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

Jack SchanckChief Executive Officer

David BolePresident

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Overview

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

A new company formed in 2005

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Who We Are

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

Focus on domestic drilling

deals

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How We Got Started

Climbing theladder to head

a large company;running a big

private company;starting an

independentE&P company

Growing number of independent

and start-upE&P companies

Public and private

independents

Major companies and large

independents

SouthView Energy LLC

Samson Resources Company

Unocal Corporation

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Primary Target Areas

East Texas/North Louisiana

Mid-Continent

PermianBasin

Upper Texas

Gulf Coast

Focus on activeareas with high

quality deal flow – leverage

our existing knowledge

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Investment Focus

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

We are a non-operating

industry partner

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General screens

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

We will work in areas we know with people we

know

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Technical Screens

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

A proven technical

approach to deal screening

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Deal Structure

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

We want to keep it simple – full

alignment with the operator

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Current Projects

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

With one exception, all

current projectsare in Texas orthe Ark-La-Tex

area

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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

Current Projects

With one exception, all

current projectsare in Texas orthe Ark-La-Tex

area

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Prospective Client Overview

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:

Focus on domestic drilling

deals

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Jack W. SchanckChief Executive Officer(281) 774-2140jschanck@SouthViewEnergy.com

David L. BolePresident(281) 774-2023dbole@SouthViewEnergy.com

www.SouthViewEnergy.com

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