Payne County, Oklahoma

The Company holds a leasehold interest in 465 gross acres (approximately 282 net acres) in Payne County, Oklahoma. The Leases are located in a part of northern Oklahoma with a long history of hydrocarbon production from the Cherokee Platform east of the Anadarko Basin and north of the Arkoma Basin. The region is very well located with access to pipeline, processing and refining capacity as well as experienced service companies providing exploration, drilling and production expertise.