WEJCO. Exploration & Production. Eagle s Talon Prospect. The Eagle s Talon Prospect is located in south eastern Karnes County,

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1 WEJCO Exploration & Production Eagle s Talon Prospect The Eagle s Talon Prospect is located in south eastern Karnes County, Texas, within the new and highly prolific unconventional Eagle Ford Shale trend and is a test for that series; and an opportunity for dramatic upside potential on a high side closure in a counter-regional rotated Edwards age carbonate structure. The prospect area is located 7 miles south of the town of Runge, Texas.

2 Prospect The prospect consists of 875 acres, more or less, covering a closure at the Cretaceous level, immediately beneath the Eagle Ford Shale horizon, (see Seismic Structure map). The overall structure is a high side closure on a large counter regional slump block, with over 850 of structural relief; on the edge of the Edwards age Carbonate reef complex proven productive to the north. The closure is a high side trap, on a large, (~700 ), down to the southeast fault, and the productive Cretaceous age intervals are draped by a regional unconformity, providing an additional seal. A review of the seismic data documents the structural style described previously for the Eagle s Talon Prospect. Seismic dip line 11797, (in the brochure), the red line on the structure map trending northwest southeast; shows the relative position of the prospective Cretaceous Eagle Ford and Edwards series juxtaposed in a high side trap with the down to the southeast fault, (orange). The mapped Edwards age event is shown as the Blue horizon line between 3.20 and 3.15 seconds. Seismic Line 10434, shows a strike section, (in the brochure); and documents the dramatic southwest to northeast roll on this high side closure in the structural block to be tested, (see position of the red line trending southwest to northeast on structure map for position of line 10434).

3 The Eagle Ford shale currently is productive in 22 counties throughout South Central Texas and this reservoir has been estimated to contain 200 Bcfge available per section. It is a regional deposit with varying thickness throughout the area and is a fractured, brittle, micaceous and fossiliferous black shale with recrystallized, hydrocarbon bearing dolomite and lime streaks, often in intervals over 20 thick, throughout the section. The Eagle s Talon Prospect is in the gas prone and distillate rich portion of the Eagle Ford Shale Corridor, with ~ 1200 Btu gas, and downdip to the Edwards reef trend. Nearby wells document greater than 250 of thickness in the Eagle Ford Shale on trend, with logged porosity between 12% and 18%, total organic carbon ranging from 2.2% to 6%, and gas saturations from 70% to 90%; with approximately 75% of the Eagle Ford Shale being composed of dolomites and limestone lenses. Two wells on the acreage reached depths of 12,000 or more and will be re-entered and taken deeper to the Eagle Ford and below, with dramatic savings over new well costs. The seismic data used in the interpretation is from the Western Geophysical KGD shoot, Phase 1 through 6 in Karnes and Goliad Counties. Data is migrated and the ten square mile interpretation was generated on SMT software at the offices of WEJCO E&P. Velocity control is primarily from a 12,700 well on the acreage, (Hughes #1 Green Hall). This test to

4 the Lower Wilcox provides ample data to lock in the various events within our structure. Reserves The Edwards Reef trend has been proven productive throughout central Karnes County, Dewitt and Live Oak Counties, with multiple vertical and horizontal completions. The structure on our acreage provides the opportunity to test over 1000 of carbonates from the Austin chalk through the Eagle Ford Shale and into the Edwards at our first location. Given the probability of a minimum of 15% of the Carbonates being trapped by a combination of both structural faulting and the regional unconformity, and with a recovery of a minimum of 1.2mmcfge/ac.ft. throughout a closure of over 310 acres; the potential for an additional 55Bcfge, (55.8), exists in the carbonates alone. Combined with the 35Bcfge available within the Eagle Ford Shale itself, the Eagle s Talon Prospect provides a total potential development on the 875 acre block of approximately 90Bcfge. The Eagle Ford shale has recently been proven productive in four directions from our acreage; west, northwest, north and east; with discoveries in Live Oak, Karnes and DeWitt counties flowing at rates as high as 17 Mmcfge/d from similar depths to the west, (14,000 ), 19.9 Mmcfge, (7.7Mmcf/d & 2,030 Bblsc/d), along strike a few miles to the

5 northwest (13,300 ), 4 Mmcfg and 1,500 bbls/d to the north (12,000 ), and 3.7 Mmcfg/d and 160bbls, (500 lateral), to the northeast at 14,000. With the associated Edwards structure proving an additional potential of 55 Bcfge, the total revenues generated to the 74% NRI would amount to $168,300,000 from the Cretaceous Edwards and $107,100,000 from the Cretaceous Eagle Ford Shale, for a total of $275,400,000 to the 100% working interest, less development costs of $31,635,000 for full development costs on the five wells, (two re-entries and three new drills); providing a net revenue of $243,765,000 to the working interest, using $4.50/mcfge, less the LOE costs. With an anticipated initial completion of 8Mmcfge at the above mentioned pricing; total project payout would occur in five months. An overall risk to reward ratio of greater than 8:1, on this combination of proven unconventional and conventional gas and condensate play reservoirs; demonstrates the Eagle s Talon Prospect to be an outstanding opportunity.