| þ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|--------|-----------------------------------------------------------------------------------------|

|  ̈ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|--------|------------------------------------------------------------------------------------------|

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| Maryland                                                                                    | 20-1371499                               |
|---------------------------------------------------------------------------------------------|------------------------------------------|
| (State or other jurisdiction ofincorporation or organization) | (I.R.S. EmployerIdentification No.) |
|                                                                                        |                                     |
| 1221 McKinney Street, Suite 2975Houston, Texas                     | 77010                                    |
| (Address of principal executive offices)                                | (Zip Code)                          |

| Large accelerated filer    ̈ | Accelerated filer     þ | Non-accelerated filer      ̈ | Smaller reporting company    ̈ |
|--------------------------------------------|--------------------------------------------------|------------------------------------------------------|----------------------------------------------|
|                                       |                                             | (Do not check if smaller reporting company)          |

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| PART I - FINANCIAL INFORMATION    | 1                                                                                            |
|-----------------------------------|----------------------------------------------------------------------------------------------|
| Item 1.                           | Financial Statements.                                                                        | 1 |
| Item 2.                      | Management’s Discussion and Analysis of Financial Condition and Results of Operations. | 27 |
| Item 3.                      | Quantitative and Qualitative Disclosures About Market Risk.                                  | 34 |
| Item 4.                      | Controls and Procedures.                                                                     | 34 |
| PART II – OTHER INFORMATION | 35                                                                                           |
| Item 1.                      | Legal Proceedings.                                                                           | 35 |
| Item 1A.                     | Risk Factors.                                                                                | 35 |
| Item 6.                      | Exhibits.                                                                                    | 35 |

----

|                                                          |   | September 30, 2011 |        |   | December 31, 2010 |   |
|--------------------------------------------------------------------|--------|--------------------|-------------|--------|-------------------|--------|
|                                                               |   | (Unaudited)        |        |   |              |   |
|                                                               |   |               |        |   |              |   |
| Assets                                                             |   |               |        |   |              |   |
| Investments in portfolio securities at fair value                  |   |               |        |   |              |   |
|  Control investments - majority owned                         |   |               |        |   |              |   |
|  (cost: $0 and $89,502,910, respectively)                     |   | $                  | 150,000     |   |              | $      | 70,973,316 |   |
|  Affiliate investments                                        |   |               |        |   |              |   |   |   |
|  (cost: $36,425,265 and $34,146,328, respectively)            |   |               | 13,576,684  |   |              |   | 33,064,028 |   |
|  Non-affiliate investments                                    |   |               |        |   |              |   |   |   |
|  (cost: $130,623,421 and $114,852,057, respectively)          |   |               | 128,077,749 |   |              |   | 112,025,645 |   |
| Total investments                                                  |   |               | 141,804,433 |   |              |   | 216,062,989 |   |
| Cash and cash equivalents                                          |   |               | 80,223,340  |   |              |   | 68,456,908 |   |
| Accounts receivable and other current assets                       |   |               | 1,768,858   |   |              |   | 3,095,882 |   |
| Interest receivable                                                |   |               | 623,689     |   |              |   | 2,236,122 |   |
| Prepaid assets                                                     |   |               | 992,194     |   |              |   | 1,736,732 |   |
| Total current assets                                               |   |               | 83,608,081  |   |              |   | 75,525,644 |   |
| Total assets                                                       |   | $                  | 225,412,514 |   |              | $      | 291,588,633 |   |
|                                                               |   |               |        |   |              |   |   |   |
| Liabilities and net assets                                         |   |               |        |   |              |   |   |   |
| Current liabilities                                                |   |               |        |   |              |   |   |   |
| Accounts payable and accrued expenses                              |   | $                  | 674,333     |   |              | $      | 525,111 |   |
| Management and incentive fees payable                              |   |               | 1,337,211   |   |              |   | 1,376,032 |   |
| Dividends payable                                                  |   |               | 3,893,076   |   |              |   | 3,893,076 |   |
| Income taxes payable                                               |   |               | 35,065      |   |              |   | 50,350 |   |
| Current portion of long-term debt                                  |   |               | 15,000,000  |   |              |   | - |   |
| Total current liabilities                                          |   |               | 20,939,685  |   |              |   | 5,844,569 |   |
| Deferred tax liabilities                                           |   |               | 15,438      |   |              |   | 18,136 |   |
| Long-term debt, less current portion                               |   |               | -           |   |              |   | 50,000,000 |   |
| Total liabilities                                                  |   |               | 20,955,123  |   |              |   | 55,862,705 |   |
|                                                               |   |               |        |   |              |   |   |   |
| Commitments and contingencies  (Note 7)                  |   |               |        |   |              |   |   |   |
|                                                               |   |               |        |   |              |   |   |   |
| Net assets                                                         |   |               |        |   |              |   |   |   |
| Common stock, $.001 par value, 250,000,000 shares authorized;      |   |               |        |   |              |   |   |   |
| 21,628,202 shares issued and outstanding                           |   |               | 21,628      |   |              |   | 21,628 |   |
| Paid-in capital in excess of par                                   |   |               | 295,684,737 |   |              |   | 295,684,737 |   |
| Undistributed net investment income (loss)                         |   |               | (5,876,731  | )      |              |   | (7,845,925 | ) |
| Undistributed net realized capital gain (loss)                     |   |               | (63,213,264 | )      |              |   | (32,778,782 | ) |
| Net unrealized appreciation (depreciation) of portfolio securities |   |               | (22,158,979 | )      |              |   | (19,355,730 | ) |
| Total net assets                                                   |   |               | 204,457,391 |   |              |   | 235,725,928 |   |
| Total liabilities and net assets                                   |   | $                  | 225,412,514 |   |              | $      | 291,588,633 |   |
|                                                               |   |               |        |   |              |   |   |   |
| Net asset value per share                                          |   | $                  | 9.45        |   |              | $      | 10.90 |   |

----

|                                                 |   | For The Three Months Ended |        |   | For The Nine Months Ended |   |
|-----------------------------------------------------------|--------|----------------------------|-------------|--------|---------------------------|--------|
|                                                      |   | September 30, 2011         |        |   | September 30, 2010        |   |   | September 30, 2011 |   |   | September 30, 2010 |   |
| Investment income                                         |   |                       |        |   |                      |   |   |   |   |   |   |   |
| Interest income:                                          |   |                       |        |   |                      |   |   |   |   |   |   |   |
| Control investments - majority owned                      |   | $                          | 1,438,834   |   |                      | $      | 1,188,139 |   |   | $ | 8,605,178 |   |   | $ | 3,384,042 |   |
| Affiliate investments                                     |   |                       | 341,930     |   |                      |   | 959,298 |   |   |   | 972,974 |   |   |   | 2,692,192 |   |
| Non-affiliate investments                                 |   |                       | 4,715,863   |   |                      |   | 3,011,209 |   |   |   | 11,233,500 |   |   |   | 9,568,456 |   |
| Royalty income (loss), net of amortization:               |   |                       |        |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Control investments - majority owned                      |   |                       | 514,835     |   |                      |   | 522,473 |   |   |   | 1,194,970 |   |   |   | 1,277,258 |   |
| Non-affiliate investments                                 |   |                       | 274,574     |   |                      |   | (75,337 | ) |   |   | 801,262 |   |   |   | (1,038,012 | ) |
| Other income                                              |   |                       | 33,750      |   |                      |   | 640,000 |   |   |   | 126,387 |   |   |   | 1,586,079 |   |
| Total investment income                                   |   |                       | 7,319,786   |   |                      |   | 6,245,782 |   |   |   | 22,934,271 |   |   |   | 17,470,015 |   |
|                                                      |   |                       |        |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Operating expenses                                        |   |                       |        |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Management and incentive fees                             |   |                       | 1,337,211   |   |                      |   | 1,409,553 |   |   |   | 4,262,213 |   |   |   | 4,171,952 |   |
| Professional fees                                         |   |                       | 376,086     |   |                      |   | 159,960 |   |   |   | 811,152 |   |   |   | 646,936 |   |
| Insurance expense                                         |   |                       | 182,182     |   |                      |   | 185,658 |   |   |   | 547,028 |   |   |   | 556,974 |   |
| Interest expense and bank fees                            |   |                       | 376,374     |   |                      |   | 339,073 |   |   |   | 1,143,051 |   |   |   | 956,254 |   |
| Other general and administrative expenses                 |   |                       | 760,985     |   |                      |   | 973,024 |   |   |   | 2,487,689 |   |   |   | 2,763,012 |   |
| Total operating expenses                                  |   |                       | 3,032,838   |   |                      |   | 3,067,268 |   |   |   | 9,251,133 |   |   |   | 9,095,128 |   |
| Income tax provision (benefit), net                       |   |                       | 17,013      |   |                      |   | 15,224 |   |   |   | 34,715 |   |   |   | 51,516 |   |
| Net investment income                                     |   |                       | 4,269,935   |   |                      |   | 3,163,290 |   |   |   | 13,648,423 |   |   |   | 8,323,371 |   |
|                                                      |   |                       |        |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Net realized capital gain (loss) on investments           |   |                       |        |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Net realized capital gain (loss) on portfolio securities: |   |                       |        |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Control investments - majority owned                      |   |                       | (32,879,825 | )      |                      |   | - |   |   |   | (32,798,550 | ) |   |   | - |   |
| Non-affiliate investments                                 |   |                       | 1,985,858   |   |                      |   | - |   |   |   | 2,364,068 |   |   |   | - |   |
| Total net realized capital gain (loss) on investments     |   |                       | (30,893,967 | )      |                      |   | - |   |   |   | (30,434,482 | ) |   |   | - |   |
|                                                      |   |                       |        |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Net unrealized gain (loss) on investments                 |   |                       |        |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Net increase (decrease) in unrealized appreciation        |   |                       |        |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| (depreciation) on portfolio securities                    |   |                       |        |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Control investments - majority owned                      |   |                       | 27,917,683  |   |                      |   | (2,838,653 | ) |   |   | 18,679,595 |   |   |   | (2,925,328 | ) |
| Affiliate investments                                     |   |                       | (228,752    | )      |                      |   | (1,542,752 | ) |   |   | (21,766,280 | ) |   |   | (1,732,043 | ) |
| Non-affiliate investments                                 |   |                       | (1,001,129  | )      |                      |   | 1,261,745 |   |   |   | 280,738 |   |   |   | 5,308,870 |   |
| Benefit (provision) for taxes on unrealized gain (loss)   |   |                       | (100        | )      |                      |   | 20,479 |   |   |   | 2,698 |   |   |   | (29,658 | ) |
| Total net unrealized gain (loss) on investments           |   |                       | 26,687,702  |   |                      |   | (3,099,181 | ) |   |   | (2,803,249 | ) |   |   | 621,841 |   |
|                                                      |   |                       |        |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Net increase (decrease) in net assets resulting           |   |                       |        |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| from operations                                           |   | $                          | 63,670      |   |                      | $      | 64,109 |   |   | $ | (19,589,308 | ) |   | $ | 8,945,212 |   |
|                                                      |   |                       |        |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Net increase (decrease) in net assets resulting           |   |                       |        |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| from operations per common share                          |   | $                          | -           |   |                      | $      | - |   |   | $ | (0.91 | ) |   | $ | 0.42 |   |

----

|                          |   | Common Stock |       |   | Paid-inCapitalin Excess |   |   | UndistributedNet InvestmentIncome |   |   | UndistributedNet RealizedCapital |   |   | Net UnrealizedAppreciation(Depreciation)of Portfolio |        |   | Total      |   |
|-------------------------------|--------|--------------|------------|--------|-------------------------|--------|--------|-----------------------------------|--------|--------|----------------------------------|--------|--------|------------------------------------------------------|-------------|--------|------------|--------|
|                          |   | Shares       |       |   | Amount                  |   |   | of Par                            |   |   | (Loss)                           |   |   | Gain (Loss)                                          |        |   | Securities |   |   | Net Assets |   |
| Balance at December 31, 2010  |   |         | 21,628,202 |   |                    | $      | 21,628 |                              |   | $      | 295,684,737                      |   |   | $                                                    | (7,845,925  | )      |       | $      | (32,778,782 | ) |   | $ | (19,355,730 | ) |   | $ | 235,725,928 |   |
| Net increase (decrease)       |   |         |       |   |                    |   |   |                              |   |   |                             |   |   |                                                 |        |   |       |   |   |   |   |   |   |   |   |   |   |   |
| in net assets resulting       |   |         |       |   |                    |   |   |                              |   |   |                             |   |   |                                                 |        |   |       |   |   |   |   |   |   |   |   |   |   |   |
| from operations               |   |         | -          |   |                    |   | -      |                              |   |   | -                                |   |   |                                                 | 13,648,423  |   |       |   | (30,434,482 | ) |   |   | (2,803,249 | ) |   |   | (19,589,308 | ) |
| Dividends declared            |   |         | -          |   |                    |   | -      |                              |   |   | -                                |   |   |                                                 | (11,679,229 | )      |       |   | - |   |   |   | - |   |   |   | (11,679,229 | ) |
|                          |   |         |       |   |                    |   |   |                              |   |   |                             |   |   |                                                 |        |   |       |   |   |   |   |   |   |   |   |   |   |   |
| Balance at September 30, 2011 |   |         | 21,628,202 |   |                    | $      | 21,628 |                              |   | $      | 295,684,737                      |   |   | $                                                    | (5,876,731  | )      |       | $      | (63,213,264 | ) |   | $ | (22,158,979 | ) |   | $ | 204,457,391 |   |

----

|                                                                     |   | For The Nine Months Ended |         |
|-------------------------------------------------------------------------------|--------|---------------------------|--------------|
|                                                                          |   | September 30, 2011        |         |   | September 30, 2010 |   |
| Cash flows from operating activities                                          |   |                      |         |   |   |   |
| Net increase (decrease) in net assets resulting from operations               |   | $                         | (19,589,308  | ) |   | $ | 8,945,212 |   |
| Adjustments to reconcile net increase (decrease) in net assets resulting from |   |                      |         |   |   |   |   |   |
| operations to net cash provided by operating activities:                      |   |                      |         |   |   |   |   |   |
| Payment-in-kind interest                                                      |   |                      | (6,650,072   | ) |   |   | (4,547,397 | ) |
| Net amortization of premiums, discounts and fees                              |   |                      | (2,096,619   | ) |   |   | 8,650,115 |   |
| Net realized capital loss on portfolio securities                             |   |                      | 30,434,482   |   |   |   | - |   |
| Net unrealized (appreciation) depreciation on portfolio securities            |   |                      | 2,805,947    |   |   |   | (651,499 | ) |
| Net deferred income tax liabilities                                           |   |                      | (2,698       | ) |   |   | - |   |
| Effects of changes in operating assets and liabilities:                       |   |                      |         |   |   |   |   |   |
| Accounts receivable and other current assets                                  |   |                      | 1,327,024    |   |   |   | 177,880 |   |
| Interest receivable                                                           |   |                      | 1,612,433    |   |   |   | 362,249 |   |
| Prepaid assets                                                                |   |                      | 744,538      |   |   |   | 893,233 |   |
| Accounts payable and accrued expenses                                         |   |                      | 110,401      |   |   |   | (93,928 | ) |
| Payables for investment securities purchased                                  |   |                      | -            |   |   |   | 2,856,806 |   |
| Income taxes payable                                                          |   |                      | (15,285      | ) |   |   | (13,484 | ) |
| Purchase of investments in portfolio securities                               |   |                      | (88,390,690  | ) |   |   | (21,318,320 | ) |
| Proceeds from the redemption of investments in portfolio securities           |   |                      | 138,155,508  |   |   |   | 20,296,527 |   |
| Purchase of investments in U.S. Treasury Bills                                |   |                      | (30,601,000  | ) |   |   | - |   |
| Proceeds from the redemption of investments in U.S. Treasury Bills            |   |                      | 30,601,000   |   |   |   | - |   |
| Net cash provided by operating activities                                     |   |                      | 58,445,661   |   |   |   | 15,557,394 |   |
|                                                                          |   |                      |         |   |   |   |   |   |
| Cash flows from financing activities                                          |   |                      |         |   |   |   |   |   |
| Borrowings under revolving credit facilities                                  |   |                      | 110,000,000  |   |   |   | 174,905,200 |   |
| Repayments on revolving credit facilities                                     |   |                      | (145,000,000 | ) |   |   | (192,405,200 | ) |
| Dividends paid                                                                |   |                      | (11,679,229  | ) |   |   | (11,030,383 | ) |
| Net cash used in financing activities                                         |   |                      | (46,679,229  | ) |   |   | (28,530,383 | ) |
| Net increase (decrease) in cash and cash equivalents                          |   |                      | 11,766,432   |   |   |   | (12,972,989 | ) |
| Cash and cash equivalents, beginning of period                                |   |                      | 68,456,908   |   |   |   | 108,288,217 |   |
| Cash and cash equivalents, end of period                                      |   | $                         | 80,223,340   |   |   | $ | 95,315,228 |   |

----

| Portfolio Company                                                 |   | Energy Industry Segment          |   | Investment (1)                                                  |   |   | Principal  |       |    | Cost       |       |   | Fair Value (2)                                                                              |
|-------------------------------------------------------------------|--------|----------------------------------|--------|-----------------------------------------------------------------|--------|--------|------------|------------|---------|------------|------------|--------|---------------------------------------------------------------------------------------------|
| Control Investments - Majority Owned (50% or more owned)          |
| BSR Holdings, LLC (11)                                            |   | Oil & Natural Gas            |   | 100% of membership interests of                                 |   |   |       |       | $       | -          |       | $      | -                                                                                           |
|                                                              |   |  Production and Development |   | BSR Holdings, LLC                                               |   |   |       |       |    |       |       |   |                                                                                        |
|                                                              |   |                             |   |                                                            |   |   |       |       |    |       |       |   |                                                                                        |
| DeanLake Operator,                                                |   | Oil & Natural Gas            |   | Class A membership interests -                                  |   |   |       |       |    | -          |       |   | 150,000                                                                                     |
|     LLC (11)                                  |   |  Production and             |   | entitled to 100%                                                |   |   |       |       |    |       |       |   |                                                                                        |
|                                                              |   | Development                      |   | of distribution of DeanLake                                     |   |   |       |       |    |       |       |   |                                                                                        |
|                                                              |   |                             |   | Operator, LLC                                                   |   |   |       |       |    |       |       |   |                                                                                        |
|                                                              |   |                             |   |                                                            |   |   |       |       |    |       |       |   |                                                                                        |
| Rubicon Energy Partners,                                          |   | Oil & Natural Gas            |   | 4,000 LLC Units -                                               |   |   |       |       |    |       |       |   |                                                                                        |
|     LLC (11)                                  |   |  Production and             |   | 50% ownership of the assets of                                  |   |   |       |       |    |       |       |   |                                                                                        |
|                                                              |   | Development                      |   | Rubicon Energy Partners, LLC                                    |   |   |       |       |    | -          |       |   | -                                                                                           |
|                                                              |   |                             |   |                                                            |   |   |       |       |    |       |       |   |                                                                                        |
| Subtotal Control Investments - Majority Owned (50% or more owned) |   |                             |   |                                                            | $      | -      |       | $          | 150,000 |
|                                                              |   |                             |   |                                                            |   |   |       |       |    |       |       |   |                                                                                        |
| Affiliate Investments - (5% to 25% owned)                         |
| BioEnergy Holding, LLC (6)                                        |   | Alternative Fuels and            |   | Senior Secured Notes                                            |   | $      | 16,662,326 |       | $       | 15,510,855 |       | $      | -                                                                                           |
|                                                              |   | Specialty Chemicals              |   | (15%, due 3/06/2015) (4)                                        |   |   |       |       |    |       |       |   |                                                                                        |
|                                                              |   |                             |   | BioEnergy Holding Units - 11.1% of outstanding                  |   |   |       |       |    | 1,296,771  |       |   | -                                                                                           |
|                                                              |   |                             |   | units of BioEnergy Holdings, LLC                                |   |   |       |       |    |       |       |   |                                                                                        |
|                                                              |   |                             |   | Myriant Corporation - 0.59% of                             |   |   |       |       |    | 418,755    |       |   | 706,132                                                                                     |
|                                                              |   |                             |   | outstanding common shares of Myriant Corporation |   |   |       |       |    |       |       |   |                                                                                        |
|                                                              |   |                             |   | Myriant Corporation Warrants (8)                                |   |   |       |       |    | 49,238     |       |   | 49,238                                                                                      |
|                                                              |   |                             |   |                                                            |   |   |       |       |    |       |       |   |                                                                                        |
| Bionol Clearfield, LLC (6)                                        |   | Alternative Fuels and            |   | Senior Secured Tranche C                                        |   |   | 4,950,000  |       |    | 4,950,000  |       |   | -                                                                                           |
|                                                              |   | Specialty Chemicals              |   | 2nd Lien Term Loan                                              |   |   |       |       |    |       |       |   |                                                                                        |
|                                                              |   |                             |   | (LIBOR + 7% cash, LIBOR + 9%                                    |   |   |       |       |    |       |       |   |                                                                                        |
|                                                              |   |                             |   | default, due 9/06/2016) (4)                                     |   |   |       |       |    |       |       |   |                                                                                        |
|                                                              |   |                             |   |                                                            |   |   |       |       |    |       |       |   |                                                                                        |
| Resaca Exploitation Inc.                                          |   | Oil & Natural Gas            |   | Senior Unsecured Term Loan                                      |   |   | 10,926,010 |       |    | 10,714,392 |       |   | 10,714,392                                                                                  |
|                                                              |   |  Production and             |   | (9.5% cash or 12% PIK,                                          |   |   |       |       |    |       |       |   |                                                                                        |
|                                                              |   | Development                      |   | due on 12/31/2014)                                              |   |   |       |       |    |       |       |   |                                                                                        |
|                                                              |   |                             |   | Common Stock (1,360,972 shares) - representing                  |   |   |       |       |    | 3,235,254  |       |   | 1,856,922                                                                                   |
|                                                              |   |                             |   | 6.56% of outstanding common stock of                            |   |   |       |       |    |       |       |   |                                                                                        |
|                                                              |   |                             |   | Resaca Exploitation Inc. (3) (9)                                |   |   |       |       |    |       |       |   |                                                                                        |
|                                                              |   |                             |   | Warrants (13)                                                   |   |   |       |       |    | 250,000    |       |   | 250,000                                                                                     |
|                                                              |   |                             |   |                                                            |   |   |       |       |    |       |       |   |                                                                                        |
| Subtotal Affiliate Investments - (5% to 25% owned)                |   |                             |   |                                                            |   |   | $          | 36,425,265 |    | $          | 13,576,684 |
|                                                              |   |                             |   |                                                            |   |   |       |       |    |       |       |   |                                                                                        |
| Non-affiliate Investments - (Less than 5% owned)                  |
| Anadarko Petroleum                                                |   | Oil & Natural Gas            |   | Net Profits Interest                                            |   | $      | 5,654,145  |       | $       | 5,680,474  |       | $      | 5,980,474                                                                                   |
|     Corporation                               |   |  Production and             |   | (Due 4/23/2032)                                                 |   |   |       |       |    |       |       |   |                                                                                        |
|     2007-III Drilling Fund                    |   | Development                      |   |                                                            |   |   |       |       |    |       |       |   |                                                                                        |
|                                                              |   |                             |   |                                                            |   |   |       |       |    |       |       |   |                                                                                        |
| ATP Oil & Gas                                                 |   | Oil & Natural Gas            |   | Limited Term Royalty Interest                                   |   |   |       |       |    | 20,714,799 |       |   | 20,714,799                                                                                  |
|     Corporation - III                         |   |  Production and             |   | (12.35% annual interest, 13% IRR                                |   |   |       |       |    |       |       |   |                                                                                        |
|                                                              |   | Development                      |   | to pay-out)                                                     |   |   |       |       |    |       |       |   |                                                                                        |
|                                                              |   |                             |   |                                                            |   |   |       |       |    |       |       |   |                                                                                        |
| Black Pool Energy                                                 |   | Oil & Natural Gas            |   | Senior Secured Term Loan                                        |   |   | 15,854,631 |       |    | 15,840,696 |       |   | 12,100,000                                                                                  |
|     Partners, LLC                             |   |  Production and             |   | (The greater of 15% or LIBOR +                                  |   |   |       |       |    |       |       |   |                                                                                        |
|                                                              |   | Development                      |   | 11%, due 10/24/2011) (18)                                       |   |   |       |       |    |       |       |   |                                                                                        |
|                                                              |   |                             |   | 3% Overriding Royalty Interest                                  |   |   |       |       |    | 8,324      |       |   |               100,000 |
|                                                              |   |                             |   | Warrants (10)                                                   |   |   |       |       |    | 10,000     |       |   | -                                                                                           |

----

| Portfolio Company                                            |   | Energy Industry Segment  |   | Investment (1)                                         |   |        | Principal  |   |        | Cost        |   |   | Fair Value (2) |
|--------------------------------------------------------------|--------|--------------------------|--------|--------------------------------------------------------|--------|-------------|------------|--------|-------------|-------------|--------|--------|----------------|
| Non-affiliate Investments - (Less than 5% owned) - Continued |   |                     |   |                                                   |   |        |       |   |        |        |
| Castex Energy Development                                    |   | Oil & Natural Gas    |   | Senior Secured Term Loan                               |   | $           | 27,500,000 |   | $           | 26,961,669  |   | $      | 26,961,669     |
|     Fund, LLC                            |   |  Production and     |   | (The greater of 11.5% or LIBOR +                       |   |        |       |   |        |        |   |   |           |
|                                                         |   | Development              |   | 10.5%, due 12/31/2014)                                 |   |        |       |   |        |        |   |   |           |
|                                                         |   |                     |   | Castex Class B Units - 5% (16)                         |   |        |       |   |        | 50          |   |   | 50             |
|                                                         |   |                     |   |                                                   |   |        |       |   |        |        |   |   |           |
| Chroma Exploration &                                     |   | Oil & Natural Gas    |   | 10,930 Shares Series A Participating                   |   |        |       |   |        | 2,221,710   |   |   | -              |
|     Production, Inc.                     |   |  Production and     |   | Convertible Preferred Stock (4)                        |   |        |       |   |        |        |   |   |           |
|                                                         |   | Development              |   | 9,981 Shares Series AA Participating                   |   |        |       |   |        | 2,089,870   |   |   | 650,000        |
|                                                         |   |                     |   | Convertible Preferred Stock (4)                        |   |        |       |   |        |        |   |   |           |
|                                                         |   |                     |   | 8.11 Shares Common Stock                               |   |        |       |   |        | -           |   |   | -              |
|                                                         |   |                     |   | Warrants (5)                                           |   |        |       |   |        | -           |   |   | -              |
|                                                         |   |                     |   |                                                   |   |        |       |   |        |        |   |   |           |
| Crestwood Holdings, LLC                                      |   | Natural Gas              |   | Senior Secured Term Loan                               |   |        | 8,465,000  |   |        | 8,308,599   |   |   | 8,308,599      |
|                                                         |   | Gathering and Processing |   | (The greater of 10.5% or LIBOR +                       |   |        |       |   |        |        |   |   |           |
|                                                         |   |                     |   | 8.5%, due 10/01/2016)                                  |   |        |       |   |        |        |   |   |           |
|                                                         |   |                     |   |                                                   |   |        |       |   |        |        |   |   |           |
| Globe BG, LLC                                                |   | Coal Production          |   | Contingent earn-out related to July                    |   |        | -          |   |        | -           |   |   | 3,400,000      |
|                                                         |   |                     |   | 2011 sale of royalty interests in Alden Resources (15) |   |        |       |   |        |        |   |   |           |
|                                                         |   |                     |   |                                                   |   |        |       |   |        |        |   |   |           |
| GMX Resources, Inc. (3)                                      |   | Oil & Natural Gas    |   | Senior Convertible Notes                               |   |        | 12,661,000 |   |        | 11,055,228  |   |   | 10,255,410     |
|                                                         |   |  Production and     |   | (5%, due 2/1/2013)                                     |   |        |       |   |        |        |   |   |           |
|                                                         |   | Development              |   |                                                   |   |        |       |   |        |        |   |   |           |
|                                                         |   |                     |   |                                                   |   |        |       |   |        |        |   |   |           |
| Nighthawk Transport I, LP                                    |   | Energy Services          |   | LP Units (12)                                          |   |        |       |   |        | -           |   |   | -              |
|                                                         |   |                     |   | Warrants (12)                                          |   |        |       |   |        | -           |   |   | -              |
|                                                         |   |                     |   |                                                   |   |        |       |   |        |        |   |   |           |
| Pallas Contour Mining, LLC                                   |   | Coal Mining              |   | Senior Secured Term Loan                               |   |        | 12,411,290 |   |        | 12,455,201  |   |   | 12,455,201     |
|                                                         |   |                     |   | (14%, due 10/14/2015)                                  |   |        |       |   |        |        |   |   |           |
|                                                         |   |                     |   |                                                   |   |        |       |   |        |        |   |   |           |
| Powder River Acquisitions,                                   |   | Oil & Natural Gas    |   | Senior Secured Promissory Note                         |   |        | 3,000,000  |   |        | 3,000,000   |   |   | 3,000,000      |
|     LLC                                  |   |  Production and     |   | (8%, due 9/30/2011) (17)                               |   |        |       |   |        |        |   |   |           |
|                                                         |   | Development              |   |                                                   |   |        |       |   |        |        |   |   |           |
|                                                         |   |                     |   |                                                   |   |        |       |   |        |        |   |   |           |
| Spirit Resouces, LLC                                         |   | Oil & Natural Gas    |   | Senior Secured Term Loan                               |   |        | 9,500,000  |   |        | 9,254,415   |   |   | 9,254,415      |
|                                                         |   |  Production and     |   | (The greater of 12% or LIBOR + 8%,                     |   |        |       |   |        |        |   |   |           |
|                                                         |   | Development              |   |  due 4/27/2015)                                   |   |        |       |   |        |        |   |   |           |
|                                                         |   |                     |   | Warrants (14)                                          |   |        |       |   |        | 25,000      |   |   | 25,000         |
|                                                         |   |                     |   |                                                   |   |        |       |   |        |        |   |   |           |
| Tammany Oil & Gas, LLC                                   |   | Oil & Natural Gas    |   | Senior Secured Term Loan                               |   |        | 12,882,804 |   |        | 12,872,132  |   |   | 12,872,132     |
|                                                         |   |  Production and     |   | (The greater of 13% or LIBOR + 8%,                     |   |        |       |   |        |        |   |   |           |
|                                                         |   | Development              |   |  due 9/30/2012)                                   |   |        |       |   |        |        |   |   |           |
|                                                         |   |                     |   | 3.33% Overriding Royalty Interest                      |   |        |       |   |        | 120,254     |   |   | 1,000,000      |
|                                                         |   |                     |   | Warrants (7)                                           |   |        |       |   |        | 5,000       |   |   | 1,000,000      |
|                                                         |   |                     |   |                                                   |   |        |       |   |        |        |   |   |           |
| Subtotal Non-affiliate Investments - (Less than 5% owned)    |   |                     |   |                                                   | $      | 130,623,421 |       | $      | 128,077,749 |
|                                                         |   |                     |   |                                                   |   |        |       |   |        |        |   |   |           |
| TOTAL INVESTMENTS                                            |   |                     |   |                                                   |   |        |       |   | $           | 167,048,686 |   | $      | 141,804,433    |

----

| (1) | All of our targeted investments are collateral for obligations under our Investment Facility.  See Note 4 of Notes to Consolidated Financial Statements. All investments are in entities with primary operations in the United States of America.  Percentages represent interest rates in effect at the end of the period and due dates represent the contractual maturity dates.  Warrants, common stocks, units and earn-outs are non-income producing securities, unless otherwise stated. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Our Board of Directors determines, in good faith, the fair value of our investments.  Fair value is determined using unobservable inputs (Level 3 hierarchy), unless otherwise stated. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Fair value is determined using prices with observable market inputs (Level 2 hierarchy).  See note 8 of the Notes to Consolidated Financial Statements. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Non-accrual status. |
|-----|---------------------|

| (5) | Chroma warrants expire on April 5, 2012 and provide us the right to purchase 2,462 shares of common stock at a purchase price of $75.00 per share. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------|

| (6) | BioEnergy Holdings, LLC owns 100% of Bionol Clearfield, LLC.  In July 2011, both entities filed for protection under Chapter 7 of the U.S. Bankruptcy Code. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (7) | Tammany Oil & Gas, LLC warrants expire five years after repayment of principal and interest and provide us the right to purchase approximately 10% of membership shares at the exercise price of approximately $17.61 per share. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (8) | Myriant Corporation warrants expire on August 15, 2015 and provide us the right to purchase  32,680 shares of Myriant Corporation, at a purchase price of $10.00 per share. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (9) | Resaca Exploitation, Inc. stock trades in U.S. dollars on the Alternative Investment Market of the London Stock Exchange. |
|-----|---------------------------------------------------------------------------------------------------------------------------|

| (10) | Black Pool warrants expire seven years after repayment of principal and interest and provide us the right to purchase approximately 25% of membership interest at the exercise price of $0.01 per share. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (11) | Assets of this portfolio company have been sold.  The legal entity, in which we retain an equity interest, is in the process of dissolution. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------|

| (12) | Due to insufficient recoveries in the liquidation under Nighthawk's voluntary petition under Chapter 7 of the U.S. Bankruptcy Code, we recognized a realized loss of our total remaining investment in Nighthawk notes in December 2009.  We retain ownership in warrants and units in Nighthawk and have assigned no value to those securities. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (13) | Resaca Exploitation, Inc. warrants expire 10 business days following termination of the credit agreement and entitle us to purchase up to 2,420,000 shares of Resaca common stock at a purchase price of $1.92 per share. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (14) | Spirit Resources, LLC penny warrants expire five years after repayment of principal and interest and entitle us to acquire 33% of the Units of Membership Interest. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (15) | Contingent payment of up to $6.8MM is dependent upon Alden Resources’ ability to achieve certain sales volume and operating efficiency levels during the three year period ending July 2014. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (16) | Lenders were granted 10% (5% net to NGPC Asset Holdings II) of the LP interest in Castex Energy Development Fund via Class B LP units that willbecome effective at the earlier of maturity or a liquidity event in which the Castex Energy Development Fund assets are sold. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (17) | We issued a written notice of default on September 30, 2011 and have filed a suit against Powder River Acquisitions, LLC and an individual guarantor for failure to pay principal and interest when due. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (18) | The Term Loan to Black Pool Energy Partners matured on October 24, 2011 without repayment. We are currently negotiating with Black Pool toward a potential amendment and extension of the Term Loan. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Portfolio Company                                                 |   | Energy Industry Segment                         |   | Investment (1) (2) (4)                                                                                                      |   | Principal |       |   | Cost   |   |       | Fair Value (3) |   |
|-------------------------------------------------------------------|--------|-------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------|--------|-----------|------------|--------|--------|--------|------------|----------------|--------|
| TARGETED INVESTMENTS                                              |   |                                            |   |                                                                                                                        |   |      |       |   |   |   |       |
| Control Investments - Majority Owned (50% or more owned)          |   |                                            |   |                                                                                                                        |   |      |       |
| Alden Resources, LLC (17)                                         |   | Coal Production                                 |   | Senior Secured                                                                                                              |   | $         | 16,497,033 |   |   | $      | 15,106,754 |           |   | $ | 15,006,754 |   |
|                                                              |   |                                            |   | Multiple-Advance Term Loan - Tranche A                                                                                      |   |      |       |   |   |   |       |           |   |   |   |   |
|                                                              |   |                                            |   | (The greater of 12.00% or LIBOR +                                                                                           |   |      |       |   |   |   |       |           |   |   |   |   |
|                                                              |   |                                            |   | 9.00% cash, due 1/05/2013) (18)                                                                                             |   |      |       |   |   |   |       |           |   |   |   |   |
|                                                              |   |                                            |   |                                                                                                                        |   |      |       |   |   |   |       |           |   |   |   |   |
|                                                              |   |                                            |   | Senior Secured                                                                                                              |   |      | 24,330,226 |   |   |   | 19,519,841 |           |   |   | 19,519,841 |   |
|                                                              |   |                                            |   | Multiple-Advance Term Loan - Tranche B                                                                                      |   |      |       |   |   |   |       |           |   |   |   |   |
|                                                              |   |                                            |   | (The greater of 12.00% or LIBOR +                                                                                           |   |      |       |   |   |   |       |           |   |   |   |   |
|                                                              |   |                                            |   | 9.00% cash, 15.00% or LIBOR +                                                                                               |   |      |       |   |   |   |       |           |   |   |   |   |
|                                                              |   |                                            |   | 12.00% PIK, due 1/05/2013) (6)                                                                                              |   |      |       |   |   |   |       |           |   |   |   |   |
|                                                              |   |                                            |   |                                                                                                                        |   |      |       |   |   |   |       |           |   |   |   |   |
|                                                              |   |                                            |   | Senior Secured                                                                                                              |   |      | 3,000,000  |   |   |   | 3,000,000  |           |   |   | 3,000,000 |   |
|                                                              |   |                                            |   | Multiple-Advance Term Loan - Revolver                                                                                       |   |      |       |   |   |   |       |           |   |   |   |   |
|                                                              |   |                                            |   | (The greater of 12.00% or LIBOR +                                                                                           |   |      |       |   |   |   |       |           |   |   |   |   |
|                                                              |   |                                            |   | 9.00% cash, 15.00% or LIBOR +                                                                                               |   |      |       |   |   |   |       |           |   |   |   |   |
|                                                              |   |                                            |   | 12.00% PIK, due 1/05/2013) (18)                                                                                             |   |      |       |   |   |   |       |           |   |   |   |   |
|                                                              |   |                                            |   |                                                                                                                        |   |      |       |   |   |   |       |           |   |   |   |   |
|                                                              |   |                                            |   | 5.8 million Class E Units - entitled  to                                                                          |   |      |       |   |   |   | 5,800,000  |           |   |   | 5,800,000 |   |
|                                                              |   |                                            |   |  100% of distributions of Alden Resources                                                                              |   |      |       |   |   |   |       |           |   |   |   |   |
|                                                              |   |                                            |   | until payout, 80% after payout (5)                                                                                          |   |      |       |   |   |   |       |           |   |   |   |   |
|                                                              |   |                                            |   |                                                                                                                        |   |      |       |   |   |   |       |           |   |   |   |   |
|                                                              |   |                                            |   | Royalty Interest                                                                                                            |   |      |       |   |   |   | 2,486,020  |           |   |   | 10,300,000 |   |
|                                                              |   |                                            |   |                                                                                                                        |   |      |       |   |   |   |       |           |   |   |   |   |
| BSR Holdings, LLC                                                 |   | Oil & Natural Gas                           |   | 100% of membership interests of                                                                                             |   |      |       |   |   |   | -          |           |   |   | - |   |
| (15) (17)                                                         |   |  Production and                            |   | BSR Holdings, LLC.                                                                                                          |   |      |       |   |   |   |       |           |   |   |   |   |
|                                                              |   | Development                                     |   |                                                                                                                        |   |      |       |   |   |   |       |           |   |   |   |   |
|                                                              |   |                                            |   |                                                                                                                        |   |      |       |   |   |   |       |           |   |   |   |   |
| DeanLake Operator, LLC (17)                                       |   | Oil & Natural GasProduction and Development |   | Class A membership interests - entitled to 100% of distribution of DeanLake Operator, LLCuntil payout, 80% after payout (5) |   |      |       |   |   |   | 14,050,255 |           |   |   | 3,500,000 |   |
|                                                              |   |                                            |   |                                                                                                                        |   |      |       |   |   |   |       |           |   |   |   |   |
|                                                              |   |                                            |   | Overriding Royalty Interest                                                                                                 |   |      |       |   |   |   | 17,622     |           |   |   | 50,000 |   |
|                                                              |   |                                            |   |                                                                                                                        |   |      |       |   |   |   |       |           |   |   |   |   |
| Gatliff Services, LLC (17)                                        |   | Coal Processing                                 |   | Senior Secured                                                                                                              |   |      | 11,696,721 |   |   |   | 11,696,721 |           |   |   | 11,696,721 |   |
|                                                              |   |                                            |   | Multiple-Advance Term Loan                                                                                                  |   |      |       |   |   |   |       |           |   |   |   |   |
|                                                              |   |                                            |   | (8.00% during construction, 12.00%                                                                                          |   |      |       |   |   |   |       |           |   |   |   |   |
|                                                              |   |                                            |   | after completion, due 9/30/2020)                                                                                            |   |      |       |   |   |   |       |           |   |   |   |   |
|                                                              |   |                                            |   |                                                                                                                        |   |      |       |   |   |   |       |           |   |   |   |   |
|                                                              |   |                                            |   | One Membership Unit - representing 100%                                                                                     |   |      |       |   |   |   | 1,100,000  |           |   |   | 1,100,000 |   |
|                                                              |   |                                            |   | ownership of Gatliff Services, LLC  (5)                                                                           |   |      |       |   |   |   |       |           |   |   |   |   |
|                                                              |   |                                            |   |                                                                                                                        |   |      |       |   |   |   |       |           |   |   |   |   |
| Rubicon Energy Partners,                                          |   | Oil & Natural Gas                           |   | 4,000 LLC Units representing                                                                                                |   |      |       |   |   |   | -          |           |   |   | - |   |
| LLC (17)                                                          |   |  Production and                            |   | 50% ownership of the assets of                                                                                              |   |      |       |   |   |   |       |           |   |   |   |   |
|                                                              |   | Development                                     |   | Rubicon Energy Partners, LLC (5)                                                                                            |   |      |       |   |   |   |       |           |   |   |   |   |
|                                                              |   |                                            |   |                                                                                                                        |   |      |       |   |   |   |       |           |   |   |   |   |
| TierraMar Energy, LP (17)                                         |   | Oil & Natural Gas                           |   | 212,637 Class A Preferred LP Units -                                                                                        |   |      |       |   |   |   | 16,710,788 |           |   |   | 900,000 |   |
|                                                              |   |  Production and                            |   | entitled to 100% of distribution of                                                                                         |   |      |       |   |   |   |       |           |   |   |   |   |
|                                                              |   | Development                                     |   | TierraMar Energy LPuntil payout, 67% after payout (5)                                                                       |   |      |       |   |   |   |       |           |   |   |   |   |
|                                                              |   |                                            |   |                                                                                                                        |   |      |       |   |   |   |       |           |   |   |   |   |
|                                                              |   |                                            |   | Overriding Royalty Interest                                                                                                 |   |      |       |   |   |   | 14,909     |           |   |   | 100,000 |   |
|                                                              |   |                                            |   |                                                                                                                        |   |      |       |   |   |   |       |           |   |   |   |   |
| Subtotal Control Investments - Majority Owned (50% or more owned) |   |                                            |   |                                                                                                                        |   | $         | 89,502,910 |   |   | $      | 70,973,316 |           |

----

| Portfolio Company                                  |   | Energy Industry Segment          |   | Investment (1) (2) (4)                                 |   | Principal |       |   | Cost       |   |       | Fair Value (3) |       |
|----------------------------------------------------|--------|----------------------------------|--------|--------------------------------------------------------|--------|-----------|------------|--------|------------|--------|------------|----------------|------------|
| TARGETED INVESTMENTS  - Continued        |   |                             |   |                                                   |   |      |       |   |       |   |       |
| Affiliate Investments - (5% to 25% owned)          |   |                             |   |                                                   |   |      |       |   |       |   |       |
| BioEnergy Holding, LLC (17)                        |   | Alternative Fuels and            |   | Senior Secured Notes                                   |   | $         | 15,485,039 |   |       | $      | 14,302,570 |           |       | $ | 14,302,570 |   |
|                                               |   | Specialty Chemicals              |   | (15.00%, due 3/06/2015)                                |   |      |       |   |       |   |       |           |       |   |   |   |
|                                               |   |                             |   | BioEnergy Holding Units - 11.1% of outstanding         |   |      |       |   |       |   | 1,296,771  |           |       |   | 1,296,771 |   |
|                                               |   |                             |   | units of BioEnergy Holdings, LLC (5)                   |   |      |       |   |       |   |       |           |       |   |   |   |
|                                               |   |                             |   | Myriant Technologies Warrants (5) (10)                 |   |      |       |   |       |   | 49,238     |           |       |   | 49,238 |   |
|                                               |   |                             |   | Myriant Technologies Units - 1.9% of                   |   |      |       |   |       |   | 418,755    |           |       |   | 418,755 |   |
|                                               |   |                             |   | the outstanding units of Myriant Technologies, LLC (5) |   |      |       |   |       |   |       |           |       |   |   |   |
|                                               |   |                             |   |                                                   |   |      |       |   |       |   |       |           |       |   |   |   |
| Bionol Clearfield, LLC (8)                         |   | Alternative Fuels and            |   | Senior Secured Tranche C                               |   |      | 4,950,000  |   |       |   | 4,950,000  |           |       |   | 4,950,000 |   |
| (14) (17)                                          |   | Specialty Chemicals              |   | 2nd Lien Term Loan                                     |   |      |       |   |       |   |       |           |       |   |   |   |
|                                               |   |                             |   | (LIBOR + 7.00% cash, LIBOR + 9.00%                     |   |      |       |   |       |   |       |           |       |   |   |   |
|                                               |   |                             |   | default, due 9/06/2016) (19)                           |   |      |       |   |       |   |       |           |       |   |   |   |
|                                               |   |                             |   |                                                   |   |      |       |   |       |   |       |           |       |   |   |   |
| Resaca Exploitation Inc.                           |   | Oil & Natural Gas            |   | Senior Secured                                         |   |      | 10,000,000 |   |       |   | 9,893,740  |           |       |   | 9,893,740 |   |
|                                               |   |  Production and Development |   | Revolving Credit Facility                              |   |      |       |   |       |   |       |           |       |   |   |   |
|                                               |   |                             |   | (The greater of 8.0% or LIBOR + 5.50%,                 |   |      |       |   |       |   |       |           |       |   |   |   |
|                                               |   |                             |   | due 7/01/2012) (17)                                    |   |      |       |   |       |   |       |           |       |   |   |   |
|                                               |   |                             |   | Common Stock (1,345,595 shares) - representing         |   |      |       |   |       |   | 3,235,254  |           |       |   | 2,152,954 |   |
|                                               |   |                             |   | 6.84% of outstanding common stock of                   |   |      |       |   |       |   |       |           |       |   |   |   |
|                                               |   |                             |   | Resaca Exploitation Inc. (5) (11) (16)                 |   |      |       |   |       |   |       |           |       |   |   |   |
|                                               |   |                             |   |                                                   |   |      |       |   |       |   |       |           |       |   |   |   |
| Subtotal Affiliate Investments - (5% to 25% owned) |   |                             |   |                                                   |   |      |       | $      | 34,146,328 |   |       | $              | 33,064,028 |   |
|                                               |   |                             |   |                                                   |   |      |       |   |       |   |       |           |       |   |   |   |
| Non-affiliate Investments - (Less than 5% owned)   |   |                             |   |                                                   |   |      |       |   |       |   |       |           |       |   |
|                                               |   |                             |   |                                                   |   |      |       |   |       |   |       |           |       |   |   |   |
| Anadarko Petroleum                                 |   | Oil & Natural Gas            |   | Multiple-Advance Net Profits Interest                  |   | $         | 9,532,723  |   |       | $      | 9,586,637  |           |       | $ | 9,886,635 |   |
| Corporation                                        |   |  Production and Development |   | (Due 4/23/2032)                                        |   |      |       |   |       |   |       |           |       |   |   |   |
| 2007-III Drilling Fund (17)                        |   |                             |   |                                                   |   |      |       |   |       |   |       |           |       |   |   |   |
|                                               |   |                             |   |                                                   |   |      |       |   |       |   |       |           |       |   |   |   |
| ATP Oil & Gas Corporation                      |   | Oil & Natural Gas            |   | Limited Term Royalty Interest                          |   |      |       |   |       |   | 6,548,318  |           |       |   | 6,548,318 |   |
| (17)                                               |   |  Production and Development |   | (Dollar Denominated - 16.00% Return)                   |   |      |       |   |       |   |       |           |       |   |   |   |
|                                               |   |                             |   |                                                   |   |      |       |   |       |   |       |           |       |   |   |   |
| Black Pool Energy                                  |   | Oil & Natural Gas            |   | Senior Secured                                         |   |      | 17,895,000 |   |       |   | 17,754,507 |           |       |   | 17,754,507 |   |
| Partners, LLC (17)                                 |   |  Production and Development |   | Multiple-Advance Term Loan                             |   |      |       |   |       |   |       |           |       |   |   |   |
|                                               |   |                             |   | (The greater of 15.00% or LIBOR +                      |   |      |       |   |       |   |       |           |       |   |   |   |
|                                               |   |                             |   | 11.00% cash, due 10/24/2011)                           |   |      |       |   |       |   |       |           |       |   |   |   |
|                                               |   |                             |   | Overriding Royalty Interest                            |   |      |       |   |       |   | 9,750      |           |       |   | 100,000 |   |
|                                               |   |                             |   | Warrants (5) (12)                                      |   |      |       |   |       |   | 10,000     |           |       |   | 10,000 |   |
|                                               |   |                             |   |                                                   |   |      |       |   |       |   |       |           |       |   |   |   |
| Chroma Exploration &                           |   | Oil & Natural Gas            |   | 10,930 Shares Series A Participating                   |   |      |       |   |       |   | 2,221,710  |           |       |   | 100,000 |   |
| Production, Inc. (17)                              |   |  Production and Development |   | Convertible Preferred Stock (6)                        |   |      |       |   |       |   |       |           |       |   |   |   |
|                                               |   |                             |   | 9,981 Shares Series AA Participating                   |   |      |       |   |       |   | 2,089,870  |           |       |   | 650,000 |   |
|                                               |   |                             |   | Convertible Preferred Stock (6)                        |   |      |       |   |       |   |       |           |       |   |   |   |
|                                               |   |                             |   | 8.11 Shares Common Stock (5)                           |   |      |       |   |       |   | -          |           |       |   | - |   |
|                                               |   |                             |   | Warrants (5) (7)                                       |   |      |       |   |       |   | -          |           |       |   | - |   |
|                                               |   |                             |   |                                                   |   |      |       |   |       |   |       |           |       |   |   |   |
| Crestwood Holdings, LLC                            |   | Natural Gas                      |   | Senior Secured Term Loan                               |   |      | 9,000,000  |   |       |   | 8,836,125  |           |       |   | 8,836,125 |   |
| (17)                                               |   | Gathering and Processing         |   | (The greater of 10.50% or LIBOR + 8.50%,               |   |      |       |   |       |   |       |           |       |   |   |   |
|                                               |   |                             |   | due 10/01/2016)                                        |   |      |       |   |       |   |       |           |       |   |   |   |
|                                               |   |                             |   |                                                   |   |      |       |   |       |   |       |           |       |   |   |   |
| Greenleaf Investments,                             |   | Oil & Natural Gas            |   | Senior Secured                                         |   |      | 8,587,076  |   |       |   | 8,543,239  |           |       |   | 8,543,239 |   |
| LLC (17)                                           |   |  Production and Development |   | Multiple-Advance Term Loan                             |   |      |       |   |       |   |       |           |       |   |   |   |
|                                               |   |                             |   | (The greater of 10.50% or LIBOR + 6.50%,               |   |      |       |   |       |   |       |           |       |   |   |   |
|                                               |   |                             |   | due 4/30/2011)                                         |   |      |       |   |       |   |       |           |       |   |   |   |
|                                               |   |                             |   | Overriding Royalty Interest                            |   |      |       |   |       |   | 20,785     |           |       |   | 400,000 |   |

----

| Portfolio Company                                            |   | Energy Industry Segment          |   | Investment (1) (2) (4)                             |   | Principal   |       |   | Cost   |        |        | Fair Value (3) |   |
|--------------------------------------------------------------|--------|----------------------------------|--------|----------------------------------------------------|--------|-------------|------------|--------|--------|-------------|-------------|----------------|--------|
| TARGETED INVESTMENTS  - Continued                  |   |                             |   |                                               |   |        |       |   |   |        |        |
| Non-affiliate Investments - (Less than 5% owned) - Continued |   |                             |   |                                               |   |        |       |   |   |
| GMX Resources, Inc. (16)                                     |   | Oil & Natural Gas            |   | Senior Convertible Notes                           |   | $           | 7,925,000  |   |   | $           | 6,532,576   |           |   | $ | 6,676,813 |   |
|                                                         |   |  Production and Development |   | (5.00%, due 2/1/2013)                              |   |        |       |   |   |        |        |           |   |   |   |   |
|                                                         |   |                             |   |                                               |   |        |       |   |   |        |        |           |   |   |   |   |
| Nighthawk Transport I,                                       |   | Energy Services                  |   | LP Units (5) (20)                                  |   |        |       |   |   |        | -           |           |   |   | - |   |
| LP (17)                                                      |   |                             |   | Warrants (5) (20)                                  |   |        |       |   |   |        | -           |           |   |   | - |   |
|                                                         |   |                             |   |                                               |   |        |       |   |   |        |        |           |   |   |   |   |
| Pallas Contour Mining,                                       |   | Coal Mining                      |   | Senior Secured                                     |   |        | 14,411,290 |   |   |        | 14,459,867  |           |   |   | 14,459,867 |   |
| LLC (17)                                                     |   |                             |   | Multiple-Advance Term Loan                         |   |        |       |   |   |        |        |           |   |   |   |   |
|                                                         |   |                             |   | (14.00%, due 10/14/2015)                           |   |        |       |   |   |        |        |           |   |   |   |   |
|                                                         |   |                             |   |                                               |   |        |       |   |   |        |        |           |   |   |   |   |
| Pioneer Natural Resources                                    |   | Oil & Natural Gas            |   | Senior Notes, 7.2%, due 2028                       |   |        | 10,000,000 |   |   |        | 11,489,439  |           |   |   | 10,450,100 |   |
| Co. (16)                                                     |   |  Production and Development |   |                                               |   |        |       |   |   |        |        |           |   |   |   |   |
|                                                         |   |                             |   |                                               |   |        |       |   |   |        |        |           |   |   |   |   |
| Powder River Acquisitions,                                   |   | Oil & Natural Gas            |   | Senior Secured                                     |   |        | 3,000,000  |   |   |        | 3,000,000   |           |   |   | 3,000,000 |   |
| LLC (17)                                                     |   |  Production and Development |   | Promissory Note                                    |   |        |       |   |   |        |        |           |   |   |   |   |
|                                                         |   |                             |   | (8.00%, due 9/30/2011)                             |   |        |       |   |   |        |        |           |   |   |   |   |
|                                                         |   |                             |   |                                               |   |        |       |   |   |        |        |           |   |   |   |   |
| Tammany Oil & Gas,                                       |   | Oil & Natural Gas            |   | Senior Secured                                     |   |        | 23,607,804 |   |   |        | 23,590,041  |           |   |   | 23,590,041 |   |
| LLC (17)                                                     |   |  Production and Development |   | Multiple-Advance Term Loan                         |   |        |       |   |   |        |        |           |   |   |   |   |
|                                                         |   |                             |   | (The greater of 13.0% or LIBOR + 8.00%,            |   |        |       |   |   |        |        |           |   |   |   |   |
|                                                         |   |                             |   |  due 9/30/2012)                               |   |        |       |   |   |        |        |           |   |   |   |   |
|                                                         |   |                             |   |                                               |   |        |       |   |   |        |        |           |   |   |   |   |
|                                                         |   |                             |   | Overriding Royalty Interest                        |   |        |       |   |   |        | 139,193     |           |   |   | 1,000,000 |   |
|                                                         |   |                             |   | After Pay-Out Overriding Royalty Interest (5) (13) |   |        |       |   |   |        | 10,000      |           |   |   | 10,000 |   |
|                                                         |   |                             |   | Warrants (5) (9) (13)                              |   |        |       |   |   |        | 10,000      |           |   |   | 10,000 |   |
|                                                         |   |                             |   |                                               |   |        |       |   |   |        |        |           |   |   |   |   |
| Subtotal Non-affiliate Investments - (Less than 5% owned)    |   |                             |   |                                               | $      | 114,852,057 |       |   | $      | 112,025,645 |        |
|                                                         |   |                             |   |                                               |   |        |       |   |   |        |        |           |   |   |   |   |
| TOTAL INVESTMENTS                                            |   |                             |   |                                               |   |        |       |   |   | $           | 238,501,295 |           |   | $ | 216,062,989 |   |

----

| (1) | All of our investments are collateral for obligations under our credit facility. |
|-----|----------------------------------------------------------------------------------|

| (2) | Percentages represent interest rates in effect at the end of the period and due dates represent the contractual maturity dates. |
|-----|---------------------------------------------------------------------------------------------------------------------------------|

| (3) | Our Board of Directors determines, in good faith, the fair value of our investments. |
|-----|--------------------------------------------------------------------------------------|

| (4) | All investments are in entities with primary operations in the United States of America. |
|-----|------------------------------------------------------------------------------------------|

| (5) | Non-income producing securities. |
|-----|----------------------------------|

| (6) | Non-accrual status. |
|-----|---------------------|

| (7) | Chroma warrants expire on April 5, 2012 and provide us the right to purchase 2,462 shares of common stock at a purchase price of $75.00 per share. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------|

| (8) | BioEnergy Holdings, LLC owns 100% of Bionol. |
|-----|----------------------------------------------|

| (9) | Tammany Oil & Gas, LLC warrants expire five years after repayment of principal and interest and provide us the right to purchase approximately 20% of membership shares at the exercise price of approximately $17.61 per share. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (10) | Myriant Technologies, LLC warrants expire on August 15, 2015 and provide us the right to purchase 32,680 units, representing membership interests of Myriant Technologies, LLC, at the purchase price of $10.00 per unit. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (11) | Resaca stock trades on the Alternative Investment Market of the London Stock Exchange.  On April 1, 2010, it began trading in U.S. Dollars. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------|

| (12) | Black Pool warrants expire seven years after repayment of principal and interest and provide us the right to purchase approximately 25% of membership interest at the exercise price of $0.01 per unit. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (13) | Tammany Oil & Gas, LLC retains the right to repurchase the after pay-out ORRI and 10% warrants for $750,000 on or before March 31, 2011 or for $1,250,000 on or before September 30, 2011. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (14) | We issued a forbearance agreement to Bionol on June 16, 2010 due to a default event. |
|------|--------------------------------------------------------------------------------------|

| (15) | Oil and gas assets owned by BSR Holdings, LLC were sold on October 13, 2010. |
|------|------------------------------------------------------------------------------|

| (16) | Investments are level 2 securities hierarchy. |
|------|-----------------------------------------------|

| (17) | Investments are level 3 securities hierarchy. |
|------|-----------------------------------------------|

| (18) | Alden Resources, LLC did not pay December 31, 2010 interest on its Tranche A Term Note or Working Capital Revolver until February 10, 2011. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------|

| (19) | Bionol has not paid scheduled interest payments since March 10, 2010 due to a default event involving a Bionol customer, as per the terms of our credit agreement with Bionol.  Bionol and the customer are currently in arbitration and, as of December 31, 2010, we expected Bionol to prevail and pay all interest due. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (20) | Due to insufficient recoveries in the liquidation under Nighthawk's voluntary petition under Chapter 7 of the United States Bankruptcy Code, we recognized a realized loss of our total remaining investment in Nighthawk notes in December 2009.  We retain ownership in warrants and units in Nighthawk and have assigned no value to that interest. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                              |   | For The Nine Months Ended |    |
|------------------------------------------------------------------------|--------|---------------------------|---------|
| Per Share Data  (1)                                          |   | September 30, 2011        |    |   | September 30, 2010 |   |
| Net asset value, beginning of period                                   |   | $                         | 10.90   |   |   | $ | 11.10 |   |
| Net investment income                                                  |   |                      | 0.63    |   |   |   | 0.38 |   |
| Net realized and unrealized gain (loss)                                |   |                      |    |   |   |   |   |   |
| on portfolio securities (2)                                            |   |                      | (1.54   | ) |   |   | 0.04 |   |
| Net increase (decrease) in net assets                                  |   |                      |    |   |   |   |   |   |
| resulting from operations                                              |   |                      | (0.91   | ) |   |   | 0.42 |   |
| Dividends declared                                                     |   |                      | (0.54   | ) |   |   | (0.51 | ) |
| Net asset value, end of period                                         |   | $                         | 9.45    |   |   | $ | 11.01 |   |
|                                                                   |   |                      |    |   |   |   |   |   |
| Market value, beginning of period                                      |   | $                         | 9.20    |   |   | $ | 8.13 |   |
| Market value, end of period                                            |   | $                         | 6.54    |   |   | $ | 9.06 |   |
| Market value return  (3)                                     |   |                      | (24.05  | %) |   |   | 18.32 | % |
| Net asset value return (3)                                             |   |                      | (7.37   | %) |   |   | 5.31 | % |
|                                                                   |   |                      |    |   |   |   |   |   |
| Senior Securities Data                                                 |   |                      |    |   |   |   |   |   |
| Total borrowings (in thousands)                                        |   | $                         | 15,000  |   |   | $ | 50,000 |   |
| Asset coverage ratio (4) (5)                                           |   |                      | 1503    | % |   |   | 602 | % |
| Asset coverage per unit (5)                                            |   | $                         | 15,027  |   |   | $ | 6,019 |   |
|                                                                   |   |                      |    |   |   |   |   |   |
| Ratios and Supplemental Data                                           |   |                      |    |   |   |   |   |   |
| ($ and shares in thousands)                                            |   |                      |    |   |   |   |   |   |
| Net assets, end of period                                              |   | $                         | 204,457 |   |   | $ | 238,090 |   |
| Average net assets                                                     |   | $                         | 220,092 |   |   | $ | 239,133 |   |
| Common shares outstanding end of period                                |   |                      | 21,628  |   |   |   | 21,628 |   |
| Net investment income/average net assets (6)                           |   |                      | 8.29    | % |   |   | 4.65 | % |
| Portfolio turnover rate                                                |   |                      | 76.60   | % |   |   | 8.49 | % |
| Total operating expenses/average net assets (6)                        |   |                      | 5.62    | % |   |   | 5.09 | % |
|                                                                   |   |                      |    |   |   |   |   |   |
| Additional ratios                                                      |   |                      |    |   |   |   |   |   |
| Total operating expenses less management and                           |   |                      |    |   |   |   |   |   |
|   incentive fees and interest expense/average net assets (6) |   |                      | 2.34    | % |   |   | 2.22 | % |
| Total operating expenses less management                               |   |                      |    |   |   |   |   |   |
|    and incentive fees/average net assets (6)            |   |                      | 3.03    | % |   |   | 2.75 | % |
| Net increase (decrease) in net assets resulting from                   |   |                      |    |   |   |   |   |   |
|    operations/average net assets (6)                    |   |                      | (11.90  | %) |   |   | 5.00 | % |

| (1)  | Per Share Data is based on weighted average number of common shares outstanding for the period. |
|-----------|-------------------------------------------------------------------------------------------------|

| (2)  | Calculated as a balancing amount necessary to reconcile the change in net assets value per share with other per share information presented.  This amount may not agree with the aggregate gains and losses for the period because the difference in the net asset value at the beginning and end of the period may not equal the per share changes of the line items disclosed. |
|-----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)  | Return calculations assume reinvestment of dividends and are not annualized. |
|-----------|------------------------------------------------------------------------------|

| (4)  | As a business development company, we are generally required to maintain a ratio of at least 200% of total assets, less all liabilities and indebtedness not represented by senior securities, to total borrowings and guaranty commitments.                                                                                                      |
|-----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5)  | Asset coverage ratio is the ratio of the carrying value of our total assets, less all liabilities and indebtedness not represented by senior securities, to the aggregate amount of senior securities represented indebtedness (including interest payable and guarantees).  Asset coverage per unit is the asset coverage ratio expressed in terms of dollar amounts per one thousand dollars of indebtedness.                                                                                                      |
|-----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6)  | Annualized.                                                                                                      |
|-----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Note 1: | Organization |
|---------|--------------|

| Note 2: | Basis of Presentation |
|---------|-----------------------|

----

| Declaration Date   |   | Amount |   | Record Date |               | Payment Date |
|--------------------|--------|--------|--------|-------------|--------------------|--------------|
| March 10, 2010     |   | $      | 0.17   |        | March 31, 2010     |         | April 9, 2010 |
| June 15, 2010      |   | $      | 0.17   |        | June 30, 2010      |         | July 9, 2010 |
| September 14, 2010 |   | $      | 0.17   |        | September 30, 2010 |         | October 8, 2010 |
| December 14, 2010  |   | $      | 0.18   |        | December 31, 2010  |         | January 7, 2011 |
| March 9, 2011      |   | $      | 0.18   |        | March 31, 2011     |         | April 8, 2011 |
| June 14, 2011      |   | $      | 0.18   |        | June 30, 2011      |         | July 8, 2011 |
| September 13, 2011 |   | $      | 0.18   |        | September 30, 2011 |         | October 10, 2011 |

| Note 3: | Revisions of Previously Issued Financial Statements |
|--------------|-----------------------------------------------------|

|                                                                                      |   |  Six Months Ended June 30, 2011 |        |   |  Three Months Ended June 30, 2011 |   |       |  Three Months Ended March 31, 2011 |   |
|-------------------------------------------------------------------------------------------|--------|--------------------------------------|-------------|--------|----------------------------------------|--------|------------|-----------------------------------------|--------|
|                                                                                      |   | As Previously Reported               |        |   | Revisions                              |   |       | As Revised                              |   |   | As Previously Reported |   |   | Revisions |   |   | As Revised |   |   | As Previously Reported |   |   | Revisions |   |   | As Revised |   |
| Net investment income before income taxes                                                 |   | $                                    | 9,396,190   |   |                                   | $      | -          |                                    |   | $ | 9,396,190 |   |   | $ | 5,695,556 |   |   | $ | - |   |   | $ | 5,695,556 |   |   | $ | 3,700,634 |   |   | $ | - |   |   | $ | 3,700,634 |   |
| Benefit (provision) for income taxes                                                      |   |                                 | (1,998,250  | )      |                                   |   | 1,980,548  |                                    |   |   | (17,702 | ) |   |   | (1,295,534 | ) |   |   | 1,287,617 |   |   |   | (7,917 | ) |   |   | (702,716 | ) |   |   | 692,931 |   |   |   | (9,785 | ) |
| Net investment income                                                                     |   |                                 | 7,397,940   |   |                                   |   | 1,980,548  |                                    |   |   | 9,378,488 |   |   |   | 4,400,022 |   |   |   | 1,287,617 |   |   |   | 5,687,639 |   |   |   | 2,997,918 |   |   |   | 692,931 |   |   |   | 3,690,849 |   |
|                                                                                      |   |                                 |        |   |                                   |   |       |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net realized gain (loss) on portfolio securities                                     |   |                                 | 459,485     |   |                                   |   | -          |                                    |   |   | 459,485 |   |   |   | 984,571 |   |   |   | - |   |   |   | 984,571 |   |   |   | (525,086 | ) |   |   | - |   |   |   | (525,086 | ) |
| Benefit (provision) for income taxes                                                      |   |                                 | 64          |   |                                   |   | (64        | )                                       |   |   | - |   |   |   | (223 | ) |   |   | 223 |   |   |   | - |   |   |   | 287 |   |   |   | (287 | ) |   |   | - |   |
| Total net realized gain (loss) on investments                                             |   |                                 | 459,549     |   |                                   |   | (64        | )                                       |   |   | 459,485 |   |   |   | 984,348 |   |   |   | 223 |   |   |   | 984,571 |   |   |   | (524,799 | ) |   |   | (287 | ) |   |   | (525,086 | ) |
|                                                                                      |   |                                 |        |   |                                   |   |       |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net increase (decrease) in unrealized appreciation (depreciation) on portfolio securities |   |                                 | (29,493,749 | )      |                                   |   | -          |                                    |   |   | (29,493,749 | ) |   |   | (23,067,262 | ) |   |   | - |   |   |   | (23,067,262 | ) |   |   | (6,426,487 | ) |   |   | - |   |   |   | (6,426,487 | ) |
| Benefit (provision) for taxes on unrealized gain (loss)                                   |   |                                 | 1,983,282   |   |                                   |   | (1,980,484 | )                                       |   |   | 2,798 |   |   |   | 1,289,139 |   |   |   | (1,287,840 | ) |   |   | 1,299 |   |   |   | 694,143 |   |   |   | (692,644 | ) |   |   | 1,499 |   |
| Total net unrealized gain (loss) on investments                                           |   |                                 | (27,510,467 | )      |                                   |   | (1,980,484 | )                                       |   |   | (29,490,951 | ) |   |   | (21,778,123 | ) |   |   | (1,287,840 | ) |   |   | (23,065,963 | ) |   |   | (5,732,344 | ) |   |   | (692,644 | ) |   |   | (6,424,988 | ) |
|                                                                                      |   |                                 |        |   |                                   |   |       |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net increase (decrease) in net assets resulting from operations                           |   | $                                    | (19,652,978 | )      |                                   | $      | -          |                                    |   | $ | (19,652,978 | ) |   | $ | (16,393,753 | ) |   | $ | - |   |   | $ | (16,393,753 | ) |   | $ | (3,259,225 | ) |   | $ | - |   |   | $ | (3,259,225 | ) |
|                                                                                      |   |                                 |        |   |                                   |   |       |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Per share data:                                                                           |   |                                 |        |   |                                   |   |       |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Net investment income                                                         |   | $                                    | 0.34        |   |                                   | $      | 0.09       |                                    |   | $ | 0.43 |   |   | $ | 0.20 |   |   | $ | 0.06 |   |   | $ | 0.26 |   |   | $ | 0.14 |   |   | $ | 0.03 |   |   | $ | 0.17 |   |
|   Net realized gain (loss) on investments                                       |   |                                 | 0.02        |   |                                   |   | (0.00      | )                                       |   |   | 0.02 |   |   |   | 0.05 |   |   |   | 0.00 |   |   |   | 0.05 |   |   |   | (0.02 | ) |   |   | (0.00 | ) |   |   | (0.02 | ) |
|   Net unrealized gain (loss) on investments                                     |   |                                 | (1.27       | )      |                                   |   | (0.09      | )                                       |   |   | (1.36 | ) |   |   | (1.01 | ) |   |   | (0.06 | ) |   |   | (1.07 | ) |   |   | (0.27 | ) |   |   | (0.03 | ) |   |   | (0.30 | ) |
|   Net increase (decrease) in net assets resulting from operations               |   | $                                    | (0.91       | )      |                                   | $      | -          |                                    |   | $ | (0.91 | ) |   | $ | (0.76 | ) |   | $ | - |   |   | $ | (0.76 | ) |   | $ | (0.15 | ) |   | $ | - |   |   | $ | (0.15 | ) |
|                                                                                      |   |                                 |        |   |                                   |   |       |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Average net assets                                                                        |   |                                 | 222,006,363 |   |                                   |   |       |                                    |   |   | 222,006,363 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 232,149,778 |   |   |   |   |   |   |   | 232,149,778 |   |
| Net investment income / average net assets (annualized) (1)                               |   |                                 | 6.72        | %      |                                   |   |       |                                    |   |   | 8.52 | % |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 5.24 | % |   |   |   |   |   |   | 6.45 | % |

|   | (1) | Information is only required to be presented on a year to date basis.  Accordingly, three-month data is not presented. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                                 |   |  Nine Months Ended September 30, 2010 |        |   |  Six Months Ended June 30, 2010 |   |     |  Three Months Ended March 31, 2010 |   |
|-------------------------------------------------------------------------------------------|--------|--------------------------------------------|-------------|--------|--------------------------------------|--------|----------|-----------------------------------------|--------|
|                                                                                      |   | As Previously Reported                     |        |   | Revisions                            |   |     | As Revised                              |   |   | As Previously Reported |   |   | Revisions |   |   | As Revised |   |   | As Previously Reported |   |   | Revisions |   |   | As Revised |   |
| Net investment income before income taxes                                                 |   | $                                          | 8,374,887   |   |                                 | $      | -        |                                    |   | $ | 8,374,887 |   |   | $ | 5,196,373 |   |   | $ | - |   |   | $ | 5,196,373 |   |   | $ | 2,144,253 |   |   | $ | - |   |   | $ | 2,144,253 |   |
| Benefit (provision) for income taxes                                                      |   |                                       | (298,709    | )      |                                 |   | 247,193  |                                    |   |   | (51,516 | ) |   |   | 509,570 |   |   |   | (545,862 | ) |   |   | (36,292 | ) |   |   | 287,074 |   |   |   | (302,300 | ) |   |   | (15,226 | ) |
| Net investment income                                                                     |   |                                       | 8,076,178   |   |                                 |   | 247,193  |                                    |   |   | 8,323,371 |   |   |   | 5,705,943 |   |   |   | (545,862 | ) |   |   | 5,160,081 |   |   |   | 2,431,327 |   |   |   | (302,300 | ) |   |   | 2,129,027 |   |
|                                                                                      |   |                                       |        |   |                                 |   |     |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net realized gain on portfolio securities                                                 |   |                                       | -           |   |                                 |   | -        |                                    |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Benefit (provision) for income taxes                                                      |   |                                       | (110,492    | )      |                                 |   | 110,492  |                                    |   |   | - |   |   |   | (18,613 | ) |   |   | 18,613 |   |   |   | - |   |   |   | (9,151 | ) |   |   | 9,151 |   |   |   | - |   |
| Total net realized gain (loss) on investments                                             |   |                                       | (110,492    | )      |                                 |   | 110,492  |                                    |   |   | - |   |   |   | (18,613 | ) |   |   | 18,613 |   |   |   | - |   |   |   | (9,151 | ) |   |   | 9,151 |   |   |   | - |   |
|                                                                                      |   |                                       |        |   |                                 |   |     |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net increase (decrease) in unrealized appreciation (depreciation) on portfolio securities |   |                                       | 651,499     |   |                                 |   | -        |                                    |   |   | 651,499 |   |   |   | 3,771,159 |   |   |   | - |   |   |   | 3,771,159 |   |   |   | 2,879,209 |   |   |   | - |   |   |   | 2,879,209 |   |
| Benefit (provision) for taxes on unrealized gain (loss)                                   |   |                                       | 328,027     |   |                                 |   | (357,685 | )                                       |   |   | (29,658 | ) |   |   | (577,386 | ) |   |   | 527,249 |   |   |   | (50,137 | ) |   |   | (293,149 | ) |   |   | 293,149 |   |   |   | - |   |
| Total net unrealized gain (loss) on investments                                           |   |                                       | 979,526     |   |                                 |   | (357,685 | )                                       |   |   | 621,841 |   |   |   | 3,193,773 |   |   |   | 527,249 |   |   |   | 3,721,022 |   |   |   | 2,586,060 |   |   |   | 293,149 |   |   |   | 2,879,209 |   |
|                                                                                      |   |                                       |        |   |                                 |   |     |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net increase in net assets resulting from operations                                      |   | $                                          | 8,945,212   |   |                                 | $      | -        |                                    |   | $ | 8,945,212 |   |   | $ | 8,881,103 |   |   | $ | - |   |   | $ | 8,881,103 |   |   | $ | 5,008,236 |   |   | $ | - |   |   | $ | 5,008,236 |   |
|                                                                                      |   |                                       |        |   |                                 |   |     |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Per share data:                                                                           |   |                                       |        |   |                                 |   |     |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Net investment income                                                         |   | $                                          | 0.37        |   |                                 | $      | 0.01     |                                    |   | $ | 0.38 |   |   | $ | 0.26 |   |   | $ | (0.02 | ) |   | $ | 0.24 |   |   | $ | 0.11 |   |   | $ | (0.01 | ) |   | $ | 0.10 |   |
|   Net realized gain (loss) on investments                                       |   |                                       | (0.01       | )      |                                 |   | 0.01     |                                    |   |   | - |   |   |   | (0.00 | ) |   |   | 0.00 |   |   |   | - |   |   |   | (0.00 | ) |   |   | 0.00 |   |   |   | - |   |
|   Net unrealized gain (loss) on investments                                     |   |                                       | 0.06        |   |                                 |   | (0.02    | )                                       |   |   | 0.04 |   |   |   | 0.16 |   |   |   | 0.02 |   |   |   | 0.18 |   |   |   | 0.13 |   |   |   | 0.01 |   |   |   | 0.14 |   |
|   Net increase in net assets resulting from operations                          |   | $                                          | 0.42        |   |                                 | $      | -        |                                    |   | $ | 0.42 |   |   | $ | 0.42 |   |   | $ | - |   |   | $ | 0.42 |   |   | $ | 0.24 |   |   | $ | - |   |   | $ | 0.24 |   |
|                                                                                      |   |                                       |        |   |                                 |   |     |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Average net assets                                                                        |   |                                       | 239,132,963 |   |                                 |   |     |                                    |   |   | 239,132,963 |   |   |   | 240,939,305 |   |   |   |   |   |   |   | 240,939,305 |   |   |   | 240,841,269 |   |   |   |   |   |   |   | 240,841,269 |   |
| Net investment income / average net assets (annualized) (1)                               |   |                                       | 4.52        | %      |                                 |   |     |                                    |   |   | 4.65 | % |   |   | 4.78 | % |   |   |   |   |   |   | 4.32 | % |   |   | 4.09 | % |   |   |   |   |   |   | 3.59 | % |

|                                                                                      |   |  Three Months Ended September 30, 2010 |       |   |  Three Months Ended June 30, 2010 |   |
|-------------------------------------------------------------------------------------------|--------|---------------------------------------------|------------|--------|----------------------------------------|--------|
|                                                                                      |   | As Previously Reported                      |       |   | Revisions                              |   |   | As Revised |   |   | As Previously Reported |   |   | Revisions |   |   | As Revised |   |
| Net investment income before income taxes                                                 |   | $                                           | 3,178,514  |   |                                   | $      | - |   |   | $ | 3,178,514 |   |   | $ | 3,052,120 |   |   | $ | - |   |   | $ | 3,052,120 |   |
| Benefit (provision) for income taxes                                                      |   |                                        | (808,279   | )      |                                   |   | 793,055 |   |   |   | (15,224 | ) |   |   | 222,496 |   |   |   | (243,562 | ) |   |   | (21,066 | ) |
| Net investment income                                                                     |   |                                        | 2,370,235  |   |                                   |   | 793,055 |   |   |   | 3,163,290 |   |   |   | 3,274,616 |   |   |   | (243,562 | ) |   |   | 3,031,054 |   |
|                                                                                      |   |                                        |       |   |                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net realized gain on portfolio securities                                                 |   |                                        | -          |   |                                   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Benefit (provision) for income taxes                                                      |   |                                        | (91,879    | )      |                                   |   | 91,879 |   |   |   | - |   |   |   | (9,462 | ) |   |   | 9,462 |   |   |   | - |   |
| Total net realized gain (loss) on investments                                             |   |                                        | (91,879    | )      |                                   |   | 91,879 |   |   |   | - |   |   |   | (9,462 | ) |   |   | 9,462 |   |   |   | - |   |
|                                                                                      |   |                                        |       |   |                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net increase (decrease) in unrealized appreciation (depreciation) on portfolio securities |   |                                        | (3,119,660 | )      |                                   |   | - |   |   |   | (3,119,660 | ) |   |   | 891,950 |   |   |   | - |   |   |   | 891,950 |   |
| Benefit (provision) for taxes on unrealized gain (loss)                                   |   |                                        | 905,413    |   |                                   |   | (884,934 | ) |   |   | 20,479 |   |   |   | (284,237 | ) |   |   | 234,100 |   |   |   | (50,137 | ) |
| Total net unrealized gain (loss) on investments                                           |   |                                        | (2,214,247 | )      |                                   |   | (884,934 | ) |   |   | (3,099,181 | ) |   |   | 607,713 |   |   |   | 234,100 |   |   |   | 841,813 |   |
|                                                                                      |   |                                        |       |   |                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net increase in net assets resulting from operations                                      |   | $                                           | 64,109     |   |                                   | $      | - |   |   | $ | 64,109 |   |   | $ | 3,872,867 |   |   | $ | - |   |   | $ | 3,872,867 |   |
|                                                                                      |   |                                        |       |   |                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Per share data:                                                                           |   |                                        |       |   |                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Net investment income                                                         |   | $                                           | 0.11       |   |                                   | $      | 0.04 |   |   | $ | 0.15 |   |   | $ | 0.15 |   |   | $ | (0.01 | ) |   | $ | 0.14 |   |
|   Net realized gain (loss) on investments                                       |   |                                        | (0.00      | )      |                                   |   | 0.00 |   |   |   | - |   |   |   | (0.00 | ) |   |   | 0.00 |   |   |   | - |   |
|   Net unrealized gain (loss) on investments                                     |   |                                        | (0.11      | )      |                                   |   | (0.04 | ) |   |   | (0.15 | ) |   |   | 0.03 |   |   |   | 0.01 |   |   |   | 0.04 |   |
|   Net increase in net assets resulting from operations                          |   | $                                           | 0.00       |   |                                   | $      | (0.00 | ) |   | $ | 0.00 |   |   | $ | 0.18 |   |   | $ | - |   |   | $ | 0.18 |   |

|   | (1) | Information is only required to be presented on a year to date basis.  Accordingly, three-month data is not presented. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                                      |   |  Year Ended December 31, 2010 |        |   |  Year Ended December 31, 2009 |   |     |  Year Ended December 31, 2008 |   |
|-------------------------------------------------------------------------------------------|--------|------------------------------------|-------------|--------|------------------------------------|--------|----------|------------------------------------|--------|
|                                                                                      |   | As Previously Reported             |        |   | Revisions                          |   |     | As Revised                         |   |   | As Previously Reported |   |   | Revisions |   |   | As Revised |   |   | As Previously Reported |   |   | Revisions |   |   | As Revised |   |
| Net investment income before income taxes                                                 |   | $                                  | 11,494,196  |   |                               | $      | -        |                               |   | $ | 11,494,196 |   |   | $ | 9,919,646 |   |   | $ | - |   |   | $ | 9,919,646 |   |   | $ | 18,646,536 |   |   | $ | - |   |   | $ | 18,646,536 |   |
| Benefit (provision) for income taxes                                                      |   |                               | (252,066    | )      |                               |   | 197,631  |                               |   |   | (54,435 | ) |   |   | (19,347 | ) |   |   | (171,910 | ) |   |   | (191,257 | ) |   |   | (390,195 | ) |   |   | 390,195 |   |   |   | - |   |
| Net investment income                                                                     |   |                               | 11,242,130  |   |                               |   | 197,631  |                               |   |   | 11,439,761 |   |   |   | 9,900,299 |   |   |   | (171,910 | ) |   |   | 9,728,389 |   |   |   | 18,256,341 |   |   |   | 390,195 |   |   |   | 18,646,536 |   |
|                                                                                      |   |                               |        |   |                               |   |     |                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net realized gain (loss) on portfolio securities                                          |   |                               | (33,275,372 | )      |                               |   | -        |                               |   |   | (33,275,372 | ) |   |   | (14,328,947 | ) |   |   | - |   |   |   | (14,328,947 | ) |   |   | 19,251,090 |   |   |   | - |   |   |   | 19,251,090 |   |
| Benefit (provision) for income taxes                                                      |   |                               | (107,736    | )      |                               |   | 107,736  |                               |   |   | - |   |   |   | 110,493 |   |   |   | (110,493 | ) |   |   | - |   |   |   | (4,517,443 | ) |   |   | 1,481,775 |   |   |   | (3,035,668 | ) |
| Total net realized gain (loss) on investments                                             |   |                               | (33,383,108 | )      |                               |   | 107,736  |                               |   |   | (33,275,372 | ) |   |   | (14,218,454 | ) |   |   | (110,493 | ) |   |   | (14,328,947 | ) |   |   | 14,733,647 |   |   |   | 1,481,775 |   |   |   | 16,215,422 |   |
|                                                                                      |   |                               |        |   |                               |   |     |                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net increase (decrease) in unrealized appreciation (depreciation) on portfolio securities |   |                               | 31,176,641  |   |                               |   | -        |                               |   |   | 31,176,641 |   |   |   | (5,614,178 | ) |   |   | - |   |   |   | (5,614,178 | ) |   |   | (51,605,789 | ) |   |   | - |   |   |   | (51,605,789 | ) |
| Benefit (provision) for taxes on unrealized gain (loss)                                   |   |                               | 1,438,176   |   |                               |   | (305,367 | )                                  |   |   | 1,132,809 |   |   |   | 1,113,329 |   |   |   | 282,403 |   |   |   | 1,395,732 |   |   |   | 5,196,929 |   |   |   | (1,871,970 | ) |   |   | 3,324,959 |   |
| Total net unrealized gain (loss) on investments                                           |   |                               | 32,614,817  |   |                               |   | (305,367 | )                                  |   |   | 32,309,450 |   |   |   | (4,500,849 | ) |   |   | 282,403 |   |   |   | (4,218,446 | ) |   |   | (46,408,860 | ) |   |   | (1,871,970 | ) |   |   | (48,280,830 | ) |
|                                                                                      |   |                               |        |   |                               |   |     |                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net increase (decrease) in net assets resulting from operations                           |   | $                                  | 10,473,839  |   |                               | $      | -        |                               |   | $ | 10,473,839 |   |   | $ | (8,819,004 | ) |   | $ | - |   |   | $ | (8,819,004 | ) |   | $ | (13,418,872 | ) |   | $ | - |   |   | $ | (13,418,872 | ) |
|                                                                                      |   |                               |        |   |                               |   |     |                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Per share data:                                                                           |   |                               |        |   |                               |   |     |                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Net investment income                                                         |   | $                                  | 0.52        |   |                               | $      | 0.01     |                               |   | $ | 0.53 |   |   | $ | 0.46 |   |   | $ | (0.01 | ) |   | $ | 0.45 |   |   | $ | 0.84 |   |   | $ | 0.02 |   |   | $ | 0.86 |   |
|   Net realized gain (loss) on investments                                       |   |                               | (1.54       | )      |                               |   | 0.00     |                               |   |   | (1.54 | ) |   |   | (0.66 | ) |   |   | 0.00 |   |   |   | (0.66 | ) |   |   | 0.68 |   |   |   | 0.07 |   |   |   | 0.75 |   |
|   Net unrealized gain (loss) on investments                                     |   |                               | 1.51        |   |                               |   | (0.01    | )                                  |   |   | 1.50 |   |   |   | (0.21 | ) |   |   | 0.01 |   |   |   | (0.20 | ) |   |   | (2.12 | ) |   |   | (0.09 | ) |   |   | (2.21 | ) |
|   Net increase (decrease) in net assets resulting from operations               |   | $                                  | 0.49        |   |                               | $      | -        |                               |   | $ | 0.49 |   |   | $ | (0.41 | ) |   | $ | - |   |   | $ | (0.41 | ) |   | $ | (0.60 | ) |   | $ | - |   |   | $ | (0.60 | ) |
|                                                                                      |   |                               |        |   |                               |   |     |                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Average net assets                                                                        |   |                               | 237,950,738 |   |                               |   |     |                               |   |   | 237,950,738 |   |   |   | 251,506,075 |   |   |   |   |   |   |   | 251,506,075 |   |   |   | 255,126,272 |   |   |   |   |   |   |   | 255,126,272 |   |
| Net investment income / average net assets (1)                                            |   |                               | 4.72        | %      |                               |   |     |                               |   |   | 4.81 | % |   |   | 3.94 | % |   |   |   |   |   |   | 3.87 | % |   |   | 7.16 | % |   |   |   |   |   |   | 7.31 | % |

|   | (1) | Information is only required to be presented on a year to date basis.  Accordingly, three-month data is not presented. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------|

| Note 4: | Credit Facilities and Borrowings |
|--------------|----------------------------------|

|   | · | maintaining a ratio of net asset value to consolidated total indebtedness (excluding net hedging liabilities) of not less than 2.25:1.0,                                           |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | · | maintaining a ratio of net asset value to consolidated total indebtedness (including net hedging liabilities) of not less than 2.0:1.0,                                            |
|   | · | maintaining a ratio of EBITDA (excluding revenue from cash collateral) to interest expense (excluding interest on loans under the Treasury Facility) of not less than 3.0:1.0, and |
|   | · | maintaining a ratio of collateral to the aggregate principal amount of loans under the Treasury Facility of not less than 1.02:1.0.                                                |

----

| Note 5: | Investment Management |
|--------------|-----------------------|

|                            |   | September 30, 2011 |      |   | December 31, 2010 |   |
|---------------------------------|--------|--------------------|-----------|--------|-------------------|--------|
| Base management fee             |   | $                  | 1,306,908 |   |              | $      | 1,376,032 |   |
| Investment income incentive fee |   |               | 30,303    |   |              |   | - |   |
|                            |   | $                  | 1,337,211 |   |              | $      | 1,376,032 |   |

----

----

| Note 6: | Income Taxes |
|--------------|--------------|

| Note 7: | Commitments and Contingencies |
|--------------|-------------------------------|

----

| Note 8: | Investments and Fair Value |
|---------|----------------------------|

|                        |   | September 30, 2011 |        |
|----------------------------------|--------|--------------------|-------------|
|                             |   |               |        |   |   |   |   |   |   |   |   |   |
|                             |   |               |        |   | % of |   |   |   |   |   | % of |   |
|                             |   | Cost               |        |   | total |   |   | Fair Value |   |   | total |   |
| Senior secured debt              |   | $                  | 109,153,567 |   |   |   | 65.4 | % |   | $ | 84,952,016 |   |   |   | 59.9 | % |
| Senior unsecured debt            |   |               | 10,714,392  |   |   |   | 6.4 | % |   |   | 10,714,392 |   |   |   | 7.6 | % |
| Senior convertible notes         |   |               | 11,055,228  |   |   |   | 6.6 | % |   |   | 10,255,410 |   |   |   | 7.2 | % |
| Limited term royalties           |   |               | 20,714,799  |   |   |   | 12.4 | % |   |   | 20,714,799 |   |   |   | 14.6 | % |
| Net profits interests            |   |               | 5,680,474   |   |   |   | 3.4 | % |   |   | 5,980,474 |   |   |   | 4.2 | % |
| Contingent earn-out              |   |               | -           |   |   |   | 0.0 | % |   |   | 3,400,000 |   |   |   | 2.4 | % |
| Royalty interests                |   |               | 128,578     |   |   |   | 0.1 | % |   |   | 1,100,000 |   |   |   | 0.8 | % |
| Equity securities                |   |               |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Membership and partnership units |   |               | 1,715,576   |   |   |   | 1.0 | % |   |   | 856,182 |   |   |   | 0.6 | % |
| Participating preferred stock    |   |               | 4,311,580   |   |   |   | 2.6 | % |   |   | 650,000 |   |   |   | 0.5 | % |
| Common stock                     |   |               | 3,235,254   |   |   |   | 1.9 | % |   |   | 1,856,922 |   |   |   | 1.3 | % |
| Warrants                         |   |               | 339,238     |   |   |   | 0.2 | % |   |   | 1,324,238 |   |   |   | 0.9 | % |
| Total equity securities          |   |               | 9,601,648   |   |   |   | 5.7 | % |   |   | 4,687,342 |   |   |   | 3.3 | % |
| Total investments                |   | $                  | 167,048,686 |   |   |   | 100.0 | % |   | $ | 141,804,433 |   |   |   | 100.0 | % |

|                        |   | December 31, 2010 |        |
|----------------------------------|--------|-------------------|-------------|
|                             |   |              |        |   |   |   |   |   |   |   |   |   |
|                             |   |              |        |   | % of |   |   |   |   |   | % of |   |
|                             |   | Cost              |        |   | total |   |   | Fair Value |   |   | total |   |
| Senior secured debt              |   | $                 | 154,653,405 |   |   |   | 64.9 | % |   | $ | 154,553,405 |   |   |   | 71.6 | % |
| Senior convertible notes         |   |              | 6,532,576   |   |   |   | 2.7 | % |   |   | 6,676,813 |   |   |   | 3.1 | % |
| Senior corporate notes           |   |              | 11,489,439  |   |   |   | 4.8 | % |   |   | 10,450,100 |   |   |   | 4.9 | % |
| Limited term royalties           |   |              | 6,548,318   |   |   |   | 2.8 | % |   |   | 6,548,318 |   |   |   | 3.0 | % |
| Net profits interests            |   |              | 9,586,637   |   |   |   | 4.0 | % |   |   | 9,886,635 |   |   |   | 4.6 | % |
| Royalty interests                |   |              | 2,698,279   |   |   |   | 1.1 | % |   |   | 11,960,000 |   |   |   | 5.5 | % |
| Equity securities                |   |              |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Membership and partnership units |   |              | 39,376,569  |   |   |   | 16.5 | % |   |   | 13,015,526 |   |   |   | 6.0 | % |
| Participating preferred stock    |   |              | 4,311,580   |   |   |   | 1.8 | % |   |   | 750,000 |   |   |   | 0.3 | % |
| Common stock                     |   |              | 3,235,254   |   |   |   | 1.4 | % |   |   | 2,152,954 |   |   |   | 1.0 | % |
| Warrants                         |   |              | 69,238      |   |   |   | 0.0 | % |   |   | 69,238 |   |   |   | 0.0 | % |
| Total equity securities          |   |              | 46,992,641  |   |   |   | 19.7 | % |   |   | 15,987,718 |   |   |   | 7.3 | % |
| Total investments                |   | $                 | 238,501,295 |   |   |   | 100.0 | % |   | $ | 216,062,989 |   |   |   | 100.0 | % |

----

|   | • | Investment Team Valuation.   The investment professionals of our Manager prepare fair value estimates for each investment. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Investment Team Valuation Documentation.   The investment team documents and discusses its preliminary fair value estimates with senior management of our Manager. |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Presentation to Valuation Committee.   Senior management presents the valuation analyses and fair value estimates to the Valuation Committee of our Board of Directors. |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Third Party Valuation Activity.   The Valuation Committee and our Board of Directors, in their discretion, may retain an independent valuation firm to review any or all of the valuation analyses and fair value estimates provided by the investment team of our Manager.  The Valuation Committee has not retained an independent valuation firm in connection with the September 30, 2011 or the December 31, 2010 fair value estimates. |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Board of Directors and Valuation Committee.   The Board of Directors and Valuation Committee review and discuss the valuation analyses and fair value estimates provided by the investment team of our Manager and the analysis of the independent valuation firm, if applicable. |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Final Valuation Determination.   Our Board of Directors discusses the fair value estimates recommended by the Valuation Committee and determines the fair value of each investment in our portfolio, in good faith, based on the input of the investment team of our Manager, our Valuation Committee and the independent valuation firm, if any. |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Level 1  — Quoted unadjusted prices for identical instruments in active markets to which we have access at the date of measurement. |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Level 2  — Quoted prices for similar instruments in active markets; quoted prices for identicalor similar instruments in markets that are not active; and model-derived valuations in which all  significant inputs and significant value drivers are observable in active markets. Level 2 inputs are those in markets for which there are few transactions, the prices are not current, little public information exists or instances where prices vary substantially over time or among brokered market makers. |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Level 3  — Model derived valuations in which one or more significant inputs or significant value drivers are unobservable. Unobservable inputs are those inputs that reflect assumptions that market participants would use to price the asset or liability based on the best available information. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                       |   | Fair Value Measurements as of September 30, 2011 |        |
|---------------------------------|--------|--------------------------------------------------|-------------|
|                            |   |                                             |        |
| Assets at Fair Value            |   | Total                                            |        |   | Quoted Pricesin ActiveMarkets(Level 1) |   |   | Prices withObservableMarketInputs(Level 2) |   |   | UnobservableInputs(Level 3) |   |
| Control investments             |   |                                             |        |   |   |   |   |   |   |   |   |   |
| Equity securities               |   | $                                                | 150,000     |   |   | $ | - |   |   | $ | - |   |   | $ | 150,000 |   |
| Total control investments       |   |                                             | 150,000     |   |   |   | - |   |   |   | - |   |   |   | 150,000 |   |
| Affiliate investments           |   |                                             |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Senior unsecured debt           |   |                                             | 10,714,392  |   |   |   | - |   |   |   | - |   |   |   | 10,714,392 |   |
| Equity securities               |   |                                             | 2,862,292   |   |   |   | - |   |   |   | 1,856,922 |   |   |   | 1,005,370 |   |
| Total affiliate investments     |   |                                             | 13,576,684  |   |   |   | - |   |   |   | 1,856,922 |   |   |   | 11,719,762 |   |
| Non-affiliate investments       |   |                                             |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Senior secured debt             |   |                                             | 84,952,016  |   |   |   | - |   |   |   | - |   |   |   | 84,952,016 |   |
| Senior convertible notes        |   |                                             | 10,255,410  |   |   |   | - |   |   |   | 10,255,410 |   |   |   | - |   |
| Limited term royalties          |   |                                             | 20,714,799  |   |   |   | - |   |   |   | - |   |   |   | 20,714,799 |   |
| Net profits interests           |   |                                             | 5,980,474   |   |   |   | - |   |   |   | - |   |   |   | 5,980,474 |   |
| Contingent earn-out             |   |                                             | 3,400,000   |   |   |   | - |   |   |   | - |   |   |   | 3,400,000 |   |
| Royalty interests               |   |                                             | 1,100,000   |   |   |   | - |   |   |   | - |   |   |   | 1,100,000 |   |
| Equity securities               |   |                                             | 1,675,050   |   |   |   | - |   |   |   | - |   |   |   | 1,675,050 |   |
| Total non-affiliate investments |   |                                             | 128,077,749 |   |   |   | - |   |   |   | 10,255,410 |   |   |   | 117,822,339 |   |
| Total assets at fair value      |   | $                                                | 141,804,433 |   |   | $ | - |   |   | $ | 12,112,332 |   |   | $ | 129,692,101 |   |

----

|                       |   | Fair Value Measurements as of December 31, 2010 |        |
|---------------------------------|--------|-------------------------------------------------|-------------|
|                            |   |                                            |        |   |   |   |   |   |   |   |   |   |
|                            |   |                                            |        |   | Quoted |   |   | Prices with |   |   |   |   |
|                            |   |                                            |        |   | Prices |   |   | Observable |   |   |   |   |
|                            |   |                                            |        |   | in Active |   |   | Market |   |   | Unobservable |   |
|                            |   |                                            |        |   | Markets |   |   | Inputs |   |   | Inputs |   |
| Assets at Fair Value            |   | Total                                           |        |   | (Level 1) |   |   | (Level 2) |   |   | (Level 3) |   |
| Control investments             |   |                                            |        |   |   |   |   |   |   |   |   |   |
| Senior secured debt             |   | $                                               | 49,223,316  |   |   | $ | - |   |   | $ | - |   |   | $ | 49,223,316 |   |
| Royalty interests               |   |                                            | 10,450,000  |   |   |   | - |   |   |   | - |   |   |   | 10,450,000 |   |
| Equity securities               |   |                                            | 11,300,000  |   |   |   | - |   |   |   | - |   |   |   | 11,300,000 |   |
| Total control investments       |   |                                            | 70,973,316  |   |   |   | - |   |   |   | - |   |   |   | 70,973,316 |   |
| Affiliate investments           |   |                                            |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Senior secured debt             |   |                                            | 29,146,310  |   |   |   | - |   |   |   | - |   |   |   | 29,146,310 |   |
| Equity securities               |   |                                            | 3,917,718   |   |   |   | - |   |   |   | 2,152,954 |   |   |   | 1,764,764 |   |
| Total affiliate investments     |   |                                            | 33,064,028  |   |   |   | - |   |   |   | 2,152,954 |   |   |   | 30,911,074 |   |
| Non-affiliate investments       |   |                                            |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Senior secured debt             |   |                                            | 76,183,779  |   |   |   | - |   |   |   | - |   |   |   | 76,183,779 |   |
| Senior convertible notes        |   |                                            | 6,676,813   |   |   |   | - |   |   |   | 6,676,813 |   |   |   | - |   |
| Senior corporate notes          |   |                                            | 10,450,100  |   |   |   | - |   |   |   | 10,450,100 |   |   |   | - |   |
| Limited term royalties          |   |                                            | 6,548,318   |   |   |   | - |   |   |   | - |   |   |   | 6,548,318 |   |
| Net profits interests           |   |                                            | 9,886,635   |   |   |   | - |   |   |   | - |   |   |   | 9,886,635 |   |
| Royalty interests               |   |                                            | 1,510,000   |   |   |   | - |   |   |   | - |   |   |   | 1,510,000 |   |
| Equity securities               |   |                                            | 770,000     |   |   |   | - |   |   |   | - |   |   |   | 770,000 |   |
| Total non-affiliate investments |   |                                            | 112,025,645 |   |   |   | - |   |   |   | 17,126,913 |   |   |   | 94,898,732 |   |
| Total assets at fair value      |   | $                                               | 216,062,989 |   |   | $ | - |   |   | $ | 19,279,867 |   |   | $ | 196,783,122 |   |

----

|                                        |   | Control     |        |   | Affiliate   |   |       | Non-affiliate |   |   | Total       |   |
|--------------------------------------------------|--------|-------------|-------------|--------|-------------|--------|------------|---------------|--------|--------|-------------|--------|
|                                             |   | Investments |        |   | Investments |   |       | Investments   |   |   | Investments |   |
| Fair value June 30, 2011                         |   |        |        |   |        |   |       |          |   |   |        |   |
| Senior secured debt                              |   | $           | 64,279,391  |   |        | $      | -          |          |   | $      | 69,345,154  |   |   | $ | 133,624,545 |   |
| Senior unsecured debt                            |   |        | -           |   |        |   | 10,372,461 |          |   |   | -           |   |   |   | 10,372,461 |   |
| Limited term royalties                           |   |        | -           |   |        |   | -          |          |   |   | 27,500,000  |   |   |   | 27,500,000 |   |
| Net profits interests                            |   |        | -           |   |        |   | -          |          |   |   | 8,973,650   |   |   |   | 8,973,650 |   |
| Royalty interests                                |   |        | 8,200,000   |   |        |   | -          |          |   |   | 1,110,000   |   |   |   | 9,310,000 |   |
| Equity securities                                |   |        | 1,742,522   |   |        |   | 1,005,370  |          |   |   | 685,000     |   |   |   | 3,432,892 |   |
| Total fair value June 30, 2011                   |   |        | 74,221,913  |   |        |   | 11,377,831 |          |   |   | 107,613,804 |   |   |   | 193,213,548 |   |
| Net amortization of premiums, discounts and fees |   |        |        |   |        |   |       |          |   |   |        |   |   |   |   |   |
| Senior secured debt                              |   |        | 1,088,091   |   |        |   | -          |          |   |   | 75,539      |   |   |   | 1,163,630 |   |
| Senior unsecured debt                            |   |        | -           |   |        |   | 13,602     |          |   |   | -           |   |   |   | 13,602 |   |
| Limited term royalties                           |   |        | -           |   |        |   | -          |          |   |   | (875        | )      |   |   | (875 | ) |
| Net profits interests                            |   |        | -           |   |        |   | -          |          |   |   | (9,377      | )      |   |   | (9,377 | ) |
| Royalty interests                                |   |        | (46         | )      |        |   | -          |          |   |   | (7,248      | )      |   |   | (7,294 | ) |
| Total net amortization of premiums,              |   |        |        |   |        |   |       |          |   |   |        |   |   |   |   |   |
| discounts and fees                               |   |        | 1,088,045   |   |        |   | 13,602     |          |   |   | 58,039      |   |   |   | 1,159,686 |   |
| Net realized gains (losses)                      |   |        |        |   |        |   |       |          |   |   |        |   |   |   |   |   |
| Royalty interests                                |   |        | 2,384,245   |   |        |   | -          |          |   |   | 990,858     |   |   |   | 3,375,103 |   |
| Equity securities                                |   |        | (35,264,070 | )      |        |   | -          |          |   |   | 995,000     |   |   |   | (34,269,070 | ) |
| Total realized gains (losses)                    |   |        | (32,879,825 | )      |        |   | -          |          |   |   | 1,985,858   |   |   |   | (30,893,967 | ) |
| Net unrealized gains (losses)                    |   |        |        |   |        |   |       |          |   |   |        |   |   |   |   |   |
| Senior secured debt                              |   |        | (1,088,091  | )      |        |   | -          |          |   |   | (3,740,698  | )      |   |   | (4,828,789 | ) |
| Limited term royalties                           |   |        | -           |   |        |   | -          |          |   |   | (472,234    | )      |   |   | (472,234 | ) |
| Contingent earn-out                              |   |        | -           |   |        |   | -          |          |   |   | 3,400,000   |   |   |   | 3,400,000 |   |
| Royalty interests                                |   |        | (5,712,748  | )      |        |   | -          |          |   |   | 7,248       |   |   |   | (5,705,500 | ) |
| Equity securities                                |   |        | 34,718,521  |   |        |   | -          |          |   |   | 995,000     |   |   |   | 35,713,521 |   |
| Total net unrealized gains (losses)              |   |        | 27,917,682  |   |        |   | -          |          |   |   | 189,316     |   |   |   | 28,106,998 |   |
| Purchases                                        |   |        |        |   |        |   |       |          |   |   |        |   |   |   |   |   |
| Senior secured debt                              |   |        | 1,272,219   |   |        |   | -          |          |   |   | 28,752,390  |   |   |   | 30,024,609 |   |
| Limited term royalties                           |   |        | -           |   |        |   | -          |          |   |   | 25,946      |   |   |   | 25,946 |   |
| Equity securities                                |   |        | -           |   |        |   | -          |          |   |   | 50          |   |   |   | 50 |   |
| Total purchases                                  |   |        | 1,272,219   |   |        |   | -          |          |   |   | 28,778,386  |   |   |   | 30,050,605 |   |
| Payment-in-kind                                  |   |        |        |   |        |   |       |          |   |   |        |   |   |   |   |   |
| Senior unsecured debt                            |   |        | -           |   |        |   | 328,329    |          |   |   | -           |   |   |   | 328,329 |   |
| Total payment-in-kind                            |   |        | -           |   |        |   | 328,329    |          |   |   | -           |   |   |   | 328,329 |   |
| Sales and repayments                             |   |        |        |   |        |   |       |          |   |   |        |   |   |   |   |   |
| Senior secured debt                              |   |        | (65,551,610 | )      |        |   | -          |          |   |   | (9,480,369  | )      |   |   | (75,031,979 | ) |
| Limited term royalties                           |   |        | -           |   |        |   | -          |          |   |   | (6,338,038  | )      |   |   | (6,338,038 | ) |
| Net profits interests                            |   |        | -           |   |        |   | -          |          |   |   | (2,983,799  | )      |   |   | (2,983,799 | ) |
| Royalty interests                                |   |        | (4,871,451  | )      |        |   | -          |          |   |   | (1,000,858  | )      |   |   | (5,872,309 | ) |
| Equity securities                                |   |        | (1,046,973  | )      |        |   | -          |          |   |   | (1,000,000  | )      |   |   | (2,046,973 | ) |
| Total sales and repayments                       |   |        | (71,470,034 | )      |        |   | -          |          |   |   | (20,803,064 | )      |   |   | (92,273,098 | ) |
| Fair value September 30, 2011                    |   |        |        |   |        |   |       |          |   |   |        |   |   |   |   |   |
| Senior secured debt                              |   |        | -           |   |        |   | -          |          |   |   | 84,952,016  |   |   |   | 84,952,016 |   |
| Senior unsecured debt                            |   |        | -           |   |        |   | 10,714,392 |          |   |   | -           |   |   |   | 10,714,392 |   |
| Limited term royalties                           |   |        | -           |   |        |   | -          |          |   |   | 20,714,799  |   |   |   | 20,714,799 |   |
| Net profits interests                            |   |        | -           |   |        |   | -          |          |   |   | 5,980,474   |   |   |   | 5,980,474 |   |
| Contingent earn-out                              |   |        | -           |   |        |   | -          |          |   |   | 3,400,000   |   |   |   | 3,400,000 |   |
| Royalty interests                                |   |        | -           |   |        |   | -          |          |   |   | 1,100,000   |   |   |   | 1,100,000 |   |
| Equity securities                                |   |        | 150,000     |   |        |   | 1,005,370  |          |   |   | 1,675,050   |   |   |   | 2,830,420 |   |
| Total fair value September 30, 2011              |   | $           | 150,000     |   |        | $      | 11,719,762 |          |   | $      | 117,822,339 |   |   | $ | 129,692,101 |   |

----

|                                        |   | Control     |        |   | Affiliate   |   |        | Non-affiliate |   |   | Total       |   |
|--------------------------------------------------|--------|-------------|-------------|--------|-------------|--------|-------------|---------------|--------|--------|-------------|--------|
|                                             |   | Investments |        |   | Investments |   |        | Investments   |   |   | Investments |   |
| Fair value December 31, 2010                     |   |        |        |   |        |   |        |          |   |   |        |   |
| Senior secured debt                              |   | $           | 49,223,316  |   |        | $      | 29,146,310  |          |   | $      | 76,183,779  |   |   | $ | 154,553,405 |   |
| Limited term royalties                           |   |        | -           |   |        |   | -           |          |   |   | 6,548,318   |   |   |   | 6,548,318 |   |
| Net profits interests                            |   |        | -           |   |        |   | -           |          |   |   | 9,886,635   |   |   |   | 9,886,635 |   |
| Royalty interests                                |   |        | 10,450,000  |   |        |   | -           |          |   |   | 1,510,000   |   |   |   | 11,960,000 |   |
| Equity securities                                |   |        | 11,300,000  |   |        |   | 1,764,764   |          |   |   | 770,000     |   |   |   | 13,834,764 |   |
| Total fair value December 31, 2010               |   |        | 70,973,316  |   |        |   | 30,911,074  |          |   |   | 94,898,732  |   |   |   | 196,783,122 |   |
| Net amortization of premiums, discounts and fees |   |        |        |   |        |   |        |          |   |   |        |   |   |   |   |   |
| Senior secured debt                              |   |        | 1,390,279   |   |        |   | 137,258     |          |   |   | 212,926     |   |   |   | 1,740,463 |   |
| Senior unsecured debt                            |   |        | -           |   |        |   | 38,382      |          |   |   | -           |   |   |   | 38,382 |   |
| Limited term royalties                           |   |        | -           |   |        |   | -           |          |   |   | (876        | )      |   |   | (876 | ) |
| Net profits interests                            |   |        | -           |   |        |   | -           |          |   |   | (27,583     | )      |   |   | (27,583 | ) |
| Royalty interests                                |   |        | (16,621     | )      |        |   | -           |          |   |   | (25,723     | )      |   |   | (42,344 | ) |
| Total net amortization of premiums,              |   |        |        |   |        |   |        |          |   |   |        |   |   |   |   |   |
| discounts and fees                               |   |        | 1,373,658   |   |        |   | 175,640     |          |   |   | 158,744     |   |   |   | 1,708,042 |   |
| Net realized gains (losses)                      |   |        |        |   |        |   |        |          |   |   |        |   |   |   |   |   |
| Royalty interests                                |   |        | 2,465,520   |   |        |   | -           |          |   |   | 1,975,429   |   |   |   | 4,440,949 |   |
| Equity securities                                |   |        | (35,264,070 | )      |        |   | -           |          |   |   | 995,000     |   |   |   | (34,269,070 | ) |
| Total realized gains (losses)                    |   |        | (32,798,550 | )      |        |   | -           |          |   |   | 2,970,429   |   |   |   | (29,828,121 | ) |
| Net unrealized gains (losses)                    |   |        |        |   |        |   |        |          |   |   |        |   |   |   |   |   |
| Senior secured debt                              |   |        | 100,000     |   |        |   | (20,460,855 | )             |   |   | (3,740,698  | )      |   |   | (24,101,553 | ) |
| Contingent earn-out                              |   |        | -           |   |        |   | -           |          |   |   | 3,400,000   |   |   |   | 3,400,000 |   |
| Royalty interests                                |   |        | (7,931,448  | )      |        |   | -           |          |   |   | (358,848    | )      |   |   | (8,290,296 | ) |
| Equity securities                                |   |        | 26,511,043  |   |        |   | (1,009,394  | )             |   |   | 885,000     |   |   |   | 26,386,649 |   |
| Total net unrealized gains (losses)              |   |        | 18,679,595  |   |        |   | (21,470,249 | )             |   |   | 185,454     |   |   |   | (2,605,200 | ) |
| Purchases                                        |   |        |        |   |        |   |        |          |   |   |        |   |   |   |   |   |
| Senior secured debt                              |   |        | 10,291,240  |   |        |   | -           |          |   |   | 36,183,454  |   |   |   | 46,474,694 |   |
| Senior unsecured debt                            |   |        | -           |   |        |   | 9,750,000   |          |   |   | -           |   |   |   | 9,750,000 |   |
| Limited term royalties                           |   |        | -           |   |        |   | -           |          |   |   | 25,025,946  |   |   |   | 25,025,946 |   |
| Equity securities                                |   |        | -           |   |        |   | 250,000     |          |   |   | 25,050      |   |   |   | 275,050 |   |
| Total purchases                                  |   |        | 10,291,240  |   |        |   | 10,000,000  |          |   |   | 61,234,450  |   |   |   | 81,525,690 |   |
| Payment-in-kind                                  |   |        |        |   |        |   |        |          |   |   |        |   |   |   |   |   |
| Senior secured debt                              |   |        | 4,546,775   |   |        |   | 1,177,287   |          |   |   | -           |   |   |   | 5,724,062 |   |
| Senior unsecured debt                            |   |        | -           |   |        |   | 926,010     |          |   |   | -           |   |   |   | 926,010 |   |
| Total payment-in-kind                            |   |        | 4,546,775   |   |        |   | 2,103,297   |          |   |   | -           |   |   |   | 6,650,072 |   |
| Sales and repayments                             |   |        |        |   |        |   |        |          |   |   |        |   |   |   |   |   |
| Senior secured debt                              |   |        | (65,551,610 | )      |        |   | (10,000,000 | )             |   |   | (23,887,445 | )      |   |   | (99,439,055 | ) |
| Limited term royalties                           |   |        | -           |   |        |   | -           |          |   |   | (10,858,589 | )      |   |   | (10,858,589 | ) |
| Net profits interests                            |   |        | -           |   |        |   | -           |          |   |   | (3,878,578  | )      |   |   | (3,878,578 | ) |
| Royalty interests                                |   |        | (4,967,451  | )      |        |   | -           |          |   |   | (2,000,858  | )      |   |   | (6,968,309 | ) |
| Equity securities                                |   |        | (2,396,973  | )      |        |   | -           |          |   |   | (1,000,000  | )      |   |   | (3,396,973 | ) |
| Total sales and repayments                       |   |        | (72,916,034 | )      |        |   | (10,000,000 | )             |   |   | (41,625,470 | )      |   |   | (124,541,504 | ) |
| Fair value September 30, 2011                    |   |        |        |   |        |   |        |          |   |   |        |   |   |   |   |   |
| Senior secured debt                              |   |        | -           |   |        |   | -           |          |   |   | 84,952,016  |   |   |   | 84,952,016 |   |
| Senior unsecured debt                            |   |        | -           |   |        |   | 10,714,392  |          |   |   | -           |   |   |   | 10,714,392 |   |
| Limited term royalties                           |   |        | -           |   |        |   | -           |          |   |   | 20,714,799  |   |   |   | 20,714,799 |   |
| Net profits interests                            |   |        | -           |   |        |   | -           |          |   |   | 5,980,474   |   |   |   | 5,980,474 |   |
| Contingent earn-out                              |   |        | -           |   |        |   | -           |          |   |   | 3,400,000   |   |   |   | 3,400,000 |   |
| Royalty interests                                |   |        | -           |   |        |   | -           |          |   |   | 1,100,000   |   |   |   | 1,100,000 |   |
| Equity securities                                |   |        | 150,000     |   |        |   | 1,005,370   |          |   |   | 1,675,050   |   |   |   | 2,830,420 |   |
| Total fair value September 30, 2011              |   | $           | 150,000     |   |        | $      | 11,719,762  |          |   | $      | 117,822,339 |   |   | $ | 129,692,101 |   |

----

|                                        |   | Control     |        |   | Affiliate   |   |       | Non-affiliate |   |   | Total       |   |
|--------------------------------------------------|--------|-------------|-------------|--------|-------------|--------|------------|---------------|--------|--------|-------------|--------|
|                                             |   | Investments |        |   | Investments |   |       | Investments   |   |   | Investments |   |
| Fair value June 30, 2010                         |   |        |        |   |        |   |       |          |   |   |        |   |
| Senior secured debt                              |   | $           | 49,065,176  |   |        | $      | 27,947,444 |          |   | $      | 51,834,556  |   |   | $ | 128,847,176 |   |
| Limited term royalties                           |   |        | -           |   |        |   | -          |          |   |   | 12,548,457  |   |   |   | 12,548,457 |   |
| Net profits interests                            |   |        | -           |   |        |   | -          |          |   |   | 10,298,287  |   |   |   | 10,298,287 |   |
| Royalty interests                                |   |        | 5,830,000   |   |        |   | -          |          |   |   | 1,500,000   |   |   |   | 7,330,000 |   |
| Equity securities                                |   |        | 22,100,000  |   |        |   | 5,697,073  |          |   |   | 760,000     |   |   |   | 28,557,073 |   |
| Total fair value June 30, 2010                   |   |        | 76,995,176  |   |        |   | 33,644,517 |          |   |   | 76,941,300  |   |   |   | 187,580,993 |   |
| Transfers in (out) of Level 3                    |   |        |        |   |        |   |       |          |   |   |        |   |   |   |   |   |
| Equity securities                                |   |        | -           |   |        |   | (3,897,543 | )             |   |   | -           |   |   |   | (3,897,543 | ) |
| Total transfers in (out) of Level 3              |   |        | -           |   |        |   | (3,897,543 | )             |   |   | -           |   |   |   | (3,897,543 | ) |
| Net amortization of premiums, discounts and fees |   |        |        |   |        |   |       |          |   |   |        |   |   |   |   |   |
| Senior secured debt                              |   |        | 139,159     |   |        |   | 61,918     |          |   |   | 69,045      |   |   |   | 270,122 |   |
| Limited term royalties                           |   |        | -           |   |        |   | -          |          |   |   | (2,018,812  | )      |   |   | (2,018,812 | ) |
| Net profits interests                            |   |        | -           |   |        |   | -          |          |   |   | (8,053      | )      |   |   | (8,053 | ) |
| Royalty interests                                |   |        | (11,347     | )      |        |   | -          |          |   |   | (15,024     | )      |   |   | (26,371 | ) |
| Total net amortization of premiums,              |   |        |        |   |        |   |       |          |   |   |        |   |   |   |   |   |
| discounts and fees                               |   |        | 127,812     |   |        |   | 61,918     |          |   |   | (1,972,844  | )      |   |   | (1,783,114 | ) |
| Net unrealized gains (losses)                    |   |        |        |   |        |   |       |          |   |   |        |   |   |   |   |   |
| Senior secured debt                              |   |        | (300,000    | )      |        |   | -          |          |   |   | -           |   |   |   | (300,000 | ) |
| Limited term royalties                           |   |        | -           |   |        |   | -          |          |   |   | 381,856     |   |   |   | 381,856 |   |
| Royalty interests                                |   |        | (38,653     | )      |        |   | -          |          |   |   | 15,024      |   |   |   | (23,629 | ) |
| Equity securities                                |   |        | (2,500,000  | )      |        |   | -          |          |   |   | -           |   |   |   | (2,500,000 | ) |
| Total net unrealized gains (losses)              |   |        | (2,838,653  | )      |        |   | -          |          |   |   | 396,880     |   |   |   | (2,441,773 | ) |
| Purchases                                        |   |        |        |   |        |   |       |          |   |   |        |   |   |   |   |   |
| Senior secured debt                              |   |        | 380,611     |   |        |   | 34,766     |          |   |   | -           |   |   |   | 415,377 |   |
| Net profits interests                            |   |        | -           |   |        |   | -          |          |   |   | 906         |   |   |   | 906 |   |
| Equity securities                                |   |        | 12,100,000  |   |        |   | -          |          |   |   | -           |   |   |   | 12,100,000 |   |
| Total purchases                                  |   |        | 12,480,611  |   |        |   | 34,766     |          |   |   | 906         |   |   |   | 12,516,283 |   |
| Payment-in-kind                                  |   |        |        |   |        |   |       |          |   |   |        |   |   |   |   |   |
| Senior secured debt                              |   |        | 896,864     |   |        |   | 1,064,869  |          |   |   | -           |   |   |   | 1,961,733 |   |
| Total payment-in-kind                            |   |        | 896,864     |   |        |   | 1,064,869  |          |   |   | -           |   |   |   | 1,961,733 |   |
| Sales and repayments                             |   |        |        |   |        |   |       |          |   |   |        |   |   |   |   |   |
| Senior secured debt                              |   |        | (9,500,000  | )      |        |   | (12,500    | )             |   |   | (1,087,386  | )      |   |   | (10,599,886 | ) |
| Limited term royalties                           |   |        | -           |   |        |   | -          |          |   |   | (2,030,152  | )      |   |   | (2,030,152 | ) |
| Net profits interests                            |   |        | -           |   |        |   | -          |          |   |   | (229,875    | )      |   |   | (229,875 | ) |
| Equity securities                                |   |        | (1,000,000  | )      |        |   | (34,766    | )             |   |   | -           |   |   |   | (1,034,766 | ) |
| Total sales and repayments                       |   |        | (10,500,000 | )      |        |   | (47,266    | )             |   |   | (3,347,413  | )      |   |   | (13,894,679 | ) |
| Fair value September 30, 2010                    |   |        |        |   |        |   |       |          |   |   |        |   |   |   |   |   |
| Senior secured debt                              |   |        | 40,681,810  |   |        |   | 29,096,497 |          |   |   | 50,816,215  |   |   |   | 120,594,522 |   |
| Limited term royalties                           |   |        | -           |   |        |   | -          |          |   |   | 8,881,349   |   |   |   | 8,881,349 |   |
| Net profits interests                            |   |        | -           |   |        |   | -          |          |   |   | 10,061,265  |   |   |   | 10,061,265 |   |
| Royalty interests                                |   |        | 5,780,000   |   |        |   | -          |          |   |   | 1,500,000   |   |   |   | 7,280,000 |   |
| Equity securities                                |   |        | 30,700,000  |   |        |   | 1,764,764  |          |   |   | 760,000     |   |   |   | 33,224,764 |   |
| Total fair value September 30, 2010              |   | $           | 77,161,810  |   |        | $      | 30,861,261 |          |   | $      | 72,018,829  |   |   | $ | 180,041,900 |   |

----

|                                        |   |        |        |   |        |   |       |          |   |   | Commodity   |   |   |        |    |
|--------------------------------------------------|--------|-------------|-------------|--------|-------------|--------|------------|---------------|--------|--------|-------------|--------|--------|-------------|---------|
|                                             |   | Control     |        |   | Affiliate   |   |       | Non-affiliate |   |   | Derivative  |   |   | Total       |    |
|                                             |   | Investments |        |   | Investments |   |       | Investments   |   |   | Instruments |   |   | Investments |    |
| Fair value December 31, 2009                     |   |        |        |   |        |   |       |          |   |   |        |   |   |        |    |
| Senior secured debt                              |   | $           | 48,019,620  |   |        | $      | 25,692,581 |          |   | $      | 53,364,835  |   |   | $           | -       |   |   | $ | 127,077,036 |   |
| Senior corporate notes                           |   |        | -           |   |        |   | -          |          |   |   | 9,062,200   |   |   |        | -       |   |   |   | 9,062,200 |   |
| Limited term royalties                           |   |        | -           |   |        |   | -          |          |   |   | 20,577,744  |   |   |        | -       |   |   |   | 20,577,744 |   |
| Net profits interests                            |   |        | -           |   |        |   | -          |          |   |   | 11,012,799  |   |   |        | -       |   |   |   | 11,012,799 |   |
| Royalty interests                                |   |        | 5,830,000   |   |        |   | -          |          |   |   | 1,500,000   |   |   |        | -       |   |   |   | 7,330,000 |   |
| Equity securities                                |   |        | 18,600,000  |   |        |   | 5,886,364  |          |   |   | 510,000     |   |   |        | -       |   |   |   | 24,996,364 |   |
| Commodity derivative instruments                 |   |        | -           |   |        |   | -          |          |   |   | -           |   |   |        | 49,000  |   |   |   | 49,000 |   |
| Total fair value December 31, 2009               |   |        | 72,449,620  |   |        |   | 31,578,945 |          |   |   | 96,027,578  |   |   |        | 49,000  |   |   |   | 200,105,143 |   |
| Transfers in (out) of Level 3                    |   |        |        |   |        |   |       |          |   |   |        |   |   |        |    |   |   |   |   |   |
| Senior corporate notes                           |   |        | -           |   |        |   | -          |          |   |   | (9,062,200  | )      |   |        | -       |   |   |   | (9,062,200 | ) |
| Equity securities                                |   |        | -           |   |        |   | (4,086,834 | )             |   |   | -           |   |   |        | -       |   |   |   | (4,086,834 | ) |
| Total transfers in (out) of Level 3              |   |        | -           |   |        |   | (4,086,834 | )             |   |   | (9,062,200  | )      |   |        | -       |   |   |   | (13,149,034 | ) |
| Net amortization of premiums, discounts and fees |   |        |        |   |        |   |       |          |   |   |        |   |   |        |    |   |   |   |   |   |
| Senior secured debt                              |   |        | 397,381     |   |        |   | 176,842    |          |   |   | 245,576     |   |   |        | -       |   |   |   | 819,799 |   |
| Limited term royalties                           |   |        | -           |   |        |   | -          |          |   |   | (9,335,754  | )      |   |        | -       |   |   |   | (9,335,754 | ) |
| Net profits interests                            |   |        | -           |   |        |   | -          |          |   |   | (23,185     | )      |   |        | -       |   |   |   | (23,185 | ) |
| Royalty interests                                |   |        | (24,672     | )      |        |   | -          |          |   |   | (52,613     | )      |   |        | -       |   |   |   | (77,285 | ) |
| Total net amortization of premiums,              |   |        |        |   |        |   |       |          |   |   |        |   |   |        |    |   |   |   |   |   |
| discounts and fees                               |   |        | 372,709     |   |        |   | 176,842    |          |   |   | (9,165,976  | )      |   |        | -       |   |   |   | (8,616,425 | ) |
| Net unrealized gains (losses)                    |   |        |        |   |        |   |       |          |   |   |        |   |   |        |    |   |   |   |   |   |
| Senior secured debt                              |   |        | (300,000    | )      |        |   | -          |          |   |   | -           |   |   |        | -       |   |   |   | (300,000 | ) |
| Limited term royalties                           |   |        | -           |   |        |   | -          |          |   |   | 3,693,640   |   |   |        | -       |   |   |   | 3,693,640 |   |
| Net profits interests                            |   |        | -           |   |        |   | -          |          |   |   | (49,999     | )      |   |        | -       |   |   |   | (49,999 | ) |
| Royalty interests                                |   |        | (25,328     | )      |        |   | -          |          |   |   | 52,613      |   |   |        | -       |   |   |   | 27,285 |   |
| Equity securities                                |   |        | (2,600,000  | )      |        |   | -          |          |   |   | 250,000     |   |   |        | -       |   |   |   | (2,350,000 | ) |
| Commodity derivative instruments                 |   |        | -           |   |        |   | -          |          |   |   | -           |   |   |        | (18,900 | ) |   |   | (18,900 | ) |
| Total net unrealized gains (losses)              |   |        | (2,925,328  | )      |        |   | -          |          |   |   | 3,946,254   |   |   |        | (18,900 | ) |   |   | 1,002,026 |   |
| Purchases                                        |   |        |        |   |        |   |       |          |   |   |        |   |   |        |    |   |   |   |   |   |
| Senior secured debt                              |   |        | 3,000,000   |   |        |   | 1,281,986  |          |   |   | -           |   |   |        | -       |   |   |   | 4,281,986 |   |
| Net profits interests                            |   |        | -           |   |        |   | -          |          |   |   | 2,100       |   |   |        | -       |   |   |   | 2,100 |   |
| Equity securities                                |   |        | 15,700,000  |   |        |   | -          |          |   |   | -           |   |   |        | -       |   |   |   | 15,700,000 |   |
| Total purchases                                  |   |        | 18,700,000  |   |        |   | 1,281,986  |          |   |   | 2,100       |   |   |        | -       |   |   |   | 19,984,086 |   |
| Payment-in-kind                                  |   |        |        |   |        |   |       |          |   |   |        |   |   |        |    |   |   |   |   |   |
| Senior secured debt                              |   |        | 2,564,809   |   |        |   | 1,982,588  |          |   |   | -           |   |   |        | -       |   |   |   | 4,547,397 |   |
| Total payment-in-kind                            |   |        | 2,564,809   |   |        |   | 1,982,588  |          |   |   | -           |   |   |        | -       |   |   |   | 4,547,397 |   |
| Sales and repayments                             |   |        |        |   |        |   |       |          |   |   |        |   |   |        |    |   |   |   |   |   |
| Senior secured debt                              |   |        | (13,000,000 | )      |        |   | (37,500    | )             |   |   | (2,794,196  | )      |   |        | -       |   |   |   | (15,831,696 | ) |
| Limited term royalties                           |   |        | -           |   |        |   | -          |          |   |   | (6,054,281  | )      |   |        | -       |   |   |   | (6,054,281 | ) |
| Net profits interests                            |   |        | -           |   |        |   | -          |          |   |   | (880,450    | )      |   |        | -       |   |   |   | (880,450 | ) |
| Equity securities                                |   |        | (1,000,000  | )      |        |   | (34,766    | )             |   |   | -           |   |   |        | -       |   |   |   | (1,034,766 | ) |
| Commodity derivative instruments                 |   |        | -           |   |        |   | -          |          |   |   | -           |   |   |        | (30,100 | ) |   |   | (30,100 | ) |
| Total sales and repayments                       |   |        | (14,000,000 | )      |        |   | (72,266    | )             |   |   | (9,728,927  | )      |   |        | (30,100 | ) |   |   | (23,831,293 | ) |
| Fair value September 30, 2010                    |   |        |        |   |        |   |       |          |   |   |        |   |   |        |    |   |   |   |   |   |
| Senior secured debt                              |   |        | 40,681,810  |   |        |   | 29,096,497 |          |   |   | 50,816,215  |   |   |        | -       |   |   |   | 120,594,522 |   |
| Limited term royalties                           |   |        | -           |   |        |   | -          |          |   |   | 8,881,349   |   |   |        | -       |   |   |   | 8,881,349 |   |
| Net profits interests                            |   |        | -           |   |        |   | -          |          |   |   | 10,061,265  |   |   |        | -       |   |   |   | 10,061,265 |   |
| Royalty interests                                |   |        | 5,780,000   |   |        |   | -          |          |   |   | 1,500,000   |   |   |        | -       |   |   |   | 7,280,000 |   |
| Equity securities                                |   |        | 30,700,000  |   |        |   | 1,764,764  |          |   |   | 760,000     |   |   |        | -       |   |   |   | 33,224,764 |   |
| Total fair value September 30, 2010              |   | $           | 77,161,810  |   |        | $      | 30,861,261 |          |   | $      | 72,018,829  |   |   | $           | -       |   |   | $ | 180,041,900 |   |

----

----

|   | · | uncertainties associated with the timing of transaction closings;                                                         |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------|
|   | · | changes in the prospects of our portfolio companies;                                                                      |
|   | · | changes in interest rates;                                                                                                |
|   | · | changes in regional, national or international economic conditions and their impact on the industries in which we invest; |
|   | · | continued disruption of credit and capital markets;                                                                       |
|   | · | the future operating results of our portfolio companies and their ability to achieve their objectives;                    |
|   | · | changes in the conditions of the industries in which we invest;                                                           |
|   | · | the adequacy of our cash resources and working capital;                                                                   |
|   | · | the timing of cash flows, if any, from the operations of our portfolio companies;                                         |
|   | · | the ability of our Manager to locate suitable investments for us and to monitor and administer the investments; and       |
|   | · | other factors enumerated in our filings with the Securities and Exchange Commission, or SEC.                              |

----

| · | 60% in senior secured debt,            |
|--------|----------------------------------------|
| · | 8% in senior unsecured debt,           |
| · | 7% in senior convertible notes,        |
| · | 14% in limited-term royalty interests, |
| · | 4% in net profits interests,           |
| · | 2% in a contingent earn-out,           |
| · | 1% in net royalty interests, and       |
| · | 4% in equity securities.               |

----

----

|                                                       |   | September 30, 2011 |   |   | September 30, 2010 |   |
|-----------------------------------------------------------------|--------|--------------------|--------|--------|--------------------|--------|
| ($ in thousands)                                                |   | Cost               |   |   | Fair Value         |   |   | Cost |   |   | Fair Value |   |
| Non-accruing investments                                        |   |               |   |   |               |   |   |   |   |   |   |   |
| Alden Resources, LLC Tranche B (sold in July 2011)              |   | $                  | -      |   |               | $      | - |   |   | $ | 19,520 |   |   | $ | 19,520 |   |
| Formidable, LLC (sold in October 2010)                          |   |               | -      |   |               |   | - |   |   |   | 38,780 |   |   |   | 5,300 |   |
| BioEnergy Holdings, LLC (non-accrual at March 1, 2011)          |   |               | 15,511 |   |               |   | - |   |   |   | - |   |   |   | - |   |
| Bionol Clearfield, LLC (non-accrual at March 1, 2011)           |   |               | 4,950  |   |               |   | - |   |   |   | - |   |   |   | - |   |
| Chroma Exploration & Production, Inc.                       |   |               | 4,311  |   |               |   | 650 |   |   |   | 4,311 |   |   |   | 750 |   |
| Total non-accruing investments                                  |   |               | 24,772 |   |               |   | 650 |   |   |   | 62,611 |   |   |   | 25,570 |   |
|                                                            |   |               |   |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Non-income producing investments                                |   |               |   |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Alden Resources, LLC Class E Units (sold in July 2011)          |   |               | -      |   |               |   | - |   |   |   | 5,800 |   |   |   | 5,800 |   |
| BSR Holdings, LLC (sold in October 2010)                        |   |               | -      |   |               |   | - |   |   |   | 300 |   |   |   | 300 |   |
| DeanLake Operator, LLC preferred units (sold in September 2011) |   |               | -      |   |               |   | 150 |   |   |   | 14,000 |   |   |   | 7,500 |   |
| Formidable, LLC warrants and units (sold in October 2010)       |   |               | -      |   |               |   | - |   |   |   | 510 |   |   |   | - |   |
| Gatliff Services, LLC units (sold in July 2011)                 |   |               | -      |   |               |   | - |   |   |   | 12,100 |   |   |   | 12,100 |   |
| TierraMar Energy, LP preferred units (sold in March 2011)       |   |               | -      |   |               |   | - |   |   |   | 16,711 |   |   |   | 5,000 |   |
| BioEnergy Holdings, LLC units and warrants                      |   |               | 1,297  |   |               |   | - |   |   |   | 1,297 |   |   |   | 1,297 |   |
| Myriant Technologies, LLC warrants and units                    |   |               | 468    |   |               |   | 755 |   |   |   | 468 |   |   |   | 468 |   |
| Resaca Exploitation, Inc. common stock and warrants             |   |               | 3,485  |   |               |   | 2,107 |   |   |   | 3,235 |   |   |   | 2,355 |   |
| Black Pool Energy Partners, LLC warrants                        |   |               | 10     |   |               |   | - |   |   |   | 10 |   |   |   | 10 |   |
| Castex Energy Development Fund, LLC units                       |   |               | -      |   |               |   | - |   |   |   | - |   |   |   | - |   |
| Globe BG, LLC (contingent Alden earn-out)                       |   |               | -      |   |               |   | 3,400 |   |   |   | - |   |   |   | - |   |
| Spirit Resources, LLC warrants                                  |   |               | 25     |   |               |   | 25 |   |   |   | - |   |   |   | - |   |
| Tammany Oil & Gas, LLC warrants                             |   |               | 5      |   |               |   | 1,000 |   |   |   | - |   |   |   | - |   |
| Total non-income producing investments                          |   |               | 5,290  |   |               |   | 7,437 |   |   |   | 54,431 |   |   |   | 34,830 |   |
| Total non-accruing and non-income                               |   |               |   |   |               |   |   |   |   |   |   |   |   |   |   |   |
|  producing investments                                     |   | $                  | 30,062 |   |               | $      | 8,087 |   |   | $ | 117,042 |   |   | $ | 60,400 |   |

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|                            |   |   |       |   | Less than |   |       |           |   |   |           |   |   | More than |   |
|---------------------------------|--------|--------|------------|--------|----------------|--------|------------|----------------|--------|--------|----------------|--------|--------|----------------|--------|
| Contractual Obligations    |   | Total  |       |   | 1 Year    |   |       | 1-3 Years |   |   | 3-5 Years |   |   | 5 Years   |   |
|                            |   |   |       |   |           |   |       |           |   |   |           |   |   |           |   |
| September 30, 2011:             |   |   |       |   |           |   |       |           |   |   |           |   |   |           |   |
| Revolving credit facilities (1) |   | $      | 15,000,000 |   |           | $      | 15,000,000 |           |   | $      | -              |   |   | $              | -      |   |   | $ | - |   |
| Total                           |   | $      | 15,000,000 |   |           | $      | 15,000,000 |           |   | $      | -              |   |   | $              | -      |   |   | $ | - |   |

|                      |   | September 30, 2011 |      |   | December 31, 2010 |   |
|---------------------------|--------|-------------------------|-----------|--------|-----------------------------|--------|
| Unused credit commitments |   | $                       | 8,128,874 |   |                        | $      | 8,682,153 |   |
| Letter of credit          |   |                    | 2,851,500 |   |                        |   | 2,676,200 |   |

----

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| Item 1.  | Legal Proceedings. |
|---------------|--------------------|

| Item 1A. | Risk Factors. |
|----------|---------------|

| Item 6. | Exhibits. |
|---------|-----------|

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|                               | NGP CAPITAL RESOURCES COMPANY |
|------------------------------------|-------------------------------|
|                               |                          |   |   |
| Date:  November 14, 2011 |                          | By: | /s/ Stephen K. Gardner |
|                               |                          |   | Stephen K. Gardner |
|                               |                          |   | President and Chief Executive Officer |
|                               |                          |   |   |
| Date:  November 14, 2011 |                          | By: | /s/ L. Scott Biar |
|                               |                          |   | L. Scott Biar |
|                               |                          |   | Chief Financial Officer, Treasurer and Secretary |

----

| Exhibits No. |   | Exhibit                                                                                                                                                                                                                 |
|-------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  3.1         |   | Articles of Incorporation (filed as Exhibit (a)(1) to our Registration Statement on Form N-2 filed on August 16, 2004 (Registration No. 333-118279) and incorporated herein by reference)                               |
|  3.2         |   | Articles of Amendment and Restatement (filed as Exhibit 3.2 our Annual Report on Form 10-K for the year ended December 31, 2004 and incorporated herein by reference)                                                   |
|  3.3         |   | Bylaws (filed as Exhibit (b) to our Registration Statement on Form N-2 filed on August 16, 2004 (Registration No. 333-118279) and incorporated herein by reference)                                                     |
|  4.1         |   | Form of Stock Certificate (filed as Exhibit (d) to our Pre-Effective Amendment No. 2 to Registration Statement on Form N-2 filed on October 7, 2004 (Registration No. 333-118279) and incorporated herein by reference) |
|  4.2         |   | Dividend Reinvestment Plan (filed as Exhibit (e) to our Registration Statement on Form N-2 filed on August 16, 2004 (Registration No. 333-118279) and incorporated herein by reference)                                 |
| 31.1*             |   | Certification required by Rule 13a-14(a)/15d-14(a) by the Chief Executive Officer                                                                                                                                       |
| 31.2*             |   | Certification required by Rule 13a-14(a)/15d-14(a) by the Chief Financial Officer                                                                                                                                       |
| 32.1**            |   | Section 1350 Certification by the Chief Executive Officer                                                                                                                                                               |
| 32.2**            |   | Section 1350 Certification by the Chief Financial Officer                                                                                                                                                               |

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