| 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 |
|--------|------------------------------------------------------------------------------------------|

----

----

| 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)          |

----

| PART I - FINANCIAL INFORMATION                                                                                              |         | 1      |
|-----------------------------------------------------------------------------------------------------------------------------|--------------|--------|
|                                                                                                                        |         |   |
| Item 1.     Financial Statements                                                                        |         | 1      |
| Item 2.     Management’s Discussion and Analysis of Financial Condition and Results of Operations |         | 28     |
| Item 3.     Quantitative and Qualitative Disclosures About Market Risk                                  |         | 35     |
| Item 4.     Controls and Procedures                                                                     |         | 35     |
|                                                                                                                        |         |   |
| PART II – OTHER INFORMATION                                                                                           |         | 36     |
|                                                                                                                        |         |   |
| Item 1.     Legal Proceedings                                                                           |         | 36     |
| Item 1A.  Risk Factors                                                                                                 |         | 36     |
| Item 6.     Exhibits                                                                                    |    | 36     |

----

|                                                                                                   |   | June 30, 2011 |        |   | December 31, 2010 |   |
|--------------------------------------------------------------------------------------------------------|--------|-------------------------|-------------|--------|-----------------------------|--------|
|                                                                                                   |   | (Unaudited)             |        |   |                        |   |
|                                                                                                   |   |                    |        |   |                        |   |
| Assets                                                                                                 |   |                    |        |   |                        |   |
| Investments in portfolio securities at fair value                                                      |   |                    |        |   |                        |   |   |   |
| Control investments - majority owned (cost: $101,989,595 and $89,502,910, respectively)                |   | $                       | 74,221,913  |   |                        | $      | 70,973,316 |   |
| Affiliate investments (cost: $36,083,334 and $34,146,328, respectively)                                |   |                    | 13,463,505  |   |                        |   | 33,064,028 |   |
| Non-affiliate investments (cost: $113,556,532 and $114,852,057, respectively)                          |   |                    | 112,012,623 |   |                        |   | 112,025,645 |   |
| Investments in U.S. Treasury Bills at fair value (cost: $30,600,298 and $0, respectively)              |   |                    | 30,599,663  |   |                        |   | - |   |
| Total investments                                                                                      |   |                    | 230,297,704 |   |                        |   | 216,062,989 |   |
|                                                                                                   |   |                    |        |   |                        |   |   |   |
| Cash and cash equivalents                                                                              |   |                    | 50,010,276  |   |                        |   | 68,456,908 |   |
| Accounts receivable and other current assets                                                           |   |                    | 1,242,430   |   |                        |   | 3,095,882 |   |
| Interest receivable                                                                                    |   |                    | 1,397,457   |   |                        |   | 2,236,122 |   |
| Prepaid assets                                                                                         |   |                    | 1,342,941   |   |                        |   | 1,736,732 |   |
| Total current assets                                                                                   |   |                    | 53,993,104  |   |                        |   | 75,525,644 |   |
|                                                                                                   |   |                    |        |   |                        |   |   |   |
| Deferred tax assets                                                                                    |   |                    | 5,615,099   |   |                        |   | - |   |
|                                                                                                   |   |                    |        |   |                        |   |   |   |
| Total assets                                                                                           |   | $                       | 289,905,907 |   |                        | $      | 291,588,633 |   |
|                                                                                                   |   |                    |        |   |                        |   |   |   |
| Liabilities and net assets                                                                             |   |                    |        |   |                        |   |   |   |
| Current liabilities                                                                                    |   |                    |        |   |                        |   |   |   |
| Accounts payable and accrued expenses                                                                  |   | $                       | 485,831     |   |                        | $      | 525,111 |   |
| Management and incentive fees payable                                                                  |   |                    | 1,591,714   |   |                        |   | 1,376,032 |   |
| Dividends payable                                                                                      |   |                    | 3,893,076   |   |                        |   | 3,893,076 |   |
| Income taxes payable                                                                                   |   |                    | 18,052      |   |                        |   | 50,350 |   |
| Current portion of long-term debt                                                                      |   |                    | 30,000,000  |   |                        |   | - |   |
| Deferred tax liabilities                                                                               |   |                    | 5,630,437   |   |                        |   | - |   |
| Total current liabilities                                                                              |   |                    | 41,619,110  |   |                        |   | 5,844,569 |   |
|                                                                                                   |   |                    |        |   |                        |   |   |   |
| Deferred tax liabilities                                                                               |   |                    | -           |   |                        |   | 18,136 |   |
| Long-term debt, less current portion                                                                   |   |                    | 40,000,000  |   |                        |   | 50,000,000 |   |
|                                                                                                   |   |                    |        |   |                        |   |   |   |
| Total liabilities                                                                                      |   |                    | 81,619,110  |   |                        |   | 55,862,705 |   |
|                                                                                                   |   |                    |        |   |                        |   |   |   |
| Commitments and contingencies  (Note 6)                                                      |   |                    |        |   |                        |   |   |   |
|                                                                                                   |   |                    |        |   |                        |   |   |   |
| 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                                                                       |   |                    | 293,789,803 |   |                        |   | 293,789,803 |   |
| Undistributed net investment income (loss)                                                             |   |                    | (8,234,138  | )      |                        |   | (7,845,925 | ) |
| Undistributed net realized capital gain (loss)                                                         |   |                    | (32,319,233 | )      |                        |   | (32,778,782 | ) |
| Net unrealized appreciation (depreciation) of portfolio securities                                     |   |                    | (44,971,263 | )      |                        |   | (17,460,796 | ) |
|                                                                                                   |   |                    |        |   |                        |   |   |   |
| Total net assets                                                                                       |   |                    | 208,286,797 |   |                        |   | 235,725,928 |   |
|                                                                                                   |   |                    |        |   |                        |   |   |   |
| Total liabilities and net assets                                                                       |   | $                       | 289,905,907 |   |                        | $      | 291,588,633 |   |
|                                                                                                   |   |                    |        |   |                        |   |   |   |
| Net asset value per share                                                                              |   | $                       | 9.63        |   |                        | $      | 10.90 |   |

----

|                                                                                     |   | For The Three Months Ended |        |   | For The Six Months Ended |   |
|------------------------------------------------------------------------------------------|--------|------------------------------------------------|-------------|--------|----------------------------------------------|--------|
|                                                                                |   | June 30, 2011                        |        |   | June 30, 2010                      |   |   | June 30, 2011 |   |   | June 30, 2010 |   |
| Investment income                                                                        |   |                                           |        |   |                                         |   |   |   |   |   |   |   |
| Interest income:                                                                         |   |                                           |        |   |                                         |   |   |   |   |   |   |   |
| Control investments - majority owned                                                     |   | $                                              | 5,810,435   |   |                                         | $      | 1,095,924 |   |   | $ | 7,166,344 |   |   | $ | 2,195,903 |   |
| Affiliate investments                                                                    |   |                                           | (320,821    | )      |                                         |   | 899,981 |   |   |   | 631,044 |   |   |   | 1,732,894 |   |
| Non-affiliate investments                                                                |   |                                           | 3,038,632   |   |                                         |   | 3,379,706 |   |   |   | 6,517,637 |   |   |   | 6,557,247 |   |
| Royalty income (loss), net of amortization:                                              |   |                                           |        |   |                                         |   |   |   |   |   |   |   |   |   |   |   |
| Control investments - majority owned                                                     |   |                                           | 201,785     |   |                                         |   | 459,974 |   |   |   | 680,135 |   |   |   | 754,785 |   |
| Non-affiliate investments                                                                |   |                                           | 270,906     |   |                                         |   | (444,619 | ) |   |   | 526,688 |   |   |   | (962,675 | ) |
| Other income                                                                             |   |                                           | 58,887      |   |                                         |   | 640,000 |   |   |   | 92,637 |   |   |   | 946,079 |   |
|                                                                                     |   |                                           |        |   |                                         |   |   |   |   |   |   |   |   |   |   |   |
| Total investment income                                                                  |   |                                           | 9,059,824   |   |                                         |   | 6,030,966 |   |   |   | 15,614,485 |   |   |   | 11,224,233 |   |
|                                                                                     |   |                                           |        |   |                                         |   |   |   |   |   |   |   |   |   |   |   |
| Operating expenses                                                                       |   |                                           |        |   |                                         |   |   |   |   |   |   |   |   |   |   |   |
| Management and incentive fees                                                            |   |                                           | 1,591,714   |   |                                         |   | 1,423,830 |   |   |   | 2,925,002 |   |   |   | 2,762,399 |   |
| Professional fees                                                                        |   |                                           | 236,026     |   |                                         |   | 221,672 |   |   |   | 435,066 |   |   |   | 486,976 |   |
| Insurance expense                                                                        |   |                                           | 182,303     |   |                                         |   | 185,658 |   |   |   | 364,846 |   |   |   | 371,316 |   |
| Interest expense and fees                                                                |   |                                           | 457,256     |   |                                         |   | 304,118 |   |   |   | 766,677 |   |   |   | 617,181 |   |
| Other general and administrative expenses                                                |   |                                           | 896,969     |   |                                         |   | 843,568 |   |   |   | 1,726,704 |   |   |   | 1,789,988 |   |
|                                                                                     |   |                                           |        |   |                                         |   |   |   |   |   |   |   |   |   |   |   |
| Total operating expenses                                                                 |   |                                           | 3,364,268   |   |                                         |   | 2,978,846 |   |   |   | 6,218,295 |   |   |   | 6,027,860 |   |
|                                                                                     |   |                                           |        |   |                                         |   |   |   |   |   |   |   |   |   |   |   |
| Net investment income before income taxes                                                |   |                                           | 5,695,556   |   |                                         |   | 3,052,120 |   |   |   | 9,396,190 |   |   |   | 5,196,373 |   |
|                                                                                     |   |                                           |        |   |                                         |   |   |   |   |   |   |   |   |   |   |   |
| Benefit (provision) for income taxes                                                     |   |                                           | (1,295,534  | )      |                                         |   | 222,496 |   |   |   | (1,998,250 | ) |   |   | 509,570 |   |
|                                                                                     |   |                                           |        |   |                                         |   |   |   |   |   |   |   |   |   |   |   |
| Net investment income                                                                    |   |                                           | 4,400,022   |   |                                         |   | 3,274,616 |   |   |   | 7,397,940 |   |   |   | 5,705,943 |   |
|                                                                                     |   |                                           |        |   |                                         |   |   |   |   |   |   |   |   |   |   |   |
| Net realized capital gain (loss) on investments                                          |   |                                           |        |   |                                         |   |   |   |   |   |   |   |   |   |   |   |
| Net realized capital gain (loss) on portfolio securities:                                |   |                                           |        |   |                                         |   |   |   |   |   |   |   |   |   |   |   |
| Control investments - majority owned                                                     |   |                                           | -           |   |                                         |   | - |   |   |   | 81,275 |   |   |   | - |   |
| Non-affiliate investments                                                                |   |                                           | 984,571     |   |                                         |   | - |   |   |   | 378,210 |   |   |   | - |   |
| Benefit (provision) for taxes on capital gain (loss)                                     |   |                                           | (223        | )      |                                         |   | (9,462 | ) |   |   | 64 |   |   |   | (18,613 | ) |
|                                                                                     |   |                                           |        |   |                                         |   |   |   |   |   |   |   |   |   |   |   |
| Total net realized capital gain (loss) on investments                                    |   |                                           | 984,348     |   |                                         |   | (9,462 | ) |   |   | 459,549 |   |   |   | (18,613 | ) |
|                                                                                     |   |                                           |        |   |                                         |   |   |   |   |   |   |   |   |   |   |   |
| Net unrealized gain (loss) on investments                                                |   |                                           |        |   |                                         |   |   |   |   |   |   |   |   |   |   |   |
| Net increase (decrease) in unrealized appreciation(depreciation) on portfolio securities |   |                                           |        |   |                                         |   |   |   |   |   |   |   |   |   |   |   |
| Control investments - majority owned                                                     |   |                                           | (12,665,451 | )      |                                         |   | (93,176 | ) |   |   | (9,238,088 | ) |   |   | (86,675 | ) |
| Affiliate investments                                                                    |   |                                           | (10,343,205 | )      |                                         |   | (748,010 | ) |   |   | (21,537,528 | ) |   |   | (189,291 | ) |
| Non-affiliate investments                                                                |   |                                           | (58,606     | )      |                                         |   | 1,733,136 |   |   |   | 1,281,867 |   |   |   | 4,047,125 |   |
| Benefit (provision) for taxes on unrealized gain (loss)                                  |   |                                           | 1,289,139   |   |                                         |   | (284,237 | ) |   |   | 1,983,282 |   |   |   | (577,386 | ) |
|                                                                                     |   |                                           |        |   |                                         |   |   |   |   |   |   |   |   |   |   |   |
| Total net unrealized gain (loss) on investments                                          |   |                                           | (21,778,123 | )      |                                         |   | 607,713 |   |   |   | (27,510,467 | ) |   |   | 3,193,773 |   |
|                                                                                     |   |                                           |        |   |                                         |   |   |   |   |   |   |   |   |   |   |   |
| Net increase (decrease) in net assets resulting from operations                          |   | $                                              | (16,393,753 | )      |                                         | $      | 3,872,867 |   |   | $ | (19,652,978 | ) |   | $ | 8,881,103 |   |
|                                                                                     |   |                                           |        |   |                                         |   |   |   |   |   |   |   |   |   |   |   |
| Net increase (decrease) in net assets resulting from operations per common share         |   | $                                              | (0.76       | )      |                                         | $      | 0.18 |   |   | $ | (0.91 | ) |   | $ | 0.42 |   |

----

|                                                            |   |              |       |   |           |   |   |                |   |   |               |   |   |              |       |   | Net Unrealized |   |        |            |   |
|-----------------------------------------------------------------|--------|-------------------|------------|--------|----------------|--------|--------|---------------------|--------|--------|--------------------|--------|--------|-------------------|------------|--------|---------------------|--------|-------------|-----------------|--------|
|                                                            |   |              |       |   |           |   |   | Paid-in             |   |   |               |   |   | Undistributed     |       |   | Appreciation        |   |        |            |   |
|                                                            |   |              |       |   |           |   |   | Capital             |   |   | Undistributed      |   |   | Net Realized |       |   | (Depreciation)      |   |        |            |   |
|                                                            |   | Common Stock |       |   | in Excess |   |   | Net Investment |   |   | Capital            |   |   | of Portfolio |       |   | Total               |   |
|                                                            |   | Shares            |       |   | Amount         |   |   | of Par         |   |   | Income (Loss) |   |   | Gain (Loss)  |       |   | Securities          |   |        | Net Assets |   |
| Balance at December 31, 2010                                    |   |              | 21,628,202 |   |           | $      | 21,628 |                |   | $      | 293,789,803        |   |   | $                 | (7,845,925 | )      |                | $      | (32,778,782 | )               |   | $ | (17,460,796 | ) |   | $ | 235,725,928 |   |
| Net increase (decrease) in net assets resulting from operations |   |              | -          |   |           |   | -      |                |   |   | -                  |   |   |              | 7,397,940  |   |                |   | 459,549     |            |   |   | (27,510,467 | ) |   |   | (19,652,978 | ) |
|                                                            |   |              |       |   |           |   |   |                |   |   |               |   |   |              |       |   |                |   |        |            |   |   |   |   |   |   |   |   |
| Dividends declared                                              |   |              | -          |   |           |   | -      |                |   |   | -                  |   |   |              | (7,786,153 | )      |                |   | -           |            |   |   | - |   |   |   | (7,786,153 | ) |
| Balance at June 30, 2011                                        |   |              | 21,628,202 |   |           | $      | 21,628 |                |   | $      | 293,789,803        |   |   | $                 | (8,234,138 | )      |                | $      | (32,319,233 | )               |   | $ | (44,971,263 | ) |   | $ | 208,286,797 |   |

----

|                                                                                                                                            |   | For The Six Months Ended |        |
|-------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------|-------------|
|                                                                                                                                            |   | June 30, 2011                      |        |   | June 30, 2010 |   |
| Cash flows from operating activities                                                                                                            |   |                                         |        |   |   |   |
| Net increase (decrease) in net assets resulting from operations                                                                                 |   | $                                            | (19,652,978 | ) |   | $ | 8,881,103 |   |
| Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash (used in) provided by operating activities |   |                                         |        |   |   |   |   |   |
| Payment-in-kind interest                                                                                                                        |   |                                         | (6,321,743  | ) |   |   | (2,585,664 | ) |
| Net amortization of premiums, discounts and fees                                                                                                |   |                                         | 202,102     |   |   |   | 6,856,303 |   |
| Net realized capital (gain) loss on portfolio securities before taxes                                                                           |   |                                         | (459,485    | ) |   |   | - |   |
| Change in unrealized (appreciation) depreciation on portfolio securities before taxes                                                           |   |                                         | 29,493,749  |   |   |   | (3,771,159 | ) |
| Net deferred income tax provision (benefit)                                                                                                     |   |                                         | (2,798      | ) |   |   | 50,137 |   |
| Effects of changes in operating assets and liabilities:                                                                                         |   |                                         |        |   |   |   |   |   |
| Accounts receivable and other current assets                                                                                                    |   |                                         | 1,853,452   |   |   |   | (38,260 | ) |
| Interest receivable                                                                                                                             |   |                                         | 838,665     |   |   |   | (140,404 | ) |
| Prepaid assets                                                                                                                                  |   |                                         | 393,791     |   |   |   | 600,583 |   |
| Accounts payable and accrued expenses                                                                                                           |   |                                         | 176,402     |   |   |   | (376,879 | ) |
| Income taxes payable                                                                                                                            |   |                                         | (32,298     | ) |   |   | (28,708 | ) |
| Purchase of investments in portfolio securities                                                                                                 |   |                                         | (51,475,085 | ) |   |   | (3,967,803 | ) |
| Proceeds from the redemption of investments in portfolio securities                                                                             |   |                                         | 44,926,045  |   |   |   | 6,436,615 |   |
| Purchase of investments in U.S. Treasury Bills                                                                                                  |   |                                         | (30,600,298 | ) |   |   | - |   |
| Net cash provided by (used in) operating activities                                                                                             |   |                                         | (30,660,479 | ) |   |   | 11,915,864 |   |
|                                                                                                                                            |   |                                         |        |   |   |   |   |   |
| Cash flows from financing activities                                                                                                            |   |                                         |        |   |   |   |   |   |
| Borrowings under revolving credit facilities                                                                                                    |   |                                         | 95,000,000  |   |   |   | 124,905,200 |   |
| Repayments on revolving credit facilities                                                                                                       |   |                                         | (75,000,000 | ) |   |   | (132,405,200 | ) |
| Dividends paid                                                                                                                                  |   |                                         | (7,786,153  | ) |   |   | (7,353,589 | ) |
| Net cash provided by (used in) financing activities                                                                                             |   |                                         | 12,213,847  |   |   |   | (14,853,589 | ) |
|                                                                                                                                            |   |                                         |        |   |   |   |   |   |
| Net decrease in cash and cash equivalents                                                                                                       |   |                                         | (18,446,632 | ) |   |   | (2,937,725 | ) |
| Cash and cash equivalents, beginning of period                                                                                                  |   |                                         | 68,456,908  |   |   |   | 108,288,217 |   |
|                                                                                                                                            |   |                                         |        |   |   |   |   |   |
| Cash and cash equivalents, end of period                                                                                                        |   | $                                            | 50,010,276  |   |   | $ | 105,350,492 |   |

----

| 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 (7)                                          |   | Coal Production                   |   | Senior Secured                                     |   | $         | 16,497,033  |   |   | $      | 15,408,942 |                     |   | $ | 16,497,033 |   |
|                                                              |   |                              |   | Multiple-Advance Term Loan - Tranche A             |   |      |        |   |   |   |       |                     |   |   |   |   |
|                                                              |   |                              |   | (The greater of 12.0% or LIBOR +                   |   |      |        |   |   |   |       |                     |   |   |   |   |
|                                                              |   |                              |   | 9.0% cash, due 1/05/2013)                          |   |      |        |   |   |   |       |                     |   |   |   |   |
|                                                              |   |                              |   |                                               |   |      |        |   |   |   |       |                     |   |   |   |   |
|                                                              |   |                              |   | Senior Secured                                     |   |      | 26,223,742  |   |   |   | 24,066,616 |                     |   |   | 24,066,616 |   |
|                                                              |   |                              |   | Multiple-Advance Term Loan - Tranche B             |   |      |        |   |   |   |       |                     |   |   |   |   |
|                                                              |   |                              |   | (The greater of 12.0% or LIBOR +                   |   |      |        |   |   |   |       |                     |   |   |   |   |
|                                                              |   |                              |   | 9.0% cash, 15.0% or LIBOR +                        |   |      |        |   |   |   |       |                     |   |   |   |   |
|                                                              |   |                              |   | 12.0% PIK, due 1/05/2013) (9)                      |   |      |        |   |   |   |       |                     |   |   |   |   |
|                                                              |   |                              |   |                                               |   |      |        |   |   |   |       |                     |   |   |   |   |
|                                                              |   |                              |   | Senior Secured                                     |   |      | 9,429,225   |   |   |   | 9,429,225  |                     |   |   | 9,429,225 |   |
|                                                              |   |                              |   | Multiple-Advance Term Loan - Revolver              |   |      |        |   |   |   |       |                     |   |   |   |   |
|                                                              |   |                              |   | (The greater of 12.0% or LIBOR +                   |   |      |        |   |   |   |       |                     |   |   |   |   |
|                                                              |   |                              |   | 9.0% cash, 15.0% or LIBOR +                        |   |      |        |   |   |   |       |                     |   |   |   |   |
|                                                              |   |                              |   | 12.0% PIK, due 1/05/2013)                          |   |      |        |   |   |   |       |                     |   |   |   |   |
|                                                              |   |                              |   |                                               |   |      |        |   |   |   |       |                     |   |   |   |   |
|                                                              |   |                              |   | 5.8 million Class E Units - entitled  to |   |      |        |   |   |   | 5,800,000  |                     |   |   | - |   |
|                                                              |   |                              |   |  100% of distributions of Alden Resources     |   |      |        |   |   |   |       |                     |   |   |   |   |
|                                                              |   |                              |   | until payout, 80% after payout (8)                 |   |      |        |   |   |   |       |                     |   |   |   |   |
|                                                              |   |                              |   |                                               |   |      |        |   |   |   |       |                     |   |   |   |   |
|                                                              |   |                              |   | Royalty Interest                                   |   |      |        |   |   |   | 2,469,862  |                     |   |   | 8,150,000 |   |
|                                                              |   |                              |   |                                               |   |      |        |   |   |   |       |                     |   |   |   |   |
| BSR Holdings, LLC (7) (18)                                        |   | Oil & Natural Gas             |   | 100% of membership interests of                    |   |      |        |   |   |   | -          |                     |   |   | - |   |
|                                                              |   |  Production and Development  |   | BSR Holdings, LLC (8)                              |   |      |        |   |   |   |       |                     |   |   |   |   |
|                                                              |   |                              |   |                                               |   |      |        |   |   |   |       |                     |   |   |   |   |
| DeanLake Operator, LLC (7)                                        |   | Oil & Natural Gas             |   | Class A membership interests - entitled to 100%    |   |      |        |   |   |   | 14,050,255 |                     |   |   | 700,000 |   |
|                                                              |   |  Production and Development  |   | of distribution of DeanLake Operator, LLC          |   |      |        |   |   |   |       |                     |   |   |   |   |
|                                                              |   |                              |   | until payout, 80% after payout (8)                 |   |      |        |   |   |   |       |                     |   |   |   |   |
|                                                              |   |                              |   | Overriding Royalty Interest                        |   |      |        |   |   |   | 17,390     |                     |   |   | 50,000 |   |
|                                                              |   |                              |   |                                               |   |      |        |   |   |   |       |                     |   |   |   |   |
| Gatliff Services, LLC (7)                                         |   | Coal Processing                   |   | Senior Secured                                     |   |      | 14,286,517  |   |   |   | 14,286,517 |                     |   |   | 14,286,517 |   |
|                                                              |   |                              |   | Multiple-Advance Term Loan                         |   |      |        |   |   |   |       |                     |   |   |   |   |
|                                                              |   |                              |   | (8.0% during construction, 12.0%                   |   |      |        |   |   |   |       |                     |   |   |   |   |
|                                                              |   |                              |   | after completion, due 9/30/2020)                   |   |      |        |   |   |   |       |                     |   |   |   |   |
|                                                              |   |                              |   | One Membership Unit - representing 100%            |   |      |        |   |   |   | 1,100,000  |                     |   |   | 967,522 |   |
|                                                              |   |                              |   | ownership of Gatliff Services, LLC  (8)  |   |      |        |   |   |   |       |                     |   |   |   |   |
|                                                              |   |                              |   |                                               |   |      |        |   |   |   |       |                     |   |   |   |   |
| Rubicon Energy Partners,                                          |   | Oil & Natural Gas             |   | 4,000 LLC Units representing                       |   |      |        |   |   |   | -          |                     |   |   | - |   |
|     LLC (7) (18)                              |   |  Production and Development  |   | 50% ownership of the assets of                     |   |      |        |   |   |   |       |                     |   |   |   |   |
|                                                              |   |                              |   | Rubicon Energy Partners, LLC (8)                   |   |      |        |   |   |   |       |                     |   |   |   |   |
|                                                              |   |                              |   |                                               |   |      |        |   |   |   |       |                     |   |   |   |   |
| TierraMar Energy, LP (7) (18)                                     |   | Oil & Natural Gas             |   | 212,637 Class A Preferred LP Units - entitled to   |   |      |        |   |   |   |       |                     |   |   |   |   |
|                                                              |   |  Production and Development  |   | 100% of distribution of TierraMar Energy, LP       |   |      |        |   |   |   |       |                     |   |   |   |   |
|                                                              |   |                              |   | until payout, 67% after payout (8)                 |   |      |        |   |   |   | 15,360,788 |                     |   |   | 75,000 |   |
|                                                              |   |                              |   |                                               |   |      |        |   |   |   |       |                     |   |   |   |   |
| Subtotal Control Investments - Majority Owned (50% or more owned) |   |                              |   |                                               |   | $         | 101,989,595 |   |   | $      | 74,221,913 |                     |

----

| 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 (7) (11)                    |   | Alternative Fuels and            |   | Senior Secured Notes                                 |   | $         | 16,662,326 |   |       | $      | 15,510,855 |                     |       | $ | - |   |
|                                               |   | Specialty Chemicals              |   | (15.0%, due 3/06/2015) (9)                           |   |      |       |   |       |   |       |                     |       |   |   |   |
|                                               |   |                             |   | BioEnergy Holding Units - 11.1% of outstanding       |   |      |       |   |       |   | 1,296,771  |                     |       |   | - |   |
|                                               |   |                             |   | units of BioEnergy Holdings, LLC (8)                 |   |      |       |   |       |   |       |                     |       |   |   |   |
|                                               |   |                             |   | Myriant Technologies Warrants (8) (13)               |   |      |       |   |       |   | 49,238     |                     |       |   | 49,238 |   |
|                                               |   |                             |   | Myriant Technologies Units - 0.59% of the            |   |      |       |   |       |   | 418,755    |                     |       |   | 706,132 |   |
|                                               |   |                             |   | outstanding units of Myriant Technologies, Inc. (8)  |   |      |       |   |       |   |       |                     |       |   |   |   |
|                                               |   |                             |   |                                                 |   |      |       |   |       |   |       |                     |       |   |   |   |
| Bionol Clearfield, LLC (7) (11) (17)               |   | Alternative Fuels and            |   | Senior Secured Tranche C                             |   |      | 4,950,000  |   |       |   | 4,950,000  |                     |       |   | - |   |
|                                               |   | Specialty Chemicals              |   | 2nd Lien Term Loan                                   |   |      |       |   |       |   |       |                     |       |   |   |   |
|                                               |   |                             |   | (LIBOR + 7.0% cash, LIBOR + 9.0%                     |   |      |       |   |       |   |       |                     |       |   |   |   |
|                                               |   |                             |   | default, due 9/06/2016) (9)                          |   |      |       |   |       |   |       |                     |       |   |   |   |
|                                               |   |                             |   |                                                 |   |      |       |   |       |   |       |                     |       |   |   |   |
| Resaca Exploitation Inc.                           |   | Oil & Natural Gas            |   | Senior Unsecured Term Loan                           |   |      | 10,597,681 |   |       |   | 10,372,461 |                     |       |   | 10,372,461 |   |
|                                               |   |  Production and Development |   | (9.5% cash or 12.0% PIK,                             |   |      |       |   |       |   |       |                     |       |   |   |   |
|                                               |   |                             |   | due on 12/31/2014) (7)                               |   |      |       |   |       |   |       |                     |       |   |   |   |
|                                               |   |                             |   | Warrants (7) (8) (20)                                |   |      |       |   |       |   | 250,000    |                     |       |   | 250,000 |   |
|                                               |   |                             |   | Common Stock (1,345,595 shares) – representing |   |      |       |   |       |   |       |                     |       |   |   |   |
|                                               |   |                             |   | 6.82% of outstanding common stock of                 |   |      |       |   |       |   |       |                     |       |   |   |   |
|                                               |   |                             |   | Resaca Exploitation Inc. (6) (8) (14)                |   |      |       |   |       |   | 3,235,254  |                     |       |   | 2,085,674 |   |
|                                               |   |                             |   |                                                 |   |      |       |   |       |   |       |                     |       |   |   |   |
| Subtotal Affiliate Investments - (5% to 25% owned) |   |                             |   |                                                 |   |      |       | $      | 36,083,334 |   |       | $                        | 13,463,505 |   |
|                                               |   |                             |   |                                                 |   |      |       |   |       |   |       |                     |       |   |   |   |
| Non-affiliate Investments - (Less than 5% owned)   |   |                             |   |                                                 |   |      |       |   |       |   |       |                     |       |   |
| Anadarko Petroleum Corporation                     |   | Oil & Natural Gas            |   | Multiple-Advance Net Profits Interest                |   | $         | 8,637,944  |   |       | $      | 8,673,651  |                     |       | $ | 8,973,650 |   |
| 2007-III Drilling Fund (7)                         |   |  Production and Development |   | (Due 4/23/2032)                                      |   |      |       |   |       |   |       |                     |       |   |   |   |
|                                               |   |                             |   |                                                 |   |      |       |   |       |   |       |                     |       |   |   |   |
| ATP Oil & Gas Corporation - II (7)             |   | Oil & Natural Gas            |   | Limited Term Royalty Interest                        |   |      |       |   |       |   | 2,027,766  |                     |       |   | 2,500,000 |   |
|                                               |   |  Production and Development |   | (Dollar Denominated - 16.0% Return)                  |   |      |       |   |       |   |       |                     |       |   |   |   |
|                                               |   |                             |   |                                                 |   |      |       |   |       |   |       |                     |       |   |   |   |
| ATP Oil & Gas Corporation - III (7)            |   | Oil & Natural Gas            |   | Limited Term Royalty Interest                        |   |      |       |   |       |   | 25,000,000 |                     |       |   | 25,000,000 |   |
|                                               |   |  Production and Development |   | (Dollar Denominated - 12.35% annual                  |   |      |       |   |       |   |       |                     |       |   |   |   |
|                                               |   |                             |   | interest, 13.0% IRR to pay-out)                      |   |      |       |   |       |   |       |                     |       |   |   |   |
|                                               |   |                             |   |                                                 |   |      |       |   |       |   |       |                     |       |   |   |   |
| Black Pool Energy                                  |   | Oil & Natural Gas            |   | Senior Secured                                       |   |      | 16,780,001 |   |       |   | 16,721,588 |                     |       |   | 16,721,588 |   |
| Partners, LLC (7)                                  |   |  Production and Development |   | Multiple-Advance Term Loan                           |   |      |       |   |       |   |       |                     |       |   |   |   |
|                                               |   |                             |   | (The greater of 15.0% or LIBOR +                     |   |      |       |   |       |   |       |                     |       |   |   |   |
|                                               |   |                             |   | 11.0% cash, due 10/24/2011)                          |   |      |       |   |       |   |       |                     |       |   |   |   |
|                                               |   |                             |   | Overriding Royalty Interest                          |   |      |       |   |       |   | 8,928      |                     |       |   | 100,000 |   |
|                                               |   |                             |   | Warrants (8) (15)                                    |   |      |       |   |       |   | 10,000     |                     |       |   | - |   |
|                                               |   |                             |   |                                                 |   |      |       |   |       |   |       |                     |       |   |   |   |
| Chroma Exploration &                           |   | Oil & Natural Gas            |   | 10,930 Shares Series A Participating                 |   |      |       |   |       |   | 2,221,710  |                     |       |   | - |   |
| Production, Inc. (7)                               |   |  Production and Development |   | Convertible Preferred Stock (9)                      |   |      |       |   |       |   |       |                     |       |   |   |   |
|                                               |   |                             |   | 9,981 Shares Series AA Participating                 |   |      |       |   |       |   | 2,089,870  |                     |       |   | 650,000 |   |
|                                               |   |                             |   | Convertible Preferred Stock (9)                      |   |      |       |   |       |   |       |                     |       |   |   |   |
|                                               |   |                             |   | 8.11 Shares Common Stock (8)                         |   |      |       |   |       |   | -          |                     |       |   | - |   |
|                                               |   |                             |   | Warrants (8) (10)                                    |   |      |       |   |       |   | -          |                     |       |   | - |   |
|                                               |   |                             |   |                                                 |   |      |       |   |       |   |       |                     |       |   |   |   |
| Crestwood Holdings, LLC (7)                        |   | Natural Gas                      |   | Senior Secured Term Loan                             |   |      | 8,670,000  |   |       |   | 8,507,607  |                     |       |   | 8,507,607 |   |
|                                               |   | Gathering and Processing         |   | (The greater of 10.5% or LIBOR + 8.5%,               |   |      |       |   |       |   |       |                     |       |   |   |   |
|                                               |   |                             |   | due 10/01/2016)                                      |   |      |       |   |       |   |       |                     |       |   |   |   |

----

| 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. (6)                                      |   | Oil & Natural Gas             |   | Senior Convertible Notes                           |   | $         | 4,661,000  |   |        | $      | 4,007,557   |                     |        | $ | 4,398,819 |   |
|                                                         |   | Production and Development        |   | (5.0%, due 2/1/2013)                               |   |      |       |   |        |   |        |                     |        |   |   |   |
|                                                         |   |                              |   |                                               |   |      |       |   |        |   |        |                     |        |   |   |   |
| Nighthawk Transport I, LP (7)                                |   | Energy Services                   |   | LP Units (8) (19)                                  |   |      |       |   |        |   | -           |                     |        |   | - |   |
|                                                         |   |                              |   | Warrants (8) (19)                                  |   |      |       |   |        |   | -           |                     |        |   | - |   |
|                                                         |   |                              |   |                                               |   |      |       |   |        |   |        |                     |        |   |   |   |
| Pallas Contour Mining, LLC (7)                               |   | Coal Mining                       |   | Senior Secured                                     |   |      | 12,911,290 |   |        |   | 12,957,276  |                     |        |   | 12,957,276 |   |
|                                                         |   |                              |   | Multiple-Advance Term Loan                         |   |      |       |   |        |   |        |                     |        |   |   |   |
|                                                         |   |                              |   | (14.0%, due 10/14/2015)                            |   |      |       |   |        |   |        |                     |        |   |   |   |
|                                                         |   |                              |   |                                               |   |      |       |   |        |   |        |                     |        |   |   |   |
| Powder River Acquisitions, LLC (7)                           |   | Oil & Natural Gas             |   | Senior Secured                                     |   |      | 3,000,000  |   |        |   | 3,000,000   |                     |        |   | 3,000,000 |   |
|                                                         |   | Production and Development        |   | Multiple-Advance Term Loan                         |   |      |       |   |        |   |        |                     |        |   |   |   |
|                                                         |   |                              |   | (14.0%, due 10/14/2015)                            |   |      |       |   |        |   |        |                     |        |   |   |   |
|                                                         |   |                              |   |                                               |   |      |       |   |        |   |        |                     |        |   |   |   |
| Spirit Resouces, LLC (7)                                     |   | Oil & Natural Gas             |   | Senior Secured                                     |   |      | 7,700,000  |   |        |   | 7,439,019   |                     |        |   | 7,439,019 |   |
|                                                         |   | Production and Development        |   | Multiple-Advance Term Loan                         |   |      |       |   |        |   |        |                     |        |   |   |   |
|                                                         |   |                              |   | (The greater of 12.0% or LIBOR + 8.00%,            |   |      |       |   |        |   |        |                     |        |   |   |   |
|                                                         |   |                              |   |  due 4/27/2015)                               |   |      |       |   |        |   |        |                     |        |   |   |   |
|                                                         |   |                              |   | Warrants (8) (21)                                  |   |      |       |   |        |   | 25,000      |                     |        |   | 25,000 |   |
|                                                         |   |                              |   |                                               |   |      |       |   |        |   |        |                     |        |   |   |   |
| Tammany Oil & Gas, LLC (7)                               |   | Oil & Natural Gas             |   | Senior Secured                                     |   |      | 20,732,804 |   |        |   | 20,719,664  |                     |        |   | 20,719,664 |   |
|                                                         |   | Production and Development        |   | Multiple-Advance Term Loan                         |   |      |       |   |        |   |        |                     |        |   |   |   |
|                                                         |   |                              |   | (The greater of 13.0% or LIBOR + 8.00%,            |   |      |       |   |        |   |        |                     |        |   |   |   |
|                                                         |   |                              |   |  due 9/30/2012)                               |   |      |       |   |        |   |        |                     |        |   |   |   |
|                                                         |   |                              |   | Overriding Royalty Interest                        |   |      |       |   |        |   | 126,896     |                     |        |   | 1,000,000 |   |
|                                                         |   |                              |   | After Pay-Out Overriding Royalty Interest (8) (16) |   |      |       |   |        |   | 10,000      |                     |        |   | 10,000 |   |
|                                                         |   |                              |   | Warrants (8) (12) (16)                             |   |      |       |   |        |   | 10,000      |                     |        |   | 10,000 |   |
|                                                         |   |                              |   |                                               |   |      |       |   |        |   |        |                     |        |   |   |   |
| Subtotal Non-affiliate Investments - (Less than 5% owned)    |   |                              |   |                                               |   |      |       | $      | 113,556,532 |   |        | $                        | 112,012,623 |   |
| Subtotal Targeted Investments (86.71% of total investments)  |   |                              |   |                                               |   |      |       | $      | 251,629,461 |   |        | $                        | 199,698,041 |   |
|                                                         |   |                              |   |                                               |   |      |       |   |        |   |        |                     |        |   |   |   |
| GOVERNMENT SECURITIES (5)                                    |   |                              |   |                                               |   |      |       |   |        |   |        |                     |        |   |   |   |
| U.S. Treasury Bills                                          |   |                              |   | U.S. Treasury Bills, -0.01%, due 07/28/2011        |   | $         | 30,600,000 |   |        | $      | 30,600,298  |                     |        | $ | 30,599,663 |   |
| Subtotal Government Securities (13.29% of total investments) |   |                              |   |                                               |   |      |       | $      | 30,600,298  |   |        | $                        | 30,599,663  |   |
|                                                         |   |                              |   |                                               |   |      |       |   |        |   |        |                     |        |   |   |   |
| TOTAL INVESTMENTS                                            |   |                              |   |                                               |   |      |       |   |        | $      | 282,229,759 |                     |        | $ | 230,297,704 |   |

----

|   |   (1) | All of our targeted investments are collateral for obligations under our Investment Facility.  Our investments in U.S. Treasury Bills are collateral for obligations under our Treasury Facility.  See Note 3 of Notes to Consolidated Financial Statements. |
|--------|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   (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) | Investments are level 1 securities hierarchy. |
|--------|-----------------|-----------------------------------------------|

|   |   (6) | Investments are level 2 securities hierarchy. |
|--------|-----------------|-----------------------------------------------|

|   |   (7) | Investments are level 3 securities hierarchy. |
|--------|-----------------|-----------------------------------------------|

|   |   (8) | Non-income producing securities. |
|--------|-----------------|----------------------------------|

|   |   (9) | Non-accrual status. |
|--------|-----------------|---------------------|

|   | (10) | 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. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (11) | 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. |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (12) | 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. |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (13) | Myriant Technologies, Inc. warrants expire on August 15, 2015 and provide us the right to purchase  32,680 units, representing membership interests of Myriant Technologies, Inc., at the  purchase price of $10.00 per unit. |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (14) | Resaca Exploitation, Inc. stock trades on the Alternative Investment Market of the London Stock Exchange.  On April 1, 2010, it began trading in U.S. Dollars. |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (15) | 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. |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (16) | Tammany Oil & Gas, LLC retains the right to repurchase the after pay-out ORRI and 10% warrants for $1,250,000 on or before September 30, 2011. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (17) | We issued a forbearance agreement to Bionol Clearfield, LLC on June 16, 2010 due to a default event. |
|--------|------|------------------------------------------------------------------------------------------------------|

|   | (18) | Assets of this portfolio company have been sold.  The legal entity, in which we retain an equity interest, is in the process of dissolution. |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (19) | 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 that interest. |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (20) | 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 $1.93 per share. |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (21) | Spirit Resources, LLC penny warrants expire five years after repayment of principal and interest and entitle us to acquire 33% of the Investor Units. |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 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 (15) (17)                                       |   | Oil & Natural Gas             |   | 100% of membership interests of                    |   |      |       |   |   |   | -          |                     |   |   | - |   |
|                                                              |   |  Production and Development  |   | BSR Holdings, LLC.                                 |   |      |       |   |   |   |       |                     |   |   |   |   |
|                                                              |   |                              |   |                                               |   |      |       |   |   |   |       |                     |   |   |   |   |
| DeanLake Operator, LLC (17)                                       |   | Oil & Natural Gas             |   | Class A membership interests - entitled to 100%    |   |      |       |   |   |   | 14,050,255 |                     |   |   | 3,500,000 |   |
|                                                              |   |  Production and Development  |   | of distribution of DeanLake Operator, LLC          |   |      |       |   |   |   |       |                     |   |   |   |   |
|                                                              |   |                              |   | until payout, 80% after payout (5)                 |   |      |       |   |   |   |       |                     |   |   |   |   |
|                                                              |   |                              |   |                                               |   |      |       |   |   |   |       |                     |   |   |   |   |
|                                                              |   |                              |   | 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 Development  |   | 50% ownership of the assets of                     |   |      |       |   |   |   |       |                     |   |   |   |   |
|                                                              |   |                              |   | Rubicon Energy Partners, LLC (5)                   |   |      |       |   |   |   |       |                     |   |   |   |   |
|                                                              |   |                              |   |                                               |   |      |       |   |   |   |       |                     |   |   |   |   |
| TierraMar Energy, LP (17)                                         |   | Oil & Natural Gas             |   | 212,637 Class A Preferred LP Units - entitled to   |   |      |       |   |   |   | 16,710,788 |                     |   |   | 900,000 |   |
|                                                              |   |  Production and Development  |   | 100% of distribution of TierraMar Energy LP        |   |      |       |   |   |   |       |                     |   |   |   |   |
|                                                              |   |                              |   | until 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 the           |   |      |       |   |       |   | 418,755    |                     |       |   | 418,755 |   |
|                                               |   |                              |   | outstanding units of Myriant Technologies, LLC (5) |   |      |       |   |       |   |       |                     |       |   |   |   |
|                                               |   |                              |   |                                               |   |      |       |   |       |   |       |                     |       |   |   |   |
| Bionol Clearfield, LLC (8) (14) (17)               |   | Alternative Fuels and             |   | Senior Secured Tranche C                           |   |      | 4,950,000  |   |       |   | 4,950,000  |                     |       |   | 4,950,000 |   |
|                                               |   | 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 Corporation                     |   | Oil & Natural Gas             |   | Multiple-Advance Net Profits Interest              |   | $         | 9,532,723  |   |       | $      | 9,586,637  |                     |       | $ | 9,886,635 |   |
| 2007-III Drilling Fund (17)                        |   |  Production and Development  |   | (Due 4/23/2032)                                    |   |      |       |   |       |   |       |                     |       |   |   |   |
|                                               |   |                              |   |                                               |   |      |       |   |       |   |       |                     |       |   |   |   |
| ATP Oil & Gas Corporation (17)                 |   | Oil & Natural Gas             |   | Limited Term Royalty Interest                      |   |      |       |   |       |   | 6,548,318  |                     |       |   | 6,548,318 |   |
|                                               |   |  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 (17)                       |   | Natural Gas                       |   | Senior Secured Term Loan                           |   |      | 9,000,000  |   |       |   | 8,836,125  |                     |       |   | 8,836,125 |   |
|                                               |   | Gathering and Processing          |   | (The greater of 10.50% or LIBOR + 8.50%,           |   |      |       |   |       |   |       |                     |       |   |   |   |
|                                               |   |                              |   | due 10/01/2016)                                    |   |      |       |   |       |   |       |                     |       |   |   |   |
|                                               |   |                              |   |                                               |   |      |       |   |       |   |       |                     |       |   |   |   |
| Greenleaf Investments, LLC (17)                    |   | Oil & Natural Gas             |   | Senior Secured                                     |   |      | 8,587,076  |   |       |   | 8,543,239  |                     |       |   | 8,543,239 |   |
|                                               |   |  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, LP (17)                               |   | Energy Services                   |   | LP Units (5) (20)                                  |   |      |         |         |               |   | -           |                     |        |   | - |   |
|                                                         |   |                              |   | Warrants (5) (20)                                  |   |      |         |         |               |   | -           |                     |        |   | - |   |
|                                                         |   |                              |   |                                               |   |      |         |         |               |   |        |                     |        |   |   |   |
| Pallas Contour Mining, LLC (17)                              |   | Coal Mining                       |   | Senior Secured                                     |   |      | 14,411,290   |         |               |   | 14,459,867  |                     |        |   | 14,459,867 |   |
|                                                         |   |                              |   | Multiple-Advance Term Loan                         |   |      |         |         |               |   |        |                     |        |   |   |   |
|                                                         |   |                              |   | (14.00%, due 10/14/2015)                           |   |      |         |         |               |   |        |                     |        |   |   |   |
|                                                         |   |                              |   |                                               |   |      |         |         |               |   |        |                     |        |   |   |   |
| Pioneer Natural Resources Co. (16)                           |   | Oil & Natural Gas             |   | Senior Notes, 7.2%, due 2028                       |   |      | 10,000,000   |         |               |   | 11,489,439  |                     |        |   | 10,450,100 |   |
|                                                         |   |  Production and Development  |   |                                               |   |      |         |         |               |   |        |                     |        |   |   |   |
|                                                         |   |                              |   |                                               |   |      |         |         |               |   |        |                     |        |   |   |   |
| Powder River Acquisitions, LLC (17)                          |   | Oil & Natural Gas             |   | Senior Secured                                     |   |      | 3,000,000    |         |               |   | 3,000,000   |                     |        |   | 3,000,000 |   |
|                                                         |   |  Production and Development  |   | Promissory Note                                    |   |      |         |         |               |   |        |                     |        |   |   |   |
|                                                         |   |                              |   | (8.00%, due 9/30/2011)                             |   |      |         |         |               |   |        |                     |        |   |   |   |
|                                                         |   |                              |   |                                               |   |      |         |         |               |   |        |                     |        |   |   |   |
| Tammany Oil & Gas, LLC (17)                              |   | Oil & Natural Gas             |   | Senior Secured                                     |   |      | 23,607,804   |         |               |   | 23,590,041  |                     |        |   | 23,590,041 |   |
|                                                         |   |  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 Six Months Ended |    |
|---------------------------------------------------------------------------------------------------------|--------|----------------------------------------------|---------|
| Per Share Data  (1)                                                                 |   | June 30, 2011                      |    |   | June 30, 2010 |   |
| Net asset value, beginning of period                                                                    |   | $                                            | 10.90   |   |   | $ | 11.10 |   |
| Net investment income                                                                                   |   |                                         | 0.34    |   |   |   | 0.26 |   |
| Net realized and unrealized gain (loss) on portfolio securities (2)                                     |   |                                         | (1.25   | ) |   |   | 0.16 |   |
| Net increase (decrease) in net assets resulting from operations                                         |   |                                         | (0.91   | ) |   |   | 0.42 |   |
| Dividends declared                                                                                      |   |                                         | (0.36   | ) |   |   | (0.34 | ) |
| Net asset value, end of period                                                                          |   | $                                            | 9.63    |   |   | $ | 11.18 |   |
|                                                                                                    |   |                                         |    |   |   |   |   |   |
| Market value, beginning of period                                                                       |   | $                                            | 9.20    |   |   | $ | 8.13 |   |
| Market value, end of period                                                                             |   | $                                            | 8.20    |   |   | $ | 7.17 |   |
| Market value return  (3)                                                                      |   |                                         | (7.41   | )% |   |   | (7.96 | )% |
| Net asset value return (3)                                                                              |   |                                         | (8.22   | )% |   |   | 5.11 | % |
|                                                                                                    |   |                                         |    |   |   |   |   |   |
| Senior Securities Data:                                                                                 |   |                                         |    |   |   |   |   |   |
| Total borrowings (in thousands)                                                                         |   | $                                            | 70,000  |   |   | $ | 50,000 |   |
| Asset coverage ratio (4) (5)                                                                            |   |                                         | 414     | % |   |   | 583 | % |
| Asset coverage per unit (5)                                                                             |   | $                                            | 4,141   |   |   | $ | 5,832 |   |
|                                                                                                    |   |                                         |    |   |   |   |   |   |
| Ratios and Supplemental Data                                                                            |   |                                         |    |   |   |   |   |   |
| ($ and shares in thousands)                                                                             |   |                                         |    |   |   |   |   |   |
| Net assets, end of period                                                                               |   | $                                            | 208,287 |   |   | $ | 241,703 |   |
| Average net assets                                                                                      |   | $                                            | 222,006 |   |   | $ | 240,939 |   |
| Common shares outstanding end of period                                                                 |   |                                         | 21,628  |   |   |   | 21,628 |   |
| Net investment income/average net assets (6)                                                            |   |                                         | 6.72    | % |   |   | 4.78 | % |
| Portfolio turnover rate                                                                                 |   |                                         | 20.03   | % |   |   | 2.67 | % |
| Total operating expenses/average net assets (6)                                                         |   |                                         | 5.65    | % |   |   | 5.05 | % |
|                                                                                                    |   |                                         |    |   |   |   |   |   |
| Additional ratios                                                                                       |   |                                         |    |   |   |   |   |   |
| Total operating expenses less management and incentive fees and interest expense/average net assets (6) |   |                                         | 2.30    | % |   |   | 2.22 | % |
| Total operating expenses less management and incentive fees/average net assets (6)                      |   |                                         | 2.99    | % |   |   | 2.73 | % |
| Net increase (decrease) in net assets resulting from operations/average net assets (6)                  |   |                                         | (17.85  | )% |   |   | 7.43 | % |

| (1) | Per Share Data is based on common shares outstanding at the end of 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 year 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 |
|---------|--------------|

|   | · | NGPC Funding GP, LLC, a Texas limited liability company; |
|--------|--------|----------------------------------------------------------|

|   | · | NGPC Nevada, LLC, a Nevada limited liability company; |
|--------|--------|-------------------------------------------------------|

|   | · | NGPC Funding, LP, a Texas limited partnership; |
|--------|--------|------------------------------------------------|

|   | · | NGPC Asset Holdings GP, LLC, a Texas limited liability company; |
|--------|--------|-----------------------------------------------------------------|

|   | · | NGPC Asset Holdings, LP, a Texas limited partnership; |
|--------|--------|-------------------------------------------------------|

|   | · | NGPC Asset Holdings II, LP, a Texas limited partnership, |
|--------|--------|----------------------------------------------------------|

|   | · | NGPC Asset Holdings III, LP, a Texas limited partnership; |
|--------|--------|-----------------------------------------------------------|

|   | · | NGPC Asset Holdings V, LP, a Texas limited partnership and |
|--------|--------|------------------------------------------------------------|

|   | · | NGPC Asset Holdings VI, LP, a Texas limited partnership. |
|--------|--------|----------------------------------------------------------|

| 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 |

| Note 3: | 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 4: | Investment Management |
|--------------|-----------------------|

|                            |   | June 30, 2011 |      |   | December 31, 2010 |   |
|---------------------------------|--------|-------------------------|-----------|--------|-----------------------------|--------|
| Base management fee             |   | $                       | 1,310,694 |   |                        | $      | 1,376,032 |   |
| Investment income incentive fee |   |                    | 281,020   |   |                        |   | - |   |
|                            |   | $                       | 1,591,714 |   |                        | $      | 1,376,032 |   |

----

----

| Note 5: | Federal Income Taxes |
|--------------|---------------------------|

| Note 6: | Commitments and Contingencies |
|--------------|-------------------------------|

----

| Note 7: | Investments and Fair Value |
|---------|----------------------------|

|                             |   | June 30, 2011 |        |
|----------------------------------|--------|-------------------------|-------------|
|                             |   |                    |        |   | % of |   |   |   |   |   | % of |   |
|                             |   | Cost                    |        |   | total |   |   | Fair Value |   |   | total |   |
| Long term investments            |   |                    |        |   |   |   |   |   |   |   |   |   |
| Senior secured debt              |   | $                       | 152,997,309 |   |   |   | 54.2 | % |   | $ | 133,624,545 |   |   |   | 58.0 | % |
| Senior unsecured debt            |   |                    | 10,372,461  |   |   |   | 3.7 | % |   |   | 10,372,461 |   |   |   | 4.5 | % |
| Senior convertible notes         |   |                    | 4,007,557   |   |   |   | 1.4 | % |   |   | 4,398,819 |   |   |   | 1.9 | % |
| Limited term royalties           |   |                    | 27,027,766  |   |   |   | 9.6 | % |   |   | 27,500,000 |   |   |   | 11.9 | % |
| Net profits interests            |   |                    | 8,673,651   |   |   |   | 3.1 | % |   |   | 8,973,650 |   |   |   | 3.9 | % |
| Royalty interests                |   |                    | 2,633,076   |   |   |   | 1.0 | % |   |   | 9,310,000 |   |   |   | 4.0 | % |
| Equity securities                |   |                    |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Membership and partnership units |   |                    | 38,026,569  |   |   |   | 13.5 | % |   |   | 2,448,654 |   |   |   | 1.1 | % |
| Participating preferred stock    |   |                    | 4,311,580   |   |   |   | 1.5 | % |   |   | 650,000 |   |   |   | 0.3 | % |
| Common stock                     |   |                    | 3,235,254   |   |   |   | 1.1 | % |   |   | 2,085,674 |   |   |   | 0.9 | % |
| Warrants                         |   |                    | 344,238     |   |   |   | 0.1 | % |   |   | 334,238 |   |   |   | 0.1 | % |
| Total equity securities          |   |                    | 45,917,641  |   |   |   | 16.2 | % |   |   | 5,518,566 |   |   |   | 2.4 | % |
| Total long term investments      |   |                    | 251,629,461 |   |   |   | 89.2 | % |   |   | 199,698,041 |   |   |   | 86.6 | % |
| Short term investments           |   |                    |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| U.S. Treasury Bills              |   |                    | 30,600,298  |   |   |   | 10.8 | % |   |   | 30,599,663 |   |   |   | 13.4 | % |
| Total investments                |   | $                       | 282,229,759 |   |   |   | 100.0 | % |   | $ | 230,297,704 |   |   |   | 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 | % |

----

|   | • | 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 identical or 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 our own assumptions that market participants would use to price the asset or liability based on the best available information. |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                            |   | Fair Value Measurements as of June 30, 2011 |        |
|---------------------------------|--------|--------------------------------------------------------------------------------|-------------|
|                            |   |                                                                           |        |   |   |   |   |   |   |   |   |   |
|                            |   |                                                                           |        |   |   |   |   | Prices with |   |   |   |   |
|                            |   |                                                                           |        |   | Quoted Prices |   |   | Observable |   |   |   |   |
|                            |   |                                                                           |        |   | in Active |   |   | Market |   |   | Unobservable |   |
|                            |   |                                                                           |        |   | Markets |   |   | Inputs |   |   | Inputs |   |
| Assets at Fair Value            |   | Total                                                                          |        |   | (Level 1) |   |   | (Level 2) |   |   | (Level 3) |   |
| Long term investments           |   |                                                                           |        |   |   |   |   |   |   |   |   |   |
| Control investments             |   |                                                                           |        |   |   |   |   |   |   |   |   |   |
| Senior secured debt             |   | $                                                                              | 64,279,391  |   |   | $ | - |   |   | $ | - |   |   | $ | 64,279,391 |   |
| Royalty interests               |   |                                                                           | 8,200,000   |   |   |   | - |   |   |   | - |   |   |   | 8,200,000 |   |
| Equity securities               |   |                                                                           | 1,742,522   |   |   |   | - |   |   |   | - |   |   |   | 1,742,522 |   |
| Total control investments       |   |                                                                           | 74,221,913  |   |   |   | - |   |   |   | - |   |   |   | 74,221,913 |   |
| Affiliate investments           |   |                                                                           |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Senior unsecured debt           |   |                                                                           | 10,372,461  |   |   |   | - |   |   |   | - |   |   |   | 10,372,461 |   |
| Equity securities               |   |                                                                           | 3,091,044   |   |   |   | - |   |   |   | 2,085,674 |   |   |   | 1,005,370 |   |
| Total affiliate investments     |   |                                                                           | 13,463,505  |   |   |   | - |   |   |   | 2,085,674 |   |   |   | 11,377,831 |   |
| Non-affiliate investments       |   |                                                                           |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Senior secured debt             |   |                                                                           | 69,345,154  |   |   |   | - |   |   |   | - |   |   |   | 69,345,154 |   |
| Senior convertible notes        |   |                                                                           | 4,398,819   |   |   |   | - |   |   |   | 4,398,819 |   |   |   | - |   |
| Limited term royalties          |   |                                                                           | 27,500,000  |   |   |   | - |   |   |   | - |   |   |   | 27,500,000 |   |
| Net profits interests           |   |                                                                           | 8,973,650   |   |   |   | - |   |   |   | - |   |   |   | 8,973,650 |   |
| Royalty interests               |   |                                                                           | 1,110,000   |   |   |   | - |   |   |   | - |   |   |   | 1,110,000 |   |
| Equity securities               |   |                                                                           | 685,000     |   |   |   | - |   |   |   | - |   |   |   | 685,000 |   |
| Total non-affiliate investments |   |                                                                           | 112,012,623 |   |   |   | - |   |   |   | 4,398,819 |   |   |   | 107,613,804 |   |
| Total long term assets          |   |                                                                           | 199,698,041 |   |   |   | - |   |   |   | 6,484,493 |   |   |   | 193,213,548 |   |
| Short term investments          |   |                                                                           |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| U.S. Treasury Bills             |   |                                                                           | 30,599,663  |   |   |   | 30,599,663 |   |   |   | - |   |   |   | - |   |
| Total assets at fair value      |   | $                                                                              | 230,297,704 |   |   | $ | 30,599,663 |   |   | $ | 6,484,493 |   |   | $ | 193,213,548 |   |

----

|                            |   | 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 March 31, 2011                              |   |        |        |   |        |   |        |          |   |   |        |   |
| Senior secured debt                                    |   | $           | 54,126,359  |   |        | $      | 10,238,752  |          |   | $      | 73,300,056  |   |   | $ | 137,665,167 |   |
| Senior unsecured debt                                  |   |        | -           |   |        |   | 10,044,281  |          |   |   | -           |   |   |   | 10,044,281 |   |
| Limited term royalties                                 |   |        | -           |   |        |   | -           |          |   |   | 4,530,324   |   |   |   | 4,530,324 |   |
| Net profits interests                                  |   |        | -           |   |        |   | -           |          |   |   | 9,778,459   |   |   |   | 9,778,459 |   |
| Royalty interests                                      |   |        | 13,250,000  |   |        |   | -           |          |   |   | 1,510,000   |   |   |   | 14,760,000 |   |
| Equity securities                                      |   |        | 11,900,000  |   |        |   | 1,005,370   |          |   |   | 770,000     |   |   |   | 13,675,370 |   |
| Total fair value March 31, 2011                        |   |        | 79,276,359  |   |        |   | 21,288,403  |          |   |   | 89,888,839  |   |   |   | 190,453,601 |   |
| Net amortization of premiums, discounts and fees       |   |        |        |   |        |   |        |          |   |   |        |   |   |   |   |   |
| Senior secured debt                                    |   |        | 154,869     |   |        |   | (16,649     | )             |   |   | 47,386      |   |   |   | 185,606 |   |
| Senior unsecured debt                                  |   |        | -           |   |        |   | 13,110      |          |   |   | -           |   |   |   | 13,110 |   |
| Net profits interests                                  |   |        | -           |   |        |   | -           |          |   |   | (8,993      | )      |   |   | (8,993 | ) |
| Royalty interests                                      |   |        | (3,937      | )      |        |   | -           |          |   |   | (6,862      | )      |   |   | (10,799 | ) |
| Total net amortization of premiums, discounts and fees |   |        | 150,932     |   |        |   | (3,539      | )             |   |   | 31,531      |   |   |   | 178,924 |   |
| Net realized gains (losses)                            |   |        |        |   |        |   |        |          |   |   |        |   |   |   |   |   |
| Royalty interests                                      |   |        | -           |   |        |   | -           |          |   |   | 984,571     |   |   |   | 984,571 |   |
| Total realized gains (losses)                          |   |        | -           |   |        |   | -           |          |   |   | 984,571     |   |   |   | 984,571 |   |
| Net unrealized gains (losses)                          |   |        |        |   |        |   |        |          |   |   |        |   |   |   |   |   |
| Senior secured debt                                    |   |        | 1,188,091   |   |        |   | (10,222,103 | )             |   |   | -           |   |   |   | (9,034,012 | ) |
| Limited term royalties                                 |   |        | -           |   |        |   | -           |          |   |   | 472,234     |   |   |   | 472,234 |   |
| Royalty interests                                      |   |        | (5,046,063  | )      |        |   | -           |          |   |   | (377,709    | )      |   |   | (5,423,772 | ) |
| Equity securities                                      |   |        | (8,807,478  | )      |        |   | -           |          |   |   | (110,000    | )      |   |   | (8,917,478 | ) |
| Total net unrealized gains (losses)                    |   |        | (12,665,450 | )      |        |   | (10,222,103 | )             |   |   | (15,475     | )      |   |   | (22,903,028 | ) |
| Purchases                                              |   |        |        |   |        |   |        |          |   |   |        |   |   |   |   |   |
| Senior secured debt                                    |   |        | 4,263,297   |   |        |   | -           |          |   |   | 7,430,000   |   |   |   | 11,693,297 |   |
| Limited term royalties                                 |   |        | -           |   |        |   | -           |          |   |   | 25,000,000  |   |   |   | 25,000,000 |   |
| Equity securities                                      |   |        | -           |   |        |   | -           |          |   |   | 25,000      |   |   |   | 25,000 |   |
| Total purchases                                        |   |        | 4,263,297   |   |        |   | -           |          |   |   | 32,455,000  |   |   |   | 36,718,297 |   |
| Payment-in-kind                                        |   |        |        |   |        |   |        |          |   |   |        |   |   |   |   |   |
| Senior secured debt                                    |   |        | 4,546,775   |   |        |   | -           |          |   |   | -           |   |   |   | 4,546,775 |   |
| Senior unsecured debt                                  |   |        | -           |   |        |   | 315,070     |          |   |   | -           |   |   |   | 315,070 |   |
| Total payment-in-kind                                  |   |        | 4,546,775   |   |        |   | 315,070     |          |   |   | -           |   |   |   | 4,861,845 |   |
| Sales and repayments                                   |   |        |        |   |        |   |        |          |   |   |        |   |   |   |   |   |
| Senior secured debt                                    |   |        | -           |   |        |   | -           |          |   |   | (11,432,288 | )      |   |   | (11,432,288 | ) |
| Limited term royalties                                 |   |        | -           |   |        |   | -           |          |   |   | (2,502,558  | )      |   |   | (2,502,558 | ) |
| Net profits interests                                  |   |        | -           |   |        |   | -           |          |   |   | (795,816    | )      |   |   | (795,816 | ) |
| Royalty interests                                      |   |        | -           |   |        |   | -           |          |   |   | (1,000,000  | )      |   |   | (1,000,000 | ) |
| Equity securities                                      |   |        | (1,350,000  | )      |        |   | -           |          |   |   | -           |   |   |   | (1,350,000 | ) |
| Total sales and repayments                             |   |        | (1,350,000  | )      |        |   | -           |          |   |   | (15,730,662 | )      |   |   | (17,080,662 | ) |
| 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 |   |

----

|                                                   |   | 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                                    |   |        | 302,188    |   |        |   | 137,258     |          |   |   | 137,386     |   |   |   | 576,832 |   |
| Senior unsecured debt                                  |   |        | -          |   |        |   | 24,780      |          |   |   | -           |   |   |   | 24,780 |   |
| Net profits interests                                  |   |        | -          |   |        |   | -           |          |   |   | (18,206     | )      |   |   | (18,206 | ) |
| Royalty interests                                      |   |        | (16,575    | )      |        |   | -           |          |   |   | (18,475     | )      |   |   | (35,050 | ) |
| Total net amortization of premiums, discounts and fees |   |        | 285,613    |   |        |   | 162,038     |          |   |   | 100,705     |   |   |   | 548,356 |   |
| Net realized gains (losses)                            |   |        |       |   |        |   |        |          |   |   |        |   |   |   |   |   |
| Royalty interests                                      |   |        | 81,275     |   |        |   | -           |          |   |   | 984,571     |   |   |   | 1,065,846 |   |
| Total realized gains (losses)                          |   |        | 81,275     |   |        |   | -           |          |   |   | 984,571     |   |   |   | 1,065,846 |   |
| Net unrealized gains (losses)                          |   |        |       |   |        |   |        |          |   |   |        |   |   |   |   |   |
| Senior secured debt                                    |   |        | 1,188,091  |   |        |   | (20,460,855 | )             |   |   | -           |   |   |   | (19,272,764 | ) |
| Limited term royalties                                 |   |        | -          |   |        |   | -           |          |   |   | 472,234     |   |   |   | 472,234 |   |
| Royalty interests                                      |   |        | (2,218,700 | )      |        |   | -           |          |   |   | (366,096    | )      |   |   | (2,584,796 | ) |
| Equity securities                                      |   |        | (8,207,478 | )      |        |   | (1,009,394  | )             |   |   | (110,000    | )      |   |   | (9,326,872 | ) |
| Total net unrealized gains (losses)                    |   |        | (9,238,087 | )      |        |   | (21,470,249 | )             |   |   | (3,862      | )      |   |   | (30,712,198 | ) |
| Purchases                                              |   |        |       |   |        |   |        |          |   |   |        |   |   |   |   |   |
| Senior secured debt                                    |   |        | 9,019,021  |   |        |   | -           |          |   |   | 7,431,064   |   |   |   | 16,450,085 |   |
| Senior unsecured debt                                  |   |        | -          |   |        |   | 9,750,000   |          |   |   | -           |   |   |   | 9,750,000 |   |
| Limited term royalties                                 |   |        | -          |   |        |   | -           |          |   |   | 25,000,000  |   |   |   | 25,000,000 |   |
| Equity securities                                      |   |        | -          |   |        |   | 250,000     |          |   |   | 25,000      |   |   |   | 275,000 |   |
| Total purchases                                        |   |        | 9,019,021  |   |        |   | 10,000,000  |          |   |   | 32,456,064  |   |   |   | 51,475,085 |   |
| Payment-in-kind                                        |   |        |       |   |        |   |        |          |   |   |        |   |   |   |   |   |
| Senior secured debt                                    |   |        | 4,546,775  |   |        |   | 1,177,287   |          |   |   | -           |   |   |   | 5,724,062 |   |
| Senior unsecured debt                                  |   |        | -          |   |        |   | 597,681     |          |   |   | -           |   |   |   | 597,681 |   |
| Total payment-in-kind                                  |   |        | 4,546,775  |   |        |   | 1,774,968   |          |   |   | -           |   |   |   | 6,321,743 |   |
| Sales and repayments                                   |   |        |       |   |        |   |        |          |   |   |        |   |   |   |   |   |
| Senior secured debt                                    |   |        | -          |   |        |   | (10,000,000 | )             |   |   | (14,407,075 | )      |   |   | (24,407,075 | ) |
| Limited term royalties                                 |   |        | -          |   |        |   | -           |          |   |   | (4,520,552  | )      |   |   | (4,520,552 | ) |
| Net profits interests                                  |   |        | -          |   |        |   | -           |          |   |   | (894,779    | )      |   |   | (894,779 | ) |
| Royalty interests                                      |   |        | (96,000    | )      |        |   | -           |          |   |   | (1,000,000  | )      |   |   | (1,096,000 | ) |
| Equity securities                                      |   |        | (1,350,000 | )      |        |   | -           |          |   |   | -           |   |   |   | (1,350,000 | ) |
| Total sales and repayments                             |   |        | (1,446,000 | )      |        |   | (10,000,000 | )             |   |   | (20,822,406 | )      |   |   | (32,268,406 | ) |
| 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 |   |

----

|                                                   |   | Control     |       |   | Affiliate   |   |       | Non-affiliate |   |   | Total       |   |
|--------------------------------------------------------|--------|-------------|------------|--------|-------------|--------|------------|---------------|--------|--------|-------------|--------|
|                                                   |   | Investments |       |   | Investments |   |       | Investments   |   |   | Investments |   |
| Fair value March 31, 2010                              |   |        |       |   |        |   |       |          |   |   |        |   |
| Senior secured debt                                    |   | $           | 51,005,448 |   |        | $      | 27,901,053 |          |   | $      | 52,709,403  |   |   | $ | 131,615,904 |   |
| Senior corporate notes                                 |   |        | -          |   |        |   | -          |          |   |   | 9,416,400   |   |   |   | 9,416,400 |   |
| Limited term royalties                                 |   |        | -          |   |        |   | -          |          |   |   | 17,680,200  |   |   |   | 17,680,200 |   |
| Net profits interests                                  |   |        | -          |   |        |   | -          |          |   |   | 10,606,693  |   |   |   | 10,606,693 |   |
| Royalty interests                                      |   |        | 5,830,000  |   |        |   | -          |          |   |   | 1,500,000   |   |   |   | 7,330,000 |   |
| Equity securities                                      |   |        | 18,600,000 |   |        |   | 6,445,083  |          |   |   | 760,000     |   |   |   | 25,805,083 |   |
| Total fair value March 31, 2010                        |   |        | 75,435,448 |   |        |   | 34,346,136 |          |   |   | 92,672,696  |   |   |   | 202,454,280 |   |
| Transfers in (out) of Level 3                          |   |        |       |   |        |   |       |          |   |   |        |   |   |   |   |   |
| Senior corporate notes                                 |   |        | -          |   |        |   | -          |          |   |   | (9,062,200  | )      |   |   | (9,062,200 | ) |
| Total transfers in (out) of Level 3                    |   |        | -          |   |        |   | -          |          |   |   | (9,062,200  | )      |   |   | (9,062,200 | ) |
| Net amortization of premiums, discounts and fees       |   |        |       |   |        |   |       |          |   |   |        |   |   |   |   |   |
| Senior secured debt                                    |   |        | 132,336    |   |        |   | 58,891     |          |   |   | 65,859      |   |   |   | 257,086 |   |
| Senior corporate notes                                 |   |        | -          |   |        |   | -          |          |   |   | 12,323      |   |   |   | 12,323 |   |
| Limited term royalties                                 |   |        | -          |   |        |   | -          |          |   |   | (4,101,527  | )      |   |   | (4,101,527 | ) |
| Net profits interests                                  |   |        | -          |   |        |   | -          |          |   |   | (7,722      | )      |   |   | (7,722 | ) |
| Royalty interests                                      |   |        | (6,825     | )      |        |   | -          |          |   |   | (16,503     | )      |   |   | (23,328 | ) |
| Total net amortization of premiums, discounts and fees |   |        | 125,511    |   |        |   | 58,891     |          |   |   | (4,047,570  | )      |   |   | (3,863,168 | ) |
| Net unrealized gains (losses)                          |   |        |       |   |        |   |       |          |   |   |        |   |   |   |   |   |
| Senior corporate notes                                 |   |        | -          |   |        |   | -          |          |   |   | (366,523    | )      |   |   | (366,523 | ) |
| Limited term royalties                                 |   |        | -          |   |        |   | -          |          |   |   | 1,564,794   |   |   |   | 1,564,794 |   |
| Royalty interests                                      |   |        | 6,825      |   |        |   | -          |          |   |   | 16,503      |   |   |   | 23,328 |   |
| Equity securities                                      |   |        | (100,000   | )      |        |   | (748,010   | )             |   |   | -           |   |   |   | (848,010 | ) |
| Total net unrealized gains (losses)                    |   |        | (93,175    | )      |        |   | (748,010   | )             |   |   | 1,214,774   |   |   |   | 373,589 |   |
| Purchases                                              |   |        |       |   |        |   |       |          |   |   |        |   |   |   |   |   |
| Senior secured debt                                    |   |        | 573,217    |   |        |   | -          |          |   |   | -           |   |   |   | 573,217 |   |
| Equity securities                                      |   |        | 3,600,000  |   |        |   | -          |          |   |   | -           |   |   |   | 3,600,000 |   |
| Total purchases                                        |   |        | 4,173,217  |   |        |   | -          |          |   |   | -           |   |   |   | 4,173,217 |   |
| Payment-in-kind                                        |   |        |       |   |        |   |       |          |   |   |        |   |   |   |   |   |
| Senior secured debt                                    |   |        | 854,175    |   |        |   | -          |          |   |   | -           |   |   |   | 854,175 |   |
| Total payment-in-kind                                  |   |        | 854,175    |   |        |   | -          |          |   |   | -           |   |   |   | 854,175 |   |
| Sales and repayments                                   |   |        |       |   |        |   |       |          |   |   |        |   |   |   |   |   |
| Senior secured debt                                    |   |        | (3,500,000 | )      |        |   | (12,500    | )             |   |   | (940,706    | )      |   |   | (4,453,206 | ) |
| Limited term royalties                                 |   |        | -          |   |        |   | -          |          |   |   | (2,595,010  | )      |   |   | (2,595,010 | ) |
| Net profits interests                                  |   |        | -          |   |        |   | -          |          |   |   | (300,684    | )      |   |   | (300,684 | ) |
| Total sales and repayments                             |   |        | (3,500,000 | )      |        |   | (12,500    | )             |   |   | (3,836,400  | )      |   |   | (7,348,900 | ) |
| 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 |   |

----

|                                                   |   |        |       |   |        |   |       |          |   |   | 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 | ) |
| Total transfers in (out) of Level 3                    |   |        | -          |   |        |   | -          |          |   |   | (9,062,200  | )      |   |        | -       |   |   |   | (9,062,200 | ) |
| Net amortization of premiums, discounts and fees       |   |        |       |   |        |   |       |          |   |   |        |   |   |        |    |   |   |   |   |   |
| Senior secured debt                                    |   |        | 258,222    |   |        |   | 114,924    |          |   |   | 176,532     |   |   |        | -       |   |   |   | 549,678 |   |
| Limited term royalties                                 |   |        | -          |   |        |   | -          |          |   |   | (7,316,940  | )      |   |        | -       |   |   |   | (7,316,940 | ) |
| Net profits interests                                  |   |        | -          |   |        |   | -          |          |   |   | (15,132     | )      |   |        | -       |   |   |   | (15,132 | ) |
| Royalty interests                                      |   |        | (13,325    | )      |        |   | -          |          |   |   | (35,878     | )      |   |        | -       |   |   |   | (49,203 | ) |
| Total net amortization of premiums, discounts and fees |   |        | 244,897    |   |        |   | 114,924    |          |   |   | (7,191,418  | )      |   |        | -       |   |   |   | (6,831,597 | ) |
| Net unrealized gains (losses)                          |   |        |       |   |        |   |       |          |   |   |        |   |   |        |    |   |   |   |   |   |
| Limited term royalties                                 |   |        | -          |   |        |   | -          |          |   |   | 3,311,783   |   |   |        | -       |   |   |   | 3,311,783 |   |
| Net profits interests                                  |   |        | -          |   |        |   | -          |          |   |   | (49,999     | )      |   |        | -       |   |   |   | (49,999 | ) |
| Royalty interests                                      |   |        | 13,325     |   |        |   | -          |          |   |   | 35,878      |   |   |        | -       |   |   |   | 49,203 |   |
| Equity securities                                      |   |        | (100,000   | )      |        |   | (189,291   | )             |   |   | 250,000     |   |   |        | -       |   |   |   | (39,291 | ) |
| Commodity derivative instruments                       |   |        | -          |   |        |   | -          |          |   |   | -           |   |   |        | (18,900 | ) |   |   | (18,900 | ) |
| Total net unrealized gains (losses)                    |   |        | (86,675    | )      |        |   | (189,291   | )             |   |   | 3,547,662   |   |   |        | (18,900 | ) |   |   | 3,252,796 |   |
| Purchases                                              |   |        |       |   |        |   |       |          |   |   |        |   |   |        |    |   |   |   |   |   |
| Senior secured debt                                    |   |        | 2,619,389  |   |        |   | 1,247,220  |          |   |   | -           |   |   |        | -       |   |   |   | 3,866,609 |   |
| Net profits interests                                  |   |        | -          |   |        |   | -          |          |   |   | 1,194       |   |   |        | -       |   |   |   | 1,194 |   |
| Equity securities                                      |   |        | 3,600,000  |   |        |   | -          |          |   |   | -           |   |   |        | -       |   |   |   | 3,600,000 |   |
| Total purchases                                        |   |        | 6,219,389  |   |        |   | 1,247,220  |          |   |   | 1,194       |   |   |        | -       |   |   |   | 7,467,803 |   |
| Payment-in-kind                                        |   |        |       |   |        |   |       |          |   |   |        |   |   |        |    |   |   |   |   |   |
| Senior secured debt                                    |   |        | 1,667,945  |   |        |   | 917,719    |          |   |   | -           |   |   |        | -       |   |   |   | 2,585,664 |   |
| Total payment-in-kind                                  |   |        | 1,667,945  |   |        |   | 917,719    |          |   |   | -           |   |   |        | -       |   |   |   | 2,585,664 |   |
| Sales and repayments                                   |   |        |       |   |        |   |       |          |   |   |        |   |   |        |    |   |   |   |   |   |
| Senior secured debt                                    |   |        | (3,500,000 | )      |        |   | (25,000    | )             |   |   | (1,706,811  | )      |   |        | -       |   |   |   | (5,231,811 | ) |
| Limited term royalties                                 |   |        | -          |   |        |   | -          |          |   |   | (4,024,130  | )      |   |        | -       |   |   |   | (4,024,130 | ) |
| Net profits interests                                  |   |        | -          |   |        |   | -          |          |   |   | (650,575    | )      |   |        | -       |   |   |   | (650,575 | ) |
| Commodity derivative instruments                       |   |        | -          |   |        |   | -          |          |   |   | -           |   |   |        | (30,100 | ) |   |   | (30,100 | ) |
| Total sales and repayments                             |   |        | (3,500,000 | )      |        |   | (25,000    | )             |   |   | (6,381,516  | )      |   |        | (30,100 | ) |   |   | (9,936,616 | ) |
| 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 |   |

----

----

| Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations. |
|--------------|----------------------------------------------------------------------------------------------|

|   | · | 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. |
|--------|--------|----------------------------------------------------------------------------------------------|

----

|   | · | 66.9% in senior secured debt, |
|--------|--------|-------------------------------|

|   | · | 5.2% in senior unsecured debt, |
|--------|--------|--------------------------------|

|   | · | 2.2% in senior convertible notes, |
|--------|--------|-----------------------------------|

|   | · | 13.8% in limited-term royalty interests, |
|--------|--------|------------------------------------------|

|   | · | 4.5% in net profits interests, |
|--------|--------|--------------------------------|

|   | · | 4.6% in net royalty interests, and |
|--------|--------|------------------------------------|

|   | · | 2.8% in equity securities. |
|--------|--------|----------------------------|

----

----

|                                                                              |   | June 30, 2011 |   |   | June 30, 2010 |   |
|-----------------------------------------------------------------------------------|--------|-------------------------|--------|--------|-------------------------|--------|
| ($ in thousands)                                                        |   | Cost                    |   |   | Fair Value         |   |   | Cost |   |   | Fair Value |   |
| Non-accruing investments                                                          |   |                    |   |   |                    |   |   |   |   |   |   |   |
| Alden Resources, LLC Tranche B                                                    |   | $                       | 24,067 |   |                    | $      | 24,067 |   |   | $ | 19,520 |   |   | $ | 19,520 |   |
| 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 |   |
| Formidable, LLC (sold in October 2010)                                            |   |                    | -      |   |                    |   | - |   |   |   | 38,781 |   |   |   | 5,600 |   |
| Total non-accruing investments                                                    |   |                    | 48,839 |   |                    |   | 24,717 |   |   |   | 62,612 |   |   |   | 25,870 |   |
|                                                                              |   |                    |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| Non-income producing investments                                                  |   |                    |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| TierraMar Energy, LP preferred units                                              |   |                    | 15,361 |   |                    |   | 75 |   |   |   | 17,711 |   |   |   | 6,000 |   |
| Deanlake Operator, LLC preferred units                                            |   |                    | 14,050 |   |                    |   | 700 |   |   |   | 14,000 |   |   |   | 10,000 |   |
| Resaca Exploitation, Inc. common stock and warrants                               |   |                    | 3,485  |   |                    |   | 2,336 |   |   |   | 3,235 |   |   |   | 3,897 |   |
| Alden Resources, LLC Class E Units                                                |   |                    | 5,800  |   |                    |   | - |   |   |   | 5,800 |   |   |   | 5,800 |   |
| BSR Holdings, LLC (sold in October 2010)                                          |   |                    | -      |   |                    |   | - |   |   |   | 300 |   |   |   | 300 |   |
| BioEnergy Holdings, LLC units and warrants                                        |   |                    | 1,297  |   |                    |   | - |   |   |   | 1,332 |   |   |   | 1,332 |   |
| Black Pool Energy Partners, LLC warrants                                          |   |                    | 10     |   |                    |   | - |   |   |   | 10 |   |   |   | 10 |   |
| Gatliff Services, LLC units                                                       |   |                    | 1,100  |   |                    |   | 968 |   |   |   | - |   |   |   | - |   |
| Formidable, LLC warrants and units (sold in October 2010)                         |   |                    | -      |   |                    |   | - |   |   |   | 510 |   |   |   | - |   |
| Myriant Technologies, LLC warrants and units                                      |   |                    | 468    |   |                    |   | 755 |   |   |   | 468 |   |   |   | 468 |   |
| Spirit Resources, LLC warrants                                                    |   |                    | 25     |   |                    |   | 25 |   |   |   | - |   |   |   | - |   |
| Tammany Oil & Gas, LLC warrants and after pay-out overriding royalty interest |   |                    | 20     |   |                    |   | 20 |   |   |   | - |   |   |   | - |   |
| Non-income producing investments                                                  |   |                    | 41,616 |   |                    |   | 4,879 |   |   |   | 43,366 |   |   |   | 27,807 |   |
| Total non-accruing and non-income producing investments                           |   | $                       | 90,455 |   |                    | $      | 29,596 |   |   | $ | 105,978 |   |   | $ | 53,677 |   |

----

----

----

|                            |   |   |       |   | Less than |   |       |           |   |   |           |   |   | More than |   |
|---------------------------------|--------|--------|------------|--------|----------------|--------|------------|----------------|--------|--------|----------------|--------|--------|----------------|--------|
| Contractual Obligations    |   | Total  |       |   | 1 Year    |   |       | 1-3 Years |   |   | 3-5 Years |   |   | 5 Years   |   |
|                            |   |   |       |   |           |   |       |           |   |   |           |   |   |           |   |
| June 30, 2011:                  |   |   |       |   |           |   |       |           |   |   |           |   |   |           |   |
| Revolving credit facilities (1) |   | $      | 70,000,000 |   |           | $      | 30,000,000 |           |   | $      | 40,000,000     |   |   | $              | -      |   |   | $ | - |   |
| Total                           |   | $      | 70,000,000 |   |           | $      | 30,000,000 |           |   | $      | 40,000,000     |   |   | $              | -      |   |   | $ | - |   |

|                      |   | June 30, 2011 |       |   | December 31, 2010 |   |
|---------------------------|--------|--------------------|------------|--------|-----------------------------|--------|
| Unused credit commitments |   | $                  | 11,113,132 |   |                        | $      | 8,682,153 |   |
| Letter of credit          |   |               | 3,250,000  |   |                        |   | 2,676,200 |   |

----

| Item 3. | Quantitative and Qualitative Disclosures About Market Risk. |
|--------------|-------------------------------------------------------------|

| Item 4. | Controls and Procedures. |
|--------------|--------------------------|

----

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

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

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

----

|                            | NGP CAPITAL RESOURCES COMPANY |
|---------------------------------|-------------------------------|
|                            |                          |   |   |
| Date:  August 9, 2011 |                          | By: | /s/ Stephen K. Gardner |
|                            |                          |   | Stephen K. Gardner |
|                            |                          |   | President and Chief Executive Officer |
|                            |                          |   |   |
| Date:  August 9, 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                                                                                                                                                               |

----

----