $6.30-6.50 per MMBtu range over the past couple of weeks. As a result, over the pastseveral days, the 2010 futures curve has fallen 5% to $6.10 per MMBtu, belowthe $6.30-6.50 per MMBtu trading range of the past couple of weeks as the curvehas likely been pressured by an increase in producer hedging activity. The decline in the futures curve is not all that surprising as the gas market

is substantially oversupplied and there have been numerous indications that acycle reset may be delayed with $17.5+B of debt and equity financing year-to-date, additions to 2010 natural gas hedge positions, strong oil prices andproducer intentions to add rigs in the latter portion of the year.

-Stephen Thornhill, Wells Fargo

Clean energy bill passes HouseCloser vote than expected Friday, June 26, suggests it will be tougher getting

similar legislation through the U.S. Senate. CO2 cap-and-trade watered down,but renewable portfolio standards with teeth (15% renewables mandate by2020). White House wants bill this year because (1) before President Obamagoes to UN Climate Summit in Copenhagen this Dec and (2) harder to passnext year with Nov 2010 mid-year elections looming.The energy bill hedging legislation probably won’t make it through Senate,

but it’s not over till the fat lady sings. E&Ps need her singing as (late insertion)Stupak amendment calling for stringent OTC regulation of energy derivatives.The goal is increased transparency, but the unintended consequence is that itforces E&P players to hedge on CFTC-regulated exchange which requiresdaily cash collateral on mark-to-market (huge capital requirements). Wouldgut E&P hedging capability, so watch close.

-Dan Pickering, Tudor Pickering & Holt Co.

What the analysts are saying CapitalMarketsThe latest news articles online:

Wall Street wakes up - energyraises $800 million

Abraxas Petroleum amendssenior credit agreement.

Anadarko's first-quarter loss totals $338 million

Apache records a first-quarternet loss of $1.76 billion

Atlas Energy's net income slides32% from same period last year

ATP's first-quarter 2009 revenues sink to $68.3 million

Baker Hughes' 1Q revenue staysflat at $2.7 billion

Berry Petroleum borrowing setat $1.05 billion

BP cuts over $1 billion from costs

BreitBurn's revenues climb 29%year over year

Search & Seek– Access our online library for past and/orpresent publications.not a member? Membershipsstart at $295; includes access toPLS’ publication archives ANDlisting database. Sign up today!Call (713) 650-1212

eagle ford arrives as latest hot shale playPetroHawk pioneering play's development and progressThat Eagle Ford Shale play in South Texas is developing clarity. Yes, the IPs

are noteworthy. Early wells—and there have been a half dozen—have come inat IPs of 7.0 to 9.0 MMCFeD, not quite double digit IPs found in the Haynesville,

but respectablenonetheless. Yes,future prospects

look good. Petrohawk is on recordsaying the rocks are better than theHaynesville in terms of productive ca-pacity. No wonder the financial com-munity is watching Petrohawk to see ifthis is the next big thing.

Petrohawk is operating two horizontalrigs in the Eagle Ford Shale, completingtwo wells during the first quarter. TheDonnell #1H (McMullen) initially flowedat 6.1 MMCFeD, while the Brown Trust#1H flowed at 9.3 MMCFeD. Petrohawk’s initial well inthe play came online at 9.0 MMCFeD last year andis now producing over 2.5 MMCFeD six monthslater. The company’s second well, the Dora Martin#1H (LaSalle), 14 miles west of the first well, came online at 8.3 MMCFeD.If the question involves impressive gas production, the answer is yes. But if

the question involves whether this is the next major shale, the answer is similar towhat you hear back when asking a senior citizen if they prefer boxers or briefs:Depends. Regardless, Petrohawk seems to be the Ike and Tina Turner Review of

oil and gas operators. At first, they likedto do things nice and easy, creating ageographically diverse U.S. onshorecompany that grew through acquisi-tions like the $350 million Mission Re-

sources deal in 2004, or the June 2006 $1.9 billion KCS Energy merger. But in retrospect, Petrohawk, like Ike and Tina Turner, never does anything

nice and easy. They like to do it nice and rough, subsequently divesting con-ventional properties in South Texas or the Gulf Coast to finance footholds inunconventional plays like the Fayetteville Shale. Fortunately they never got around to divesting those core KCS properties in

north Louisiana’s Elm Grove and Terryville fields which is why, in Petrohawk’scase, it is better to be lucky AND smart in business. The luck comes in since thecompany acquired premier Haynesville acreage with the acquisition of KCS En-ergy’s properties at a time when no one knew anything about Haynesville, otherthan it was deep, produced big for a period, then fizzled out.

1. Petrohawk says Eagle Fordshale is “one of the highestquality” in U.S.

2. Raises recovery midpoint to5.5 BCFe; Range of 4.0-7.0 BCFe

3. Lower initial decline rates andflatter hyperbolic declinesthan other shales

4. Wells can be drilled for $4.5 - 5.5 MM

5. Pioneer and TXCO reportdrilling success

QuickLook

The South TX Eagle Ford Shale iseconomically competitive withHaynesville! The acreage race is on.

Petrohawk’s first three EagleFord wells came online at ratesaveraging 9.0 MMCFeD.

Story continues on page 19

See ProspectCentre datedJune 24, 2009

PAGE 18 JULY, 2009

–Listings For Sale

People on the MoveChairman/President/CEO

BP is hiring Carl-Henric Svanberg as its new chairman, ending its longsearch for a successor to former Chairman Peter Sutherland. Svanberg comesfrom Swedish telecom firm Ericson, where he served as chief executive since2003. He will take over from Sutherland next January. BP Chief ExecutiveTony Hayward told Reuters that BP will benefit from Svanberg's experiencein emerging markets and in dealing with governments.

American Petro-Hunter hired Robert McIntosh as president and CEO.McIntosh is a consulting geologist and has had various roles with private andpublic E&P companies.

Continental Energy Corp. named Andrew Eriksson president and COO.Eriksson has been employed by the company in its Jakarta office since 2003and will continue to act as the company's exploration manager.

Delta Petroleum said Chairman and CEO Roger Parker is resigning after22 years at the company. John Wallace will continue in his role as presidentand will function as the senior executive officer of the company until a newCEO is identified. In addition, Daniel Taylor, a Delta board member sincelast February and a Tracinda executive, has been elected chairman. Tracindaowns 34% of Delta's shares and is the largest shareholder of the company.

GMX Resources appointed Michael Rohleder as president, TimothyBenton, VP of Geosciences; and Harry Stahel, Jr., VP of finance. Ken Ken-worthy, Jr. will remain Chairman and CEO, and James Merrill will remainCFO, secretary and treasurer. Rohleder has served as EVP of GMX for thepast fifteen months focusing on corporate development, investor relations andstrategic growth and planning. Benton has been responsible for engineeringand geological characterization work of the company's assets since 2005. Sta-hel joins GMX after more than eighteen years in the energy industry includingfinance and treasury roles at Aquila, Inc.

IDGLOBAL appointed Dean Philpot as president of its oil and gas division.Philpot was previously president of Hidalgo Exploration & Production Co.

Petro Resources Corp. hired Gary Evans as chairman and Ronald Ormandas EVP and CFO. Evans previously founded Magnum Hunter Resources beforeselling to Cimarex Energy in a $2.2 billion transaction in June 2005. Ormand mostrecently served as SVP and CFO for Gruy Petroleum Management LLC. In addi-tion, Wayne Hall has resigned as chairman and CEO but will remain as vice chair-man. Donald Kirkendallwill continue to serve as president.Diversified energy company PetroSun, Inc. hired James Robinson as its

new president. Robinson comes to PetroSun from the Gideon Group, a man-agement consulting firm that helps early-stage companies access capital.Private equity firm Ridgewood Energy, which focuses on Gulf of Mexico

projects with leading E&P companies, appointed Kenneth Lang as presidentand COO. Lang is joining Ridgewood after a 24-year career at BP, where heultimately served as SVP for BP’s entire Gulf of Mexico business.

Southwestern Energy promoted Steven Mueller to CEO. Mueller joinedSouthwestern in June 2008 as president and COO.

EVP/SVP/CFO/COOCallon Petroleum named Steven Hinchman as EVP and COO. Prior to joining

the company, Hinchman was EVP of Technology and Services for Marathon Oil Cobalt International Energy LP named Rodney Gray as CFO and EVP.

Prior to joining Cobalt, Gray was VP and CFO for Colonial Pipeline in Atlanta.Continental Resources appointed Richard Muncrief as SVP of operations.

Muncrief most recently served as a senior executive with Quest Midstream Partners.Precision Petroleum appointed James Kirby as CFO. Kirby’s previous

engagements at senior management levels include The First National Bankof Shawnee, Bank One, Liberty Bank & Trust, Choctaw State Bank, and TheRepublic Bank of Tecumseh.

Royal Dutch Shell appointed Roxanne Decyk to a newly created positionof EVP of Global Government Relations, based in Washington, D.C. Decykwill report directly to future CEO Peter Voser and she will serve as the com-pany's chief diplomat. Decyk joined Shell in 1999 as VP, Corporate Strategy.

Transocean named David Tonnel as SVP, Europe and Africa Unit (EAU),reporting to Rob Saltiel, EVP, Performance. Tonnel will be based in Paris andwill succeed Ricardo Rosa, who will become SVP and CFO. Tonnel currentlyserves as interim VP of Global Supply Chain.

Anadarko midstream sub Western Gas Partners LP named BenjaminFink as SVP and CFO. He will succeed Michael Pearl, who was recentlynamed corporate controller of Anadarko. Until his appointment, Fink servedas VP of finance for Anadarko Algeria

Vice PresidentPrivately-held AB Resources hired James Wilson to serve as VP of ex-

ploration. Wilson will lead the company’s exploration efforts in the MarcellusShale. From 2007 to 2009 he was Appalachian Basin Geoscience Managerfor Chesapeake Energy.

Compton Petroleum hired Shannon Ouellette in a new position as VP,Operations & Development. Ouellette previously worked as VP, Operationsat TAQA North, where she played a leading role in integrating the TAQANorth and PrimeWest Energy assets.

Questar Corp. appointed Samuel Brothwell as VP – Investor Relationsand Corporate Planning. From 2005 until recently Brothwell served as man-aging director, Equity Research - Gas and Power for Wachovia Capital Mar-kets. Questar also appointed Martin Craven as VP – Finance and Treasurer.Craven previously served as treasurer and director of Investor Relations.

Rollcast Energy hired Dave Kluttz as VP of Engineering. Before joiningRollcast, Kluttz was Director of Engineering and Research & Developmentat Acciona Solar Power.

White Energy Coal North America appointed William Zipf as VP ofmarketing and development. Prior to joining White Energy, Zipf worked atNRG Energy where he most recently served as Director of Origination.

Tri-Valley Oil & Gas hired James Kromer as operations manager. Kromerwill focus on the Pleasant Valley Vaca Tar Sand projects in the Oxnard, California.

In MemoriamRay R. Seegmiller, former President, Chief Executive and Chairman of

Cabot Oil & Gas Corp., died on May 28 at age 74 in Houston. Seegmiller re-tired from Cabot in May 2002. His previous positions include president ofthe Domestic Petroleum Council, president and CEO of Terry Petroleum andvarious executive positions including president and CEO with Marathon Man-ufacturing Co.

KANSASBARBER CO., KS PROSPECT12-Potential Wells. 480-Acres.Arbuckle Formation. 5,000-6,000 Ft.Red Ford Viola Potential - Multiple Pays.Geologically Defined; Structural High.Additional Acreage Available. SEEKING NON-OP WI PARTNER ARBUCKLESeller Will Deliver 80% NRI.Offset Producing: 1,000 BOPD5-Year Lease.GENERATOR HAS MORE INFODV 2372

NORTH CENTRAL KANSAS OFFER18,000-Acres.GRAHAM & SHERIDAN CO., KSPennsylvanian & Ordovician Carbonates.Defined By 3-D Seismic.100% OPERATED WI; 80% NRI MULTIPAYPotential Reserves/Well: 50-75 MBODHC/Well: $175,000; Compl: $185,000CONTACT SELLER FOR DETAILSDV 6293

ROOKS CO., KS OFFERING10- 3-D Locations. ±12,000-Acres.Central Kansas Uplift/K.C. EmbaymentObj 1: Lansing / K.C. 3,200 Ft.Obj 2: Arbuckle Formation. 3,500 Ft.3-D Seismic & SubSurface Geology. LANSING 50% Working Interest; 85% NRI (Lease) K.C.Operations Available To Qualified Operator.Est Reserves/Well: 50 - 60 MBOEst Reserves/Proj: 1.0 MMBODHC: $175,000; CWC Cost: $375,000LAND DEPT HAS MORE DETAILSDV 5513

MICHIGANANTRIM SHALE PROJECT60,000+ Acres.CLINTON, GRATIOT, SHIAWASSEE CO.Antrim Shale Target. 1,500-2,00 Ft. (TVD)Additional Upside Zones Identified.Unconventional Mixed Biogenic Gas——And Thermogenic Gas ANTRIMEst Rsrvs/Well: 1.5 BCF On 320-Acre Est Rsrvs/Project: 460 BCFVertical Well Cost: $300,000Horizontal Well Cost: $1,000,000LAND DEPT HAS MORE DETAILSDV 5515

NORTHERN MICHIGAN OFFERING6,300-Acres.NORTHERN REEF TRENDObj 1: Antrim ShaleObj 2: Richfield Formation ANTRIMSeller Will Deliver 81% NRI.Analogous Field Cumm’d 7.8 MMBO—-—-& 70 BCF.CONTACT SELLER FOR DETAILSDV 6285

NEBRASKACHEYENNE CO., NE PROSPECT960-Acres.D-J BASINLocated On McClernon Trend.Obj 1: D Sand. 4,500 Ft.Obj 2: J Sand. 4,800 Ft.Defined By 3-D Covering 3.5 Sq Miles D-JSubSurface Geology. BASIN100% OPERATED WI For Sale; 81% NRIEst Project Reserves: 100 MBODHC: $185,000; Compl Costs: $170,000CONTACT SELLER FOR MORE DETAILSDV 2172

MORRILL CO., NE PROSPECT2-Proposed Wells. 5,947-Acres.D-J BASINObj 1: J Sand. 4,400 Ft.Obj 2: D Sand. 4,600 Ft.Defined By 3-D And Subsurface Geology. D-JSeismic Covers 7.25 Square Miles. BASIN100% OPERATED WI For Sale; 81% NRIEst Reserves: 200,000 BO Per WellDHC: $180,000; Compl Costs: $170,000CALL GEOLOGIST FOR SHOWINGDV 2173

OKLAHOMABRYAN & CHOCTAW CO., OK PLAY>100,000-Net Acres.Exploratory Acreage Play.Multiple Reservoirs Indentified.Acreage Within 590 Governmental Sections.300-Square Miles 3-D Seismic Shoot— Currently Being Processed.27% Avg Working Interest Available.Ave Lease Burden of 18.8%. TIGHT GAS/3D>50% Ownership In 112-Sections.Ground Floor Opportunity For Control— of MultiPay Tight-Gas Resource Play.Leases Expirations As Late As 2013.CALL AGENT FOR PACKAGEDV 3894

BRYAN CO., OK PROPERTY3,867-Net Undeveloped Acres.WOODFORD SHALE2-Horizontal Development Wells.MultiZone Upside Potential. WOODFORDMultiple Prolific Simpson Producers. HZLease Expirations Thru 2011.DV 2274HZ

CARTER CO., OK PRODUCTION 4-Wells. 1-Commercial SWD.Morris & Deese FormationsHorizontal Drilling Potential100% OPERATED WI; 87.5% NRIAvg Production: 20 BOPD HORIZONTALSWD Well Permitted For Commercial.All Wells Located Within 10 Sq Mi.SELLER ENTERTAINS ALL OFFERSPP 6196DV

CENTRAL OKLAHOMA DEVELOPMENTSeveral MultiLateral Locations.Skinner Sand & Hunton Lime Formations. Depths Range: 6,400 - 7,000 Ft.SEEKING WI PARTNERS TO DRILLSeller Will Deliver 79.25% NRI. HORIZONTALSuperb Economics, Safe Environment.1st Location Rsrvs: 496 MBO & 3.2 BCFConfidentiality Agreement Required.DV 5911HZ

CENTRAL OKLAHOMA OIL DEALWaterflood Project. 760-Acres.NORTH PLAINS AREATargeting Red Fork Sands. ~4,300 Ft.Skinner & Mississippi Upside Identified.6-Existing Wellbores & Equipment.Additional Wellbores Need Drilling.Vertical & Horizontal Opportunity. WATER-100% OPERATED WI; 75% NRI FLOODPrimary Cumm’d Production: ~586 MBOEst Reserves: ~1.1 MMBO & 6.0 BCFEst Rsrvs From New Drilling/Waterflood.Net PV10 Value: $54,000,000Est Development Costs: ~$11,000,000CA Required to Review Technical Data.DV 4369WF

GARVIN CO., OK PROSPECT5-Proposed Wells. ±200-Acres.Multiple Reservoir Potential.Total Depth: ~4,750 Ft. MULTIZONELow-Risk Prospect. Pipeline Nearby. Up To 37.5% WI Available; 75% NRI (Lease)Offsets Recent 500 MCFD Completion.Est Reserves: ~100 MBO & 1.0 BCFDV 5425

LATIMER CO., OK PROSPECT2-Key Properties. 252-Gross Acres.RED OAK FIELDGas Targets Identified @ 13,000 Ft.Seller Will Deliver 81.25% NRI. RED OAKOffsetting Production: 3.7-4.5 MMCFD3-Year Leases. 2-Year Extension On 1.DV 2281

LOGAN CO., OK COMPLETION1-Horizontal Well. Needs Completion.Hunton Clarita Formation.Total Depth: 7,500 Ft.Contact With PayZone: 2,500 Ft.Drainage Spacing Of 320 Acres.Seller Will Deliver 75% NRI. COMPLETEEstimated IP: 1.0-1.5 MMCFD>20 5x-10x Payout Horiz Wells Close By.Potential Total Sales: $15,000,000Est Proved Rsrvs: 1.0-3.0 BCF & 150 MBOPrice Set - 1% WI HU Min BTB 10%Acquisition/Completion Cost: $1,750,000DV 5755HZ

OKFUSKEE CO., OK PROSPECTS4 To 6-Potential Wells. 640-Acres.Targeting Wilcox Formation. 3,700 Ft.Cromwell Potential Identified.Probable BailOut In The Atoka Formation. Defined By Subsurface Geology. WILCOX75% NonOperated WI; 78% NRI (Lease)Est Reserves: 750 MMBO & 200 MMCFDHC: $291,000; Compl: $342,000DV 6481

OKLAHOMAOKLAHOMA ACREAGE SALE ~277-Net Development Acres.WOODS & WOODWARD CO.Hugoton Embayment ACREAGEAll Acreage HBP. No Depth Restrictions.Solid Operator In Area.Cost-Effective Entry Into Proven Rsrvs.L 6412DV

OKLAHOMA SALE PKG 33-PDP, 5-PDNP, 34-PUDCUSTER, HASKELL, LE FLORE,& PITTSBURG CO.WEATHERFORD, STIGLER WEST,& KINTA FIELDSSkinner, Atoka, Cherokee, Hunton, Brazil,Red Oak, Spiro, Wapanucka Production.3-D Seismic Available.Small NonOperated WI For Sale. 307 MCFEDGross Prod: 62 BOPD & 5,653 MCFDNet Prod: 307 MCFED(2)Two New Wells Came On-Line.Net Proved Rsrvs: 8.2 MBO & 5.9 BCFEngineering Updated March 1, 2009PP 4231DV

OKLAHOMA SHALE ACREAGE8,400-Net Acres.WOODFORD SHALE PLUSMultiPay Prospects. 1,500-10,000 Ft.Goddard, Sycamore, Hunton, Caney ShaleViola, Stanley, Jackfork.Polk Creek & Womble Shales. ACREAGEProprietary 3-D Shoot In Progress. Seller Will Deliver 73% NRI.Adjacent To Major Drilling Activity.>1,400 Drilling Locations. 80-Ac Spacing.Shallow & Deep Targets.DV 5468

OSAGE CO., OK PROJECT40-Wells For Re-Work. 1,000-Acres.PAWHUSKALayton & Bartlesville Sand Targets.3-4 Pays Identified Behind Pipe.SEEKING WI PARTNERS PROJECTSeller Will Deliver 80% NRI.3-Year Leases.DV 2373

POTTAWATOMIE CO., OK PROSPECT4-Proposed Oil Wells. 160+ Acres.Obj 1: Wilcox Formation. 4,500 Ft.Obj 2: Hunter Formation. 4,000 Ft.2-D Seismic, Geology, Geophysics.75% NonOperated WI Available. WILCOXEst Reserves/Well: 200 MBOEst Reserves/Project: 800 MBOGENERATOR HAS MORE DETAILSDV 2375

TEXAS CO., OK MINERALS3-Partial Tracks.Lower & Middle Morrow Potential.UnderDeveloped Area For Deeper Plays.MIDCONTINENT MORROWMINERAL OWNER WANTS TO LEASEL 8482

WAGONER CO., OK PROJECT9,400-Net AcresWoodford Shale. 1,200-1,800 Ft.Upside Potential In Dutcher & Cromwell.Seller Will Deliver 78% NRI Average. WOOD-Up To 150 MMCF Per Well. FORDCompletion: $150,000 per WellSUMMARY DATA ALSO AVAILABLEDV 5678

INDIANAINDIANA PROSPECT OFFER100-Potential Wells. 49,000-Acres.WASHINGTON, LAWRENCE, ORANGE,& JACKSON CO.Targeting New Albany Shale. NEWProposed Depth: 500-700 Ft. ALBANYThickness: ±120 Ft.100% OPERATED WI; 87% NRICALL GENERATOR TO LEARN MOREDV 2282

KENTUCKYCLAY/LESLIE CO., KY PROSPECTS26,000+-Acres. Development Play.Multiple Pay Zones Identified. <3,200 Ft.600+-UnDrilled Development Locations.Excellent Horizontal Candidate.Complete Pipeline Infrastructure.163-Wells Currently Producing. DEVELOPMENTProduction Can Increase w/ Treatment.>100 Mi Of Pipeline Infrastructure.DV 5295

HENDERSON CO., KY PROSPECT2-Test Wells. 30,000-Acres.ILLINOIS BASINTargeting New Albany Shale.Test Depth: 4,600 Ft. NEWProspect Is On Stratigraphic Trap. ALBANY92% Working Interest Available.Est Well Reserves: 1.2-3.0 BCFEst Project Reserves: 100+ BCFEDV 5636

Experienced.Capable.Knowledgeable.Flexible.Ready To Work.Five States Energy Capitalworks with independentproducers to acquire,develop, exploit, andservice producing properties.

For more information:capitalinfo@fivestates.com

www.fivestates.com

214.560.2584

List with PLSContact Ross at rbenoche@plsx.com or

call (713) 650-1212 to find out how you canget your listings in PLS’ publications.

American Energy Advisors, Inc.

Stephen A. Lieberman, P.E.

Ph: (949) 242-3636

Fax: (949) 242-3635

americanenergyadvisors.com

PROSPECTS & PROPERTIES PAGE 19

–Listings For Sale

KENTUCKYKENTUCKY LEASES FOR SALE~35,134-Gross & ~21,254-Net Acres.MCCLEAN, OHIO, WEBSTER, MUHLENBERG & HOPKINS CO.100% OPERATED WI; 82.5% NRI KY/ACREAGELeasehold Is Available For Sale.L 5775

KENTUCKY PROSPECT OFFERING33,860-Gross & 27,300-Net Acres.MEADE, BRECKENRIDGE, & HARDINIllinois BasinTargeting New Albany Shale Gas. NEWProposed Depth: 800-1,700 Ft. ALBANYThickness: ±100 Ft.Varying OPERATED WI & NRI.DV 2283

KENTUCKY PROSPECT SALE41,790-Gross & 34,080-Net Acres.ILLINOIS BASINNew Albany Shale. 3,000-4,500 Ft.80% Working Interest; 65% NRI. NEWEst Well Reserves: 750 MMCF ALBANYEst Project Reserves: 345-700 BCFDHC: $850,000; Compl: $800,000.DV 5951

MCLEAN CO., KY PROSPECT1-Proposed Well. 608-Net Acres.ROUGH CREEK GRABENObj 1: McClosky/Mississippian SandsObj 2: Devonian Grand Tower/LingleDepth Range: 3,000 – 4,200 Ft. MULTIPAY2-D Seismic, Nearby Production, G&G. 100% OPERATED WI; 80% NRI Est Reserves: 5.0 MMBODHC: $350,000; Compl Cost: $200,000DV 2339

UNION CO., KY PROSPECT41,790-Gross & 34,080-Net Acres.ILLINOIS BASINNew Albany Shale. 3000-4500 Ft TVD.Unconventional Thermogenic Shale Gas.1-Verticle & 1-Horizontal Test Well Drilled.Significant Core & Completion Information.40% OPERATED WI; 32.5% NRI NEWSeeking Industry Partner. ALBANYEst Reserves: 200-400 BCFLand And Drilling Costs To Date: 6.5MMDry Hole: $850,000; Compl: $800,000DV 4024

NEW YORKDELAWARE CO., NY PROSPECT12-Potential Wells. 940-Contiguous Acres.APPALACHIAN BASINMarcellus Shale Target.Significant Horizontal Opportunity.100% OPERATED WI; 84% NRI MARCELLUSEst Reserves/Well: 3.0 - 3.5 BCFEst Reserves/Prospect: 36 - 42 BCF5-Year Lease. 3-Year Extension.DV 5728

STEUBEN/TIOGA CO., NY PROSPECT2,600-Acres.1-Trenton Black River Development.Also Prospective: Onadago Reef,Utica Shale, & Marcellus ShaleProposed Depths: 3,700-10,000 Ft. DEVELOPSEEKING PARTNERS TO DRILL& BUY MORE ACREAGETrenton Black River Well Costs: $5.0 MMDV 5798

OHIOFULTON CO., OH PROPERTY12-Wells. 1,113-Acres.MICHIGAN BASINProducing Antrim Shale Gas.—Traverse, Trenton/Black River,—& Utica Shale Potential Identified.Additional 800 Acres Available. ANTRIMDevelopment & Infill Potential.58.5% WI Available; 80% NRI (Lease)Net Production: 65 MCFD & 550 BWPDSignificant Enhancement Opportunities.DV 6471PP

OHIOGALLIA CO., OH LEASEHOLDS17,730-Acres.Devonian L Huron Shale. 2,500-3,000 FtReservoir Thickness: >250 Ft.Silurian Clinton Potential. 3,500 Ft.Mississippian Berea Potential. 1,600 Ft. OH100% OPERATED WI; 87.5% NRI LEASESRemaining Lease Terms: 1-4 YearsLAND MANAGER HAS DETAILSL 6473

OHIO DRILLING PROSPECT 40,000-UnDeveloped Acres.MARCELLUS SHALEProductive Shallower Zone Upside.Pipeline & Gathering Systems In-Place.Successful Analogs Identified.Depths Range: 5,000-10,000 Ft.Seller Will Deliver 87.5% NRI. MARCELLUSModest Drilling Costs.Est Reserves/Well: 0.5 - 2.0 BCFEEst Reserves/Project: 20 - 50 BCFELease Terms: Half 5-Year & Half 10-YearPLS HAS MORE INFO AVAILABLEDV 6442L

PENNSYLVANIABUTLER CO., PA ACREAGE833-Acres.PENN TOWNSHIP NEMARCELLUS SHALEDeep Rights Available. ACREAGEFOR SALE OR JV PARTNERAGENT HAS MAPS AND DETAILSL 2364

CLINTON & CENTRE CO., PA LEASE~9,164-Acres.APPALACHIAN BASIN Significant Marcellus Shale Position. Acreage Is Available For Lease. PA LEASECALL PLS FOR CONTACT INFOL 5774

PENNSYLVANIAMARCELLUS PROSPECT FOR SALE40,000-Acres.NORTHEASTERN PENNSYLVANIAPrimary Target: Devonian Marcellus.Multiple Secondary Objectives. MARCELLUSPipeline In Place.CONTACT SELLER FOR SHOWINGDV 5311

MARCELLUS SHALE ACREAGE DEALPennsylvania-Based E&P Company.Leasing/Developing Marcellus Shale.SEEKING INDUSTRY PARTNER(S) ACREAGECONTACT GENERATOR FOR DETAILSL 4168DV

MARCELLUS SHALE LEASE 414-Acres.ARMSTRONG CO., PARight In The Heart Of The Play.Lease Available Due To Pugh Clause.Surrounded By Producing Wells.Lease HBP To Only 6,000 Ft— MARCELLUS—Ground Floor Investment OpportunityACREAGE COSTS WAY BELOW MARKETTerms Are Negotiable.L 5472

NORTHEAST PENNSYLVANIA OFFERMARCELLUS OPTION15,000-Acres On Contiguous Pipeline.Susquehanna River BasinDry Gas Window, 65% Brittle.200+ Ft. Of Marcellus. 7,000 Ft. (TVD)4-Offset Horiz. Average IP: 7,350 MCFDPublished EUR: 5+ BCF/Well$500/Acre Lease Bonus + Prospect FeeInitial 2-Year Lease MARCELLUS2-Well Drilling Commitment (DC).After DC - 5-Year Option $2,500/AcreAdditional 5-Year Extension $2,500/Acre12-Year Total Primary Term.Seeking 75% WI Partner.Operations Are Negotiable.DV 6433

PENNSYLVANIAPENNSYLVANIA SHALE PROJECT10,000+-Acres; 5,900-HBP.ARMSTRONG, BUTLER, INDIANA& LAWRENCE CO.Prolific Marcellus Shale Position. MARCELLUSFOR SALE or JOINT VENTURESeller Will Deliver 80% NRI.DV 5859

POTTER CO., PA PROSPECT SALE3-Contiguous Blocks. ~9,000-Acres.APPALACHIAN BASINTargeting Marcellus Shale.Excellent Pipeline Access. MARCELLUSLeases Held By Production.50% - 75% WI Available; 83%-84.5% NRIDV 5074

SUSQUEHANNA CO., PA ACREAGE32-Potential Wells. 2,600-Acres.APPALACHIAN BASINTargeting Marcellus Shale. 7,000 Ft.Acreage Available For Lease. LEASE100% OPERATED WI Available.Est Reserves/Well: 5.0+ BCFL 2272

TIOGA CO., PA LEASEHOLD~880-Gross Acres. ~816-Net Acres.MARCELLUS SHALEGAINES & ELK TOWNSHIPS LEASE85% NRI Five Year Leases Executed Feb-Mar 2008.L 3608

TIOGA CO., PA OVERRIDES FOR SALE22,000-Acres.DELMAR, SHIPPEN, JACKSONRUTLAND, SULLIVAN, FARMINGTON& ELKLAND TOWNSHIPSIn The Heart Of The Marcellus Fairway.OVERRIDING ROYALTY INTEREST Develop MultiWell Drilling Program. MARCELLUSDrill Larger Units Initially Then Follow-- Up With Tighter Infill Drilling.Successful Marcellus Horizontal: Same AreaRR 3438OV

WYOMING CO., PA ACREAGE13-Potential Wells. 1,100-Acres.Targeting Marcellus Shale. 7,000 Ft.OPEN ACREAGE FOR LEASE 100% OPERATED WI Available. MARCELLUSEst Reserves/Well: 4.0-5.0 BCFEst Reserves/Project: 52-65 BCFL 2994DV

TENNESSEEHENDERSON CO., TN PROSPECT1-Proposed Well. 1,900-Acres.Mississippi Embayment/Reel Foot RiftObj 1: Trenton/Black River/Knox.Obj 2: Conasauga Shale, Mt. Simon Sand.Depths Range: 1,200 Ft. - 5,500 Ft. Defined By 2-D Seismic, Geochemistry, & HC Shows In Offset Well. APPALACHIA100% Working Interest; 80% NRIRecoverable Rsrvs: 9.6 MMBO & 13.2 BCFDHC: $985,000; Compl Cost: $550,000DV 6430

OVERTON & PUTNAM CO., TNNatural Gas Pipeline. 120-Mile System.DIRECT CONNECT TO MAJORShallow Gas Wells. 900 Ft. - 2,000 Ft.In Area of MultiPay. Shows 7-Pay Zones.100% OPERATED WI FOR SALEPipeline Should Easily Take: 750 MCFDIn Area Of Deeper Exploration Activity.Principals Only. Pipeline Only For Sale.G 9000L

WEST VIRGINIABRAXTON CO., WV ACREAGE5-Proposed Wells. 405-Lease Acres.APPALACHIAN BASINStrong Marcellus Shale Position.Significant Horizontal Opportunity.100% OPERATED WI; 86.5% NRI Est Well Reserves: 3.0-3.5 BCF MARCELLUSEst Project Reserves: 15-17.5 BCF5-Year Leases w/ 5-Year Extensions.Close Proximity To Large Independents.DV 5990HZ

PRESTON CO., WV PROSPECT~2,200-Gross & 2,000-Net Acres.APPALACHIAN BASINTargeting Marcellus Shale. ~7,900 Ft.Significant Horizontal Opportunity. APPALACHIASeller Will Deliver 75% NRI.Analogs Producing Up To 5.0 MMCFD.Est Reserves/Well: 3.0 - 4.0 BCFDV 5855HZ

PLS now offers “After-Sale Services” to buyers andsellers. Leveraging our extensive in-house resources andstrategic partnerships, we can now handle your dealsfrom “cradle to grave”. PLS’ due diligence and documentprocessing services include, but are not limited to: copying,digital document conversion and coding of your landrecords and technical files.

For more info call 713.650.1212 or access www.plsx.com

Susan Coburn Office: 713.650.1212 Cell: 713.504.2540Email: scoburn@plsx.com

After-SaleServices

Due Diligence & Document Transfer

After-SaleServices

Due Diligence & Document Transfer

new

SeRviCe

ATASCOSA CO., TX PROPERTY2-Oil Wells. 2-SWD. 3-SI. 1,299-Acres.

PLEASANTON FIELDEdwards & Anacacho Production.

4 Offset Drilling Locations Identified.67.5%-92.5% WI; 50.6%-75.4% NRI

Gross Production: 36 BOPD & 47 MCFDNet Production: 22 BOPD & 27 MCFD

No Long-Term Sales Contracts.Net Proved Rsrvs: 252 MBO & 152 MMCF

Analogous Wells Have High Cumm's.Workover Potential for SI Wells.BID DUE DATE JULY 15, 2009

PP 4157

To learn more about this package and many other dealsfrom PLS, contact Richard Martin at (713) 650-1212 oremail rmartin@plsx.com. Access www.plsx.com to findout more information.

���� ������������

($+�N�����

��������������� ��������

�';>�.7>>E��+.���+:GF!@� �����5D7E

���������.!�����������&*!

(DAH76�&7F�*7E7DH7E�����������'��� ���%%��

�'!�-�).*)��%!'

� 1�, -����)����$*�*,(�.%*)-

��""-!.��,%''%)#�*��.%*)-�� !).%"%! �

���/-01&)&.2*5&��"3"��"$+"(&�

�1&0"1&%�#7��41+2��*,����"2��1/0&13*&2���.$����

eagle ford arrives as hot shale playIn contrast, the Eagle Ford Shale is about being smart. Petrohawk promotes

a five-step program for those addicted to monster shale plays including: sub-surface reconnaissance; rock analysis; then aggressive leasing; followed by

drilling a test well, completing same, and then “repeat”until you have defined an unconventional shale play. Since the blossoming of the Barnett Shale and subse-

quent discoveries of the Fayetteville and Woodford in the 2002-2006 era, it’s asafe bet that every geologist working for every operator has examined everyshale deposit in the North America looking for the next big thing. Are there manyleft to find? Well, a Schlumberger white paper in 2005 identified major U.S.shale basins prospective for oil or gas . That paper produced a map frequentlyinserted into industry Powerpoint presentations. However, that iconic map hasneither the Haynesville or the Marcellus listed. Clearly, shale frontiers remain.

While the Eagle Ford formationtransects Texas from the Rio Grande toSabine River, the geology suggests thebest petrophysics are confined to ahighly localized area, two counties inSouth Texas, McMullen and LaSalle,where an unusual set of geological circumstances came together to cook the rock.Petrohawk looked at the Eagle Ford’s geologic Waltz Across Texas and focusedon South Texas where large ranches made a quick leasing program a doable item.In essence, Petrohawk went from shoe leather science to leasing and discoveryin just eight months in 2008.The lucky part comes into play again because Eagle Ford development is

proceeding during an era of falling service costs. Couple that with improve-ments in process—drilling days have fallen from 75 for the discovery well to20-22 currently, while costs have dropped from more than $12 million for an

exploratory well to about $5 millioncurrently. The company is fresh off a$600 million note placement in Janu-ary that was oversubscribed and a 22

million share equity sale this past spring. Petrohawk has 2009 capex plans of$1.3 billion with a little more than half earmarked for the Haynesville. Butthe Eagle Ford will garner $120 million, or about 10% of 2009 capex, whichis on par with what the company will spend in the Fayetteville. It translatesinto a two-rig 2009 program in the Eagle Ford where the company’s net hold-ings cover 156,000 acres. HK sees 5.2 TCFe in potential reserves with EURsof 4.0 to 7.0 BCFe per well in the Eagle Ford.There are parallels with the Haynesville. The petrophysical and geochem-

ical properties are similar. Both formations are roughly the same depth. Bothhave similar formation thickness of about 225 to 250 feet. Both support netgross pay close to 100 percent of the formation, and both are overpressured.Original gas in place ranges between 180 and 210 BCF in the Eagle Ford,slightly more than the 150 to 170 BCFe found in the Haynesville.But there is one big difference. For the last half decade, the industry pursued

the basin resource model where hydrocarbons were found in tight formations overan extended geography. There was little geologic risk; rather the risk was on theengineering side and involved the ability to get hydrocarbons out of tight forma-tions. The Barnett, Woodford, Fayetteville, Marcellus and Haynesville Shales allfit this basin resource model. The Eagle Ford play indicates the search for shalesis evolving toward a "conventional" unconventional oil and gas model where lo-calized conditions create hydrocarbon accumulation in an isolated geographicpocket. Meanwhile that big wheel keeps on turning for Petrohawk.

Is this the next major shale? Theanswer is similar to what you hearwhen asking a senior citizen if theyprefer boxers or briefs: Depends.

"Petrohawk will spend $120 MMand run two rigs in the play this year."

story continued from page 17

New Office OpeningsStephens Inc., a Little Rock -based investment bank, has launched an en-

ergy group based out of the firm’s existing office in Dallas and a new officein Houston. The investment bank poached six pros from Energy Capital So-lutions, LP. Ronald Montalbano, Keith Behrens and Bradley Nelson will leadthe new team, which will focus on exploration and production, oil field serv-ices, biofuels and alternative energy. Stephens also hired vice president WillPage, associate Joseph Allio and analyst Steven Hanks.

Universal Well Site Solutions opened an office in Tuscaloosa, Ala-bama, to provide service to gas producers in the Black Warrior Basin andthroughout the Southeast U.S. Jessie Jarrell will head the new office asRegional Sales and Service Manager for the Southeast.

Cabot Oil & Gas has opened a new regional office in Pittsburg to handleits Appalachia business. For more information see related story on page 9.

PAGE 20 JULY, 2009

–Listings For Sale

Producer Services Teamis ready to help you!CORE

REGIONDTE Energy Trading, Inc.2000 West Sam Houston Pkwy S.Suite 1425Houston, Texas 77042713.874.8400

Jill Zivley / Regional Directorzivleyj@dteenergy.com

ENERGY TRADING/PRODUCER SERVICES• Investment-Grade Company Backed

• 65+ Years of aggregated experience

• Gulf Coast Core Region - Barnett Shale

Area Strength

• Natural gas, electricity, crude oil & heating oil

• Optimizing asset positions – gas transportation/

storage, electric generation/transmission

• Risk management services to utilities,

generators, aggregators

DTE ENERGY• $ 9 Billion Fortune 500 Company

• Serving 2.2. million electric customers – Detroit Edison

• Serving 1.3 million natural gas customers - MichCon

MARKETING, VOLUME MANAGEMENT, TRANSPORTATION ACQUISITION, OPTIMIZATION, AND INFRASTRUCTURE SOLUTIONS.

DTE ENERGY TRADING

WEST VIRGINIAWEST VIRGINIA DRILLING PROJECT4-Counties.CLAY, ROANE, KANAWHA, WETZEL& DODDRIDGE CO.MultiTargets: New Berea Pool Discovery,Marcellus, Weir/Big Injun, & Big LimeSeller Can Deliver 80%+ NRI. MULTIPAYSEEKING JV PARTNER / CAPITALSELLER HAS MORE DETAILSDV 6472

WEST VIRGINIA PROSPECT SALE100+ Potential Wells. >10,000-Acres.PRESTON & TUCKER CO.Marcellus Shale Opportunity.Defined By SubSurface Geology. MARCELLUS50%+ WI Available; ~37.5%+ NRIOperations Available To Qualified Partner.Est Reserves/Well: 5.0 BCFDV 5282

COLORADOLARIMER CO., CO PROSPECT10-Potential Wells. 2,560-Acres.DJ BASINMuddy Formation. 4,500 Ft.2-D Seismic & SubSurface Geology.Low-Risk PUDs In Producing Field— D-J —Horizontal Wells. BASIN50% OPERATED WI; 85% NRI (Lease)Est Reserves/Well: 250 MBOEst Reserves/Project: 2.0 MMBODHC: $830,000; Compl: $700,000DV 5747

LOGAN CO., CO PROSPECT1-5 Drill Sites.DENVER BASIN, BONANZA FIELDMulti-Pay J & O Sandstones.3-D Seismic Survey. IP: >135 BOEDSeller Will Deliver 80% NRI.Net Production: 75 BOPD & 100 MCFDEst Reserves: 120 MBO & 180 MMCFDHC: $75,000; Compl: $250,000DV 5083

LOGAN CO., CO PROSPECT2+ Wells. 200-Acres.DJ BASINO.1 Sands Target. 5,300 Ft.Defined By SubSurface Geology.Horizontal Offset - Heavy Oil Discovery.37% OPERATED WI; 83% NRI (Lease) D-JEst Reserves/Well: 250 MBO BASINEst Reserves/Project: >500 MBODHC: $700,000; Compl: $160,000DV 5745

MESA CO., CO PROSPECT 140-Wells. 1,400-Acres.PICEANCE BASINObj 1: Mesa Verde Williams Fork. 6,000 Ft.Obj 2: Mancos Formation. 7,500 Ft.Dakota Potential Also Identified.Defined By SubSurface Geology & OffSets.100% OPERATED WI; 80% NRI PICEANCEEst Reserves/10 Acres: ~700 MMCFEst Williams Fork Reserves: ~98 BCFDHC: $750,000; Compl Cost: $300,000CALL PLS FOR SELLER DETAILSDV 5073

MOFFAT CO., CO PROJECT80-Potential Wells. 19,620-Gross Acres.SAND WASH BASINObj 1: Mancos Shale. 18,000 Ft.Obj 2: Frontier / Dakota. 18,000 Ft.Large Structure UnTested At Depth. SAND2-D Seismic & SubSurface Geology. WASH100% OPERATED WI; 80% NRIEst Reserves/Well: 3.0 BCFEst Reserves/Proj: 250 BCFDHC: $3,000,000; Compl: $2,000,000DV 5792

MOFFAT CO., CO PROSPECT13,212-Gross & 10,729-Net Acres.SAND WASH BASINTargeting Mancos/Baxter Formations. MANCOSThickness: 5,000 Ft. BAXTERPotential For Multi-Stage Fracs.Nearby Drilling Shows Overpressure.75% OPERATED WI; 80% NRI (Lease)DV 5161

COLORADORIO BLANCO CO., CO FARMOUT14-Drilling Locations. 1,960-Gross/Net Ac.PICEANCE BASINMancos & Dakota Possible.100% OPERATED WI; 87.5% NRI FARMOUTProspect Offsets Cumm’d:>2 BCF (Dakota)Area Wells Cumm’d: 0.5 BCF (Mancos)Flexible Farmout Terms.DV 6141FO

RIO BLANCO CO., CO OFFERING2,700-Gross & 1,470-Net Acres.PICEANCE BASINDakota Target. 6,500 Ft.18-Potential Drilling Locations.100% OPERATED WI; 87.5% NRI FARMOUTSEEKING INVESTORS TO DRILLOffset Wells Cumm’d: ~3.5 BCFFlexible Farmout Terms-DV 6137FO

RIO BLANCO CO., CO PROSPECT7-Well Potential. 640-Gross/Net Acres.THUNDER FIELDPiceance BasinLow-Risk Drilling Opportunities.100% OPERATED WI; 87.5% NRI LOW-RISKAcreage OffSet Wells Have Cumm’d—-1.85 BCF (Mancos & Dakota)Flexible Farmout Terms.DV 6139FO

RIO BLANCO CO., CO PROSPECTS3-Drilling Locations. 800-Gross/Net Acres.WHITE RIVER DOMESEEKING JVs For Deep Offset Test.100% OPERATED WI; 83.3% NRIFlexible Farmout Terms. FARMOUTProspects UpDip From Weber Production.Shallower Shows in Mancos & Dakota.Commercial Wasatch & MesaVerde.FO 6136

ROUTT CO., CO PROSPECT16-Potential Wells. 2,902-Gross Acres.SAND WASH BASINObj 1: Mancos/Niobrara. 6,000-10,000 Ft.Obj 2: Frontier/Dakota. 10,000-11,500 Ft.2-D Seismic & SubSurface Geology. SAND100% OPERATED WI; 80% NRI WASHAnalogs Have Cumm’d >1.5 MMBO Each.Est Rsrvs/Well: 100 MBO - 1.5 MMBO—-PLUS 500-900 MMCFEst Rsrvs/Proj: 3.0-5.0 MMBO & 25 BCFDHC: $2,500,000; Compl: $3,500,000DV 5793

SAN MIGUEL CO., CO ACREAGE4,325-Gross Acres. 3,715-Net Acres.PARADOX BASINArea Production From Cutler & Hermosa.Located On Mapped Structural Closures.SEEKING JV Partners For FarmOut/SaleOn Trend w/ Andy’s Mesa & Hamilton CreekArea Has Cumm’d: 122 BCF FARMOUTFlexible Terms.No Lease Expiration Dates.DV 6138FO

MONTANADANIELS CO., MT PROSPECT108-Potential Wells. 138,000-Acres.WILLISTON BASINObj 1: Bakken. 7,600 Ft.Obj 2: Charles. 6,500 Ft.Mission Canyon Potential Identified. WILLISTONGenerated With SubSurface Geology. 100% OPERATED WI; 80% NRI Est Reserves/Well: ~1.4 MMBOEst Reserves/Project: 151 MMBODHC: $4,500,000; Compl: $1,000,000DV 5622

MONTANA GAS PROSPECT13,075-Gross & 6,969-Net Acres.GOLDEN VALLEY / WHEATLAND CO.Multiple Pay Objectives Identified.Prospect Defined By 2-D Seismic. MULTIPAY75% OPERATED WI; 80% NRI (Lease)Analog Cumm’d 30 BCF.Infrastructure In Place.Potential Reserves: 30+ BCFDHC: $300,000; Compl: $150,000DV 1171

MONTANAMONTANA EXPLORATION PROJECT101,774-Net Acres.POWDER RIVER BASINMultiple Primary Objectives Identified. POWDER75% OPERATED WI; 80% NRI RIVERDV 6263

MONTANA PROSPECTUp To 7-Wells. 430-Acres.WILLISTON BASINMission Canyon, Duperow. 11,000 Ft.Also Targeting Red River. 12,500 Ft.Defined With SubSurface Geology.100% OPERATED WI; 80% NRI WILLISTONEst Reserves/Well: 161-449 MBOEst Reserves/Proj: ~2.0 MMBODry Hole Cost: $860,000 - $1,500,000Completion: $865,000 - $900,000DV 2320

NORTHERN MONTANA PROJECT90,000-Net Acres.KEVIN-SUNBURST DOME Prolific & Mature Region.MultiZone Potential. 500 - 3,300 Ft.Surrounded By Shallow Production.EXPERIENCED PARTNERS 50% Working Interest Available. PROJECTInfrastructure Has Been Established.Est Reserves: 25 MMBO & 100 BCFLOW WELL COSTSCALL PLS TO LEARN MOREDV 5763

RICHLAND CO., MT PROJECT40+ Well Project. 11,000-Net Acres.WILLISTON BASIN HIGH GRAVITY OILTargeting Bakken Formation.Defined With SubSurface Geology.30% NonOperated WI Available. BAKKENInitional Production: 400-800 BOPD LEASEEst Reserves/Well: 300+ MBOEst Reserves/Project: 12-15 MMBOCompletion Cost: $3,190,000DV 6415

ROOSEVELT CO., MT LEASES25,000-Acres. Deep Rights.WESTERN WILLISTON BASINBAKKEN TREND BAKKENSeller Has Set Asking Price. CALL AGENT FOR MORE INFOL 2343

ROOSEVELT CO., MT PROJECT100-Potential Wells. 110,000-Acres.WILLISTON BASINObj 1: Bakken. 8,900 Ft.Obj 2: Red River. 11,000 Ft.Multiple Targets Identified. WILLISTON3-D & 2-D Seismic Data, G&G. 90%-100% OPERATED WI; 80% NRIEst Reserves/Well: 536 MBOEst Reserves/Proj: 53.6 MMBODHC: $4,500,000; Compl: $1,000,000DV 5623

ROOSEVELT CO., MT PROSPECT5-Initial Wells Proposed. 25,000-Acres.WEST POPLAR FIELDTesting Judith Formation. 1,200 Ft.75% OPERATED WI Available. JUDITHEst Well Reserves: Up To 400 MMCFDry Hole Cost/Well: $80,000DV 2344

SHERIDAN CO., MT OFFERING45,000-Net Acres.BAKKEN OPPORTUNITYNear Vertical Bakken Production. BAKKENBakken DST w/ Oil Recovery. 3-D Seismic.GEOLOGIST HAS MORE DETAILSFO 5870

SHERIDAN CO., MT PROSPECT35,000-Acres.BAKKEN SHALEObj 1: Bakken Horizontal.Obj 2: Three Forks, Nisku. 8,000 Ft.Defined By SubSurface Geology. BAKKEN75% OPERATED WI; 75% NRIEst Reserves/Well: 400 - 800 MBO——PLUS 1.0 BCF Per WellDHC: $3,000,000; Compl: $2,000,000DV 5744

MONTANATOOLE CO., MT PROSPECT1-Proposed Well.Western Canadian Sedimentary BasinObj 1: Bakken Shale. 3,500 Ft.Obj 2: Cretaceous SandsSubSurface & Surface Geology.9,200-Acres Under Control. BAKKEN49% NonOperated WI; 80% NRI (Lease)Est Reserves/Well: 200-500 MBOEst Reserves/Project: 7.0-14 MMBOSELLER HAS MORE DETAILSDV 5852

VALLEY CO., MT PROSPECT194,500-Net Acres.Multiple Formations Identified.Cretaceous Gas & Devonian Oil.Large Contiguous Acreage Block. MULTIZONE100% OPERATED WI; Varying NRI.Lease Expirations Range: 2010-2016CONTACT SELLER FOR INFORMATIONDV 2378

YELLOWSTONE CO., MT PROSPECT41,456-Net Acres.Multiple Objectives Identified.Defined By 2-D Seismic Lines.50% Working Interest; 81% NRI MULTIPAYOperations Are Negotiable.Tested At 46 MMCFD.CONTACT FOR DETAILSDV 6262

NEW MEXICOCURRY CO., NM PROSPECT200-Proposed Wells. 15,000-Net Acres.NW SHELF OF PERMIAN BASINTargeting San Andres. 3,400 Ft.Surface & SubSurface Geology.40% OPERATED WI Available. PERMIAN81% On Majority Of Block (±12,000 Acres)Est Reserves/Well: 60 - 90 MBOEst Reserves/Project: 30 MMBODV 2275

EDDY CO., NM PROSPECT480-Acres.Targeting Wolfcamp & Abo.Queen Sandstone Potential - 3,500 Ft.Horizontal Potential. PERMIAN50% NonOperated WI; 75% NRI (Lease)Analog Had Initial Flow Of 300 BOPD.CALL FOR DETAILSDV 5147HZ

LEA & EDDY CO., NM PACKAGE8-Wells.Located In Various Fields.Producing From Morrow Formation. PERMIANNonOperated WI & ORRI Available.SELLER HAS ADDITIONAL DETAILSPP 5155RR

LEA CO., NM MINERALS±1,500-Net Mineral Acres.MINERALS FOR LEASE MINERALSMiscellaneous Leases Near Tatum, NM.~8 Adjacent Producing Zones Identified.3-Year Lease: $200/Acre + 75% NetAGENT HAS ADDITIONAL INFORMATIONL 6468

LEA CO., NM PROSPECT960-Acres.PERMIAN BASINMultiple Morrow Sands Targets.Depth: 13,500 Ft.3-D Seismic And Mud Logs Available. PERMIAN25% WI Available; 80% NRI.Analogs Cumm'd Up To 14 BCF.DHC: $3,250,000; Compl: $1,250,000CONTACT EXPLORATION MANAGERDV 5998

NEW MEXICO CO2 PROJECT 16,000-Acres (HBP)BRAVO DOME AREACARBON DIOXIDE PROJECT100% OPERATED WI FOR SALE CO2CO2 Wells IP: 500 - 2,000 MCFDEst Reserve Potential: 70-80 BCFCALL PLS FOR MORE INFORMATIONDV 8339L

NORTH DAKOTAMCKENZIE CO., ND PROSPECT2-Horizontal Wells Possible; 640-Acres.BAKKEN SHALETest Well. 10,700 Ft. TVD/14,700 Ft.Lies In A Northwest/Southeast TrendOf Prolific Bakken Shale Oil Producers.Geological Data Available. BAKKENSEEKING PARTNERS TO DRILL 75% WI Available; 80% NRI (Lease)Est Project Reserves: 600 MBOCONTACT FOR MORE INFORMATIONDV 8536HZ

MOUNTRAIL CO., ND PROSPECT6-Proposed Wells.BAKKEN TRENDWilliston BasinREADY TO DRILL66% Working Interest Available. BAKKENOperations Available To Qualified Partner.Sellers To Participate.OFFSET / PUD LOCATIONSHIGH VOLUME / HUGE RESERVESDV 6382

NORTH DAKOTA BAKKEN PROJECT2-Test Wells. ~8,120-Net Acres.MOUNTRAIL & WARD CO.EAST OF PARSHALL FIELDTesting Bakken & Sanish Formations.Area Is Considered Possible Extension——Of Parshall Field. BAKKENArea Is Offset By Active Bakken Drilling. TEST90% OPERATED WI; Varying NRI.Most Leases Expire: Mid-2012AGENT HAS ADDITIONAL INFODV 2377

NORTH DAKOTA LEASEHOLDS142-Lease Options.BAKKEN SHALE POSITIONS430,000-Gross & 350,000-Net Acres.3-5 Year Lease Terms. LEASESAll Terms Negotiable.CONTACT LESSOR FOR INFOL 5516

NORTH DAKOTA PROPERTIES8-Wells. 24,300-Contiguous Net Acres.BURKE & MOUNTRAIL CO.WILLISTON BASINProducing Bakken Oil & Gas.Significant Development Upside.MultiPay Potential Identified. BAKKENCore/Vertical Logs Included. OPERATED & NonOp WI; ~84% NRINet Production: 61 BOPD & 49 MCFDAgent Last Reported: $57,100/MnDeveloping Infrastructure.CONTACT AGENT FOR UPDATEDV 6405PP

UTAHCENTRAL UTAH PROJECT FOR SALE207,000-Acres.SANPETE, SEVIER, JUAB, MILLARD,UTAH & WASATCH CO.Central Utah Thrust BeltNavajo & Twin Creek Objectives. UTAHMississippian Potential Identified. THRUST10%-20% NonOperated WI Available. BELTExcellent Operator & WI Owners.Est Reserves/Well: 1.0 - 4.0 MMBOEst Reserves/Project: ~1.0 BBOCALL UTAH PROSPECT GENERATORDV 6401

EMERY CO., UT PROJECT2-Phase Project. 240-Acres.UINTA BASIN2 Re-Entry Wells, Then 4 Step-Out Wells.Targeting Triassic Moenkopi Formation.Proposed Depths: 3,400 - 4,000 Ft.Sinbad Lime Potential. 3,600-3,800 Ft. UINTA75% Working Interest; 87.5% NRI Significant Development Opportunity.Est Reserves/Well: 65.2 MBOEst Reserves/Project: 391.2 MBODHC: $75,000 Re-Entry, $190,000 NewCompl: $65,000 Re-Entry, $175,000 NewSELLER HAS MORE DETAILSDV 5501RE

SOLD

PROSPECTS & PROPERTIES PAGE 21

–Listings For Sale

UTAHEMERY CO., UT PROSPECT17,700-Gross Acres. 11,600-Net Acres.UINTAH BASIN~122 Gross Well Locations Possible.50-100% OPERATED WI For FarmOutOn Trend With 900-Ferron Wells— UINTAHProd: >220 MMCFD. Cumm’d Up To 1 TCFEst Net Reserves: 121 BCFFlexible Farmout Terms.Most Leases Held By Production.DV 6142FO

JUAB & MILLARD CO., UT PROSPECT2-Test Wells. 691,200-Acres.SEVIER DESERT BASIN SEVIERProspect Defined By 2-D Seismic. DESERTPotential Rsrvs: 100 MMBO & 1.0 TCFDV 6362

RICH CO., UTAH PROSPECT1 To 10-Proposed Wells. 5,525-Net Acres.WYOMING THRUST BELTObj 1: Madison Formation. 6,400 Ft.Obj 2: Bighorn Formation. 9,000 Ft.Defined By Geophysics. MADISON25%-50% WI; 80.75% NRI (Lease)100% Operations Available.Dry Hole Cost: $2,200,000DV 5994

WYOMINGBIG HORN BASIN ACREAGE SALE3-Key Areas. 29,811-Net Acres.CORRAL CREEK, POLECAT,& SCHUSTER FLATSObj 1: Frontier & Muddy Formations BIGObj 2: Greybull Potential Identified HORNProposed Depths: 8,000-16,000 Ft.Structural/Stratigraphic Trap.EXPLORATION MANAGER HAS INFODV 5119

CAMPBELL CO., WY PROSPECT282-Contiguous Acres. 1-Test Well.BONE PILE, RIDGEVIEW, WOLFF,& RAINBOW RANCH FIELDS.Porous Minnelusa "A" Sand.Proposed Depth: 10,530 Ft. MINNELUSAProprietary 3-D Seismic Data.25% Working Interest; 80% NRI.Avg Offset Well Cumm'd 246 MBO.Potential Reserves: 750 MBODrill & Completion Costs: $1,400,000DV 5894

CARBON CO., WY DEVELOPMENT4-Proposed Wells. 1,700-Acres.Frontier & Wall Creek Formations.Proposed Depth: ~1,800 Ft.Deep Rights Also Possible.Niobrara Potential - Needs Frac Job.49% NonOperated WI; 77% NRI MULTIZONESEEKING PARTNERS TO DRILLCurrent Net Production: ~6.0 BOEDCompletion Cost: $1,750,000 (4 Wells)ESTABLISHED AREA PRODUCERDV 5769PP

CONVERSE CO., WY PROSPECT11,000-Gross & 5,500-Net Acres.Proven & Active Multi Zone Play.Frontier, Muddy, Dakota & MinnelusaLocally Prolific Muddy Targets. MULTIZONE3-D Seismic Available For Licensing.~50% OPERATED WI; 87.5% NRI (Lease)Active Offsets Targeting Muddy & Frontier.Preliminary Unitization Steps Complete.CA Required To View Data.DV 9630

CONVERSE CO., WY PROJECT16,000-Net Acres.POWDER RIVER OIL RESOURCEObj 1: Frontier (2 Distinct Sands)Obj 2: Shannon (3 Distinct Sands)Defined With SubSurface Geology. POWDER70% OPERATED WI Available. RIVEREst Initial Production 700-1,5000 BOPDSubstantial Oil & Gas Potential.Seller Will Deliver Good NRI.Est Reserves: 500 MBO/WellCost To Drill & Complete $5.0-$6.0 MMDV 6416

CONVERSE CO., WY PROSPECT5,798-Acres.READY TO DRILL100% OPERATED WI; 75% NRI DRILLC.A. REQUIRED FOR MORE DATA READYDV 5157

CONVERSE CO., WY TEST 2-Test Wells. ~14,600-Acres.POWDER RIVER BASINOligocene White River Formation. POWDERFormation Depth: 200-1,000 Ft. BRIVERPotential Reserves: 81 BCFECONTACT PLS FOR DETAILSDV 6361

CROOK & CAMPBELL CO., WY PROJECT25-Proposed Wells.Minnelusa Target. 7,000 Ft.3-D And 2-D Seismic, Plus G&G.OVER 60 DEFINED PROSPECTS 3-D50% NonOperated WI; 40% NRI PROJECTEst Well Reserves: 350 MBODry Hole: $500,000; Compl: $300,000DV 5304

WYOMINGCROOK CO., WY PROSPECT8-Well Project. 1,000-Acres.POWDER RIVER BASINObj 1: Minnelusa. 8,000 TD.Obj 2.: Dakota/Muddy. 6,500 Ft.3-D Seismic. SubSurface Geology. WILDCAT75% OPERATED; 75% NRI DeliveredEst Well Reserves: 800 MBOEst Project Reserves: 6.4 MMBODry Hole: $500,000; Compl: $750,000SELLER HAS DATAROOM PASSWORDDV 3967

GOSHEN & PLATT CO., WY PROJECT30,000-Net Acres.NORTHWEST DJ BASINNiobrara Formation. 2,000-5,000 Ft.Codell Sandstone Potential Identified.Also Deeper Dakota Formation. DJ BASINExtensive Seismic Grid Is Available.Seller Will Deliver 80%-82.5% NRI.Numerous Horizontal Opportunities.Most Leases Expire In 2011.CALL AGENT TO LEARN MOREDV 2376HZ

LARAMIE CO., WY PROSPECT150,000-Acres.DJ BASINNiobrara Formation. 7,500 Ft.High Potential Well Count.Defined By SubSurface Geology.Horizontal Completion Opportunity.100% OPERATED WI; 85% NRI DJ BASINEst Reserves/Well: ~160 MBOEst Reserves/Project: ~10 MMBODHC: $930,000; Compl: $231,000CONTACT SELLER TO LEARN MOREDV 5748

NATORONA CO., WY OFFERING640-Acres.WIND RIVER BASINObj 1: Lance & Fort Union. ~10,000 Ft.Obj 2: Muddy Formation. ~19,000 Ft. WINDObj 3: Lakota Formation. ~19,500 Ft. RIVER100% OPERATED WI; ~81% NRI (Lease)Total Est Reserves: 756 MBO & 205 BCFSELLER HAS MORE INFODV 5462

SHERIDAN CO., WY LEASE2-Leases. 2,790+/- Total Acres.POWDER RIVER Coalbed Methane (Tertiary Age Coals) CBM1-Federal Lease: 2,150 Net/Gross Acres.1-Fee Lease: 640 Net/Gross Acres.DV 1792

SWEETWATER CO., WY PROSPECT7-Drilling Locations. 1,000 Gross/Net Ac.GREEN RIVER BASINLease Offsets Salt Wells Field.Frontier & Dakota Offset Production. FARMOUT100% OPERATED WI; 87.5% NRIField Has Cumm’d: 24.7 BCF (7-Wells)FLEXIBLE FARMOUT TERMSDV 6131FO

WASHAKIE CO., WY PROSPECT1-Proposed Well & 3-D Seismic Shoot.BIG HORN BASIN9,078-Federal Acres.Obj 1: Frontier/Mowry/DakotaObj 2: Phosphoria/Tensleep/Madison BIGDepth Range: 10,500 – 15,000 Ft. HORN2-D Seismic, HC Shows In Offset Wells.100% OPERATED WI; 80% NRIOperations Are Available.Recoverable Rsrvs: 10 MMBO & 72 BCFEst 3-D Seismic Cost: $1.0MM - $1.2MMGENERATOR HAS MORE INFODV 2127

WESTON CO., WY PROSPECT320-Acres.POWDER RIVER BASINNewcastle (Muddy) Sand Target. 2,950 Ft.Acerage Allows 5-Infill & 4-StepOut Wells.75% Working Interest; 87.5% NRI (Lease)Operations Are Negotiable. POWDEREst Reserves/Well: 90 MBO RIVEREst Reserves/Project: 720 MBODHC: $165,000; Compl: $135,000SELLER HAS MORE DATA AVAILABLEDV 5475

WYOMING FRONTAL THRUST47,895-Gross/Net Acres For Sale.ROCK SPRINGS & EVANSTONMultiple Objectives. 9-Pay Intervals.Define-Darby/Hogsback East Thrust Sheet.Ground Floor Opportunity. Company Maker.Checkboard w/ Large Independent.Seller Can Deliver 80% NRI. -- All Federal Leases. PROSPECTSRecent Reinterpretation Shows Potential.CONVENIENT & TIP TOP LOOK-A-LIKETipTop Field Held 650 BCFE.NEW GEOSCIENCE & MAPSLeases Have 4 Year Terms Remaining.Easy Access. Flat Terrain. Infrastructure.-- SELLER REWORKING SEISMIC-- NEW MAPS; NEW IDEASDV 9965L

WYOMINGWYOMING PROSPECT FOR SALE16,564-Gross Acres & 10,682-Net Acres.NORTHERN GREEN RIVER BASINMerna-Daniel Anticline Exploration.Over-Pressured Gas To Mid-Lance. WYOMINGProposed Depth: 16,600 Ft.LAND MANAGER HAS MORE INFODV 5736

WYOMING PROSPECT OFFERING17,793-Gross Acres. 7,770-Net AcresNORTHERN GREEN RIVER BASINLance-Mesaverde Fairway GREENCretaceous Hilliard Target. 14,500 Ft. RIVERSeismic Data Is Available.LAND MANAGER HAS MORE INFODV 5735

ALASKAALASKA EXPLORATIONProspects Plus Large Acreage Tracts.STINSON OIL DISCOVERYEAST POINT THOMPSONNorth Slope & Cook Inlet.Favorable Geologic Indicators.Near Production Infrastructure.New Government Incentives. EXPLOREWill Sell Or Lease Individual Prospects.Or Will Consider Package Sale.Unique Opportunity.Internet Data Room & Files.DV 6417L

ALASKAN OPPORTUNITIES50-Leases.COOK INLET BASINMultiple Prospects Areas In Basin.Obj 1: Hemlock, Tyonek & Beluga FmsObj 2: Sterling Formation COOK100% OPERATED WI Available. INLETPotential Industry Alliances Possible. Est Rsrvs/Prospect: 300 MMBO & 1.0 TCFCooperative Industry Effort.New Government Tax Benefits.New Tax Benefits - WORTH THE LOOKCALL GEOLOGIST TO LEARN MOREDV 5840L

ALASKA RE-ENTRY PROSPECT520-Acre Lease. 1-Well Bore.BELUGA RIVERObjective Intervals: 3,000-4,000 Ft.100% OPERATED WI; 82% NRI RE-ENTRYShould Produce On ReCompletion.Offset 1.0 TCF Beluga River Unit.Offset Unit Makes 10.0 MMCFED.DV 6406RE

ALASKANORTH SLOPE & BEAUFORT SEA10-Leases.STINSON FIELDEast Of Point Thomson FieldTertiary, PreTertiary, PreCambrian Horizons.— Drillable From Onshore North Slope.PROVEN PRODUCTION Leases Exceptionally Researched. SLOPE100% OPERATED WI Available.Potential Industry Alliances Possible.Analog Field Has 300 MMBO & 4.0-7.0 TCF.Cooperative Industry Effort.New Government Tax Benefits.RARE OPPORTUNITY - GIANT RESERVESCOMPANY MAKER OPPORTUNITYCALL GEOLOGIST FOR MORE INFODV 5480L

CALIFORNIACALIFORNIA DRILLING PROSPECT2-Drilling Prospects. 6,317-Gross Acres.SAN JOAQUIN BASINTargeting Cretaceous Blewett Sands.Prospects Defined By 2-D Seismic Data. SANInfrastructure In Place. JOAQUINPotential Rsrvs/Prospect: 30-50 BCFExpirations March 2010-May 2012.CONTACT SELLER FOR MORE INFODV 6331

CALIFORNIA PROSPECTS FOR SALE9-Prospects. >10,000-Acres.SAN JOAQUIN BASINAntelope Valley TrendMulti-Zone Potential.Depths: 2,750-5,500 Ft. ANTELOPE2-D Seismic Data, Well Data, VALLEY& Surface Geology.25% Working Interest; 78% NRI (Lease)Est Total Rsrvs: >60.9 MMBO & 185.9 BCFLAND MANAGER HAS MORE INFODV 5738

CALIFORNIA PROSPECT OFFERING1-Prospect.NW MCKITTRICK FIELDTargeting Main Area, Upper Zone,& Steven Sands. Depth: 3,500 Ft.Well Data, Surface Geology, MULTIZONE& Well To Well Correlations.50% Working Interest; 77% NRI (Lease)Horizontal Potential.Est Recoverable Reserves: 13.7 MMBOCONTACT DENVER SELLER FOR INFODV 5734HZ

CALIFORNIACOLUSA CO., CA OPPORTUNITY1-Prospect.SACRAMENTO BASINTargeting Forbes Formation.3-D Seismic Opportunity SACRAMENTO50% OPERATED WI Available. Potential Reserves: 9.0+ BCFCALL PLS FOR SHOWINGDV 6353

KERN CO., CA PROJECT 1,416-Acres.WEST ANTELOPE HILLSObj 1: Point Of RocksObj 2: Marbury #1 & #2 SandsObj 3: Paleocene/Cretaceous Sands ANTELOPE3-D Seismic & SubSurface Mapping. HILLSSEEKING JV PARTNERSField Has Cumm’d 17.2 MMBO & 8.0 BCF.Est Reserves: ~2.38 MMBO & 1.5 BCFWell Drilling Costs: $417,000-$492,000DV 5079

KERN CO., CA PROSPECT 420-Acres.WEST CARNEROS CREEKObj 1: Agua FormationObj 2: Phacoides Sands Obj 3: Point Of Rocks CARNEROS2-D Seismic & GeoChemical Survey. CREEKSEEKING JV PARTNERSField Has Cumm’d 1.4 MMBO & ~8.0 BCF.Est Reserves: ~4.1 MMBODrilling Costs/Well: $417,000-$492,000DV 5078

NEVADANEVADA PROSPECT FOR SALE~100,000-Acres.Guilmette, Joana, Scotty Wash, Chainman& Pilot Reservoir Targets. MULTIPAYRecent Oil Discoveries In Area. 25% Working Interest; 80% NRI (Lease)Est Reserves: 20-100 MMBODV 5739

WHITE CO., NV PROSPECT~11,554-Acres. 1-Test Well.BUTTE VALLEYObj 1: Chainman ShaleObj 2: Diamond Peak Formation BUTTE 2-D Seismic, Geology, Gravity Testing. VALLEY100% OPERATED WI; 80% NRIProject To Continue After Test Well.Est Reserves: 202 MMBODHC: $2,865,038; Compl: $1,000,000DV 2271

~500 Listings Inside ‒ No CommissionsCall PLS: 713-650-1212 To Learn More About These Deals.

PLS, Inc., P.O. Box 4987houston, TX 77210

Phone: 713-650-1212Fax: 713-658-1922

Email: listingmgr@plsx.com

Access: www.plsx.com

This glossy newspaper includesthe latest e&p news, exploration suc-cesses, finds and budgets while alsocarrying our latest listings includingprospects (DV); lands (L); and farm -outs. Each of the anonymous listingsare coded by an alpha-numericalcode. Members interested in access-ing seller or package information onthe listings need only contact PLS andprovide the package codes to a cus-tomer service representative. In addi-tion to the P&P, PLS also publishesA&D Transactions, CapitalMarkets,MidstreamNews, various MarketAlertsand listings-only DealAlerts.

PLS has been in business since1987. Our marketing arm has han-dled over 650 projects worth ~$2.0 billion. Direct inquiries toRonyld Wise at rwise@plsx.com oraccess www.plsx.com for additionalinformation.

For subscriptions and member-ships options, contact Beau Kelley at713-491-4521. For Editorial Inquiriescontact Bertie Taylor at 713-650-1212.

COPYRIghT NOTICEFederal copyright law prohibits

unauthorized reproduction by anymeans and imposes fines of up to$100,000 for violations. For additionalreports, please email Beau Kelley:bkelley@plsx.com.

EDITORKyle Francis(kfrancis@plsx.com)

LAYOuT & DESIgNDavid Rosilez(drosilez@plsx.com)

LISTINgSRoss Benoche(rbenoche@plsx.com)

ADvERTISINgBeau Kelley(bkelley@plsx.com)

SENIOR EDITORBertie Taylor(btaylor@plsx.com)

CORPORATE DESIgNChinh Nguyen(chinh@plsx.com)

DIRECT MARkETINg SERvICESRichard Martin(rmartin@plsx.com)

MANAgINg DIRECTOR/RESEARChBrian Lidsky(blidsky@plsx.com)

MANAgINg DIRECTORRichard Bernardy(rbernardy@plsx.com)

CEO, PLS Inc.Ronyld Wise(rwise@plsx.com)

hOW TO uSE

Doug JacobsonChesapeake Energy Corp.

John GarganiSouthwestern Energy Co.

Robert TurnhamGoodrich Petroleum Corp.

Adrian Goodisman Scotia Waterous

Alan SmithQuantum Resources Management

David MarcheseHaddington Ventures, LLC

Frank Pottow Greenhill Capital

M. Lynn Bass GasRock Capital, LLC

Cathy SlivaBlueRock Energy Capital, LTD

www.ipaa.org

America’s oil & Gas Producers

PuBLIShINg & CONFERENCES ADvISORY BOARD

(713) 650-1212

PAGE 22 JULY, 2009

–Listings For Sale

FeaturedSale Packages

If you think PLS is just a listing serviceor publishing firm...think again.

Since 1988, PLS’ marketing arm and technical affiliates have advisedon more than 1,200 engagements for the sale or trade of producingproperties, overrides, prospects and midstream assets. In aggregate, PLS and its affiliates and principals have handled over $5.0 billion inassets and worked for more than 500 U.S. and Canadian firms. Equallyimpressive is our depth – handling individual and package sales from$100,000 to $750,000,000 in value.

PLS and our technical affilates, Burks and AEA, know how to handledivestment projects by making the right technical presentation and reaching the best buyers. Plus fees are flexible.

Selling assets is the last chance to make a profit on a property...Shouldn’t you maximize that opportunity?

Richard Martin www.plsx.comrmartin@plsx.com

For more information call (713) 650-1212

AdvertisersAdvertiser/Contact Info Page

iLandman 1www.ilandman.com

CGG Veritas 4www.cggveritas.com

Hawkeye GeoSensing 6www.hawkeyegeo.com

Land Rig Clearinghouse 7www.landrigclearinghouse.com

Patriot Exploration 8www.patriotexploration.com

Larry Lee 8www.larrylee.com

Lasser 12www.lasserdata.com

PHD Win 14www.phdwin.com

Forest Capital 15www.forestcap.com

IPAA 17www.ipaa.com

Five States Energy Capital 18www.fivestates.com

Triad Energy Corporation 19www.triad-energy.com

DTE Energy 20www.dteenergy.com

Englehart Energy 22www.englehartenergy.com

Josh Perez Graphics & Design 24www.geoart.com

Advertising with PLS!For details on how advertising with PLS can helpyour business, please contact Beau Kelley at(713) 650-1212 or email bkelley@plsx.com.

UINTAH & GRAND CO., UT PROJECT17-PDP, 1-PDBP, 14-PDNP, 14-PUDs.Operated & NonOperated WI For Sale.Net Proved Rsrvs: 59 MBO & 22 BCFPP 4214DV

SOUTHEAST KANSAS SALE PKG144-Wells; 80-PDP. 75,000-Gross Acres.100% OPERATED WI; ~82% NRI.Net Cash Flow: $40,000 - $45,000/MnPP 4248DV

ATASCOSA CO., TX PROPERTY2-Oil Wells. 2-SWD. 3-SI. 1,299-Acres.67.5%-92.5% WI; 50.6%-75.4% NRINet Proved Rsrvs: 252 MBO & 152 MMCFPP 4157

WISE CO., TX PROSPECT~732-Total Acres. 1-Proposed Well.Seller Will Deliver 80% NRI.Estimated AFE/Well: $2,500,000DV 2280

NEW ALBANY SHALE PROJECT28,752-Gross Acres. 24,238-Net Acres.100.0% OPERATED WI; ~82.5% NRIEst Total Reserve Potential: >100 BCFEDV 4249PP

MULTISTATE SALE PACKAGE24-Wells; 9-Producers.OPERATED & NonOperated WI For SaleNet Proved Rsrvs: 34.1 MBO & 607.7 MMCFPP 4267

WASHINGTON CO., OK PKG59-Wells.23%-51% NonOperated WI; 19%-42% NRIEst Net Revenue: $37,000/MnPP 4266

NORTH LOUISIANA PROJECT1-Initial Proposed Well. 530-Acres.100% OPERATED WI; 75% NRIEst Reserves: 5.4 BCF/Well (20 Ft of Pay)DV 5272

West Plains Energy

MULTISTATEALABAMA & MISSISSIPPI PROSPECTBLACK WARRIOR BASINMillerella, Carter, Sanders & Evans SandsLewis, Nason, Nevins & Chandler Sands MULTIAverage Depth: 4,500 Ft. ZONEAverage Reserves/Well: 1.2 BCF DV 5922

ARIZONA & NEW MEXICO GAS DEALProlific CO2 & Helium Field.ST. JOHNS FIELDLargest Undeveloped Helium/CO2 Field——In North America.Huge Development Project. CO2/HELIUMGas Markets In Permian Basin Area.SEEKING JOINT VENTURE PARTNERSEst CO2 Reserves: 15 TCFDV 5364

ILLINOIS & KENTUCKY ACREAGE~229,000-Net Acres.NEW ALBANY SHALE LEASES300-400 Ft Of Pay Thickness.Most Acreage In Rock Creek Graben.Kentucky Acreage:— Crittenden, Livingston, Marshall,

Union & Webster Co. MULTISTATEIllinois Acreage:— Hardin, Jackson, Johnson, Massac,

Pope & Saline Co.Majority Of Leases Expire: 2010-2011L 6448DV

INVESTMENT PROPERTY<5,000-Acres.MITIGATION BANKProcessing Place. ACREAGESeller Seeks Purchaser/Partner.L 2308

MARCELLUS SHALE PROSPECTSeeking JV Partner.Pennsylvania & West Virginia. SEEKING JV25,000-Acres Under Lease.L 3789

TEXAS / OKLAHOMA PROSPECT SALE33,500-Acres. 4-Test Wells.BRYAN CO., OKGRAYSON CO., TXTexas Acreage: 2,000+ Ft. Depth TESTOklahoma Acreage: No Depth Limitation50% Working Interest; 78% NRIAdditional Leasing Subject To 50-50 AMI.DV 5596

MULTISTATETEXAS & LOUISIANA ACREAGE~20,025-Total Net Acres.HAYNESVILLE SHALESabine-LA. Sabine/San Augustine-TX.Bossier, Knowles & James Lime Potential.Quality Reservoir Rock.Substantial Gas Shows. Geologic Evaluation Available. ACREAGE75% OPERATED WI; 56.25% NRIPipeline Infrastructure In Place or Near— Completed Near Company’s Acreage.Significant Bossier, Knowles, James Lime.Strong Haynesville Potential w/Large—-Operators Producing in Prolific James Lime.All Acreage In Highly Active Areas.Sizeable Leasehold Position in Haynesville.CALL AGENT FOR RECENT UPDATEDV 3329

OFFSHORECALHOUN CO., TX PROSPECT600-Acres. Shallow State Waters.GULF COASTTargeting Miocene & Frio Sands. STATELeased, Mapped & Ready To Apply WATERS—-For Permit To Drill.Est Reserves: 8.8 MMBO & 228 BCFDV 1205

GALVESTON BAY ORRI SALE TRINITY BAY & N POINT BOLIVAR,FISHERS REEF,RED FISH REEF FIELDSStacked Miocene & Frio Production.Total Depth: 8,000 - 13,000 ft.3-D Seismically Defined. ORRI5.00%-8.00% ORRI For Sale.Pre Hurricane Cash Flow: $55,000/MnCALL PLS FOR MORE DETAILSRR 4239

GULF OF MEXICO OFFERING3-Fields.DEEPWATER FIELD DEVELOPMENTMirage, Morgus, & Telemark FieldsFloating Production Facility: ATP TitanDevelop Mirage/Morgus: ImmediatelyTelemark Development: 2010 GOMExport Lines Have Been Installed. PROJECT100% OPERATED WI Available.SEEKING JOINT VENTURE PARTNERSInitial Production Set For Late 2009.Max Production: ~32 MBOED In 2011Est Total Development Cost: ~$460 MMAGENT HAS UPDATED PACKAGEDV 6209

GOM PROSPECT OFFERING1-Prospect. 5,760-Acres.Targeting Siph D. 56 Ft.Analogs Cumm’d 25 MBO & 4.0 BCF.Estimated Reserves: 13.3 BCFE GOM SHELFDHC: $5,100,000CONTACT SELLER FOR MORE INFODV 6343

OFFSHORE PROSPECT FOR SALE5,760-Acres.VIOSCA KNOLLTargeting Miocene Gas. 3,000 Ft. (TVD)Drill From An Existing Platform.3-D Seismic Data.Horizontal Opportunity Available.Seller Will Deliver 79% NRI. OFFSHORE LAEst Reserves: 20-27 BCFAll Facilities In Place.No Abandonment Liability.DHC: $4,000,000; Compl: $3,000,000CONTACT LANDMAN FOR INFODV 5105

FOR SALE - EQUIPMENTDRILLING RIG FOR SALEDrill Rig For Sale.NATIONAL 370 MECHANICALCan Drill Down To 10,000 Ft. 2- 630 HP 440 KW Marathon Generators. RIG2-CAT 3406C Engines. Compound 280,000 Lbs w/ 8 Lines.BROKER HAS ADDITIONAL DATAE 5415RIG

MECHANICAL/WORKOVER DRILL RIG1-Mechanical Drill Rig For Sale.LOADCRAFT LCI 750 DOUBLE DRUM1,000 HP Engine. Seven Axel Carrier.2- CAT C-15 540 HP. RIG2- Allison S 6061 RB Six Speed.100% BRAND NEW CONDITIONBROKER CONTACT INFO PROVIDEDE 5417RIG

OFFSHORE PLATFORM FOR SALEMOBILE AREA - GULF OF MEXICOWater Depth: 54 Ft.Tripod Wellhead DeckFacilities Can Flow: 17,000 MCFD GOMTotal Fluids: 1,900 Barrels PLATFORMProcessing Equipment Incl DehydrationRoom For Compression.1-Well Slot w/ Option To Add Slots.Drawings Are Available.E 6446RIG

FOR SALE - TECHNOLOGYSEISMIC TECHNOLOGY FOR SALE1-StandAlone License.Seismic Micro Technology SoftwareSMT 2d/3dPak PC Workstation.Interpretation Software. TECH/SEISMICSale Includes Maintenance & Transfer Fee.Sale Price: $21,000Price Represents $2,200 Discount——From Buying Directly From SMT.TECH 5796

TECHNOLOGY LICENSE FOR SALE1-Network License.Seismic Micro Technology SoftwareSMT 3dPak PC Workstation. TECHNOLOGYInterpretation Software.Sale Includes Maintenance & Transfer Fee.Sale Price: $16,000 Price Represents $2,125 Discount——From Buying Directly From SMT.SELLER HAS MORE INFO AVAILABLETECH 5795

WANTEDACTIVE CENTRAL TEXAS OPERATORSeeks Opportunities: RRC #7B, 7C, 8 & 8AFully Operational Company w/ ExperiencedPersonnel, Drilling Rigs (2,500-5,500 Ft),Completion Units, Dozers, & All OtherAssociated Equipment To TakeFrom Prospect To Production.Participations - Prospects - FarmoutsW 5826PP/DV

BUYERS & PARTNERS WANTEDMidContinent Prospect Generators.SEEKING CAPITAL/PARTNERS OPERATED & NonOperated Options.Organic Growth Opportunities.Experienced Management Team.Long Life/Low-Risk Projects: <10,000 Ft.CONTACT PLS FOR BUYER INFOW 5379

GULF COAST PROPERTIES WANTEDSuccessful Prospect GeneratorSEEKING SOUTH LOUISIANA CALL PLS TO LEARN MOREW 6475

PRODUCING PROPERTIES WANTEDPREFERS SOUTH ARKANSASWill Also Look At North Louisiana Must Include Operations.Price Range: Up To $25,000,000CALL PLS FOR INTRO TO BUYERW 6434PP

SEEKING OPERATED PROPERTIESGas And/Or Oil. Cash Transactions.BUYER CAN CLOSE QUICKLY Price Range: $15 MM - $25 MMWants Permian Basin Properties.Wants E. Texas, Texas Panhandle.Wants Oklahoma Properties.~50% PDP, 50% PUDs & Probs Desired.Prefers >/= 60% WI; >/= 80% NRIWants OPERATED Properties.PLS HAS COLORADO BUYER INFOW 5777PP/DV

WANT TO PUT RIG TO WORK7,500 Ft. Ready To Go.EAST TEXAS & SOUTH TEXASCan Drill Depths 3,500-7,500 Ft.Flexible Rig Crew & Owner.W 5927RIG

WANTED: PRODUCING PROPERTIESColorado Oil & Gas Company.WEST, CENTRAL & SOUTH TEXAS PERMIAN BASINWILL ALSO LOOK AT KANSASSeeks Operated Properties.Price Range: $25 MM - $100 MMCALL PLS FOR BUYER CONTACT INFOW 5600PP

WANTED: SHALLOW PROJECTSTexas Preferred.Buyer Has 2,500 Ft. Drilling Rig & Equip. Seeks Infill Drilling Or Farmouts.In-House Geologist & Engineer.CONTACT PLS FOR MORE DETAILSW 4078DV

WANTED: WI & ROYALTIES Texas, Louisiana, Gulf Coast Areas.PRODUCING PROPERTIES & ORRIOPERATED Or NonOperated Properties.Will Consider All Amounts.Quick Review & Decision Time.CALL PLS FOR INTRO TO BUYERW 6469PP/RR

www.englehartenergy.com

Wanted?Contact Ross at rbenoche@plsx.com or

call (713) 650-1212 to find out how you canget your wanted listings in PLS’ publications.

JEFFERSON CO., TX SALES PKG5-Wells.

CONSTITUTION & HATHAWAY FIELDSYegua & Hardy Production.

NonParticipating Royalty For Sale.Gross Prod: 2.4 MBOPD & 41.3 MMCFD

Net Production: 440 MCFEDAvg Net Revenues: $74,057/Mn

PDNP Possible Plus New DrillingActive Area: 3-New Offset Permits

RR 4270

TERRALLIANCE

assets prospects capital midstream pricing

Information. Marketing. Advisory.One company, one source, one stop.

Providing information, marketing & advisory services for the oil & gas industryPhone: 713.650.1212 • Fax: 713.658.1922 • www.plsx.com In Canada, Call 403.294.1906

PLS is the industry’s one-stop shop for information,marketing and advisory services. PLS has long assistedclients in sourcing business opportunities, bettermanaging their portfolios and facilitating profitabletransactions.

On the information front, PLS is one of the industry'sleading publishers, providing critical information inthe A&D and E&P arena. PLS also manages theindustry's multiple listing service and operates otherdatabases including news archives, market activities,transaction metrics and financial presentations. PLSalso provides unique advertising opportunities andhosts industry conferences, expositions andnetworking events.

On the marketing side, PLS handles divestments,prospect brokerage, midstream asset sales andcorporate communications. PLS also assists sellerswith technical and engineering services throughregional affiliates including Burks Oil & Gas Properties,American Energy Advisors, Wellspring Partners andDivestPro Energy Partners.

Finally, PLS also offers advisory services for clientsseeking support, valuation services, buyer assistance,deal origination and access to capital markets. Forover20 years, PLS has provided information, marketing andadvisory services for the oil and gas industry. For moredetails on PLS’ products and services please call713.650.1212 or surf www.plsx.com.