Three Allen Center  333 Clay Street, Suite 1000  Houston, Texas 77002  (281) 774-2000  FAX (281) 774- 2199

1. Jack Schanck Chief Executive Officer David Bole President Three Allen Center  333 Clay Street, Suite 1000  Houston, Texas 77002(281) 774-2000 FAX (281) 774-2199  www.SouthViewEnergy.com

2. Overview A new company formed in 2005 • SouthView Energy overview • Who we are • How we got started • Value creation experience • Public company • Private company • Cash return focus • What are we looking for? • Investment return focus • Emphasis on sound technical and financial evaluations • Develop long-term relationships • Complementary relationships with other capital sources • Opportunity for cross-referrals • Separate entities with similar objectives/share market insights • Non-competing products 1

3. Who We Are Focus on domestic drilling deals • North American Upstream Investment Fund targeting drilling deals in the $2MM to $20MM investment range • Low to moderate technical risk • Project specific deals (e.g., multi-well drilling program) • Incubation deals – Invest in growing new companies • Prospect generation teams • Capitalization • $50MM initial funding provided by Jefferies Capital Partners • Potentially scaleable with easy access to funding • Option to add additional $50MM • Our concept is a technical lead approach to drilling investment participation • Deep industry knowledge • Willing to share a drilling risk • Participate with people we know • Target areas and plays that we know • Create value via the drill bit

4. How We Got Started Climbing the ladder to head a large company; running a big private company; starting an independent E&P company Growing number of independent and start-up E&P companies SouthView Energy LLC Public and private independents Samson Resources Company Major companies and large independents Unocal Corporation 5

5. Mid-Continent Permian Basin East Texas/ North Louisiana Upper Texas Gulf Coast Primary Target Areas Focus on active areas with high quality deal flow – leverage our existing knowledge

6. Investment Focus We are a non-operating industry partner • Exclusively domestic upstream opportunities • Lower risk, close-in drilling deals (development and small “e”) • Types of investments: • Project specific, e.g., a multi-well drilling program; leverage with portfolio debt as appropriate • Incubate a company • Hybrids: could encounter some projects that have the ability to leverage into optionality • Land investments • Technology investments • Prospect generation • End Game • Project Specific deals (30% to 40% of capital) expected to result in leveragable streams of cash flow • Incubation deals (60% to 70% of capital) expected to grow companies for continued growth for future financial gain A-2

7. General screens We will work in areas we know with people we know • North America upstream only with a bias toward natural gas • Less future price volatility expected due to supply bottlenecks • Small “e” and development • Multiple pay areas • Not interested in single zone objectives • Known/proven oil and gas finder – we want to see track records • “Known by one of us, or by someone we trust” • Project specific deals are stand alone events with good returns that are leveragable • Providing cash flow streams to grow company • Could become hybrids with sufficient critical mass • Incubation/hybrid deals have sustainable growth – plan for 36 to 40 months • Land • Technology application • Data • Specific expertise • Repeatability to build critical mass • Land and combination of land and technology applications are the critical concepts

8. Technical Screens A proven technical approach to deal screening • Known technical risk – no technically difficult projects • No mechanical innovations • No heavy oil, California steam, deepwater, international, CO2 floods • Scalability • Size • Multiple pay zones • Technology Applications • Under-balanced drilling • Drilling with casing • Re-frac

9. Deal Structure We want to keep it simple – full alignment with the operator • In general, looking for direct participation • Willing to invest up to 100% of required capital for drilling projects • Each deal will be a separate transaction • Participation agreement • Joint operating agreement • Keep it simple • Industry deals with people we know in plays that we know • Continue to build long-term relationships • Contract terms will include performance standards • Goal is not to be operators • Contract terms may include a discussion of pre-determined exit points, e.g. • Target exits at defined levels of production • Leave sufficient upside to attract purchasers

10. Current Projects With one exception, all current projects are in Texas or the Ark-La-Tex area • Field development in Los Angeles Basin • Well known reservoir • Participation with capital provider • Minority equity position/scalable • Acquire/develop/monetize strategy • Potential for 15-20 well workover and drilling program • Multi-well drilling program in the Ark-La-Tex area • Close-in and development drilling/analogous production • Well-defined structure/confirmed hydrocarbon presence • One-well promote (25% BIAPO) • Heads-up on all subsequent wells (20+ wells over 2-3 years) • One-well drilling commitment in Upper Texas Gulf Coast • Yegua development/Wilcox potential • 25% carry to casing point for first well • Establish relationship with excellent prospect generator • Like the trend/looking for greater exposure

11. Current Projects With one exception, all current projects are in Texas or the Ark-La-Tex area • One-well drilling commitment – multi-well development • Yegua potential updip from show well • 25% carry to casing point • Known operator with excellent track record • Exploration joint venture • Participate in LGG – for 15% WI • Upper Texas Gulf Coast Yegua/Hackberry • Seismically driven • Multi-well exploitation program in East Texas • Shale oil requires special stimulation • Funding leasing and multi-well drilling • 1/3 for 1/4 for 50% WI

12. Prospective Client Overview Focus on domestic drilling deals • A demonstrated record of drilling success in the target area • Committed your funds to a drilling program and are looking for a partner to share lower to moderate drilling risks • A drilling investment opportunity in the $2 million to $20 million range with growth potential • A well developed technical premise for our review • A desire for a long-term relationship to help grow your company We will participate in your domestic onshore drilling program if you have:

13. Contact Information We want to hear from you • Jack W. SchanckChief Executive Officer(281) 774-2140jschanck@SouthViewEnergy.com • David L. BolePresident(281) 774-2023dbole@SouthViewEnergy.com www.SouthViewEnergy.com