Coble-Whittenburg

TEXAS PANHANDLE – OPEN ACREAGE AND PRODUCTION

Area 1: Hutchinson County, Texas – Turkey Track Ranch

Producing Acreage:

• 30 operated wells, 20 producing, 8 currently shut-in and 2 saltwater disposal wells
  • Wells drilled between 1989 and 2008
  • Working interest in majority of wells 100% with average 71.5% net revenue interest
• Gross production rates 453 MCFD and 117 BOPD (2011 avg)
  • Net cash flow $133,000 per month
• Known producing formations include: Cleveland, Morrow, Hunton, Granite Wash, Marmaton, Tonkawa, Cherokee, Council Grove and Dolomite zones
• Extensive well control in the area
• Gas processed through 2 plants operated by DCP. Multiple pipelines located across the ranch

Open Acreage:

• ~70,000 contiguous acres surface and minerals available for long term development
  • Coble-Whittenburg Surface Lease Form and Oil and Gas Lease Form to be utilized as the proposed basis of this lease transaction
  • Located in Eastern Hutchinson County
• Land owned by Coble-Whittenburg and predecessors for the past 100 years
• 3D seismic data coverage approximately 163 square miles (104,000 acres). Raw data, some processed and interpretations available for QC subject to mutually agreeable AMI, and use restriction agreement to be negotiated

Area 2: Gray and Roberts Counties, Texas – Pampa Place Ranch

Open Acreage:

• ~5,920 surface acres and approximately 5,760 net mineral acres available for development in northern Gray County and southern Roberts County. Sellers lease forms to be utilized as the proposed basis of this lease transaction

Area 3: Hockley County, Texas

Deep Rights Open Acreage:

• Located in Northwest Permian Basin, about 3 miles west of Levelland, Texas
• ~6,912 leasehold acres, deep rights only, rights below 5100/5300’
• Third party HBP shallow rights (above 5100/5300’)

NOTE: A Confidentiality Agreement (“CA”) must be executed prior
to receiving the data package. Meagher will furnish to you
a CA for execution prior to any data room visit.