EXHIBIT
99.1





Ralph
E. Davis Associates, Inc.


1717 St.
James Place, Suite 460


Houston,
Texas 77056


(713)
622-8955





April 7,
2009








Cross
Canyon Energy Corp.


6630
Cypresswood Drive, Suite 200


Spring,
Texas 77979





Attention:  Mr.
Robert P. Munn, CEO





At your
request, we have appraised the leasehold and royalty interests in properties
owned by Cross Canyon Energy Corp (Cross Canyon).  The subject
properties are located in Duval County, Texas.





We have
prepared estimates of the reserves, future production and income attributable to
the subject interests with an effective date of December 31, 2008. The reserves
associated with these estimates have been classified in accordance with the
definitions of the Securities and Exchange Commission (SEC) as found in Rule
4-10(a) of regulation S-X of the Securities Exchange Act of 1934.  The
results of our study are summarized as follows:





Estimated
Net Reserves and Income Data


Certain
Leasehold and Royalty Interests of


Cross
Canyon Energy Corp.





PROVEDPRODUCING
              
              
              NON-PRODUCING
              
              
              UNDEVELOPED
              
              
              TOTALNet
    ReservesOil/Condensate-MBarrels
              
              
              68.81
              
              
              
              229.32
              
              
              
              228.64
              
              
              
              526.76Gas-MMCF
              
              
              1,974.26
              
              
              
              2,545.55
              
              
              
              3,702.85
              
              
              
              8,222.66Income Data
      (M$)Future
      Gross Revenue
              
              $
              14,775.62
              
              
              $
              25,103.78
              
              
              $
              31,867.73
              
              
              $
              71,747.14Ad
      Val & Severance Taxes
              
              $
              1,452.93
              
              
              $
              2,353.86
              
              
              $
              3,064.91
              
              
              $
              6,871.71Operating
      Costs
              
              $
              4,856.10
              
              
              $
              6,917.08
              
              
              $
              7,298.93
              
              
              $
              19,072.12Capital
      Costs
              
              $
              0.00
              
              
              $
              1,000.00
              
              
              $
              5,600.00
              
              
              $
              6,600.00Future
      Net Income (FNI)
              
              $
              8,466.60
              
              
              $
              14,832.82
              
              
              $
              15,903.89
              
              
              $
              39,203.31FNI
      @ 10%
              
              $
              6,571.55
              
              
              $
              6,334.73
              
              
              $
              8,516.93
              
              
              $
              21,423.22




Totals
may not add due to computer rounding.





Oil and
condensate products are expressed in standard 42 gallon barrels.  Gas
volumes are expressed in million cubic feet (MMCF) at the official temperature
and pressure bases where the gas reserves are located.


1


DISCUSSION





During
2008 Cross Canyon has added several zones to production that were carried as
proved non-producing in 2007.  In addition, two wells, the Miller 133
and the Marchbanks-Cadena 122, previously carried as non- producing commenced
production in 2008.





Cross
Canyon plans to drill the proved undeveloped Hilda Parr 108 location in
2009.  The remaining PUD locations are planned to be drilled in 2010
and 2011.





In
addition there are plans to convert the Marchbanks-Cadena 109 well to a water
injector in May 2009.  This will cut the water disposal costs from the
current $2.00 per barrel substantially.





METHOD OF
APPRAISAL





The
properties have been evaluated on the basis of future net cash flow, which is
defined as the amount of future net income, which will accrue to the appraised
interest by operating the properties to the estimated limit of profitable
operation.  The future net cash flow has been discounted at an annual
effective rate of ten percent as the primary discount rate for this
study.  The future net cash flow has also been discounted at various
other rates, as shown on the schedules.  The discounted values shown
are for your information and should not be construed as our estimate of fair
market value.





RESERVE
DETERMINATION





The
reserves presented in this report have been estimated using engineering and
geological methods widely accepted in the industry.  In general, these
estimates were made using performance methods that utilize extrapolations of
various historical data including, but not limited to, oil, gas and water
production and pressure history.  For the behind pipe reserves and
undeveloped reserves, estimates were made using volumetric methods or by analogy
to wells within each respective field and reservoir.





Future
production rates may be subject to regulation by various governmental agencies,
changes in market demand or other factors; consequently, actual producing rates
may differ materially from volumes predicted.





ECONOMIC
PARAMETERS





Prices– Prices are the
December 31, 2008 NYMEX oil and gas price and were held constant for the life of
this report. Prices were adjusted for gathering and BTU content.





Costs – Operating costs for
the fields, leases and wells in this report are based upon the last available 12
months of lease operating reports of Cross Canyon.  As required by SEC
guidelines these costs were held constant for the life of each
property.  No provision has been made for the value of salvable
equipment or the leases at abandonment, nor were costs included to properly plug
and abandon the wells.  It is assumed that these costs are minimal and
generally offset one another.





GENERAL





No
consideration has been given to Cross Canyon’s corporate overhead, income taxes,
depletion, depreciation or any other indirect costs.





Titles to
the evaluated properties have not been examined by Ralph E. Davis Associates,
Inc., nor has the actual degree or type of interest owned been independently
confirmed.  The data used in our evaluation were obtained from Cross
Canyon or from public information sources.  A field inspection of the
properties was not made.


2





The
reliability of any reserve estimate is a function of the quality of available
information and of engineering interpretation and judgment.  In our
opinion, the reserve estimates presented herein were made in accordance with
generally accepted engineering and evaluation principles consistently applied,
and are believed to be reasonable.  These reserves should be accepted
with the understanding that additional activity or additional information
subsequent to the effective date of this report might require revision to those
reserve estimates.





Neither
Ralph E. Davis Associates, Inc. nor any of its employees have any interest in
the subject properties and neither the employment to make this study nor the
compensation is contingent on its estimates of reserves and future income for
the subject properties.





This
report was prepared for the exclusive use of Cross Canyon Energy Corp. The data
and work papers used in preparing this report are available for examination by
authorized parties in our offices.





It has
been a privilege to perform this study for you.  Please contact us if
we can be of further service in this or other matters.





Very
truly yours,


RALPH E.
DAVIS ASSOCIATES, INC.








/s/  Allen L. Kelley


Allen L. Kelley


Vice President





3


CLASSIFICATION
OF RESERVES





Proved Oil and Gas
Reserves




Proved
oil and gas reserves are the estimated quantities of crude oil, natural gas, and
natural gas liquids which geological and engineering data demonstrate with
reasonable certainty to be recoverable in future years from known reservoirs
under existing economic and operating conditions, i.e., prices and costs as of
the date the estimate is made.  Prices include consideration of
changes in existing prices provided only by contractual arrangements, but not on
escalations based upon future conditions.





1.
            Reservoirs
      are considered proved if economic producibility is supported by either
      actual production or conclusive formation test.  The area of a
      reservoir considered proved includes (A) that portion delineated by
      drilling and defined by gas-oil and/or oil-water contacts, if any; and (B)
      the immediately adjoining portions not yet drilled, but which can be
      reasonably judged as economically productive on the basis of available
      geological and engineering data.  In the absence of information
      on fluid contacts, the lowest known structural occurrence of hydrocarbons
      controls the lower proved limit of the
  reservoir.





2.
            Reserves
      which can be produced economically through application of improved
      recovery techniques (such as fluid injection) are included in the proved
      classification when successful testing by a pilot project, or the
      operation of an installed program in the reservoir, provides support for
      the engineering analysis on which the project or program was
      based.





3.
            Estimates
      of proved reserves do not include the following: (A) oil that may become
      available from known reservoirs but is classified separately as indicated
      additional reserves; (B) crude oil, natural gas, and natural gas liquids,
      the recovery of which is subject to reasonable doubt because of
      uncertainty as to geology, reservoir characteristics, or economic factors;
      (C) crude oil, natural gas, and natural gas liquids, that may occur in
      undrilled prospects; and (D) crude oil, natural gas, and natural gas
      liquids, that may be recovered from oil shales, coal, gilsonite and other
      such sources.





Proved Developed Oil and Gas
Reserves


Proved
developed oil and gas reserves are reserves that can be expected to be recovered
through existing wells with existing equipment and operating
methods.  Additional oil and gas expected to be obtained through the
application of fluid injection or other improved recovery techniques for
supplementing the natural forces and mechanisms of primary recovery should be
included as proved developed reserves only after testing by a pilot project or
after the operation of an installed program has confirmed through production
response that increased recovery will be achieved.





Proved Undeveloped
Reserves


Proved
undeveloped oil and gas reserves are reserves that are expected to be recovered
from new wells on undrilled acreage, or from existing wells where a relatively
major expenditure is required for recompletion.  Reserves on undrilled
acreage shall be limited to those drilling units offsetting productive units
that are reasonably certain of production when drilled.  Proved
reserves for other undrilled units can be claimed only where it can be
demonstrated with certainty that there is continuity of productionfrom the existing
productive formation.  Under no circumstances should estimates for
proved undeveloped reserves be attributable to any acreage for which an
application of fluid injection or other improved recovery technique is
contemplated, unless such techniques have been proved effective by actual tests
in the area and in the same reservoir.





(Classification
of reserves as found in Rule 4-10(a) of Regulation S-X of the per Securities and
Exchange Act)