Valentine Field

Lafourche Parish, Louisiana

The Company owns an average 45% working interest, some of which is non-operated, in forty-three wells in the Valentine Field. Current net production is approximately 91 barrels of oil and 942 mcf of gas per day from nine producing wells and approximately 3,081.54 net mineral acres are held by production in the field. There are three salt water disposal wells in the field and twenty-nine wells are currently shut-in pending evaluation for future workover or recompletion in uphole zones. Processing facilities and tank batteries are strategically located throughout the field and have plenty of excess capacity. A field operations center is centrally located in the field. Access to pipelines and crude oil markets is excellent.

Evaluation of the existing well bores and overall field operations is in progress and we are making preparations to begin an initial round of recompletions and workovers in the fourth quarter of 2011. In addition to numerous re-completion and workover opportunities, there is offset developmental drilling potential as well as deep gas potential. All of those potential opportunities are currently being evaluated.