y:commission 0aprilready to printpope - seeco ---- 266 ... applications archive... · jerry l....

JERRY L. CANFIELD, P.A.THOMAS A. DAILY, P.A.WYMAN R. WADE, JR., P.A.DOUGLAS M. CARSON, P.A.ROBERT R. BRIGGS, P.A. † *C. MICHAEL DAILY †COBY W. LOGANL. MATTHEW DAVIS

* Fayetteville Office

† Also Licensed in Oklahoma

DAILY & WOODSA PROFESSIONAL LIMITED LIABILITY COMPANY

ATTORNEYS AT LAW

KMW BUILDING58 SOUTH SIXTH STREET

P.O. BOX 1446FORT SMITH, AR 72902

TELEPHONE (479) 782-0361FAX (479) 782-6160

______________

COMMERCE PARK II BUILDING2049 EAST JOYCE BOULEVARD, STE. 301

FAYETTEVILLE, AR 72703TELEPHONE (479) 582-0361

FAX (479) 251-8111

JAMES E. WESTPHILLIP J. NORVELL *

DALE CARLTON *

OF COUNSEL

_______

HARRY P. DAILY (1886-1965)JOHN P. WOODS (1886-1976)JOHN S. DAILY (1912-1987)

April 6, 2010

Arkansas Oil and Gas Commission301 Natural Resources Drive, Suite 102Little Rock, Arkansas 72205

Re: ORDER REFERENCE NO. 266-2010-04Application of SEECO, Inc. for Integration of All Unleased Mineral Interests andNon-consenting Working Interests in a unit described as Section 27, Township 9North, Range 18 West, Pope County, Arkansas

Commissioners:

SEECO, Inc., 2350 N. Sam Houston Parkway E, Houston, TX 77032, hereby applies tothe Arkansas Oil and Gas Commission for the integration of all unleased mineralinterests and non-consenting working interests in its proposed drilling unit which isdescribed above.

1. The proposed drilling unit is an established unit as defined in paragraph (f) ofArkansas Oil and Gas Commission General Rule B-43. Applicant proposes to drill ahorizontal well from a non-exceptional surface location in the Northeast Quarter ofSection 27 down to a non-exceptional bottom hole location in the Northeast Quarter ofSection 34. The tentative proposed allocation of this well is 67.51% to Section 27 and32.49% to Section 34, subject to revision in accordance with General Rule B-43.Applicant states that it will seek authority to drill and produce the shared well in aseparate, administrative, application.. The proposed well will be drilled to a total verticaldepth of 3,805 feet to test the Fayetteville Shale Formation. Applicant has obtainedone or more oil and gas leases covering its proposed drill site.

2. Applicant owns oil and gas leases covering a substantial part of the proposedunit. Applicant should be named as operator of the well. The person or persons to beintegrated are shown in Exhibit "A" attached hereto and made a part hereof.

3. Applicant has made diligent efforts to negotiate with the non-participatingleasehold working interest owners, each of said parties owning an oil and gas leaseholdinterest in the proposed unit, but applicant has been unable to secure an assignment of

the leasehold interest on an equitable basis or to secure participation by said parties inthe drilling of the proposed well.

4. Applicant states that it has made repeated efforts to negotiate with the owners ofthe unleased mineral interests in order to agree on a plan of development of saiddrilling unit; that those owners have been offered an opportunity to participate in theproposed well; that they have been offered a fair and reasonable bonus considerationfor the execution of an oil and gas lease covering their interests; that they have beenfurnished with a proposed oil and gas lease and a copy of the AAPL operatingagreement form which applicant proposes to use in connection with the drilling of saidwell; but that all of the efforts of the applicant have produced no agreement by saidparties.

5. Applicant states that it is in the best interest of conservation and the protection ofcorrelative rights of all interested parties that the proposed unit be developed for oil andgas production without undue delay.

6. In order that applicant may proceed with the orderly development of said unit,applicant hereby requests that the Arkansas Oil and Gas Commission issue its order, inthe alternative, that:

(a) The owners of non-consenting oil and gas leasehold workinginterests indicated above shall participate in the cost of drilling,testing and completion of the test well to be drilled by applicant onthe captioned unit, subject to the terms of an Operating Agreementwhich substantially employs the terms of the AAPL Operatingagreement, with a COPAS attached.

(b) All of the non-consenting oil and gas leasehold working interestswithin the proposed unit shall be force pooled and integrated intosaid unit, and a reasonable risk factor shall be established andassessed as a penalty against said integrated interest.

7. Applicant further states that due to the risks and costs inherent in the drilling ofthe proposed well, the Commission should fix a reasonable risk factor to be assessedas a penalty against the integrated interests within the unit. The risk factor should beapplied to the proportionate cost and expense of drilling, completing and equipping thewell, which would have been borne by the interest of said parties had they participated.Applicant requests that if the integrated parties do not elect within 15 days afterissuance of the Commission's order as between alternatives (a) and (b), it shall beassumed that the integrated parties elected alternative (b) in lieu of the right toparticipate in the working interest in said unit.

8. Applicant requests that the Arkansas Oil and Gas Commission set this matter forpublic hearing, and after same, issue its order, in the alternative, that:

(a) Each of the owners of the unleased mineral interests indicatedabove execute and deliver to applicant a one year oil and gaslease, on an AAPL lease form, for a bonus consideration of$750.00 per net mineral acre to be paid as fair and reasonablecompensation in lieu of the right to participate in the workinginterest in said unit, and that said oil and gas lease provide for a3/16 royalty on oil and gas.

(b) Each of the owners of unleased mineral interests indicated abovebe force pooled and integrated into the captioned unit withassessment of a reasonable risk factor penalty against theirinterest.

(c) The owners of unleased mineral interests shall participate in thecost of drilling, testing and completion of the test well to be drilledby applicant on the captioned unit, subject to the terms of anoperating agreement which substantially employs the terms of theAAPL Operating Agreement.

Applicant further requests that said mineral owners be required to elect within fifteen(15) days after issuance of the Commission's order which method will be pursued in thedevelopment of the above described unit, and, in the event no election is made, that itshall be assumed that the owner of said unleased mineral interest has elected to accepta bonus of $750.00 per net mineral acre as compensation in lieu of the right toparticipate in the working interest in said unit, and with the royalty to be 3/16.

9. Applicant further states that due to the risks and costs inherent in the drilling ofthe proposed well, the Commission should fix a reasonable risk factor to be assessedas a penalty against the integrated interests within the unit. The risk factor should beapplied to the proportionate cost and expenses of drilling, completing and equipping thewell, which would have been borne by the interest of said parties had they participated.

10. Applicant further requests that this Commission's order specifically provide thatany party electing either to participate or be force pooled subject to recoupment of arisk factor penalty be bound by the terms of the attached AAPL Operating Agreementfor the life of commercial production within the unit so that all future unit operationsmight be proposed pursuant to the provisions of such agreement without the necessityof future action by this Commission.

11. Applicant also requests that said order be made applicable to any unknownspouse, heir, devisee, personal representative, successor or assign of said parties.

12. The names and addresses of parties interested in this proceeding are set forth inExhibit "A" attached hereto and made a part hereof.

13. Please note the appearance of Thomas A. Daily of Daily & Woods, P.L.L.C.,P.O. Box 1446, Fort Smith, Arkansas, 72902, on behalf of applicant.

Very truly yours,

Thomas A. Dailyjmt

Storeygard 09-18 #1-27H34 Section 27 – T9N – R18W Pope County, Arkansas

EXHIBIT A

INTERESTED PARTIES

Page 1 of 6

MINERAL OWNERS

Andrews, Alan L. See Page 1 of Exhibit B

Andrews, Clifton L., Revocable Trust See Page 2 of Exhibit B

Andrews, Ilagene Johnson aka Ila Johnson Andrews See Page 3 of Exhibit B

Andrews, Leotta, Heirs See Page 4 of Exhibit B

Andrews, Nathan See of Exhibit B

Andrews, W. E., Heirs See Page 6 of Exhibit B

Andrews, Wayne Clifton See Page 7 of Exhibit B

Anthony, Cherrie A. See Page 8 of Exhibit B

Baker, M. W. aka Math W. Baker, Heirs See Page 9 of Exhibit B

Baker, Wayne aka H. Wayne Baker aka Harley Wayne Baker and Wanda S. Baker aka Wanda Sue Baker See Page 10 of Exhibit B

Bellis, J. H., Heirs See Page 11 of Exhibit B

Benson, Evelyn P. See Page 13 of Exhibit B

Bingham, Sabrina Liles See Page 14 of Exhibit B

Burcham, Betsy Franklin See Page 15 of Exhibit B

Butler, Kay See Page 16 of Exhibit B


EXHIBIT A

INTERESTED PARTIES

Page 2 of 6

Childs, Mimmie L. Gaunt See Page 17 of Exhibit B

Craig, Sherlyn See Page 18 of Exhibit B

Daniels, Sue Gaunt See Page 19 of Exhibit B

Duenas, Janice Marie Parker See Page 20 of Exhibit B

Duvall, Billy R. See Page 21 of Exhibit B

Duvall, Ralph and Reba Duvall See Page 22 of Exhibit B

First Financial Trust and Asset Management Company N. A., as Trustee of Perini Brothers Revocable Trust dated June 8, 2005 See Page 23 of Exhibit B

First Financial Trust and Asset Management Company N. A., Successor Trustee of the Maxine Walker Perini Testamentary Trust, and Successor Trustee of the Maxine W. Perini Trust No. 2 See Page 24 of Exhibit B

Franklin, Phillip See Page 25 of Exhibit B

Gaunt, Clifford Eldon See Page 26 of Exhibit B

Gaunt, Earl Brady See Page 27 of Exhibit B

Gaunt, Jeffrey William See Page 28 of Exhibit B

Geribaldo, Lois See Page 29 of Exhibit B

Henry, Debbie See Page 30 of Exhibit B


EXHIBIT A

INTERESTED PARTIES

Page 3 of 6

Hensley, Kimberly K. Giles See Page 31 of Exhibit B

Jabara, Bryan See Page 32 of Exhibit B

Jabara, Donna See Page 33 of Exhibit B

Jabara, F. M. and Nellie E. Jabara, Heirs See Page 34 of Exhibit B

Jabara, Gina See Page 35 of Exhibit B

Jabara, Junevene Ruth See Page 36 of Exhibit B

Jabara, Leslie A. See Page 37 of Exhibit B

Jabara, Lisa M. See Page 38 of Exhibit B

Jabara, Norma L. See Page 39 of Exhibit B

Jabara, Steven See Page 40 of Exhibit B

Jamell, James aka James E. Jamell and Bonnie J. Jamell aka Bonnie Jean Jamell, Trustees of the 2006 Jamell Family Revocable Trust See Page 41 of Exhibit B

Kimbrell, Cynthia See Page 42 of Exhibit B

King, John Price See Page 43 of Exhibit B

King, Kelly David See Page 44 of Exhibit B

King, Richard Edward See Page 45 of Exhibit B


EXHIBIT A

INTERESTED PARTIES

Page 4 of 6

Lake, Mark S. and Amy E. Lake See Page 46 of Exhibit B

Lawrence, Dennis See Page 47 of Exhibit B

Lawrence, Donald E. See Page 48 of Exhibit B

Lawrence, James R. See Page 49 of Exhibit B

Lawrence, Robert F. See Page 50 of Exhibit B

Lawrence, W. R., Heirs See Page 51 of Exhibit B

Legacy Royalties, Ltd. See Page 52 of Exhibit B

Liles, Derek See Page 53 of Exhibit B

Mohundro, Terri See Page 54 of Exhibit B

Mooney, Shirley A. See Page 55 of Exhibit B

Parker, Don Farris See Page 56 of Exhibit B

Patterson, Janice Rene Giles See Page 57 of Exhibit B

Pipkin, Mary Lynn See Page 58 of Exhibit B

Roberts, Gerald Don See Page 59 of Exhibit B

Schwander, Michael R. and Anitta Lou Schwander See Page 60 of Exhibit B


EXHIBIT A

INTERESTED PARTIES

Page 5 of 6

Sears Construction Development and Leasing, LLC See Page 61 of Exhibit B

Sharp, Sammie Violet See Page 62 of Exhibit B

Soulsby, David See Page 63 of Exhibit B

Soulsby, Susan Alice fka Susan Alice Cavin See Page 64 of Exhibit B

Tobin, James Paul See Page 65 of Exhibit B

Tobin, Joseph See Page 66 of Exhibit B

Tobin, Kellen See Page 67 of Exhibit B

Tobin, Shannon See Page 68 of Exhibit B

Watson, Deborah Allen See Page 69 of Exhibit B

Willoughby, Larry See Page 70 of Exhibit B

Winham, Donald Price aka Donald Winham See Page 71 of Exhibit B

Winham, Michael See Page 72 of Exhibit B

Wooten, Walter Lane See Page 73 of Exhibit B

WORKING INTEREST OWNERS:

Arkoma Basin Minerals, Inc. See Page 74 of Exhibit B


EXHIBIT A

INTERESTED PARTIES

Page 6 of 6

BP America Production Company See Page 75 of Exhibit B

Chesapeake Exploration, LLC See Page 76 of Exhibit B

Griffith Land Services, Inc. See Page 77 of Exhibit B

Sedna Energy, Inc. See Page 78 of Exhibit B


EXHIBIT B

RESUME OF EFFORTS TO LEASE

Page 1 of 78

Alan L. Andrews November 16, 2009 Searched office records for contact information. Located a possible address. No

telephone number listed. Searched area and local directories. No positive results. Conducted internet search for possible listings. Nothing found.

November 23, 2009 Called owner’s brother, Wayne C. Andrews. No answer, left a message. December 3, 2009 Mailed lease proposal letter. Called owner’s brother, Wayne C. Andrews. No

answer, left a message. December 15, 2009 Called and spoke with Wayne C. Andrews. Made lease proposal offer. He asked

that I fax him our offer. He provided me with a fax number. Faxed requested offer to Wayne C. Andrews.

December 23, 2009 Called Wayne C. Andrews to see if he had reviewed offer. No answer. Left a

message. December 30, 2009 Drove to address found in office records. No one home at the time. January 4, 2010 No response to date from Wayne C. Andrews. Called, no answer. Left a

message. January 14, 2010 Called and spoke with Wayne C. Andrews. He said he is still reviewing offer

and has not made a decision yet. January 21, 2010 Called, no answer. Left a message. January 22, 2010 Received a call from owner’s brother, Wayne Andrews. He informed me that he

speaks for the family, but he gave permission to call and speak with Alan and Shirley. He was able to provide me with a telephone number for Alan Andrews and Shirley Mooney. Called and spoke with Alan. Discussed lease offer. Owner has agreed to lease. Lease and related documents being prepared.

January 29, 2010 Lease and related documents mailed. February 15, 2010 No executed documents received to date. March 3, 2010 Called and spoke with Wayne. He now says this interest is in his mother’s trust

and he is getting the documents together to send to me. March 22, 2010 Still waiting on documents. April 6, 2010 Well proposal letter and AFE mailed.


EXHIBIT B


Page 2 of 78

Clifton L. Andrews Revocable Trust November 15, 2009 Searched office records for contact information. Located a possible

address and telephone number. Called, no answer. Left a message. November 23, 2009 Called and spoke with owner. Discussed lease offer. Owner advised me

that his son Wayne C. Andrews makes the decisions for him. He was able to provide me with a telephone number for Wayne C. Andrews. Called, no answer. Left a message.

December 3, 2009 Called Wayne C. Andrews. No answer. Left a message. December 15, 2009 Called and spoke with Wayne C. Andrews. Made lease proposal offer.

He asked that I fax him our offer. He provided me with a fax number. Faxed requested offer to Wayne C. Andrews.

December 23, 2009 Called Wayne C. Andrews to see if he had reviewed offer. No answer.

Left a message. January 4, 2010 No response to date from Wayne C. Andrews. Called, no answer. Left a

message. January 14, 2010 Called and spoke with Wayne C. Andrews. He said he is still reviewing

offer and has not made a decision yet. January 21, 2010 Called, no answer. Left a message. January 22, 2010 Received a call from owner’s son, Wayne Andrews. He informed me that

he speaks for the family. He was able to provide me with a telephone number for Alan Andrews and Shirley Mooney. Discussed lease terms. Lease terms are unacceptable.

January 29, 2010 No change in status. Lease terms still unacceptable. February 12, 2010 Called, no answer. Left a message. February 26, 2010 No return call. Called, no answer. Left another message. March 3, 2010 Called and spoke with Wayne. Discussed letter agreement. April 6, 2010 Well proposal letter and AFE mailed in care of Wayne Andrews.


EXHIBIT B


Page 3 of 78

Ilagene Johnson Andrews aka Ila Johnson Andrews November 15, 2009 Searched office records for contact information. Located a possible address and telephone number.

Called, no answer. Left a message. Drove out to owner’s residence. No one home. November 30, 2009 Called and owner’s son answered the phone. He said that he had documents giving him power of

attorney for his mother. He said he would have to find the documents before he could provide copies. Discussed lease offer. He said that he and his brother would like to discuss offer and get back to me.

December 11, 2009 Called, no answer. Left a message. December 23, 2009 Called and spoke with owner’s son. They said they are still thinking about it and for me to call

back. He still hasn’t been able to find the documents giving him power of attorney over his mother. January 5, 2010 Called, no answer. Left a message. January 14, 2010 Drove to owner’s home. No one there. January 22, 2010 Called, no answer. Left a message. January 26, 2010 No change in status. Owner’s son still unable to provide documents stating he has power of

attorney over his mother. February 12, 2010 Met with owner’s son. He agreed to lease upon the agreement that his brother’s would received the

same terms. Said he would speak with his brother’s then let me know. February 15, 2010 Received a call from owner’s son. He said he wants a higher bonus and royalty after meeting with

his brother’s. Negotiated other lease terms. He agreed. February 22, 2010 Owner’s son provided a Limited Power of Attorney document for his mother. Lease and related

documents being prepared. February 26, 2010 Met with owner’s son to get lease signed. He said he had received a letter from SEECO, Inc.

offering higher terms and he would not sign the lease unless he received those terms. Told him I would have to get approval.

March 1, 2010 Spoke with owner’s son about lease terms. He stated he wanted the deal he signed for and he

would be speaking with an attorney. March 5, 2010 Met with owner’s son again. Negotiated lease terms. Owner has agreed to lease terms. Prepared

lease and related documents. Setup a meeting to get documents signed. March 6, 2010 Owner’s son did not appear for meeting we had scheduled. Called and left several messages. No

response. March 8, 2010 Spoke with owner’s son again. He said he had learned some things from the Oil & Gas

commission and he had scheduled a meeting with one of their attorneys. He said he would contact me after his meeting.

March 23, 2010 No return call. Called, no answer. Left a message.

April 6, 2010 Well proposal letter and AFE mailed in care of Stanley Andrews.


EXHIBIT B


Page 4 of 78

Leotta Andrews, Heirs Alan L. Andrews See Page 1 of Exhibit B Wayne Clifton Andrews See Page 7 of Exhibit B Shirley A. Mooney See Page 55 of Exhibit B


EXHIBIT B


Page 5 of 78

Nathan Andrews November 3, 2009 Searched office records for contact information. Located a possible address and

telephone number. Called and number has been disconnected. November 7, 2009 Drove by owner’s last known residence. House is vacant. November 23, 2009 Searched local and surrounding area directories for new listing. Nothing found.

Conducted internet search. Located several possibilities. December 11, 2009 Spoke with an aunt of owner. She was able to provide me with a new telephone number

for owner. Called, number busy. December 24, 2009 Called, number busy.

December 31, 2009 Called, no answer. Left a message. January 12, 2010 No return call. Called, no answer. Left a message. January 15, 2010 Called and spoke with owner’s brother, who is leased to SEECO, Inc. Asked if he could

provide any contact information on Nathan. He did not have any information. January 25, 2010 Drove to address found in office records. House abandoned. Spoke with neighbors, they

did not know the whereabouts of owner. January 30, 2010 Called, no answer. Left another message. February 3, 2010 Spoke with family members. They were unaware of owner’s whereabouts and had no

contact information for him. February 9, 2010 Called and spoke with another family member. He said he tried to call owner, but the

number he had was an unreachable number. It is the same number we have. March 3, 2010 Stanley Andrews brought Nathan and his wife by the office. Discussed lease offer.

Lease terms unacceptable. Asked for a current address. Owner stated he did not have a current address. He did provide me with a new phone number.

March 10, 2010 Called and spoke with Nathan. Lease terms still unacceptable. March 22, 2010 Called, no answer. Left a message. April 6, 2010 Well proposal letter and AFE mailed in care of Stanley Andrews.


EXHIBIT B


Page 6 of 78

W. E. Andrews, Heirs Clifton L. Andrews Revocable Trust See Page 2 of Exhibit B Ilagene Johnson Andrews aka Ila Johnson Andrews See Page 3 of Exhibit B Nathan Andrews See Page 5 of Exhibit B James Jamell aka James E. Jamell and Bonnie J. Jamell aka Bonnie Jean Jamell, Trustees of the 2006 Jamell Family Revocable Trust See Page 41 of Exhibit B Sammie Violet Sharp See Page 62 of Exhibit B Larry Willoughby See Page of 70 of Exhibit B Walter Lane Wooten See Page 73 of Exhibit B


EXHIBIT B


Page 7 of 78

Wayne Clifton Andrews November 15, 2009 Searched office records for contact information. Located a possible

address and telephone number. Called, no answer. Left a message. November 23, 2009 Called, no answer. Left a message. December 3, 2009 Called Wayne C. Andrews. No answer. Left a message. December 15, 2009 Called and spoke with Wayne C. Andrews. Asked if he could provide any

information on Leotta Andrews. He stated she is his deceased mother. Made lease proposal offer. He asked that I fax him our offer. He provided me with a fax number. Faxed requested offer to Wayne C. Andrews.

December 23, 2009 Called Wayne C. Andrews to see if he had reviewed offer. No answer.

Left a message. January 4, 2010 No response to date from Wayne C. Andrews. Called, no answer. Left a

message. January 14, 2010 Called and spoke with Wayne C. Andrews. He said he is still reviewing

offer and has not made a decision yet. January 21, 2010 Called, no answer. Left a message. March 3, 2010 Called and spoke with Wayne. He said this interest is now in his mother’s

trust and he is getting the documents together to send to me. March 22, 2010 Still waiting on documents. April 6, 2010 Well proposal letter and AFE mailed.


EXHIBIT B


Page 8 of 78

Cherrie A. Anthony December 27, 2009 Searched office records for owner’s contact information. Located an

address and phone number. Called, no answer. Left a message. December 28, 2009 Called again, left another message. January 4, 2010 Spoke with a friend at owner’s home. Owner is out of town. Left a

message for her to call when she returns. January 12, 2010 Called again, no answer. Left a message. January 14, 2010 Spoke with Mr. Watson, owner’s brother-in-law, who is an attorney

representing owner’s interest. He asked for a lease proposal letter to be sent. Lease proposal letter mailed.

January 27, 2010 Mr. Watson called. Terms unacceptable. February 5, 2010 New lease proposal letter mailed with an increased offer. February 12, 2010 Called and left a message with Mr. Watson’s secretary. February 19, 2010 No return call. Called again, no answer. February 26, 2010 Called and left another message with Mr. Watson’s secretary. March 1, 2010 Still no return call. March 8, 2010 Called again and left another message. March 22, 2010 Still no response. Unable to make contact with Mr. Watson. April 6, 2010 Well proposal letter and AFE mailed.


EXHIBIT B


Page 9 of 78

M. W. Baker aka Math W. Baker, Heirs Wayne Baker aka H. Wayne Baker aka Harley Wayne Baker and Wanda S. Baker aka Wanda Sue Baker See Page 10 of Exhibit B Lois Geribaldo See Page 29 of Exhibit B Michael R. Schwander and Anitta Lou Schwander See Page 60 of Exhibit B


EXHIBIT B


Page 10 of 78

Wayne Baker aka H. Wayne Baker aka Harley Wayne Baker and Wanda S. Baker aka Wanda Sue Baker November 15, 2009 Searched office records for contact information. Located a possible address and

telephone number. Called, no answer. Left a message. November 23, 2009 Called, no answer. Left a message. December 3, 2009 Called and spoke with owner. Discussed lease terms. Owner insisted his interest in this

section is leased to a third party. (See Page 74 of Exhibit B). Explained to him that we would need a proof of death and heirship on Herman Baker to clear up some title issues and that he may own interest in another tract. He said he did not have any information on Herman Baker. He suggested that I call Alton Baker. He was able to provide me with a telephone number for Alton Baker. Called Alton Baker. No answer. Left a message.

December 11, 2009 Called and spoke with Alton Baker. He said that the only heirship he could help with is

Math Baker. Alton Baker has agreed to do a proof of death and heirship of Math Baker. December 23, 2009 Called owner. No answer. Left a message. January 4, 2009 Called owner again. Still no answer. Left another message. January 22, 2010 No change in status. Still unable to locate anyone to provide the proper information on

the heirs of Herman Baker. February 10, 2010 Called owner. No answer. Left a message. February 22, 2010 No return call. Called, no answer. Left a message. March 5, 2010 Called and owner was busy. He asked that I call back at a later date. March 18, 2010 Called and spoke with owner. Owner has agreed to lease. Lease and related documents

being prepared. March 22, 2010 Lease hand delivered and signed. March 25, 2010 Additional tract information discovered where owner has an interest. Called and spoke

with owner. Owner has agreed to lease all lands. March 29, 2010 Lease and related documents being prepared. April 6, 2010 Well proposal letter and AFE mailed.


EXHIBIT B


Page 11 of 78

J. H. Bellis, Heirs Betsy Franklin Burcham See Page 15 of Exhibit B Kay Butler See Page 16 of Exhibit B Mimmie L. Gaunt Childs See Page 17 of Exhibit B Sue Gaunt Daniels See Page 19 of Exhibit B Phillip Franklin See Page 25 of Exhibit B Clifford Eldon Gaunt See Page 26 of Exhibit B Earl Brady Gaunt See Page 27 of Exhibit B Jeffrey William Gaunt See Page 28 of Exhibit B Debbie Henry See Page 30 of Exhibit B Cynthia Kimbrell See Page 42 of Exhibit B John Price King See Page 43 of Exhibit B Kelly David King See Page 44 of Exhibit B Richard Edward King See Page 45 of Exhibit B


EXHIBIT B


Page 12 of 78

J. H. Bellis, Heirs continued from page 11 of Exhibit B Mary Lynn Pipkin See Page 58 of Exhibit B Donald Price Winham aka Donald Winham See Page 71 of Exhibit B Michael Winham See Page 72 of Exhibit B


EXHIBIT B


Page 13 of 78

Evelyn P. Benson November 15, 2009 Searched office records for contact information. Located a possible

telephone number and address. Called, no answer. Left a message. November 27, 2009 Called and spoke with owner. Discussed lease offer. Owner said she

would like to lease. Explained to her that we would need a proof of death and heirship on Herman Baker to clear up some title issues before we could lease her. Owner could not provide me with the proper heirship information that we need for Herman Baker.

December 3, 2009 Called and spoke with Evelyn Benson. She advised me to call Alton

Baker. She was able to provide me with a telephone number for Alton Baker.

December 11, 2009 Called and spoke with Alton Baker. He said that the only heirship he

could help with is Math Baker. Alton Baker has agreed to do a proof of death and heirship for Math Baker.

December 28, 2009 Called several other relatives. None spoken with have the proper heirship

information we need for Herman Baker. January 15, 2010 No change in status. January 29, 2010 No change in status. Still unable to locate anyone with information on the

heirship of Herman Baker. February 3, 2010 Called and spoke with owner. Discussed letter agreement. Owner has

agreed to sign a letter agreement. Letter agreement and related documents being prepared.

February 7, 2010 Letter agreement and related documents mailed. February 22, 2010 No executed letter agreement received to date. March 3, 2010 Called, no answer. Left a message. March 12, 2010 Called and spoke with owner. Explained she needed to have an ancillary

probate filed in Arkansas for Leda Mae Baker. She said she is in the process of having that done.

April 6, 2010 Well proposal letter and AFE mailed.


EXHIBIT B


Page 14 of 78

Sabrina Liles Bingham November 20, 2009 Searched office records for contact information. Was able to locate a

possible telephone number for Violet Hinshaw, a relative of owner who also has an interest in this section. Called and spoke with Violet Hinshaw. Asked if she could help in providing me with information on Sabrina Liles Bingham. She said she would work on that and get back to me.

November 30, 2009 Received a telephone call from Violet Hinshaw. She gave me a phone

number for Sabrina Liles Bingham. Called, no answer. Called Sabrina again, no answer.

December 10, 2009 Called and spoke with Sabrina Bingham. Discussed offer to lease. She

asked for me to call back. Asked if she could provide me with a telephone number for her brother, Derek Liles, she said she didn’t have one.

December 16, 2009 Called and spoke with Sabrina Bingham. She has agreed to lease. Lease

and related documents being prepared. December 21, 2009 Lease and related documents mailed. January 4, 2010 Called, no answer. Left a message. January 14, 2010 No executed documents received to date. Called, no answer. Left a

message. January 25, 2010 Still no executed documents received to date. February 7, 2010 Called, no answer. Left a message. February 11, 2010 No return call. Still no executed documents received to date. February 27, 2010 Called, no answer. Left a message. Still no executed documents received

to date. March 15, 2010 No return call. Called, no answer. Left a message. Still no executed

documents received to date. April 6, 2010 Well proposal letter and AFE mailed.


EXHIBIT B


Page 15 of 78

Betsy Franklin Burcham A deed was located from the Estate of Barbara Jean Bellis Franklin by Phillip Franklin, Independent Executor for the Estate to Legacy Royalties, Ltd. (See Page 52 of Exhibit B) The deed contained the following: “All of Grantor’s right, title and interest, in and to all of the oil, gas and other minerals and all of the royalties and overriding royalties, excluding any and all working interest, in and under and that may be produced and mined, that grantor owns in the following property: All lands situated all or in part in Pope County, Arkansas, whether or not described herein. All of the E/2 Section 25, T9N, R19W in Pope County, Arkansas.” Phillip Franklin (See of Exhibit B) maintains his intention was to convey that specific tract only and not all the Estate’s interest in Pope County, Arkansas. January 5, 2010 Owner has been integrated in the past. Located contact information in

office files. Called, no answer. Left a message. January 20, 2010 Sent Phillip Franklin an email regarding open interest. January 23, 2010 No response to email. Sent another email. February 2, 2010 Sent another email to Phillip Franklin. February 12, 2010 Called owner. Still no answer. February 24, 2010 Sent another email. No response. March 22, 2010 No response to email. Sent another email regarding open interest. April 6, 2010 Well proposal letter and AFE mailed.


EXHIBIT B


Page 16 of 78

Kay Butler January 15, 2010 Owner has been integrated in the past. Located address and telephone

number from office files. Called, no answer. Left a message. January 31, 2010 Called and spoke with owner. Discussed clouded title issues and letter

agreement. Owner has agreed to sign a letter agreement. Letter agreement and related documents being prepared.

February 12, 2010 Letter agreement and related document mailed. February 26, 2010 No executed documents received to date. March 8, 2010 Called, no answer. Left a message. March 22, 2010 Still no executed documents received to date. April 6, 2010 Well proposal letter and AFE mailed.


EXHIBIT B


Page 17 of 78

Mimmie L. Gaunt Childs January 10, 2010 Owner has leased with us in the past. Obtained contact information from

office files. Called, no answer. Left a message. January 20, 2010 Spoke with owner’s mother, Betty Gaunt Whalen. She said she would ask

Mimmie to call. Mailed lease proposal letter. January 26, 2010 Called again, still no answer. Left another message. February 2, 2010 Called again, no answer. Left another message. February 10, 2010 Spoke with Betty Gaunt Whalen, owner’s mother. She again said she

would have Mimmie call. February 13, 2010 No return call. Called again, still no answer. Left another message. March 5, 2010 Still no return call. Called again, still no answer. Left another message. March 19, 2010 No change in status. Still no return call. Called again. Left another

message. April 6, 2010 Well proposal letter and AFE mailed.


EXHIBIT B


Page 18 of 78

Sherlyn Craig December 23, 2009 The family of Sherlyn Craig has been integrated previously. Located

contact information in office files for Norma Jabara. She is the spokesperson for the family. Called, spoke with Norma Jabara. Discussed lease terms. She said they are not interested in leasing.

December 31, 2009 Called again, left a message. January 7, 2010 Called again, left another message. January 13, 2010 Called again. Spoke with Norma Jabara. She will discuss the offer with

her family. January 14, 2010 Spoke with Norma Jabara again. Terms unacceptable. She wants to speak

with her friend, who is a landman. January 21, 2010 Spoke with Norma Jabara again. She has decided not to lease. She has

not talked with the landman yet. January 26, 2010 Called Norma Jabara, left a message. January 29, 2010 Lease proposal letter sent to owner. No change in lease terms. February 9, 2010 Spoke Norma Jabara. Offered higher terms. She will consider the new

offer. She requested certain provisions be put in the lease. February 18, 2010 Terms still unacceptable. March 12, 2010 Spoke with Norma Jabara. The family has decided to lease. Lease and

related documents being prepared. March 15, 2010 Lease and related documents mailed. April 6, 2010 Well proposal letter and AFE mailed.


EXHIBIT B


Page 19 of 78

Sue Gaunt Daniels January 15, 2010 Owner has leased with us in the past. Obtained contact information from

office files. Called, no answer. Left a message. January 26, 2010 Called, no answer. Left a message. February 11, 2010 Spoke with owner. Discussed letter agreement and clouded title issues.

Owner has agreed to sign a letter agreement. Letter agreement and related documents being prepared.

February 15, 2010 Letter agreement and related documents mailed. March 5, 2010 No executed documents received to date. March 22, 2010 Called, no answer. Left a message. Still no executed documents received

to date. April 6, 2010 Well proposal letter and AFE mailed.


EXHIBIT B


Page 20 of 78

Janice Marie Parker Duenas December 23, 2009 Owner’s family has been integrated previously. Located contact

information in office files for Norma Jabara. She is the spokesperson for the family. Called, spoke with Norma Jabara. Discussed lease terms. She said they are not interested in leasing.








EXHIBIT B


Page 21 of 78

Billy R. Duvall February 3, 2010 Owner has leased with us in the past. Obtained contact information from

office records. Called, no answer. Left a message. February 10, 2010 Searched internet for alternate contact information on owner. Nothing

found. February 26, 2010 No return call. Called again. Left another message. March 8, 2010 Called and spoke with owner. Owner said that this interest was forfeited

by the bank years ago and is now owned by Sears Construction Development & Leasing, LLC. Discussed owner signing a letter agreement. He was very adamant that he did not own these minerals and was not willing to sign a letter agreement.

March 22, 2010 Called, no answer. Left a message. April 6, 2010 Well proposal letter and AFE mailed.


EXHIBIT B


Page 22 of 78

Ralph Duvall and Reba Duvall November 15, 2009 Searched office records for contact information. Located a possible

address and telephone number. Called, no answer. Left a message. November 27, 2009 Called and spoke with owner’s daughter. Discussed offer to lease. She

informed me that her father, Ralph Duvall is now deceased and her mother is very ill. She said that none of the children have Power of Attorney over their mother, therefore they would not be able to sign a lease on her behalf.

December 14, 2009 Called and spoke with owner’s daughter again. She said the status of her

mother’s condition has not changed, she is still in the hospital and unable to sign a lease.

December 30, 2009 Spoke with owner’s daughter who stated her mother is very elderly and

still not well. She has not been able to sign a power of attorney and is still unable to sign a lease.

January 13, 2010 Status unchanged. February 3, 2010 Status still remains unchanged. February 19, 2010 Called, no answer. Left a message. March 5, 2010 No change in status. March 18, 2010 No return call. Called, no answer. Left a message. April 6, 2010 Well proposal letter and AFE mailed in care of Rita Roberts.


EXHIBIT B


Page 23 of 78

First Financial Trust and Asset Management Company N. A., as Trustee of Perini Brothers Revocable Trust dated June 8, 2005 November 15, 2009 Searched office records for contact information. Located a possible

address, telephone number and an email address. Sent an email to contact named in office records explaining lease proposal offer.

November 29, 2009 Called and left a message with secretary. December 3, 2009 Sent another email with lease proposal offer. December 11, 2009 Called and left a message with secretary. December 16, 2009 Called and spoke with contact. Discussed lease proposal offer. He said

that he would like the offer in a formal letter with a plat attached. December 18, 2009 Mailed requested lease proposal letter and plat. January 13, 2010 No response to lease proposal letter to date. January 22, 2010 Called, no answer. Left a message. February 9, 2010 Called, no answer. Left a message. February 14, 2010 No return call. No response to lease proposal letter. February 26, 2010 Called and left another message with secretary. March 8, 2010 Still no return call. March 22, 2010 Called. Left a message. Unable to make contact. April 6, 2010 Well proposal letter and AFE mailed.


EXHIBIT B


Page 24 of 78

First Financial Trust and Asset Management Company N. A., Successor trustee of the Maxine Walker Perini Testamentary Trust, and Successor Trustee of the Maxine W. Perini Trust No. 2 November 15, 2009 Searched office records for contact information. Located a possible

address, telephone number and an email address. Sent an email to contact named in office records explaining lease proposal offer.

November 29, 2009 Called and left a message with secretary. December 3, 2009 Sent another email with lease proposal offer. December 11, 2009 Called and left a message with secretary. December 16, 2009 Called and spoke with contact. Discussed lease proposal offer. He said

that he would like the offer in a formal letter with a plat attached. December 18, 2009 Mailed requested lease proposal letter and plat. January 13, 2010 No response to lease proposal letter to date. January 22, 2010 Called , no answer, left a message. February 9, 2010 Called, no answer. Left a message. February 14, 2010 No return call. No response to lease proposal letter. February 26, 2010 Called and left another message with secretary. March 8, 2010 Still no return call. March 22, 2010 Called. Left a message. Unable to make contact. April 6, 2010 Well proposal letter and AFE mailed.


EXHIBIT B


Page 25 of 78

Phillip Franklin A deed was located from the Estate of Barbara Jean Bellis Franklin by Phillip Franklin, Independent Executor for the Estate to Legacy Royalties, Ltd. (See Page 52 of Exhibit B) The deed contained the following: “All of Grantor’s right, title and interest, in and to all of the oil, gas and other minerals and all of the royalties and overriding royalties, excluding any and all working interest, in and under and that may be produced and mined, that grantor owns in the following property: All lands situated all or in part in Pope County, Arkansas, whether or not described herein. All of the E/2 Section 25, T9N, R19W in Pope County, Arkansas.” Phillip Franklin maintains his intention was to convey that specific tract only and not all the Estate’s interest in Pope County, Arkansas. January 5, 2010 Owner has been integrated in the past. Located contact information in

office files. Called, no answer. Left a message. January 20, 2010 Sent owner an email regarding open interest. January 23, 2010 No response to email. Sent another email. February 2, 2010 Sent another email to owner. February 12, 2010 Called owner. Still no answer. February 24, 2010 Sent another email to owner. March 19, 2010 No response to email. Sent another email regarding open interest. April 6, 2010 Well proposal letter and AFE mailed.


EXHIBIT B


Page 26 of 78

Clifford Eldon Gaunt January 15, 2010 Owner has been integrated in the past. Located contact information from

office files. Called, no answer. Left a message. January 29, 2010 Called, no answer. Left a message. February 11, 2010 Called and spoke with owner. Discussed letter agreement and clouded

title issues. Owner has agreed to sign a letter agreement. Letter agreement and related documents being prepared.

February 15, 2010 Letter agreement and related documents mailed. March 3, 2010 No executed documents received to date. March 22, 2010 Still no executed documents received to date. April 6, 2010 Well proposal letter and AFE mailed.


EXHIBIT B


Page 27 of 78

Earl Brady Gaunt February 1, 2010 Owner has leased with us in the past. Obtained contact information from

office records. Called and spoke with owner. Discussed clouded title issues and letter agreement. Owner has agreed to sign a letter agreement. Letter agreement and related documents being prepared.

February 4, 2010 Letter agreement and related documents mailed. February 13, 2010 Called, no answer. Left a message. February 28, 2010 Called, no answer. Left a message. March 6, 2010 No executed documents received to date. Called, no answer. Left a

message. March 22, 2010 Still no executed documents received to date. April 6, 2010 Well proposal letter and AFE mailed.


EXHIBIT B


Page 28 of 78

Jeffrey William Gaunt February 1, 2010 Owner has leased with us in the past. Obtained contact information from


February 4, 2010 Letter agreement and related documents mailed. February 13, 2010 Called, no answer. Left a message. February 27, 2010 No executed documents received to date. March 8, 2010 Still no executed documents received to date. March 19, 2010 Called owner’s cell phone. No answer. Left a message. Called owner’s

home phone. Phone has been disconnected. April 6, 2010 Well proposal letter and AFE mailed.


EXHIBIT B


Page 29 of 78

Lois Geribaldo November 15, 2009 Searched office records for contact information. Located a possible telephone number

and address. Called, no answer. Left a message. November 27, 2009 Called and spoke with owner. Discussed lease offer. Owner said she would like to lease.

Explained to her that we would need a proof of death and heirship on Herman Baker to clear up some title issues before we could lease her. Owner could not provide me with the proper heirship information on Herman Baker that we need. Owner suggested that I call Evelyn Benson. She was able to provide me with a telephone number for Evelyn Benson. Called Evelyn Benson. No answer.

December 3, 2009 Called and spoke with Evelyn Benson. Explained issues with leasing. Asked if she

could provide me with the proper heirship information we need on Herman Baker. She advised me to call Alton Baker. She was able to provide me with a telephone number for Alton Baker.

December 11, 2009 Called and spoke with Alton Baker. He said that the only heirship he could help with is

Math Baker. Alton Baker has agreed to do a proof of death and heirship for Math Baker. December 28, 2009 Called several other relatives. None spoken with have the proper heirship information we

need in order to clear title so we can lease. January 15, 2010 No change in status.

January 29, 2010 All efforts to locate anyone with information on Herman Baker have had no positive

results. February 3, 2010 Called and spoke with owner. Discussed proposed letter agreement. Owner has agreed

to sign a letter agreement. Letter agreement and related documents being prepared. February 5, 2010 Letter agreement and related documents mailed. February 24, 2010 Called, no answer. Left a message. No executed documents received to date. March 5, 2010 Still no executed documents received to date. March 18, 2010 Called, no answer. Left a message. Still no executed documents received to date. April 6, 2010 Well proposal letter and AFE mailed.


EXHIBIT B


Page 30 of 78

Debbie Henry February 1, 2010 Owner has leased with us in the past. Obtained contact information from


February 4, 2010 Letter agreement and related documents mailed. February 13, 2010 Called, no answer. Left a message. February 27, 2010 No executed documents received to date. March 8, 2010 Still no executed documents received to date. March 22, 2010 Unable to speak with owner since first contact. Still no executed

documents received to date. April 6, 2010 Well proposal letter and AFE mailed.


EXHIBIT B


Page 31 of 78

Kimberly K. Giles Hensley December 23, 2009 Owner’s family has been integrated previously. Located contact









EXHIBIT B


Page 32 of 78

Bryan Jabara December 23, 2009 Owner’s family has been integrated previously. Located contact









EXHIBIT B


Page 33 of 78

Donna Jabara December 23, 2009 Owner’s family has been integrated previously. Located contact









EXHIBIT B


Page 34 of 78

F. M. Jabara and Nellie E. Jabara, Heirs Sherlyn Craig See Page 18 of Exhibit B Janice Marie Parker Duenas See Page 20 of Exhibit B Kimberly K. Giles Hensley See Page 31 of Exhibit B Bryan Jabara See Page 32 of Exhibit B Donna Jabara See Page 33 of Exhibit B Gina Jabara See Page 35 of Exhibit B Junevene Ruth Jabara See Page 36 of Exhibit B Leslie A. Jabara See Page 37 of Exhibit B Lisa M. Jabara See Page 38 of Exhibit B Norma L. Jabara See Page 39 of Exhibit B Steven Jabara See Page 40 of Exhibit B Don Farris Parker See Page 56 of Exhibit B Janice Rene Giles Patterson See Page 57 of Exhibit B


EXHIBIT B


Page 35 of 78

Gina Jabara December 23, 2009 Owner’s family has been integrated previously. Located contact









EXHIBIT B


Page 36 of 78

Junevene Ruth Jabara December 23, 2009 Owner’s family has been integrated previously. Located contact









EXHIBIT B


Page 37 of 78

Leslie A. Jabara December 23, 2009 Owner’s family has been integrated previously. Located contact









EXHIBIT B


Page 38 of 78

Lisa M. Jabara December 23, 2009 Owner’s family has been integrated previously. Located contact









EXHIBIT B


Page 39 of 78

Norma L. Jabara December 23, 2009 Owner’s family has been integrated previously. Located owner’s contact

information in office files. Called, spoke with owner. She is the spokesperson for the family. Discussed lease terms. She said they are not interested in leasing.

December 31, 2009 Called again, left a message. January 7, 2010 Called again, left another message. January 13, 2010 Called again. Spoke with owner. She will discuss the offer with her

family. January 14, 2010 Spoke with owner again. Terms unacceptable. She says she will speak

with a friend, who is a landman. January 21, 2010 Spoke with owner. She has decided not to lease. She has not talked with

the landman yet. January 26, 2010 Called owner, left a message. January 29, 2010 Lease proposal letter sent to owner. No change in lease terms. February 9, 2010 Spoke with owner. Offered higher terms. She will consider the new offer.

She requested certain provisions be put in the lease. February 18, 2010 Terms still unacceptable. March 12, 2010 Spoke with Norma Jabara. The family has decided to lease. Lease and



EXHIBIT B


Page 40 of 78

Steven Jabara December 23, 2009 Owner’s family has been integrated previously. Located contact









EXHIBIT B


Page 41 of 78

James Jamell aka James E. Jamell and Bonnie J. Jamell aka Bonnie Jean Jamell, Trustees of the 2006 Jamell Family Revocable Trust November 17, 2009 Searched office records for contact information. Located a possible

address and telephone number. Called, no answer. Left a message. November 25, 2009 Called, no answer. Left a message. November 30, 2009 Called and spoke with owner. Discussed lease proposal offer. Owner said

that she would like for me to speak with her daughter, Amy Lake. She provided me with a telephone number. Called Amy Lake. No answer. Left a message.

December 11, 2009 Called and spoke with owner’s daughter, Amy Lake. Discussed leasing.

She said that lease terms are unacceptable. December 28, 2009 Called owner’s daughter, Amy Lake. No answer. Left a message January 7, 2010 Called and spoke with owner’s daughter. Lease terms still unacceptable. January 22, 2010 No change in status. Lease terms unacceptable. February 26, 2010 Called, no answer. Left a message. March 8, 2010 No return call. Called again. Left another message. March 23, 2010 Called and spoke with owner’s daughter, Amy Lake. Lease terms still

unacceptable. April 6, 2010 Well proposal letter and AFE mailed.


EXHIBIT B


Page 42 of 78

Cynthia Kimbrell February 1, 2010 Owner has leased with us in the past. Obtained contact information from

office files. Called and spoke with owner. Discussed clouded title issues and letter agreement. Owner has agreed to sign a letter agreement. Letter agreement and related documents being prepared.

February 4, 2010 Letter agreement and related documents mailed. February 12, 2010 Called, no answer. Left a message. February 27, 2010 No executed documents received to date. March 6, 2010 Called, no answer. Left a message. March 20, 2010 No return call. Called, no answer. Left another message. March 22, 2010 Still no executed documents received to date. April 6, 2010 Well proposal letter and AFE mailed.


EXHIBIT B


Page 43 of 78

John Price King February 1, 2010 Owner has leased with us in the past. Obtained contact information from

office records. Called, no answer. Left a message. February 19, 2010 Called owner’s office. They informed me that he was out of town. February 24, 2010 Called, no answer. Left a message. March 5, 2010 No return call. Called again. Left another message. March 8, 2010 Spoke with owner’s mother, Evelyn King. She asked that we send a letter

agreement for owner. Letter agreement and related documents being prepared.

March 10, 2010 Letter agreements and related documents mailed. March 22, 2010 No executed documents received to date. April 6, 2010 Well proposal letter and AFE mailed.


EXHIBIT B


Page 44 of 78

Kelly David King February 1, 2010 Owner has leased with us in the past. Obtained contact information from

office records. Called, no answer. Left a message. February 13, 2010 Called owner’s office. They informed me that he was out of the office for

the day. Left a message for him to call. February 25, 2010 Called, no answer. Left another message. March 3, 2010 Called and spoke with owner. Discussed clouded title issues and letter

agreement. Owner has agreed to sign a letter agreement. Letter agreement and related documents being prepared.

March 4, 2010 Letter agreement and related documents mailed. March 22, 2010 No executed documents received to date. April 6, 2010 Well proposal letter and AFE mailed.


EXHIBIT B


Page 45 of 78

Richard Edward King February 1, 2010 Owner has leased with us in the past. Obtained contact information from

office files. Called, owner was out of the office. Left a message. February 10, 2010 Called again, owner out of the office. Left another message. February 17, 2010 Called again, left another message. February 25, 2010 Called again, left another message. March 5, 2010 Called again, owner out of office. Left another message. March 8, 2010 Spoke with owner’s mother, Evelyn King. She asked that we send a letter

agreement for owner. Letter agreement and related documents being prepared.

March 10, 2010 Letter agreements and related documents mailed. March 22, 2010 No executed documents received to date. April 6, 2010 Well proposal letter and AFE mailed.


EXHIBIT B


Page 46 of 78

Mark S. Lake and Amy E. Lake November 17, 2009 Searched office records for contact information. Located a possible

address and telephone number. Called, no answer. Left a message. November 25, 2009 Called, no answer. Left a message. November 30, 2009 Called , no answer. Left a message. December 1, 2009 Called and spoke with Amy Lake. Made lease proposal offer. She said

that she would like for me to call back and speak with her husband. December 11, 2009 Called and spoke with owner Amy Lake. Discussed leasing. She said that

lease terms are unacceptable. December 23, 2009 Called and spoke with owner’s husband. Made lease proposal offer. He

said that he knows his neighbors in the area have leased for more money. Discussed offer further with him. He said to write up a lease and bring it to them with a plat.

January 2, 2010 Delivered lease to owner’s. Lease terms unacceptable. January 7, 2010 Called and spoke with owner. Lease terms still unacceptable. January 22, 2010 No change in status. Lease terms unacceptable. February 26, 2010 Called, no answer. Left a message. March 8, 2010 No return call. Called again. Left another message. March 23, 2010 Called and spoke with Amy Lake. Lease terms still unacceptable. April 6, 2010 Well proposal letter and AFE mailed.


EXHIBIT B


Page 47 of 78

Dennis Lawrence November 20, 2009 Searched office records for contact information. Was able to locate a

possible telephone number for Violet Hinshaw, a relative of owner who also has an interest in this section. Called and spoke with Violet Hinshaw. Asked if she could help in providing me with information on Dennis Lawrence. She said she would work on that and get back to me.

November 30, 2009 Received a telephone call from Violet Hinshaw. She said she did not have

any information on Dennis Lawrence. December 11, 2009 Conducted internet search for contact information. Located a possible

address and telephone number. Called, no answer. Left a message. December 14, 2009 Mailed lease proposal letter. December 17, 2009 Called and spoke with owner. Discussed offer to lease. Owner is

committed to lease. Lease and related documents being prepared. Asked if he could provide me with any information on Donald or James Lawrence. He informed me that they are both step brothers and he hasn’t seen or heard from either of them for almost 50 years.

December 23, 2009 Lease and related documents mailed. January 8, 2010 No executed documents received to date. January 22, 2010 Called, no answer. Left a message. Still no executed documents received

to date. February 3, 2010 Called, no answer. Left a message. February 15, 2010 Called and spoke with owner’s wife. She said they have not signed

documents yet, but she would talk to her husband and let me know. March 1, 2010 Still no executed documents received to date. March 18, 2010 Called, no answer. Left a message. April 6, 2010 Well proposal letter and AFE mailed.


EXHIBIT B


Page 48 of 78

Donald E. Lawrence November 20, 2009 Searched office records for contact information. Was able to locate a possible

telephone number for Violet Hinshaw, a relative of owner who also has an interest in this section. Called and spoke with Violet Hinshaw. Asked if she could help in providing me with information on Donald Lawrence.

November 30, 2009 Received a telephone call from Violet Hinshaw. She said she did not have any

information on Donald Lawrence. December 9, 2009 Received a list of heirs from Violet Hinshaw to the best of her knowledge. December 13, 2009 Conducted internet search for possible contact information. Located several

listings with the same name. Called and left message where possible. All contacts made were not the subject owner we are looking for. Mailed lease proposal letter.

December 17, 2009 Called and spoke with owner’s brother, Dennis Lawrence. Asked if he provide

any contact information on Donald or James Lawrence. He informed me that they are both step brothers and he hasn’t seen or heard from either of them for almost 50 years.

December 23, 2009 Called several more of the listing found on internet. Still no positive results. December 29, 2009 Spoke with other owner’s in the section with the same last name. None

contacted knew how to reach subject owner. January 4, 2010 Searched local and surrounding area directories. Found listings with the same

name. Called and none contacted were subject owner. Unable to locate at this time.

January 20, 2010 No response to lease proposal letter. January 25, 2010 All efforts to locate owner have had no positive results. February 2, 2010 Status unchanged. All efforts to locate owner have had no positive results. February 27, 2010 No change in status. March 18, 2010 Still no change in status. April 6, 2010 Well proposal letter and AFE mailed to last known address.


EXHIBIT B


Page 49 of 78

James R. Lawrence November 20, 2009 Searched office records for contact information. Was able to locate a possible

telephone number for Violet Hinshaw, a relative of owner who also has an interest in this section. Called and spoke with Violet Hinshaw. Asked if she could help in providing me with information on James R. Lawrence.

November 30, 2009 Received a telephone call from Violet Hinshaw. She said she is still working on

gathering the requested information on the W. R. Lawrence, Heirs. December 9, 2009 Received a list of heirs from Violet Hinshaw to the best of her knowledge. December 13, 2009 Conducted internet search for possible contact information. Located several

listings with the same name. Called and spoke with a few people and left messages where possible. Any contacts made were not the subject owner.

December 17, 2009 Called and spoke with owner’s brother, Dennis Lawrence. Asked if he provide

any contact information on Donald or James Lawrence. He informed me that they are both step brothers and he hasn’t seen or heard from either of them for almost 50 years.

December 23, 2009 Called several more listings found from internet. Still no positive results.

Mailed lease proposal letter. December 28, 2009 Spoke with other owner’s in the section with the same last name. None

contacted knew how to reach subject owner. January 5, 2010 Searched local and surrounding area directories for contact information. Located

a few listings with the same name. Called and none knew of owner or how to contact owner.

January 9, 2010 All efforts to locate owner have had no positive results. January 21, 2010 No response to lease proposal letter. February 2, 2010 Status unchanged. All efforts to locate owner have had no positive results. February 27, 2010 No change in status. March 19, 2010 Still no change in status. April 6, 2010 Well proposal letter and AFE mailed to last known address.


EXHIBIT B


Page 50 of 78

Robert F. Lawrence November 20, 2009 Searched office records for contact information. Was able to locate a

possible telephone number for Violet Hinshaw, a relative of owner who also has an interest in this section. Called and spoke with Violet Hinshaw. Asked if she could help in providing me with information on Robert F. Lawrence. She said she would work on that and get back to me.

November 30, 2009 Received a telephone call from Violet Hinshaw. She provided phone

number for Robert F. Lawrence. Called, left a message. December 10, 2009 Mailed lease proposal letter. December 26, 2009 Received a telephone call from owner. Made offer to lease. Owner

agreed to lease, but asked that I call him back in a few days. January 7, 2010 Called and spoke with owner. He asked that I send a lease. Lease and

related documents being prepared. January 11, 2010 Lease and related documents mailed. January 21, 2010 No executed documents received to date. January 26, 2010 Still no executed documents received to date. Called, no answer. Left a

message. February 3, 2010 Received lease amendments from owner. Lease terms unacceptable. February 6, 2010 Called and left message regarding new lease terms. February 15, 2010 No return call. Called, no answer. Left a message. March 1, 2010 Called, no answer. Left another message. March 19, 2010 No return call. Called, left another message. April 6, 2010 Well proposal letter and AFE mailed.


EXHIBIT B


Page 51 of 78

W. R. Lawrence, Heirs Sabrina Liles Bingham See Page 14 of Exhibit B Dennis Lawrence See Page 47 of Exhibit B Donald E. Lawrence See Page 48 of Exhibit B James R. Lawrence See Page 49 of Exhibit B Robert F. Lawrence See Page 50 of Exhibit B Derek Liles See Page 53 of Exhibit B Terri Mohundro See Page 54 of Exhibit B James Paul Tobin See Page 65 of Exhibit B Joseph Tobin See Page 66 of Exhibit B Kellen Tobin See Page 67 of Exhibit B Shannon Tobin See Page 68 of Exhibit B


EXHIBIT B


Page 52 of 78

Legacy Royalties, Ltd. A deed was located from the Estate of Barbara Jean Bellis Franklin by Phillip Franklin, Independent Executor for the Estate to Legacy Royalties, Ltd. The deed contained the following: “All of Grantor’s right, title and interest, in and to all of the oil, gas and other minerals and all of the royalties and overriding royalties, excluding any and all working interest, in and under and that may be produced and mined, that grantor owns in the following property: All lands situated all or in part in Pope County, Arkansas, whether or not described herein. All of the E/2 Section 25, T9N, R19W in Pope County, Arkansas.” Phillip Franklin (See Page 25 of Exhibit B) maintains his intention was to convey that specific tract only and not all the Estate’s interest in Pope County, Arkansas. November 15, 2006 Talked with Jeanne Davis at Legacy Royalties, Inc. She obtains information and

forwards her recommendations on to Steven D. Smith. Mr. Smith makes the final decision on leasing.

December 11, 2006 Ms. Davis will send a copy of their lease form. January 15, 2007 Ms. Davis said they will not consider an option in their lease. They do not have an

inventory of interests owned in Conway County. February 20, 2007 Ms. Davis sent a copy of their lease terms. They are unacceptable. Unable to lease at

this time. As there is no deed of record actually describing these lands, this interest is being named for protection purposes due to the intent language in the 25-9N-19W deed.

March 12, 2008 Contact with Legacy indicates that no work has been done to resolve the title dispute

between Legacy and the Franklins. April 16, 2008 Contact with Legacy indicates that there has still been no work done to resolve the title

dispute between Legacy and the Franklins. May 27, 2008 The questions surrounding title of this interest are still unanswered. Therefore, we are

unable to lease this interest and it is being named for protection purposes. January 5, 2009 Status remains unchanged. Title questions still unresolved. July 30, 2009 Status remains unchanged. Title questions still unresolved. January 26, 2010 Talked to Ms. Davis. Discussed the title questions between Legacy Royalties, Ltd. and

Phillip Franklin and Betsy Franklin Burcham. Legacy now has an attorney in Arkansas and they will forward the well proposal letter to the attorney.

February 19, 2010 Mailed a lease proposal letter to Ms. Davis. March 8, 2010 No response to lease proposal letter. March 23, 2010 Called, no answer. Left a message. April 6, 2010 Well proposal letter and AFE mailed.


EXHIBIT B


Page 53 of 78

Derek Liles November 20, 2009 Searched office records for contact information. Was able to locate a possible telephone

number for Violet Hinshaw, a relative of owner who also has an interest in this section. Called and spoke with Violet Hinshaw. Asked if she could help in providing me with information on Derek Liles. She said she would work on that and get back to me.

November 30, 2009 Received a telephone call from Violet Hinshaw. She said she did not have any contact

information on Derek Liles. December 11, 2009 Conducted internet search. Located a possible address and telephone number. Called,

number has been disconnected. Mailed lease proposal letter. December 17, 2009 Called and spoke with owner’s sister, Sabrina Bingham. Asked if she had a current

telephone number for her brother. She didn’t have the telephone number. December 23, 2009 Spoke with other relatives in this section. None knew how to contact owner. December 29, 2009 Checked local and surrounding area directories for possible telephone number. No

positive results. January 4, 2010 All efforts to locate owner have had no positive results. January 15, 2010 No change in status. January 25, 2010 Spoke with local residents. None spoke with had any information on owner. Unable to

locate owner at this time. January 27, 2010 Mailed a second lease proposal letter to address found on internet. February 3, 2010 Called owner’s sister, Sabrina Bingham. No answer, left a message. February 11, 2010 No return call. February 15, 2010 Status unchanged. Unable to make contact with owner to date. March 1, 2010 Status remains unchanged. All efforts to locate owner have had no positive results. March 19, 2010 No change in status. Still unable to locate owner. April 6, 2010 Well proposal letter and AFE mailed.


EXHIBIT B


Page 54 of 78

Terri Mohundro November 20, 2009 Searched office records for contact information. Was able to locate a

possible telephone number for Violet Hinshaw, a relative of owner who also has an interest in this section. Called and spoke with Violet Hinshaw. Asked if she could help in providing me with information on Terri Mohundro. She said she would work on that and get back to me.

November 30, 2009 Received a telephone call from Violet Hinshaw. She did not have a

number for Terri Mohundro. December 11, 2009 Conducted internet search for contact information. Located a possible

address and telephone number. Called, no answer. Left a message. Mailed lease proposal letter.

December 15, 2009 Called and spoke with owner. Discussed offer to lease. Owner said she

would like to think about it and for me to call back. December 28, 2009 Called, no answer. Left a message. January 5, 2010 No response to lease proposal letter to date. Called, no answer. Left a

message. January 19, 2010 No return call. Called, no answer. Left a message. January 26, 2010 Still no response to lease proposal letter to date. February 3, 2010 Called, no answer. Left a message. February 14, 2010 Called and spoke with owner’s husband. He said they are still thinking

about it and are not ready to make a decision yet. February 24, 2010 No change in status. March 1, 2010 Called, no answer. Left a message. March 15, 2010 No return call. Called, left another message. April 6, 2010 Well proposal letter and AFE mailed.


EXHIBIT B


Page 55 of 78

Shirley A. Mooney November 15, 2009 Searched office records for contact information. Located a possible

address. No telephone number listed. Searched local phone directory. Located an address and telephone number. Called, no answer. Left a message.

December 3, 2009 Called, no answer. Left a message. December 17, 2009 No return call. Drove to owner’s home. No one there. December 24, 2009 Called, no answer. Left a message. January 5, 2010 Mailed lease proposal letter. January 18, 2010 No return call. No response to lease proposal letter. January 25, 2010 Called and spoke with owner. Discussed offer to lease. Owner has agreed

to lease. Lease and related documents being prepared. January 29, 2010 Lease and related documents mailed. February 12, 2010 No executed documents received to date. February 27, 2010 Called, no answer. Left a message. March 12, 2010 Still no executed documents received to date. March 23, 2010 No return call. Called and left another message. March 29, 2010 No change in status. Still no executed documents received to date. April 6, 2010 Well proposal letter and AFE mailed.


EXHIBIT B


Page 56 of 78

Don Farris Parker December 23, 2009 Located contact information in office files for Norma Jabara. She is the

spokesperson for the family. Called, spoke with Norma Jabara. Discussed lease terms. She said they are not interested in leasing.








EXHIBIT B


Page 57 of 78

Janice Rene Giles Patterson December 23, 2009 Located contact information in office files for Norma Jabara. She is the

spokesperson for the family. Called, spoke with Norma Jabara. Discussed lease terms. She said they are not interested in leasing.








EXHIBIT B


Page 58 of 78

Mary Lynn Pipkin January 5, 2010 Owner has leased with us in the past. Obtained contact information from

office files. Called, no answer, left a message. January 20, 2010 Called again, still no answer. Left a message. Mailed lease proposal

letter. February 3, 2010 Spoke with owner’s mother, Evelyn King. She said that owner is ill.

Discussed lease terms with her mother. She said to send the letter agreement. Letter agreement and related documents prepared and mailed.

February 9, 2010 Spoke with owner’s mother again. She will have owner execute and send

the documents in tomorrow. February 15, 2010 No executed documents received to date. March 8, 2010 Spoke with owner’s mother, Evelyn King. She said that they had not

received the letter agreement. She asked that we send a new letter agreement for owner. New letter agreement and related documents being prepared.

March 10, 2010 New letter agreements and related documents mailed. March 22, 2010 No executed documents received to date. April 6, 2010 Well proposal letter and AFE mailed.


EXHIBIT B


Page 59 of 78

Gerald Don Roberts October 28, 2009 Conducted internet search. Located a possible address. No telephone number listed.

Mailed lease proposal letter. November 5, 2009 Drove by owner’s residence. No one was home. November 15, 2009 Mailed a second lease proposal letter. November 26, 2009 Drove by owner’s residence again. Still no one home. December 7, 2009 No response to lease proposal letter to date. December 19, 2009 Searched local and surrounding area directories. Located several listings with the same

last name. Called and left message where possible. No one spoken to was the subject owner or knew of owner.

December 29, 2009 Drove to owner’s residence again. Still no one home. Unable to contact. January 4, 2010 Spoke with a relative of owner. They were able to provide me with a possible telephone

number. Called and number was no longer in service. January 7, 2010 Spoke with relative again. They told me to keep trying because owner was in school.

Still unable to contact owner thus far. January 14, 2010 Called and spoke with owner’s mother. She said that she would give him the message to

call. January 20, 2010 No returned call. January 25, 2010 Unable to contact owner thus far. February 2, 2010 Called and spoke with owner. Discussed lease offer. He said he would like to think it

over and call back. February 17, 2010 No change in status. February 28, 2010 Drove out to owner’s residence. No one home. March 15, 2010 Called, no answer. Left a message. March 23, 2010 Called and spoke with owner. Owner said he will wait for integration. April 6, 2010 Well proposal letter and AFE mailed.


EXHIBIT B


Page 60 of 78

Michael R. Schwander and Anitta Lou Schwander November 15, 2009 Searched office records for contact information. Located a possible

telephone number and address. Called, no answer. Left a message. November 27, 2009 Called and spoke with Lois Geribaldo, another mineral owner in this

section. She did not know Michael R. Schwander or Anitta Lou Schwander.

December 3, 2009 Called and spoke with Evelyn Benson, another mineral owner in this

section. Asked if she could provide me with information on Michael or Anitta Schwander. She did not know them.

December 28, 2009 Called several possible relatives. None spoken with had information on

Michael or Anitta Schwander. January 15, 2010 No change in status. January 21, 2010 Called Michael. No answer. Left a message. January 26, 2010 No change in status. February 2, 2010 Called, no answer. Left a message. February 13, 2010 No change in status. All efforts to make contact with owner’s have had no

positive results. March 1, 2010 Called people with the same last name in other states. No positive results.

Still unable to locate owner’s at this time. March 17, 2010 No change in status. Still unable to locate owner’s. April 6, 2010 Well proposal letter and AFE mailed.


EXHIBIT B


Page 61 of 78

Sears Construction Development and Leasing, LLC November 1, 2009 Searched office records for contact information. Located a possible address and

telephone number. Called and spoke with secretary. She said owner was out at the time and for me to call back.

November 2, 2009 Mailed lease proposal letter. November 12, 2009 Called and spoke with owner’s secretary. She said that he was out of the office and for

me to call back. November 25, 2009 Called and spoke with owner. Discussed offer to lease. He gave me another contact to

call, he said it was his partner and lawyer. December 4, 2009 Called partner, left message. December 10, 2009 Received a call from partner. Discussed offer to lease. He asked that I send another

lease proposal letter. December 11, 2009 Mailed lease proposal letter. December 16, 2009 No response to lease proposal letter to date. December 27, 2009 Called and left a message for partner. January 4, 2010 Called and spoke with partner. He said that he is still reviewing offer and for me to call

back. January 8, 2010 No return call to date. January 14, 2010 Called, no answer. Left a message. January 25, 2010 No return call. Called, no answer. Left a message. February 11, 2010 Called and spoke with owner. Discussed lease offer. Owner’s have agreed to lease.

Lease and related documents being prepared. February 15, 2010 Lease and related documents mailed. February 27, 2010 Called, no answer. Left a message. March 5, 2010 No executed documents received to date. March 19, 2010 Called, no answer. Left a message. Still no executed documents received to date. April 6, 2010 Well proposal letter and AFE mailed.


EXHIBIT B


Page 62 of 78

Sammie Violet Sharp November 3, 2009 Searched office records for contact information. Located a possible

telephone number and address. Called, no answer. Left a message. November 25, 2009 Called and spoke with owner. Made lease offer. She said to call Betty

June Singleton Athey for she is the spokesperson for the family. She provided a phone number for Betty.

December 9, 2009 Called Betty, no answer. Left a message. December 11, 2009 Called and spoke with Betty June Singleton Athey. She informed me that

SEECO, Inc. is currently building a pad and preparing to drill on her land. She said she wants to wait and speak with her siblings before she makes a decision.

January 2, 2010 Called and spoke with Betty. She informed me of the bonus and royalty

she wants to lease. Told her I would have to get approval. Emailed for approval.

January 8, 2010 Waiting on answer for approval. January 22, 2010 No change in status. Still waiting on approval. February 11, 2010 Received a call from owner’s sister, Betty Athey. Discussed lease offer

again. Owner has agreed to lease. She asked that we send leases for her and her siblings. Told her that I needed some more information for her siblings before I could prepared documents.

February 20, 2010 Received a call from owner’s sister. She said she had all the information

we needed to prepare leases for her and her siblings. February 23, 2010 Leases and related documents being prepared. February 25, 2010 Lease and related documents mailed. March 12, 2010 Called, no answer. Left a message. March 23, 2010 Called and spoke with owner. She said she had signed and mailed

executed documents. No executed documents received to date. April 6, 2010 Well proposal letter and AFE mailed.


EXHIBIT B


Page 63 of 78

David Soulsby February 5, 2010 Owner has leased with us in the past. Located contact information from

office files. Called, no answer. Left a message. February 17, 2010 No return call. Called and left another message. March 2, 2010 Still no return call. Called again. Left another message. March 18, 2010 No change in status. Still unable to speak with owner. March 25, 2010 Called and spoke with owner. Discussed title issues and letter agreement.


March 29, 2010 Letter agreement and related documents mailed. April 6, 2010 Well proposal letter and AFE mailed.


EXHIBIT B


Page 64 of 78

Susan Alice Soulsby aka Susan Alice Cavin February 5, 2010 Owner has leased with us in the past. Located contact information from

office files. Called, no answer. Left a message. February 17, 2010 No return call. Called and left another message. March 2, 2010 Still no return call. Called again. Left another message. March 18, 2010 No change in status. Still unable to speak with owner. March 25, 2010 Called and spoke with owner. Discussed title issues and letter agreement.


March 29, 2010 Letter agreement and related documents mailed. April 6, 2010 Well proposal letter and AFE mailed.


EXHIBIT B


Page 65 of 78

James Paul Tobin November 20, 2009 Searched office records for contact information. Was able to locate a

possible telephone number for Violet Hinshaw, a relative of owner who also has an interest in this section. Called and spoke with Violet Hinshaw. Asked if she could help in providing me with information on James Paul Tobin. She said she would work on that and get back to me.

November 30, 2009 Received a telephone call from Violet Hinshaw. She had no information

on owner. December 11, 2009 Conducted internet search for possible contact information. Located a

possible address and telephone number. Called, no answer. Left a message. Mailed lease proposal letter.

December 23, 2009 No return call. No response to lease proposal letter. Called, no answer.

Left a message. December 29, 2009 Got a phone number from Margaret Mish True, sister-in-law of owner. January 8, 2010 Mailed a second lease proposal letter. Called, no answer. Left another

message. January 22, 2010 No response to lease proposal letter to date. February 3, 2010 Called, no answer. Left a message. February 14, 2010 Called and spoke with owner’s sister’-in-law. She said she could not

provide any help for me except for providing a telephone number. February 25, 2010 No response to many messages or letters sent. March 1, 2010 No change in status. March 19, 2010 No change in status. Still unable to make contact with owner to date. April 6, 2010 Well proposal letter and AFE mailed.


EXHIBIT B


Page 66 of 78

Joseph Tobin November 20, 2009 Searched office records for contact information. Was able to locate a

possible telephone number for Violet Hinshaw, a relative of owner who also has an interest in this section. Called and spoke with Violet Hinshaw. Asked if she could help in providing me with information on Joseph Tobin. She said she would work on that and get back to me.

November 30, 2009 Received a telephone call from Violet Hinshaw. She was unable to locate

any information on Joseph Tobin. December 11, 2009 Conducted internet search for possible contact information. Located a

possible address. Mailed lease proposal letter. December 16, 2009 Received a telephone call from owner’s daughter-in-law. She informed

me that she is a remainderman as her husband Dennis had passed away. Discussed offer to lease. She ask that I send a lease proposal letter.

December 17, 2009 Sent lease proposal letter. December 29, 2009 Called and spoke with owner’s daughter-in-law. She informed me that her

father-in-law, Joseph Tobin was still living, but is in a nursing home. She advised calling his son, Jim Tobin. She was able to provide me with a telephone number for Jim Tobin, owner’s son.

February 2, 2010 Called and left a message with owner’s son. February 14, 2010 No return call. Called owner’s son again and left another message. March 1, 2010 Still no return call. No response to lease proposal letter. March 19, 2010 No change in status. Still unable to make contact with owner to date. April 6, 2010 Well proposal letter and AFE mailed.


EXHIBIT B


Page 67 of 78

Kellen Tobin November 20, 2009 Searched office records for contact information. Was able to locate a

possible telephone number for Violet Hinshaw, a relative of owner who also has an interest in this section. Called and spoke with Violet Hinshaw. Asked if she could help in providing me with information on Kellin Tobin. She said she would work on that and get back with me.

November 30, 2009 Received a telephone call from Violet Hinshaw. She didn’t have any

contact information on Kellin Tobin December 11, 2009 Conducted internet search for contact information. Located a possible

address and telephone number. Called, no answer. Left a message. December 15, 2009 Mailed lease proposal letter. December 23, 2009 Received a telephone call from owner. Discussed offer to lease. Owner

said that he would like to do some research and get back to me. Asked if he had any contact information for his sister, Shannon Tobin. He would not provide me with any contact information.

January 4, 2010 No response to lease proposal letter to date. Called, no answer. Left a

message. January 14, 2010 Called, no answer. Left a message. January 20, 2010 Mailed second lease proposal letter. January 26, 2010 No response to lease proposal letter to date. February 3, 2010 Called, no answer. Left a message. February 14, 2010 Called owner’s office, he was not in. Spoke to his mother and she said she

would have him call. February 25, 2010 No return call. Called, no answer. Left a message. March 5, 2010 No change in status. March 19, 2010 No return call. Called and left another message. April 6, 2010 Well proposal letter and AFE mailed.


EXHIBIT B


Page 68 of 78

Shannon Tobin November 20, 2009 Searched office records for contact information. Was able to locate a

possible telephone number for Violet Hinshaw, a relative of owner who also has an interest in this section. Called and spoke with Violet Hinshaw. Asked if she could help in providing me with information on Shannon Tobin. She said she would work on that and get back to me.

November 30, 2009 Received a telephone call from Violet Hinshaw. She said she could not

locate any information on Shannon Tobin. December 11, 2009 Conducted internet search for possible contact information. Located a

possible telephone number and address. Called and the number was not a good number. Mailed lease proposal letter.

December 23, 2009 Spoke with owner’s brother, Kellen Tobin. Asked for contact information

on owner. Brother, Kellen Tobin was unwilling to provide me with any information.

January 7, 2010 Expanded internet search to include surrounding areas. Nothing found.

Searched local and surrounding area directories. No positive results. January 14, 2010 No response to lease proposal letter. Mailed a second letter. January 25, 2010 Still no response to lease proposal letter. February 3, 2010 Called, no answer. Left a message. February 14, 2010 Called and spoke with owner’s mother. She said she would give the

message for her to call. February 25, 2010 No return call. Called, no answer. Left a message. March 5, 2010 No change in status. March 23, 2010 Still no return call. Called again. Left another message. April 6, 2010 Well proposal letter and AFE mailed.


EXHIBIT B


Page 69 of 78

Deborah Allen Watson December 27, 2009 Searched office records for contact information. Located an address and

phone number. Called, no answer. Left a message. December 28, 2009 Called again, left another message. January 4, 2010 Called, left a message with Mr. Watson’s secretary. January 14, 2010 Called, spoke with Mr. Watson. He said he is the advisor for all of the R.

B. Allen, Sr.’s mineral interest. He asked for a lease proposal letter. Lease proposal letter mailed.

January 27, 2010 Mr. Watson called and declined our offer. Asked for approval for more

bonus. February 5, 2010 Received approval for more bonus. Mailed new lease proposal offer. February 15, 2010 Called and left a message for Mr. Watson to see if he had received our

new lease proposal. February 24, 2010 No return call. Called again and left another message. March 8, 2010 Still no response. Status unchanged. March 16, 2010 Called, no answer. Left a message. March 24, 2010 Called and spoke with Mr. Watson’s secretary. Asked why I have not

received a call. She said she has given him the messages and it is up to him to call. Left another message.



EXHIBIT B


Page 70 of 78

Larry Willoughby November 15, 2009 Located information where owner was integrated previously in another

section. Talked to Garry Willoughby who is owner’s brother. He said Larry Willoughby is incompetent and is in a facility. He said he was his brother’s guardian.

November 16, 2009 Talked to Gary again who agreed to sign a letter agreement with intent to

petition the court for approval to lease. November 30, 2009 Talked with Garry who has not had the chance to talk with his attorney

about petitioning the court for approval to lease. December 14, 2009 Waiting on court approval to complete letter agreement and related

documents. December 30, 2009 Called, no answer. Left a message. January 13, 2010 Still waiting on court approval to complete lease and related documents. January 28, 2010 Letter agreement and related documents being prepared. January 29, 2010 Letter agreement and relate documents mailed. February 11, 2010 No executed documents received to date. February 25, 2010 Called, no answer. Left a message. March 10, 2010 Still no executed documents received to date. March 24, 2010 Called and spoke with Garry Willoughby. He said that he had signed and

mailed executed documents. March 29, 2010 Still no executed documents received to date. March 30, 2010 Found obituary in local paper for owner today. Owner passed away on

Friday, March 26, 2010 at Stoneridge Health and Rehabilitation. April 6, 2010 Well proposal letter and AFE mailed in care of Garry Willoughby.


EXHIBIT B


Page 71 of 78

Donald Price Winham aka Donald Winham February 1, 2010 Owner has leased with us in the past. Obtained contact information from


February 4, 2010 Letter agreement and related documents mailed. February 12, 2010 Called, no answer. Left a message. February 27, 2010 No executed documents received to date. March 6, 2010 Called, no answer. Left a message. March 22, 2010 Still no executed documents received to date. April 6, 2010 Well proposal letter and AFE mailed.


EXHIBIT B


Page 72 of 78

Michael Winham February 1, 2010 Owner has leased with us in the past. Obtained contact information from


February 4, 2010 Letter agreement and related documents mailed. February 13, 2010 Called, no answer. Left a message. February 27, 2010 No executed documents received to date. March 6, 2010 Called, no answer. Left a message. March 22, 2010 Still no executed documents received to date. April 6, 2010 Well proposal letter and AFE mailed.


EXHIBIT B


Page 73 of 78

Walter Lane Wooten November 3, 2009 Searched office records for contact information. Located a possible

telephone number and address. Called, no answer. Left a message. November 25, 2009 Called and spoke with owner. Made lease proposal offer. He advised

calling Betty June Singleton Athey. He said she is the spokesperson for the family. He provided a telephone number for Betty.

December 9, 2009 Called Betty, no answer. Left a message. December 11, 2009 Called and spoke with Betty June Singleton Athey. She informed me that

SEECO, Inc. is currently building a pad and preparing to drill on her land. She said she wants to wait and speak with her siblings before she makes a decision.

January 2, 2010 Called and spoke with Betty. She informed me of the bonus and royalty

she wants to lease. Told her I would have to get approval. Emailed for approval.

January 8, 2010 Waiting on answer for approval. January 19, 2010 No change in status. Still waiting on approval. February 11, 2010 Received a call from owner’s sister, Betty Athey. Discussed lease offer

again. Owner has agreed to lease. She asked that we send leases for her and her siblings. Told her that I needed some more information from her siblings before I could prepared documents.

February 20, 2010 Received a call from owner’s sister. She said she had all the information

we needed to prepare leases for her and her siblings. February 23, 2010 Leases and related documents being prepared. February 25, 2010 Leases and related documents mailed. March 12, 2010 Called, no answer. Left a message. March 23, 2010 Called and spoke with owner. Owner said he had signed documents and

returned them. No executed documents received to date. April 6, 2010 Well proposal letter and AFE mailed.


EXHIBIT B


Page 74 of 78

Arkoma Basin Minerals, Inc. Arkoma Basin Minerals, Inc. owns a working interest in the following Oil & Gas lease recorded in Pope County, Arkansas:

1) Harley Wayne Baker and Wanda Sue Baker to Arkoma Basin Minerals, Inc. dated August 14, 2009 and recorded in Oil & Gas book 09-51 at page 46-49.



EXHIBIT B


Page 75 of 78

BP America Production Company BP America Production Company owns a working interest in the following Oil & Gas leases recorded in Pope County, Arkansas:

1) Paula Jamell Storeygard and Alan R. Storeygard to Chesapeake Exploration Limited Partnership dated May 31, 2007 and recorded in Oil & Gas book 07-53 at page 104.

Chesapeake Exploration L. L. C. assigned an undivided interest to BP America Production Company. Said assignment is effective July 1, 2008 and recorded in Oil & Gas book 08-58 at page 716.



EXHIBIT B


Page 76 of 78

Chesapeake Exploration, LLC Chesapeake Exploration, LLC owns a working interest in the following Oil & Gas leases recorded in Pope County, Arkansas:

1) Paula Jamell Storeygard and Alan R. Storeygard to Chesapeake Exploration Limited Partnership dated May 31, 2007 and recorded in Oil & Gas book 07-53 at page 104.

Chesapeake Exploration Limited Partnership, by Affidavit of Identity and Corporate Successorship, is now Chesapeake Exploration, L. L. C. effective August 6, 2007 and recorded in Oil & Gas book 151 at page 239. Chesapeake Exploration L. L. C. assigned an undivided interest to BP America Production Company (See Page 75 of Exhibit B). Said assignment is effective July 1, 2008 and recorded in Oil & Gas book 08-58 at page 716. April 6, 2010 Well proposal letter and AFE mailed.


EXHIBIT B


Page 77 of 78

Griffith Land Services, Inc. Griffith Land Services, Inc. owns a working interest in the following Oil & Gas lease recorded in Pope County, Arkansas:

1) James R. Jamell and Bonnie J. Jamell to Griffith Land Services, Inc. dated March 17, 2005 and recorded in Oil & Gas book 05-31 at page 94.



EXHIBIT B


Page 78 of 78

Sedna Energy, Inc. Sedna Energy, Inc. owns a working interest in the following Oil & Gas leases recorded in Pope County, Arkansas:

1) Phillip M. Bezet and Wilda E. Bezet to Sedna Energy, Inc. dated June 28, 2006 and recorded in Oil & Gas book 06-63 at page 714.

2) D. H. Pellham Jr. and Lori L. Pellham to Sedna Energy, Inc. dated August 1, 2006 and recorded in Oil & Gas book 06-73 at page 137.


EXHIBIT “C”Applicant’s statement regarding Operating Agreement

The applicant requests incorporation of the Model Form Joint Operating Agreement

approved by the Arkansas Oil and Gas Commission on October 24, 2006, with Paragraph

III.1.A.(1) of the COPAS providing for a drilling well rate of $7,500.00 and a producing

well rate of $750.00 , and with the following proposed revisions, deletions and/or

insertions, if applicable:

NONE

Well Name: STOREYGARD 09-18 #1-27H34 (208419001A)AFE Date : 3/16/2010

AFE Number : 108465Operator: SEECO

AUTHORIZATION FOR EXPENDITURE

SEECO

2350 N. Sam Houston Pkwy. EHouston, TX 77032281-618-4700

County, State : POPE, ARProspect : NEMO

Depth : 10199

AFE Group : DNW2010CAP_DRL AFE Type : Development D

Prep. By : JT/WT/CN

Job Start Date :

Location : / / - 27 / 9N / 18W

Well Type : GAS

Field : B-43Q/Q/Q-S/T/R:

Working Interest : Before Casing : After Casing :

1673206.3 Yloc : 12853247.6Xloc :Long : -92.88993399 Lat : 35.404218999Surface

Located :

1673209.2 Yloc : 12846623.8Xloc :Long : -92.88994900 Lat : 35.386014000Bott. Hole

Located :

545 ft. from N line 830 ft. from E line

1880 ft. from S line 817 ft. from E line

Lease Name (ID): STOREYGARD 09-18 #1-27H34 (208419001A)Current BOPD: 0

Expected BOPD: 0Current MCFPD: 0

Expected MCFPD: 0Current BWPD: 0

Expected BWPD: 0

NRI :

Remarks : Total D&E = 10.5 days; Reentry RR = 13.0 days (0.5 MOB + 10.5 D&E + 2.0 C&S). 3805’ TVD / 6174’ LAT; Cased cemented completion w/ multi-stage frac (16.5 Stages). Mud type = WBM. 1st well of a 3 well pad. Integration well.

TotalDrilling CompletionIntangible Dry HoleNotes12100070 $15,200 $0 $15,200AIR/GAS DRILLING&RELATED CO $15,20012100100 $235,500 $0 $235,500DAYWORK $235,50012100120 $104,200 $0 $104,200RIG MOBILIZATION / DEMOBILIZ $104,20012100130 $7,100 $0 $7,100CONDUCTOR HOLE $7,10012100150 $75,000 $0 $75,000LOCATION $75,00012100200 $35,500 $0 $35,500FUEL AND WATER $35,50012100250 $215,000 $0 $215,000MUD, COMPLETION FLUID & CHE $215,00012100300 $56,000 $0 $56,000DRILL BITS $56,00012100320 $161,600 $0 $161,600DIRECTIONAL DRILLING $161,60012100350 $12,500 $0 $12,500FORMATION EVALUATION $12,50012100550 $7,000 $0 $7,000CEMENT AND CEMENTING SERVI $7,00012100610 $54,400 $0 $54,400SURFACE RENTALS $54,40012100650 $5,000 $0 $5,000SUBSURFACE / RELATED RENTA $5,00012100700 $3,000 $0 $3,000SPECIALIZED SERVICES $3,00012100750 $10,100 $0 $10,100TRANSPORTATION $10,10012100800 $63,200 $0 $63,200SUPERVISION $63,20012100850 $2,500 $0 $2,500CONTRACT LABOR $2,50012100900 $4,500 $0 $4,500INSPECT CSG.,TBG.,DRILL PIPE $4,50012100950 $20,000 $0 $20,000DRILL SITE:PERMIT,CURATIVE,TI $20,00012100960 $10,000 $0 $10,000DRILL SITE SURVEY $10,00012100980 $10,000 $0 $10,000INTEGRATION & POOLING COSTS $10,00012101050 $81,800 $0 $81,800ENVIRONMENTAL & POLLUTION $81,80012101070 $25,000 $0 $25,000DAMAGES $25,00012101100 $21,000 $0 $21,000PITS / PIT LINERS $21,00012109250 $5,800 $0 $5,800OVERHEAD / INSURANCE $5,80012109500 $15,000 $0 $15,000MISC. EXPENSES/CONTINGENCY $15,00012200100 $0 $42,900 $42,900DAYWORK $012200130 $0 $18,000 $18,000COMPLETION & SWAB RIG $012200140 $0 $89,500 $89,500COILED TUBING UNIT $012200150 $0 $7,000 $7,000LOCATION $012200160 $0 $6,500 $6,500SNUBBING UNIT $012200170 $0 $4,000 $4,000TRAILER/FACILITIES RENTAL $012200200 $0 $4,000 $4,000FUEL AND WATER $012200250 $0 $64,800 $64,800MUD, COMPLETION FLUID & CHE $012200350 $0 $9,000 $9,000FORMATION EVALUATION $0

3/16/2010 07:59 AMPowered by Production Access

Exhibit "D"




SEECO



Depth : 10199


Prep. By : JT/WT/CN

Job Start Date :

Location : / / - 27 / 9N / 18W

Well Type : GAS




Located :


Located :






Expected BWPD: 0

NRI :

TotalDrilling CompletionIntangible Dry HoleNotes12200370 $0 $171,800 $171,800CASED HOLE WIRELINE LOGGIN $012200550 $0 $31,300 $31,300CEMENT AND CEMENT SERVICE $012200600 $0 $998,700 $998,700STIMULATION:ACIDIZE - FRAC - S $012200610 $0 $70,900 $70,900SURFACE RENTALS $012200630 $0 $52,200 $52,200TANK TRUCKS/MISC. PUMPING S $012200650 $0 $81,100 $81,100SUBSURFACE / RELATED RENTA $012200670 $0 $101,400 $101,400WATER HAULING $012200700 $0 $26,500 $26,500SPECIALIZED SERVICES $012200750 $0 $2,100 $2,100TRANSPORTATION $012200800 $0 $36,800 $36,800SUPERVISION $012200850 $0 $6,300 $6,300CONTRACT LABOR $012201030 $0 $13,400 $13,400FLOW TESTING/WELL TESTS $012201130 $0 $380,800 $380,800DISPOSAL SERVICES $012209250 $0 $9,500 $9,500OVERHEAD / INSURANCE $012209500 $0 $44,900 $44,900MISC. EXPENSES / CONTINGENC $012209700 $0 $111,100 $111,100AREA WATER FACILITY $0

$1,255,900 $2,384,500 $3,640,400$1,255,900 Total Intangible Cost : TotalDrilling CompletionTangible Dry HoleNotes

12400100 $1,000 $0 $1,000CONDUCTOR PIPE $1,00016" @ 40'12400150 $11,800 $0 $11,800SURFACE CASING $11,8009 5/8" 36# J-55 STC @ 560'12400450 $2,000 $0 $2,000SUBSURFACE EQUIPMENT $2,00012400550 $2,400 $0 $2,400WELLHEAD EQUIPMENT $2,40012500250 $0 $190,900 $190,900PRODUCTION CASING $05 1/2" 17.03 P110 CDC @ 10,199'12500350 $0 $11,900 $11,900TUBING $02 3/8" 4.7 ppf J-55 @ 4132'12500400 $0 $7,500 $7,500FLOWLINES $012500450 $0 $18,700 $18,700SUBSURFACE EQUIPMENT $012500470 $0 $10,000 $10,000TANK BATTERY & ASSOCIATED $012500550 $0 $27,400 $27,400WELLHEAD EQUIPMENT $012500580 $0 $32,200 $32,200SEPARATORS $012500600 $0 $22,900 $22,900SURFACE PRODUCTION EQUIPM $012509500 $0 $6,400 $6,400MISC. EXPENSES / CONTINGENC $0

$17,200 $327,900 $345,100$17,200 Total Tangible Cost : Total AFE Costs : $1,273,100 $2,712,400 $3,985,500$1,273,100





SEECO



Depth : 10199


Prep. By : JT/WT/CN

Job Start Date :

Location : / / - 27 / 9N / 18W

Well Type : GAS




Located :


Located :






Expected BWPD: 0

NRI :

THE UNDERSIGNED RECOGNIZES THAT, IN ADDITION TO OTHER THIRD PARTY DRILLING COMPANIES, OPERATOR FROM TIME TO TIME EMPLOYS ITS AFFILIATE, DESOTO DRILLING, INC., (“DDI”), TO DRILL WELLS OPERATED BY OPERATOR. IN THE EVENT OPERATOR UTILIZES DDI TO PERFORM ANY OF THE OPERATIONS DESCRIBED HEREIN, YOUR EXECUTION OF THIS AFE SHALL CONSTITUTE YOUR AGREEMENT TO THE RATE OF CHARGES ESTIMATED HEREIN FOR ALL SUCH SERVICES PROVIDED BY DDI, AS SUCH RATES MAY BE MODIFIED FROM TIME TO TIME TO REFLECT THE PREVAILING RATES IN THE AREA FOR COMPARABLE SERVICES.

THE UNDERSIGNED RECOGNIZES THAT OPERATOR MAY FROM TIME TO TIME EMPLOY ITS OWN TOOLS AND EQUIPMENT IN CONDUCTING THE OPERATIONS DESCRIBED HEREIN, SO LONG AS OPERATOR’S CHARGES THEREFOR DO NOT EXCEED THE PREVAILING RATES IN THE AREA. IN THE EVENT OPERATOR SO UTILIZES ITS OWN TOOLS AND EQUIPMENT TO PERFORM ANY OF THE OPERATIONS DESCRIBED HEREIN, YOUR EXECUTION OF THIS AFE SHALL CONSTITUTE YOUR AGREEMENT TO THE RATE OF CHARGES ESTIMATED HEREIN FOR THE USE OF ALL SUCH TOOLS AND EQUIPMENT, AS SUCH RATES MAY BE MODIFIED FROM TIME TO TIME TO REFLECT THE PREVAILING RATES IN THE AREA FOR THE USE OF COMPARABLE TOOLS AND EQUIPMENT.

Approved by:Southwestern Energy Approval: Date:

Partner Approval: Date:


21 22 23

262728

33 34 35

9N 18W00

33-

0023-

0013

-

- 300

0- 29

0013-

- 3 300

- 3

COLE /A/1

BLAKENSHIP1-34

RADFORD1-33

IDA V1-21

GREEN BAY PACKAGING1-35

HAYS1

MUNCY1-21

BURRIS 09-181-23H

ESSINGER-SMITH 09-18

HILL, THOMAS 09-181-22H

STOREYGARD 9-181-27H34

FEET

0 3,000

PETRA 1/28/2010 9:44:07 AM

EXHIBIT “E”Integration Application

Section 27 Township 09 North, Range 18 WestNon-Exception Location in the NE/4

Pope County, Arkansas

Lower Fayetteville StructureGeologist: Pedro Sanchez

SEECO, Inc.’s ProposedStoreygard 09-18 #1-27H34

Drawn by: Kelvin Latson

Houston, Texas

-3400

-3200

-4100

4900

-4000

-4000

-290

0

~1000’ Flt

~30’ Flt

~800’ Flt

~1000’ Flt

~30’ Flt

~30’

Flt

-240

032-

022-

022-

081

091- 002-

012-21 22 23

262728

33 34 35

9N 18W

COLE /A/1

BLAKENSHIP1-34

RADFORD1-33

IDA V1-21


HAYS1

MUNCY1-21

BURRIS 09-181-23H

ESSINGER-SMITH 09-181-20H



340330320310300290280270260250240230220210200190180170160150140130120

FEET

0 3,000

PETRA 1/27/2010 3:02:56 PM

Fayetteville Gross ThicknessGeologist: Pedro Sanchez

EXHIBIT “F”Integration Application





Houston, Texas

21 22 23

262728

33 34 35

9N 18W

COLE /A/1

BLAKENSHIP1-34

RADFORD1-33

IDA V1-21


HAYS1

MUNCY1-21

BURRIS 09-181-23H

ESSINGER-SMITH 09-181-20H



FEET

0 3,000

PETRA 1/27/2010 3:04:14 PM

Topographic StructureGeologist: Pedro Sanchez

EXHIBIT “G”Integration Application





Houston, Texas

560'

560'

5924

' Tot

al Pe

rf

174.85 TOTAL ACRES

9N-18W-27118.04 Acres67.51% of Total Acres

9N-18W-3456.81 Acres32.49% of Total Acres

27

Printed: 9:44 AM on 01/25/2010 by Larry Saranthus, GIS TechnicianFile: F:\COMMON\Geo_Temp\GIS\Arkansas\Cross_Unit_Plats\Storeygard 09-18 #1-27H34.mxd

§0 1,000 2,000FEET

Scale: 1" = 1,000'1:12,000

Section 27, Township 09N, Range 18W, Pope CountySection 34, Township 09N, Range 18W, Pope County

Storeygard 09-18 #1-27H34

2350 N. Sam Houston Pkwy E.Suite 125Houston, Texas 77032

LegendPerforated LateralPath

7 First & Last Perf Locations= Bottom HoleH Surface Hole

ParticipationArea9N-18W-349N-18W-27

saranthl

Typewritten Text

Exhibit "G"

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