**UNITED      STATES**
** **

**SECURITIES      AND EXCHANGE COMMISSION**
** **

**Washington,      D.C. 20549**
** **

----

**FORM      10-Q**
** **

**(Mark      One) **

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

**For      the quarterly period ended June 30, 2008**

**OR**
** **

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

**For      the transition period             to            **

**Commission      file number: 814-00672**
** **

----

**NGP      Capital Resources Company**

**(Exact      name of registrant as specified in its charter) **

----

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

**(713)      752-0062 **

**(Registrant’s      telephone number, including area code) **

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

----

| **PART                I - FINANCIAL INFORMATION**         | **1**                                                                                                                                 |
|-----------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------|
|                                                      |                                                                                                                                  |
|                                                      | **Item                1. Consolidated Financial Statements**                                                                          | **1** |
|                                                      | **Item                2. Management’s Discussion and Analysis of Financial Condition and Results                of Operations** | 25 |
|                                                      | **Item                3. Quantitative and Qualitative Disclosures About Market                Risk**                                  | 33 |
|                                                      | **Item                4. Controls and Procedures**                                                                                    | 33 |
|                                                      |                                                                                                                                  |   |
| **PART                II – OTHER INFORMATION** | **33**                                                                                                                                |
|                                                      |                                                                                                                                  |
|                                                      | **Item                1. Legal Proceedings**                                                                                          | 33 |
|                                                      | **Item                1A. Risk Factors**                                                                                              | 33 |
|                                                      | **Item                2. Unregistered Sales of Equity Securities and Use of                Proceeds**                                 | 35 |
|                                                      | **Item                3. Defaults Upon Senior Securities**                                                                            | 35 |
|                                                      | **Item                4. Submission of Matters to a Vote of Security                Holders**                                         | 35 |
|                                                      | **Item                5. Other Information**                                                                                          | 35 |
|                                                      | **Item                6. Exhibits**                                                                                                   | 36 |

----

**PART      I - FINANCIAL INFORMATION**

**I**
**tem      1. Consolidated Financial Statements**
** **

**NGP      CAPITAL RESOURCES COMPANY**

**CONSOLIDATED      BALANCE SHEETS**

|                                                                                                                                                                             |   | June 30, 2008 |        |                        |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------|-------------|-----------------------------|--------|
|                                                                                                                                                                             |   | (Unaudited)             |        | December 31, 2007 |   |
| Assets                                                                                                                                                                           |   |                    |             |                        |   |  |   |
| Investments                in portfolio securities at fair value (cost:                $331,601,471 and $277,947,454, respectively)                                              |   | $                       | 338,074,483 |                        | $      | 284,228,573 |   |
| Investments                in corporate notes at fair value (cost:                $11,609,569 and $11,631,599, respectively)                                                     |   |                    | 8,821,600   |                        |   | 8,955,500 |   |
| Investments                in commodity derivative instruments at fair value (cost:                $1,546,700 and $0, respectively)                                              |   |                    | 1,331,854   |                        |   | - |   |
| Investments                in U.S. Treasury Bills, at amortized cost which approximates fair                value                                                                |   |                    | 177,958,876 |                        |   | 163,925,625 |   |
| Total                investments                                                                                                                                                 |   |                    | 526,186,813 |                        |   | 457,109,698 |   |
|                                                                                                                                                                             |   |                    |             |                        |   |  |   |
| Cash                and cash equivalents                                                                                                                                         |   |                    | 11,108,533  |                        |   | 18,437,115 |   |
| Accounts                receivable                                                                                                                                               |   |                    | 10,308      |                        |   | 17,569 |   |
| Interest                receivable                                                                                                                                               |   |                    | 1,383,271   |                        |   | 647,839 |   |
| Prepaid                assets                                                                                                                                                    |   |                    | 1,070,521   |                        |   | 2,020,655 |   |
|                                                                                                                                                                             |   |                    |             |                        |   |  |   |
| Total                assets                                                                                                                                                      |   | $                       | 539,759,446 |                        | $      | 478,232,876 |   |
|                                                                                                                                                                             |   |                    |             |                        |   |  |   |
| Liabilities                and stockholders' equity (net assets)                                                                                                                 |   |                    |             |                        |   |  |   |
| Current                liabilities                                                                                                                                               |   |                    |             |                        |   |  |   |
| Accounts                payable                                                                                                                                                  |   | $                       | 595,572     |                        | $      | 928,761 |   |
| Management                and incentive fees payable                                                                                                                             |   |                    | 1,838,009   |                        |   | 2,032,107 |   |
| Dividends                payable                                                                                                                                                 |   |                    | 8,651,281   |                        |   | 9,012,671 |   |
| Total                current liabilities                                                                                                                                         |   |                    | 11,084,862  |                        |   | 11,973,539 |   |
|                                                                                                                                                                             |   |                    |             |                        |   |  |   |
| Long-term                debt                                                                                                                                                    |   |                    | 224,250,000 |                        |   | 216,000,000 |   |
|                                                                                                                                                                             |   |                    |             |                        |   |  |   |
| Total                liabilities                                                                                                                                                 |   |                    | 235,334,862 |                        |   | 227,973,539 |   |
|                                                                                                                                                                             |   |                    |             |                        |   |  |   |
| Commitments                and contingencies (Note 8)                                                                                                                            |   |                    |             |                        |   |  |   |
|                                                                                                                                                                             |   |                    |             |                        |   |  |   |
| Stockholders’                equity (net assets)                                                                                                                           |   |                    |             |                        |   |  |   |
| Common                stock, $.001 par value, 250,000,000 shares authorized; 21,628,202                and                17,500,332 shares issued and outstanding, respectively |   |                    | 21,628      |                        |   | 17,500 |   |
| Paid-in                capital in excess of par                                                                                                                                  |   |                    | 307,928,101 |                        |   | 245,881,078 |   |
| Undistributed                net investment income (loss)                                                                                                                        |   |                    | (7,854,475  | )                           |   | (103,394 | ) |
| Undistributed                net realized capital gain (loss)                                                                                                                    |   |                    | 859,133     |                        |   | 859,133 |   |
| Net                unrealized appreciation (depreciation) of portfolio securities, corporate                notes and commodity derivative instruments                           |   |                    | 3,470,197   |                        |   | 3,605,020 |   |
|                                                                                                                                                                             |   |                    |             |                        |   |  |   |
| Total                stockholders’ equity (net assets)                                                                                                                     |   |                    | 304,424,584 |                        |   | 250,259,337 |   |
|                                                                                                                                                                             |   |                    |             |                        |   |  |   |
| Total                liabilities and stockholders' equity (net assets)                                                                                                           |   | $                       | 539,759,446 |                        | $      | 478,232,876 |   |
|                                                                                                                                                                             |   |                    |             |                        |   |  |   |
| Net                asset value per share                                                                                                                                         |   | $                       | 14.08       |                        | $      | 14.30 |   |

*(See      accompanying notes to consolidated financial statements)*

----

**NGP      CAPITAL RESOURCES COMPANY**

**CONSOLIDATED      STATEMENTS OF OPERATIONS**

**(Unaudited)**

|                                                                                                                                                                                                        |   | For the Three Months Ended  |      | For the Six Months Ended  |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------|-----------|----------------------------------------------------|--------|
|                                                                                                                                                                                                        |   | June 30, 2008                              |      | June 30, 2007                            |   | June 30, 2008 |   | June 30, 2007 |   |
| Investment income                                                                                                                                                                                      |   |                                                 |           |                                               |   |  |   |   |  |   |   |  |   |
| Interest                income                                                                                                                                                                              |   | $                                                    | 8,152,713 |                                               | $      | 9,507,862 |   | $ | 17,650,679 |   | $ | 17,929,117 |   |
| Dividend                income                                                                                                                                                                              |   |                                                 | -         |                                               |   | 93,710 |   |   | - |   |   | 93,710 |   |
| Other                income                                                                                                                                                                                 |   |                                                 | 44,520    |                                               |   | 142,237 |   |   | 84,890 |   |   | 197,745 |   |
|                                                                                                                                                                                                        |   |                                                 |           |                                               |   |  |   |   |  |   |   |  |   |
| Total                investment income                                                                                                                                                                      |   |                                                 | 8,197,233 |                                               |   | 9,743,809 |   |   | 17,735,569 |   |   | 18,220,572 |   |
|                                                                                                                                                                                                        |   |                                                 |           |                                               |   |  |   |   |  |   |   |  |   |
| Operating                expenses                                                                                                                                                                           |   |                                                 |           |                                               |   |  |   |   |  |   |   |  |   |
| Management                fees                                                                                                                                                                              |   |                                                 | 1,838,009 |                                               |   | 1,585,494 |   |   | 3,638,215 |   |   | 3,150,003 |   |
| Incentive                fees                                                                                                                                                                               |   |                                                 | -         |                                               |   | 1,054,358 |   |   | - |   |   | 1,054,358 |   |
| Professional                fees                                                                                                                                                                            |   |                                                 | 224,390   |                                               |   | 174,987 |   |   | 433,369 |   |   | 328,583 |   |
| Insurance                expense                                                                                                                                                                            |   |                                                 | 198,812   |                                               |   | 132,423 |   |   | 397,629 |   |   | 264,846 |   |
| Interest                expense and fees                                                                                                                                                                    |   |                                                 | 1,440,572 |                                               |   | 1,619,226 |   |   | 3,881,648 |   |   | 3,176,422 |   |
| State                franchise taxes                                                                                                                                                                        |   |                                                 | 23,196    |                                               |   | 34,612 |   |   | 32,712 |   |   | 34,593 |   |
| Other                general and administrative expenses                                                                                                                                                    |   |                                                 | 713,063   |                                               |   | 631,491 |   |   | 1,451,664 |   |   | 1,283,063 |   |
|                                                                                                                                                                                                        |   |                                                 |           |                                               |   |  |   |   |  |   |   |  |   |
| Total                operating expenses                                                                                                                                                                     |   |                                                 | 4,438,042 |                                               |   | 5,232,591 |   |   | 9,835,237 |   |   | 9,291,868 |   |
|                                                                                                                                                                                                        |   |                                                 |           |                                               |   |  |   |   |  |   |   |  |   |
| Net                investment income (loss)                                                                                                                                                                 |   |                                                 | 3,759,191 |                                               |   | 4,511,218 |   |   | 7,900,332 |   |   | 8,928,704 |   |
|                                                                                                                                                                                                        |   |                                                 |           |                                               |   |  |   |   |  |   |   |  |   |
| Net                realized capital gain (loss) on portfolio securities, corporate notes                and                commodity derivative instruments                                                 |   |                                                 | -         |                                               |   | 6,666,858 |   |   | - |   |   | 6,666,858 |   |
| Net                increase (decrease) in unrealized appreciation (depreciation) on                portfolio                securities, corporate notes and commodity derivative                instruments |   |                                                 | 1,611,339 |                                               |   | 2,291,165 |   |   | (134,823 | ) |   | 6,021,150 |   |
|                                                                                                                                                                                                        |   |                                                 |           |                                               |   |  |   |   |  |   |   |  |   |
| Net                increase (decrease) in stockholders' equity (net assets) resulting                from                operations                                                                         |   | $                                                    | 5,370,530 |                                               | $      | 13,469,241 |   | $ | 7,765,509 |   | $ | 21,616,712 |   |
|                                                                                                                                                                                                        |   |                                                 |           |                                               |   |  |   |   |  |   |   |  |   |
| Net                increase (decrease) in stockholders' equity (net assets) resulting                from                operations per common share                                                        |   | $                                                    | 0.25      |                                               | $      | 0.78 |   | $ | 0.36 |   | $ | 1.25 |   |

*(See      accompanying notes to consolidated financial statements)*

----

**NGP      CAPITAL RESOURCES COMPANY**

**CONSOLIDATED      STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (NET ASSETS)**

|                                                                                                      |   |              |       |           |   |                       |   |               |        |                                         |   | Net Unrealized                |   |              |    |
|-----------------------------------------------------------------------------------------------------------|--------|-------------------|------------|----------------|--------|----------------------------|--------|--------------------|-------------|----------------------------------------------|--------|------------------------------------|--------|-------------------|---------|
|                                                                                                      |   |              |       |           |   |                       |   |               |        |                                         |   | Appreciation (Depreciation)   |   | Total             |    |
|                                                                                                      |   |              |       |           |   | Paid-in Capital  |   | Undistributed      |        | Undistributed                                |   | of Portfolio Securities, |   | Stockholders'     |    |
|                                                                                                      |   | Common Stock |       | in Excess |   | Net Investment        |   | Net Realized  |        | Corporate Notes and Commodity |   | Equity                             |   |
|                                                                                                      |   | Shares            |       | Amount         |   | of Par                |   | Income (Loss) |        | Capital Gain (Loss)                |   | Derivative Instruments        |   | (Net Assets) |    |
| Balance at                December 31, 2007                                                          |   |              | 17,500,332 |           | $      | 17,500                     |   | $                  | 245,881,078 |                                         | $      | (103,394                           | )      | $                 | 859,133 |   | $ | 3,605,020 |   | $ | 250,259,337 |   |
| Net                increase in stockholders' equity (net assets) resulting from                operations |   |              | -          |           |   | -                          |   |               | -           |                                         |   | 7,900,332                          |   |              | -       |   |   | (134,823 | ) |   | 7,765,509 |   |
|                                                                                                      |   |              |            |           |   |                            |   |               |             |                                         |   |                                    |   |              |         |   |   |  |   |   |  |   |
| Issuance                of common stock from public offering (net of underwriting                costs)   |   |              | 4,086,388  |           |   | 4,086                      |   |               | 62,109,012  |                                         |   | -                                  |   |              | -       |   |   | - |   |   | 62,113,098 |   |
|                                                                                                      |   |              |            |           |   |                            |   |               |             |                                         |   |                                    |   |              |         |   |   |  |   |   |  |   |
| Offering                costs                                                                             |   |              | -          |           |   | -                          |   |               | (739,265    | )                                            |   | -                                  |   |              | -       |   |   | - |   |   | (739,265 | ) |
|                                                                                                      |   |              |            |           |   |                            |   |               |             |                                         |   |                                    |   |              |         |   |   |  |   |   |  |   |
| Dividends                declared                                                                         |   |              | -          |           |   | -                          |   |               | -           |                                         |   | (15,651,413                        | )      |              | -       |   |   | - |   |   | (15,651,413 | ) |
| Issuance                of common stock under dividend reinvestment plan                                  |   |              | 41,482     |           |   | 42                         |   |               | 677,276     |                                         |   | -                                  |   |              | -       |   |   | - |   |   | 677,318 |   |
| Balance                at June 30, 2008 (unaudited)                                                       |   |              | 21,628,202 |           | $      | 21,628                     |   | $                  | 307,928,101 |                                         | $      | (7,854,475                         | )      | $                 | 859,133 |   | $ | 3,470,197 |   | $ | 304,424,584 |   |

*(See      accompanying notes to consolidated financial statements)*

----

**NGP      CAPITAL RESOURCES COMPANY**

**CONSOLIDATED      STATEMENTS OF CASH FLOWS**

**(Unaudited)**

|                                                                                                                                                                        |   | For the Six Months Ended |        |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------|-------------|
|                                                                                                                                                                        |   | June 30, 2008                      |        | June 30, 2007 |   |
| Cash                flows from operating activities                                                                                                                         |   |                                         |             |   |   |  |   |
| Net                increase in stockholders' equity (net assets) resulting from                operations                                                                   |   | $                                            | 7,765,509   |   | $ | 21,616,712 |   |
| Adjustments                to reconcile net increase in stockholders' equity (net assets) resulting                from operations to net cash used in operating activities |   |                                         |             |   |   |  |   |
| Payment-in-kind                interest                                                                                                                                     |   |                                         | (1,728,817  | ) |   | (1,935,532 | ) |
| Payment-in-kind                dividend                                                                                                                                     |   |                                         | -           |   |   | (93,710 | ) |
| Net                amortization of premiums, discounts and fees                                                                                                             |   |                                         | (589,096    | ) |   | (1,498,175 | ) |
| Change                in unrealized (appreciation) depreciation on portfolio securities,                corporate notes and commodity derivative instruments                |   |                                         | 134,823     |   |   | (6,021,150 | ) |
| Effects                of changes in operating assets and liabilities                                                                                                       |   |                                         |             |   |   |  |   |
| Accounts                receivable                                                                                                                                          |   |                                         | 7,261       |   |   | 452,184 |   |
| Interest                receivable                                                                                                                                          |   |                                         | (735,432    | ) |   | 607,169 |   |
| Prepaid                assets                                                                                                                                               |   |                                         | 950,134     |   |   | 477,171 |   |
| Accounts                payable                                                                                                                                             |   |                                         | (527,287    | ) |   | 1,024,280 |   |
| Purchase                of investments in portfolio securities, corporate notes and commodity                derivative instruments                                         |   |                                         | (81,412,478 | ) |   | (152,705,108 | ) |
| Redemption                of investments in portfolio securities, corporate notes and commodity                derivative instruments                                       |   |                                         | 28,551,706  |   |   | 108,579,495 |   |
| Net                sale of investments in U.S. Treasury Bills                                                                                                               |   |                                         | (14,033,251 | ) |   | 41,167,748 |   |
|                                                                                                                                                                        |   |                                         |             |   |   |  |   |
| Net                cash provided by (used in) operating activities                                                                                                          |   |                                         | (61,616,928 | ) |   | 11,671,084 |   |
|                                                                                                                                                                        |   |                                         |             |   |   |  |   |
| Cash                flows from financing activities                                                                                                                         |   |                                         |             |   |   |  |   |
| Net                proceeds from the issuance of common stock                                                                                                               |   |                                         | 62,790,415  |   |   | - |   |
| Borrowings                under revolving credit facility                                                                                                                   |   |                                         | 108,000,000 |   |   | - |   |
| Repayments                on revolving credit facility                                                                                                                      |   |                                         | (99,750,000 | ) |   | - |   |
| Offering                costs from the issuance of common stock                                                                                                             |   |                                         | (739,265    | ) |   | - |   |
| Dividends                paid                                                                                                                                               |   |                                         | (16,012,804 | ) |   | (4,257,648 | ) |
|                                                                                                                                                                        |   |                                         |             |   |   |  |   |
| Net                cash provided by (used in) financing activities                                                                                                          |   |                                         | 54,288,346  |   |   | (4,257,648 | ) |
|                                                                                                                                                                        |   |                                         |             |   |   |  |   |
| Net                increase (decrease) in cash and cash equivalents                                                                                                         |   |                                         | (7,328,582  | ) |   | 7,413,436 |   |
| Cash                and cash equivalents, beginning of period                                                                                                               |   |                                         | 18,437,115  |   |   | 12,334,329 |   |
|                                                                                                                                                                        |   |                                         |             |   |   |  |   |
| Cash                and cash equivalents, end of period                                                                                                                     |   | $                                            | 11,108,533  |   | $ | 19,747,765 |   |

*(See      accompanying notes to consolidated financial statements)*

----

**NGP      CAPITAL RESOURCES COMPANY**

**CONSOLIDATED      SCHEDULE OF INVESTMENTS**

**June      30, 2008**

**(Unaudited)**

| **Portfolio                Company**          |   | **Energy                Industry Segment** |                                      | **Investment                (2) (4)** |   | **Principal**                                                   |   | **Cost** |         | **Fair                Value (3)** |   |
|-----------------------------------------------|--------|--------------------------------------------|-------------------------------------------|---------------------------------------|--------|-----------------------------------------------------------------|--------|----------|--------------|-----------------------------------|--------|
| **TARGETED                INVESTMENTS**  |   |                                            |                                      |                                  |        |                                                            |   |          |         |                              |        |   |
| Venoco,                Inc. (1) (11)          |   |                                       | Oil                & Natural Gas      |                                  |   | Senior                Notes (7)                                 |   | $        | 12,000,000   |                              | $      | 11,922,600 |   | $ | 11,730,000 |   |
|                                          |   |                                       | Production                and             |                                  |   | (8.75%,                due 12/15/2011)                          |   |     |         |                              |   |   |   |   |   |   |
|                                          |   |                                       | Development                          |                                  |   |                                                            |   |     |         |                              |   |   |   |   |   |   |
|                                          |   |                                       |                                 |                                  |   |                                                            |   |     |    |                              |   |   |   |   |   |   |
| Chroma                Exploration &       |   |                                       | Oil                & Natural Gas      |                                  |   | 9,428                Shares Series A Participating              |   |     | -            |                              |   | 2,221,710 |   |   | - |   |
| Production,                Inc. (1) (11)      |   |                                       | Production                and             |                                  |   | Convertible                Preferred Stock (9)                  |   |     |              |                              |   |  |   |   |  |   |
|                                          |   |                                       | Development                               |                                  |   | 8,610                Shares Series AA Participating             |   |     | -            |                              |   | 2,089,870 |   |   | 1,567,402 |   |
|                                          |   |                                       |                                 |                                  |   | Convertible                Preferred Stock (9)                  |   |     |              |                              |   |  |   |   |  |   |
|                                          |   |                                       |                                 |                                  |   | 8.11                Shares Common Stock (5)                     |   |     | -            |                              |   | - |   |   | - |   |
|                                          |   |                                       |                                 |                                  |   | Warrants                (5) (13)                                |   |     | -            |                              |   | - |   |   | - |   |
|                                          |   |                                       |                                      |                                  |   |                                                       |   |     |         |                              |   |   |   |   |    |   |
| Resaca                Exploitation,           |   |                                       | Oil                & Natural Gas      |                                  |   | Senior                Secured                                   |   |     | 26,993,572   |                              |   | 26,538,095 |   |   | 26,538,095 |   |
| LP                (1) (11)                    |   |                                       | Production                and             |                                  |   | Multiple-Advance                Tranche A Term Loan             |   |     |              |                              |   |  |   |   |  |   |
|                                     |   |                                       | Development                          |                                  |   | (LIBOR                + 6.00%, due 5/01/2012)                   |   |     |              |                              |   |  |   |   |  |   |
|                                          |   |                                       |                                      |                                  |   | Overriding                Royalty Interest (6)                  |   |     | 30,000       |                              |   | 28,616 |   |   | 750,000 |   |
|                                     |   |                                       |                                 |                                  |   |                                                            |   |     |         |                              |   |   |   |   |   |   |
|                                          |   |                                       |                                      |                                  |   | Senior                Secured Tranche B Term Loan          |   |     | 6,000,000    |                              |   | 6,000,000 |   |   | 6,000,000 |   |
|                                          |   |                                       |                                 |                                  |   | (LIBOR                + 9.00%, due 8/31/2008)                   |   |     |              |                              |   |  |   |   |  |   |
|                                          |   |                                       |                                 |                                  |   | Overriding                Royalty Interest (6)                  |   |     | 30,000       |                              |   | 28,616 |   |   | 750,000 |   |
|                                          |   |                                       |                                 |                                  |   |                                                                 |   |     |              |                              |   |  |   |   |  |   |
|                                          |   |                                       |                                      |                                  |   | Senior                Subordinated                         |   |     | 4,000,000    |                              |   | 4,000,000 |   |   | 4,000,000 |   |
|                                     |   |                                       |                            |                                  |   | Secured                Convertible Term Loan                    |   |     |              |                              |   |  |   |   |  |   |
|                                          |   |                                       |                                 |                                  |   | (6.00%                cash, 8.00% PIK, due 5/01/2012)           |   |     |              |                              |   |  |   |   |  |   |
|                                          |   |                                       |                                           |                                  |   |                                                            |   |     |              |                              |   |   |   |   |   |   |
| Crossroads                Energy,             |   |                                       | Oil                & Natural Gas      |                                  |   | Senior                Secured                                   |   |     | 4,508,755    |                              |   | 4,434,261 |   |   | 4,434,261 |   |
| LP                (1) (11)                    |   |                                       | Production                and             |                                  |   | Multiple-Advance                Term Loan                       |   |     |         |                              |   |   |   |   |   |   |
|                                          |   |                                       | Development                          |                                  |   | (The                greater of 10.0% or LIBOR + 5.50%,          |        |     |         |                              |   |   |   |   |   |   |
|                                          |   |                                       |                                 |                                  |   | due                6/29/2009)                                   |   |     |         |                              |   |   |   |   |   |   |
|                                          |   |                                       |                                 |                                  |   | Overriding                Royalty Interest (6)                  |   |     | 10,000       |                              |   | 6,653 |   |   | 250,000 |   |
|                                          |   |                                       |                                 |                                  |   |                                                       |   |     |         |                              |   |   |   |   |    |   |
| Rubicon                Energy Partners,       |   |                                       | Oil                & Natural Gas      |                                  |   | Senior                Subordinated Secured                      |   |     | 5,000,000    |                              |   | 5,000,000 |   |   | 5,000,000 |   |
| LLC                (8) (11)                   |   |                                       | Production                and             |                                  |   | Multiple-Advance                Term Loan                       |   |     |         |                              |   |   |   |   |   |   |
|                                          |   |                                       | Development                          |                                  |   | (LIBOR                + 8.00%, due 5/01/2010)              |   |     |         |                              |   |   |   |   |   |   |
|                                          |   |                                       |                                      |                                  |   | LLC                Units (4,000 units) (5)                 |   |     | -            |                              |   | 4,000,000 |   |   | 12,000,000 |   |
|                                          |   |                                       |                                      |                                  |   |                                                            |   |     |         |                              |   |   |   |   |   |   |
| BSR                Loco Bayou,                |   |                                       | Oil                & Natural Gas      |                                  |   | Senior                Secured                                   |   |     | 3,055,455    |                              |   | 2,584,326 |   |   | 1,722,239 |   |
| LLC                (1) (11) (12)              |   |                                       | Production                and   |                                  |   | Multiple-Advance                Term Loan                       |   |     |              |                              |   |  |   |   |  |   |
|                                          |   |                                       | Development                          |                                  |   | (LIBOR                + 5.50% cash, +7.50% PIK - until 8/15/08, |   |     |              |                              |   |  |   |   |  |   |
|                                          |   |                                       |                                           |                                  |   | cash                only thereafter, due 8/15/2009) (9)         |   |     |              |                              |   |  |   |   |  |   |
|                                          |   |                                       |                                      |                                  |   | Overriding                Royalty Interest (6)                  |   |     | 20,000       |                              |   | 19,638 |   |   | 20,000 |   |
|                                          |   |                                       |                                      |                                  |   | Warrants                (5) (14)                                |   |     | 10,000       |                              |   | 10,000 |   |   | - |   |
|                                          |   |                                       |                                           |                                  |   |                                                            |   |     |              |                              |   |  |   |   |  |   |
| Sonoran                Energy,                |   |                                       | Oil                & Natural Gas      |                                  |   | Warrants                (5) (15)                                |   |     | 10,000       |                              |   | 10,000 |   |   | 10,000 |   |
| Inc.                (1) (11)                  |   |                                       | Production                and             |                                  |   |                                                                 |   |     |              |                              |   |  |   |   |                   |   |
|                                          |   |                                       | Development                          |                                  |   |                                                            |   |     |         |                              |   |   |   |   |   |   |
|                                          |   |                                       |                                      |                                  |   |                                                            |   |     |         |                              |   |   |   |   |   |   |
| Nighthawk                Transport I,         |   |                                       | Energy                Services            |                                  |   | Second                Lien                                      |   |     | 14,328,347   |                              |   | 13,501,342 |   |   | 13,501,342 |   |
| LP              (1) (11)                      |   |                                       |                                      |                                  |   | Term                Loan B                                      |   |     |         |                              |   |   |   |   |   |   |
|                                          |   |                                       |                                 |                                  |   | (The                greater of 15.0% or LIBOR + 10.50%,         |   |     |         |                              |   |   |   |   |   |   |
|                                          |   |                                       |                                 |                                  |   | due                10/03/2010)                                  |   |     |         |                              |   |   |   |   |   |   |
|                                          |   |                                       |                                 |                                  |   | LP                Units (5)                                     |   |     | 224          |                              |   | 224 |   |   | 150,000 |   |
|                                     |   |                                       |                                 |                                  |   | Warrants                (5) (16)                                |   |     | 850,000      |                              |   | 850,000 |   |   | 850,000 |   |
|                                          |   |                                       |                                      |                                  |   |                                                                 |   |     |              |                              |   |   |   |   |   |   |
|                                          |   |                                       |                                 |                                  |   | Second                Lien                                      |   |     | 1,595,043    |                              |   | 1,572,047 |   |   | 1,572,047 |   |
|                                          |   |                                       |                                 |                                  |   | Delayed                Draw Term Loan B                         |   |     |         |                              |   |   |   |   |   |   |
|                                          |   |                                       |                                 |                                  |   | (The                greater of 15.0% or LIBOR + 10.50%,         |   |     |         |                              |   |   |   |   |   |   |
|                                          |   |                                       |                                 |                                  |   | due                10/03/2010)                                  |   |     |         |                              |   |   |   |   |   |   |

----

**NGP      CAPITAL RESOURCES COMPANY**

**CONSOLIDATED      SCHEDULE OF INVESTMENTS**

**June      30, 2008**

**(Unaudited)**

| **Portfolio Company**                                                           |   | **Energy Industry Segment** |                                      | **Investment (2) (4)** |   | **Principal**                                            |   | **Cost** |            | **Fair Value (3)** |         |
|--------------------------------------------------------------------------------------|--------|---------------------------------------|-------------------------------------------|----------------------------------|--------|----------------------------------------------------------|--------|----------|-----------------|------------------------------|--------------|
| **TARGETED INVESTMENTS -                Continued**                        |   |                                  |                                      |                             |   |                                                     |   |     |            |
| Alden                Resources,                                                      |   |                                  | Coal                Production            |                             |   | Senior                Secured                            |   |     | 36,285,168      |                         |         | 33,553,912 |   |   | 33,553,912 |   |
| LLC              (1) (11)                                                            |   |                                  |                                      |                             |   | Multiple-Advance                Term Loan                |   |     |            |                         |         |   |   |   |   |   |
|                                                                                 |   |                                  |                                      |                             |   | (LIBOR                + 8.00% cash, due 1/05/2013)       |   |     |                 |                         |         |  |   |   |  |   |
|                                                                                 |   |                                  |                                      |                             |   | Royalty                Interest (6)                      |   |     | 2,660,000       |                         |         | 2,598,578 |   |   | 2,660,000 |   |
|                                                                                 |   |                                  |                                           |                             |   | Warrants                (5) (17)                         |   |     | 100,000         |                         |         | 100,000 |   |   | 100,000 |   |
|                                                                                 |   |                                  |                                           |                             |   |                                                          |   |     |                 |                         |         |  |   |   |  |   |
| Tammany                Oil & Gas,                                                |   |                                  | Oil                & Natural Gas      |                             |   | Senior                Secured                            |   |     | 29,447,804      |                         |         | 29,103,653 |   |   | 29,103,653 |   |
| LLC              (1) (11)                                                            |   |                                  | Production                and             |                             |   | Multiple-Advance                Term Loan                |   |     |       |                         |         |   |   |   |   |   |
|                                                                                 |   |                                  | Development                               |                             |   | (The                greater of 11.0% or LIBOR + 6.00%,   |   |     |            |                         |         |   |   |   |   |   |
|                                                                                 |   |                                  |                                 |                             |   | due                3/21/2010)                            |   |     |            |                         |         |   |   |   |   |   |
|                                                                                 |   |                                  |                                 |                             |   | Overriding                Royalty Interest (5) (6)       |   |     | 200,000         |                         |         | 200,000 |   |   | 400,000 |   |
|                                                                                 |   |                                  |                                 |                             |   |                                                     |   |     |            |                         |         |   |   |   |   |   |
| TierraMar                Energy                                                      |   |                                  | Oil                & Natural Gas      |                             |   | Overriding                Royalty Interest (6)           |   |     | 20,000          |                         |         | 17,968 |   |   | 200,000 |   |
| LP                (8) (11)                                                           |   |                                  | Production                and             |                             |   | Class                A Preferred LP Units (5)            |   |     | 16,634,830      |                         |         | 16,634,830 |   |   | 16,634,830 |   |
|                                                                                 |   |                                  | Development                          |                             |   |                                                     |   |     |            |                         |         |   |   |   |   |   |
|                                                                                 |   |                                  |                            |                             |   |                                                |   |     |            |                         |         |   |   |   |   |   |
| Anadarko                Petroleum                                                    |   |                                  | Oil                & Natural Gas      |                             |   | Multiple-Advance                Net Profits Interest     |   |     | 55,082,664      |                         |         | 55,177,417 |   |   | 55,177,417 |   |
| Corporation                2007-III                                                  |   |                                  | Production                and             |                             |   | (Due                4/23/2032)                           |   |     |            |                         |         |   |   |   |   |   |
| Drilling              Fund (1) (11)                                                  |   |                                  | Development                               |                             |   |                                                     |   |     |            |                         |         |   |   |   |   |   |
|                                                                                 |   |                                  |                                 |                             |   |                                                |   |     |       |                         |         |    |   |   |   |    |
| Formidable,                LLC (1) (11)                                              |   |                                  | Oil                & Natural Gas      |                             |   | Senior                Secured                            |   |     | 37,000,000      |                         |         | 37,000,000 |   |   |  37,000,000 |   |
|                                                                                 |   |                                  | Production                and             |                             |   | Multiple-Advance                Term Loan                |   |     |            |                         |         |   |   |   |   |   |
|                                                                            |   |                                  | Development                               |                             |   | (LIBOR                + 5.50% cash, due 5/31/2008) (9)   |   |     |            |                         |         |   |   |   |   |   |
|                                                                            |   |                                  |                            |                             |   | Warrants                (5) (18)                         |   |     | 500,000         |                         |         | 500,000 |   |   | 500,000 |   |
|                                                                                 |   |                                  |                                           |                             |   |                                                          |   |     |                 |                         |         |  |   |   |  |   |
| DeanLake                Operator,                                                    |   |                                  | Oil                & Natural Gas      |                             |   | Senior                Secured                            |   |     | 13,418,453      |                         |         | 13,217,846 |   |   | 13,217,846 |   |
| LLC              (1) (11) (12)                                                       |   |                                  | Production                and             |                             |   | Multiple-Advance                Term Loan                |   |     |            |                         |         |   |   |   |   |   |
|                                                                                 |   |                                  | Development                               |                             |   | (LIBOR                + 7.00%, due 6/25/2010)            |   |     |            |                         |         |   |   |   |   |   |
|                                                                                 |   |                                  |                            |                             |   | Overriding                Royalty Interest (6)           |   |     | 20,000          |                         |         | 19,279 |   |   | 20,000 |   |
|                                                                                 |   |                                  |                            |                             |   | Warrants                (5) (19)                         |   |     | 10,000          |                         |         | 10,000 |   |   | 10,000 |   |
|                                                                                 |   |                                  |                                      |                             |   |                                                          |   |     |            |                         |         |   |   |   |   |   |
| Bionol                Clearfield,                                                    |   |                                  | Alternative                Fuels and      |                             |   | Senior                Secured Tranche C                  |   |     | 5,000,000       |                         |         | 5,000,000 |   |   | 5,000,000 |   |
| LLC              (1) (11)                                                            |   |                                  | Specialty                Chemicals   |                             |   | Construction                Loan                         |   |     |            |                         |         |   |   |   |   |   |
|                                                                                 |   |                                  |                                 |                             |   | (LIBOR                + 7.00%, due 09/06/2016)           |   |     |            |                         |         |   |   |   |   |   |
|                                                                                 |   |                                  |                                      |                             |   |                                                          |   |     |       |                         |    |   |   |   |   |   |
| BioEnergy                Holding,                                                    |   |                                  | Alternative                Fuels and      |                             |   | Senior                Secured Notes                      |   |     | 10,000,000      |                         |         | 9,1                12,721 |   |   | 9,112,721 |   |
| LLC              (1) (11)                                                            |   |                                  | Specialty                Chemicals   |                             |   | (15.00%,                due 03/06/2015)                  |   |     |            |                         |         |   |   |   |   |   |
|                                                                                 |   |                                  |                                 |                             |   | BioEnergy                International Warrants (5) (20) |   |     | 595,845         |                         |         | 595,845 |   |   | 595,845 |   |
|                                                                                 |   |                                  |                                 |                             |   | BioEnergy                Holding Units (5)               |   |     | 376,687         |                         |         | 376,687 |   |   | 376,687 |   |
|                                                                                 |   |                                  |                                      |                             |   |                                                     |   |     |            |                         |         |   |   |   |   |   |
| Greenleaf                Investments,                                                |   |                                  | Oil                & Natural Gas      |                             |   | Senior                Secured                            |   |     | 10,999,670      |                         |         | 10,666,186 |   |   | 10,666,186 |   |
| LLC              (1) (11)                                                            |   |                                  | Production                and   |                             |   | Multiple-Advance                Term Loan                |   |     |            |                         |         |   |   |   |   |   |
|                                                                                 |   |                                  | Development                               |                             |   | (The                greater of 10.5% or LIBOR + 6.00%,   |   |     |            |                         |         |   |   |   |   |   |
|                                                                                 |   |                                  |                                 |                             |   | due                04/30/2011)                           |   |     |            |                         |         |   |   |   |   |   |
|                                                                                 |   |                                  |                                      |                             |   | Overriding                Royalty Interest (6)           |   |     | 100,000         |                         |         | 98,551 |   |   | 100,000 |   |
|                                                                                 |   |                                  |                                      |                             |   |                                                          |   |     |                 |                         |         |  |   |   |  |   |
| ATP                Oil & Gas                                                     |   |                                  | Oil                & Natural Gas      |                             |   | Limited                Term Royalty Interest             |   |     | 32,800,000      |                         |         | 32,800,000 |   |   | 32,800,000 |   |
| Corporation              (1) (11)                                                    |   |                                  | Production                and             |                             |   |                                                     |   |     |            |                         |         |   |   |   |   |   |
|                                                                                 |   |                                  | Development                               |                             |   |                                                     |   |     |            |                         |         |   |   |   |   |   |
|                                                                                 |   |                                  |                                      |                             |   |                                                     |   |     |            |                         |
| **Subtotal                Targeted Investments (62.95% of total investments)**  |   |                                  |                                      |                             | **$**  | **331,601,471**                                          |   | **$**    | **338,074,483** |                         |

----

**NGP      CAPITAL RESOURCES COMPANY**

**CONSOLIDATED      SCHEDULE OF INVESTMENTS**

**June      30, 2008**

**(Unaudited)**

| **Issuing                Company**                                                                        |   | **Energy                Industry Segment** |                                 | **Investment                (2) (4)** |            | **Principal**                                                                                      |   | **Cost**        |       | **Fair                Value (3)** |             |
|-----------------------------------------------------------------------------------------------------------|--------|--------------------------------------------|--------------------------------------|---------------------------------------|-----------------|----------------------------------------------------------------------------------------------------|--------|-----------------|------------|-----------------------------------|------------------|
| **CORPORATE                NOTES**                                                                        |   |                                       |                                      |                                  |            |                                                                                                    |   |            |            |                              |             |  |   |   |  |   |
| Pioneer                Natural Resources Co. (11)                                                         |   |                                       | Oil                & Natural Gas |                                  |            | Senior                Notes, 7.2%, due 2028                                                        |   | $               | 10,000,000 |                              | $                | 11,609,569 |   | $ | 8,821,600 |   |
|                                                                                                      |   |                                       | Production                and        |                                  |            |                                                                                                    |   |            |            |                              |             |  |   |   |  |   |
|                                                                                                      |   |                                       | Development                          |                                  |            |                                                                                               |   |            |       |                              |             |   |   |   |   |   |
|                                                                                                      |   |                                       |                                      |                                  |            |                                                                                                    |   |            |            |                              |             |  |   |   |  |   |
| **Subtotal                Corporate Notes ( 1.64% of total investments)**                                 |   |                                            |                                 |                                  |                 |                                                                                               | **$**  | **11,609,569**  |       | **$**                             | **8,821,600**    |   |
|                                                                                                      |   |                                       |                                      |                                  |            |                                                                                                    |   |            |            |                              |             |  |   |   |  |   |
| **COMMODITY                DERIVATIVE INSTRUMENTS**                                                       |   |                                            |                                 |                                  |                 |                                                                                               |   |                 |       |                              |                  |   |
| Put                Options (11) (21)                                                                      |   |                                       |                                 |                                  |            | Put                Options with BP Corp. NA to sell up to 615,000 MMBtu of                         |   |            |            |                              | $                | 359,775 |   | $ | 228,195 |   |
|                                                                                                      |   |                                       |                                 |                                  |            | natural                gas at a strike price of $10.00 per MMBtu. 12 monthly                       |   |            |            |                              |             |  |   |   |  |   |
|                                                                                                      |   |                                       |                                 |                                  |            | contracts                beginning on July 1, 2008 and expiring on June 30, 2009.                  |   |            |            |                              |             |  |   |   |  |   |
|                                                                                                      |   |                                       |                                      |                                  |            |                                                                                                    |   |            |            |                              |             |  |   |   |  |   |
|                                                                                                      |   |                                       |                                 |                                  |            | Put                Options with BP Corp. NA to sell up to 237,750 Bbls of                          |   |            |            |                              |             | 1,046,100 |   |   | 975,200 |   |
|                                                                                                      |   |                                       |                                 |                                  |            | crude                oil at a strike price of $101.00 per Bbl. 15 monthly                contracts |   |            |            |                              |             |  |   |   |  |   |
|                                                                                                      |   |                                       |                                 |                                  |            | beginning                on July 1, 2008 and expiring on September 30, 2009.                       |   |            |            |                              |             |  |   |   |  |   |
|                                                                                                      |   |                                       |                                      |                                  |            |                                                                                                    |   |            |            |                              |             |  |   |   |  |   |
|                                                                                                      |   |                                       |                                 |                                  |            | Put                Options with BP Corp. NA to sell up to 32,750 Bbls of                           |   |            |            |                              |             | 140,825 |   |   | 128,459 |   |
|                                                                                                      |   |                                       |                                 |                                  |            | crude                oil at a strike price of $85.00 per Bbl. 4 monthly                contracts   |   |            |            |                              |             |  |   |   |  |   |
|                                                                                                      |   |                                       |                                 |                                  |            | beginning                on October 1, 2009 and expiring on January 31, 2010.                      |   |            |            |                              |             |  |   |   |  |   |
| **Subtotal                Commodity Derivative Instruments ( 0.24% of total                investments)** |   |                                            |                                 | **$**                                 | **1,546,700**   |                                                                                               | **$**  | **1,331,854**   |       |
|                                                                                                      |   |                                       |                                      |                                  |            |                                                                                                    |   |            |            |                              |             |  |   |   |  |   |
| **GOVERNMENT                SECURITIES (10)**                                         |   |                                       |                                      |                                  |            |                                                                                                    |   |            |            |                              |
| U.S.                Treasury Bills                                                                        |   |                                       |                                      |                                  |            | U.S.                Treasury Bills, 1.3059%, due 07/10/2008                                        |   | $               | 8,000,000  |                              | $                | 7,997,440 |   | $ | 7,997,440 |   |
| U.S.                Treasury Bills                                                                        |   |                                       |                                      |                                  |            | U.S.                Treasury Bills, 1.3059%, due 07/10/2008                                        |   |            | 12,000,000 |                              |             | 11,996,160 |   |   | 11,996,160 |   |
| U.S.                Treasury Bills                                                                        |   |                                       |                                      |                                  |            | U.S.                Treasury Bills, 1.3059%, due 07/10/2008                                        |   |            | 12,000,000 |                              |             | 11,996,160 |   |   | 11,996,160 |   |
| U.S.                Treasury Bills                                                                        |   |                                       |                                      |                                  |            | U.S.                Treasury Bills, 1.3059%, due 07/10/2008                                        |   |            | 12,000,000 |                              |             | 11,996,161 |   |   | 11,996,161 |   |
| U.S.                Treasury Bills                                                                        |   |                                       |                                      |                                  |            | U.S.                Treasury Bills, 1.3059%, due 07/10/2008                                        |   |            | 12,000,000 |                              |             | 11,996,160 |   |   | 11,996,160 |   |
| U.S.                Treasury Bills                                                                        |   |                                       |                                      |                                  |            | U.S.                Treasury Bills, 1.3059%, due 07/10/2008                                        |   |            | 12,000,000 |                              |             | 11,996,160 |   |   | 11,996,160 |   |
| U.S.                Treasury Bills                                                                        |   |                                       |                                      |                                  |            | U.S.                Treasury Bills, 1.3059%, due 07/10/2008                                        |   |            | 12,000,000 |                              |             | 11,996,161 |   |   | 11,996,161 |   |
| U.S.                Treasury Bills                                                                        |   |                                       |                                      |                                  |            | U.S.                Treasury Bills, 1.3059%, due 07/10/2008                                        |   |            | 12,000,000 |                              |             | 11,996,160 |   |   | 11,996,160 |   |
| U.S.                Treasury Bills                                                                        |   |                                       |                                      |                                  |            | U.S.                Treasury Bills, 1.3059%, due 07/10/2008                                        |   |            | 12,000,000 |                              |             | 11,996,160 |   |   | 11,996,160 |   |
| U.S.                Treasury Bills                                                                        |   |                                       |                                      |                                  |            | U.S.                Treasury Bills, 1.3059%, due 07/10/2008                                        |   |            | 12,000,000 |                              |             | 11,996,161 |   |   | 11,996,161 |   |
| U.S.                Treasury Bills                                                                        |   |                                       |                                      |                                  |            | U.S.                Treasury Bills, 1.3059%, due 07/10/2008                                        |   |            | 12,000,000 |                              |             | 11,996,160 |   |   | 11,996,160 |   |
| U.S.                Treasury Bills                                                                        |   |                                       |                                      |                                  |            | U.S.                Treasury Bills, 0.061%, due 07/03/2008                                         |   |            | 50,000,000 |                              |             | 49,999,833 |   |   | 49,999,833 |   |
|                                                                                                      |   |                                       |                                      |                                  |            |                                                                                                    |   |            |            |                              |             |  |   |   |  |   |
|                                                                                                      |   |                                       |                                      |                                  |            |                                                                                                    |   |            |            |                              |             |  |   |   |  |   |
| **Subtotal                Government Securities (33.1% of total                investments)**             |   |                                            |                                 | **$**                                 | **177,958,876** |                                                                                               | **$**  | **177,958,876** |       |
|                                                                                                      |   |                                       |                                      |                                  |            |                                                                                                    |   |            |            |                              |             |  |   |   |  |   |
| **CASH**                                                                                                  |   |                                       |                                      |                                  |            |                                                                                                    |   |            |            |                              |             |  |   |   |  |   |
| **Subtotal                Cash (2.07% of total investments)**                                             |   |                                            |                                 |                                  |                 |                                                                                               | **$**  | **11,108,533**  |       | **$**                             | **11,108,533**   |   |
|                                                                                                      |   |                                       |                                      |                                  |            |                                                                                                    |   |            |            |                              |             |  |   |   |  |   |
| **TOTAL                INVESTMENTS, CASH AND CASH EQUIVALENTS**                                           |   |                                            |                                 |                                  |                 |                                                                                               | **$**  | **533,825,149** |       | **$**                             | **537,295,346**  |   |
|                                                                                                      |   |                                       |                                      |                                  |            |                                                                                                    |   |            |            |                              |             |  |   |   |  |   |
| **LIABILITIES                IN EXCESS OF OTHER ASSETS**                                                  |   |                                            |                                 |                                  |                 |                                                                                               |   |                 |       | **$**                             | **(232,870,762** | **)** |
|                                                                                                      |   |                                       |                                      |                                  |            |                                                                                                    |   |            |            |                              |             |  |   |   |  |   |
| **NET                ASSETS**                                                                             |   |                                       |                                      |                                  |            |                                                                                                    |   |            |            |                              |             |  |   | **$** | **304,424,584** |   |

----

**CONSOLIDATED      SCHEDULE OF INVESTMENTS**

**June      30, 2008**

**(Unaudited)**

**NOTES      TO CONSOLIDATED SCHEDULE OF INVESTMENTS**

| (1)    | Portfolio                company is not controlled by or affiliated with the Company as defined                by                the Investment Company Act of 1940.                                                                                                                                                                                                                                                 |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                 |
| (2)    | Percentages                represent interest rates in effect at June 30, 2008, and due dates                represent the contractual maturity dates.                                                                                                                                                                                                                                                               |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                 |
| (3)    | Fair                value of targeted investments is determined by or under the direction                of                the Board of Directors.                                                                                                                                                                                                                                                                   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                 |
| (4)    | All                investments are in entities with primary operations in the United                States                of America.                                                                                                                                                                                                                                                                                |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                 |
| (5)    | Non-income                producing securities.                                                                                                                                                                                                                                                                                                                                                                      |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                 |
| (6)    | Securities                are subject to restrictions as to their sale.                                                                                                                                                                                                                                                                                                                                              |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                 |
| (7)    | Upon                the March 30, 2006 closing of Venoco, Inc.'s TexCal acquisition,                Venoco                Inc.'s senior notes became collateralized by second priority                liens.                                                                                                                                                                                                         |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                 |
| (8)    | Portfolio                company is controlled by the Company as defined by the Investment                Company                Act of 1940.                                                                                                                                                                                                                                                                        |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                 |
| (9)    | Non-accrual                status.                                                                                                                                                                                                                                                                                                                                                                                   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                 |
| (10)   | Level                1 security per Statement 157 hierarchy.                                                                                                                                                                                                                                                                                                                                                    |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                 |
| (11)   | Level                3 security per Statement 157 hierarchy.                                                                                                                                                                                                                                                                                                                                                    |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                 |
| (12)   | Portfolio                company was issued a written notice of default.                                                                                                                                                                                                                                                                                                                                             |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                 |
| (13)   | Chroma                warrants are non-income producing, expire on April 5, 2012 and provide                the                Company the right to purchase 2,462 shares of common stock at a purchase                price of $325.00 per share.                                                                                                                                                                   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                 |
| (14)   | BSR                Loco Bayou warrants are non-income producing, expire on August 15,                2013                and provide the Company the right to purchase 10,000 investor units                at the                exercise price of $160.00 per investor unit.                                                                                                                                       |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                 |
| (15)   | Sonoran                warrants are non-income producing, expire on November 28, 2014, and                provide the Company the right to purchase shares of common stock                up to                2.87 million shares, on a fully diluted basis with anti-dilution                provisions, at the exercise price of $0.20 per share.                                                                 |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                 |
| (16)   | Nighthawk                warrants are non-income producing, expire on May 13, 2017 and provide                the                Company the right to purchase approximately 2.5% of limited partnership                units at the exercise price of $0.001 per unit.                                                                                                                                              |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                 |
| (17)   | Alden                warrants are non-income producing and provide the Company the right                to                purchase 23% of class C units at an exercise price of $0.739 per                unit,                expiring in December 2013 and the right to purchase 10% of class                C units                at an exercise price of $0.739 per unit, expiring in July                2014. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                 |
| (18)   | Formidable                warrants are non-income producing, expire on March 31, 2015 and provide                the Company the right to purchase membership interest representing                30% of                all distributions at an exercise price of $1,000 per percentage                point.                                                                                                       |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                 |
| (19)   | DeanLake                warrants are non-income producing, expire on June 22, 2014 and provide                the                Company the right to purchase a 10% membership interest at the exercise                price of $300,000 or $30,000 per 1% membership interest representing                30%                of all distributions.                                                                 |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                 |
| (20)   | BioEnergy                International warrants are non-income producing, expire on August                15, 2010                and provide the Company the right to purchase 648,000 units, representing                membership interests of BioEnergy International, at the purchase                price of                $10.00 per unit.                                                                  |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                 |
| (21)   | Put                Options are related to the limited term royalty interest purchased                from                ATP Oil & Gas Corporation.                                                                                                                                                                                                                                                              |

*(See      accompanying notes to consolidated financial statements)*

----

**NGP      CAPITAL RESOURCES COMPANY**

**CONSOLIDATED      FINANCIAL HIGHLIGHTS**

**(Unaudited)**

|                                                                                                            |   | For                the Six Months Ended |    |
|-----------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------|---------|
|                                                                                                            |   | June                30, 2008            |    | June                30, 2007 |   |
| **Per                Share Data (1)**                                                                           |   |                                    |         |   |   |  |   |
|                                                                                                            |   |                                    |         |   |   |  |   |
| Net                asset value, beginning of period                                                             |   | $                                       | 14.30   |   | $ | 13.96 |   |
|                                                                                                            |   |                                    |         |   |   |  |   |
| Increase                in net assets as a result of secondary public stock                offering             |   |                                    | 0.40    |   |   | - |   |
| Underwriting                discounts and commissions related to secondary public stock                offering |   |                                    | (0.15   | ) |   | - |   |
| Other                costs related to secondary public stock offering                                           |   |                                    | (0.03   | ) |   | - |   |
| Net                increase in net assets from secondary public offering                                        |   |                                    | 0.22    |   |   | - |   |
|                                                                                                            |   |                                    |         |   |   |  |   |
| Net                asset value after public stock offering                                                      |   |                                    | 14.52   |   |   | 13.96 |   |
|                                                                                                            |   |                                    |         |   |   |  |   |
| Net                investment income (loss)                                                                     |   |                                    | 0.37    |   |   | 0.51 |   |
| Net                realized and unrealized gain (loss) on portfolio                securities,                  |   |                                    |         |   |   |  |   |
| corporate                notes and commodity derivative instruments                                             |   |                                    | (0.01   | ) |   | 0.74 |   |
|                                                                                                            |   |                                    |         |   |   |  |   |
| Net                increase (decrease) in stockholders' equity (net assets)                                     |   |                                    |         |   |   |  |   |
| resulting                from operations                                                                        |   |                                    | 0.36    |   |   | 1.25 |   |
|                                                                                                            |   |                                    |         |   |   |  |   |
| Dividends                declared                                                                               |   |                                    | (0.80   | ) |   | (0.58 | ) |
|                                                                                                            |   |                                    |         |   |   |  |   |
| Net                asset value, end of period                                                                   |   | $                                       | 14.08   |   | $ | 14.63 |   |
|                                                                                                            |   |                                    |         |   |   |  |   |
| Market                value, beginning of period                                                                |   | $                                       | 15.63   |   | $ | 16.75 |   |
| Market                value, end of period                                                                      |   | $                                       | 15.41   |   | $ | 16.72 |   |
| Market                value return (2)                                                                          |   |                                    | 3.64    | % |   | 3.28 | % |
| Net                asset value return (2)                                                                       |   |                                    | 3.50    | % |   | 8.43 | % |
|                                                                                                            |   |                                    |         |   |   |  |   |
| **Ratios                and Supplemental Data**                                                                 |   |                                    |         |   |   |  |   |
| ($                and shares in thousands)                                                                      |   |                                    |         |   |   |  |   |
|                                                                                                            |   |                                    |         |   |   |  |   |
| Net                assets, end of period                                                                        |   | $                                       | 304,425 |   | $ | 255,209 |   |
| Average                net assets                                                                               |   | $                                       | 277,342 |   | $ | 249,234 |   |
| Common                shares outstanding at end of period                                                       |   |                                    | 21,628  |   |   | 17,445 |   |
| Total                operating expenses less management and                                                     |   |                                    |         |   |   |  |   |
| incentive                fees and interest expense/average net assets (3)                                       |   |                                    | 1.68    | % |   | 1.55 | % |
| Total                operating expenses less management                                                         |   |                                    |         |   |   |  |   |
| and                incentive fees/average net assets (3)                                                        |   |                                    | 4.49    | % |   | 4.12 | % |
| Total                operating expenses/average net assets (3)                                                  |   |                                    | 7.13    | % |   | 7.52 | % |
| Net                investment income (loss)/average net assets (3)                                              |   |                                    | 5.73    | % |   | 7.22 | % |
| Net                increase (decrease) in net assets resulting from                                             |   |                                    |         |   |   |  |   |
| operations/average                net assets (3)                                                                |   |                                    | 5.63    | % |   | 17.49 | % |
| Portfolio                turnover rate                                                                          |   |                                    | 10.29   | % |   | 43.57 | % |

*(See      accompanying notes to consolidated financial statements)*

----

**NGP      CAPITAL RESOURCES COMPANY**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS **

**June      30, 2008 **

**Note      1:**
**Organization**
** **

**Note      2:**
**Significant      Accounting Policies**
** **

***Use      of Estimates***
** **

----

***Cash      and Cash Equivalents***

***Prepaid      Assets***

***Concentration      of Credit Risk***
*** ***

***Valuation      of Investments***
*** ***

*Debt      Securities:*
*pari      passu*
*pari      passu*

----

*Equity      Securities:*

*Property-Based      Equity Participation Rights:*

*Fair      Value Measurements*

***Valuation      of Commodity Derivative Instruments***

***Securities      Transactions, Interest and Dividend Income Recognition***
*** ***

----

***Payment-in-Kind      Interest and Dividends***

***Net      Realized Gains or Losses and Net Change in Unrealized Appreciation or      Depreciation***
*** ***

***Fee      Income Recognition***
*** ***

***Dividends***
*** ***

----

| Declaration                  Date   |   | Amount  |        | Record                  Date |                                | Payment                  Date |
|-------------------------------------|--------|---------|-------------|------------------------------|-------------------------------------|-------------------------------|
| March                  18, 2005     |   | $  |  0.120 |                         | March                  31, 2005     |                          | April                  15, 2005 |
| June                  17, 2005      |   | $  |  0.125 |                         | June                  30, 2005      |                          | July                  15, 2005 |
| September                  19, 2005 |   | $  |  0.140 |                         | September                  30, 2005 |                          | October                  14, 2005 |
| December                  15, 2005  |   | $  |  0.275 |                         | December                  27, 2005  |                          | January                  4, 2006 |
| March                  10, 2006     |   | $  |  0.160 |                         | March                  31, 2006     |                          | April                  17, 2006 |
| June                  14, 2006      |   | $  |  0.180 |                         | June                  30, 2006      |                          | July                  14, 2006 |
| September                  14, 2006 |   | $  |  0.250 |                         | September                  29, 2006 |                          | October                  13, 2006 |
| December                  7, 2006   |   | $  |  0.330 |                         | December                  19, 2006  |                          | December                  29, 2006 |
| March                  19, 2007     |   | $  |  0.265 |                         | March                  30, 2007     |                          | April                  13, 2007 |
| June                  13, 2007      |   | $  |  0.310 |                         | June                  29, 2007      |                          | July                  13, 2007 |
| September                  12, 2007 |   | $  |  0.350 |                         | September                  28, 2007 |                          | October                  12, 2007 |
| December                  12, 2007  |   | $  |  0.515 |                         | December                  28, 2007  |                          | January                  4, 2008 |
| March                  19, 2008     |   | $  |  0.400 |                         | March                  31, 2008     |                          | April                  11, 2008 |
| June                  9, 2008       |   | $  |  0.400 |                         | June                  30, 2008      |                          | July                  11, 2008 |

**Dividend        Reinvestment Plan Participation**

|                            |   |                    |      | **Percentage of** |   |                   |                |                          |      | **Common Stock Dividends** |   |
|---------------------------------|--------|-------------------------|-----------|------------------------|--------|------------------------|---------------------|-------------------------------|-----------|--------------------------------------|--------|
|                            |   | **Participating ** |      | **Outstanding**        |   | **Total**              |                |                          |      | **Purchased in  **    |   | **Newly Issued Shares** |   |
| **Dividend**                    |   | **Shares **        |      | **Shares **       |   | **Distribution ** |                | **Cash Dividends ** |      | **Open Market **           |   | **Amount ** |   | **Shares **** ** |   |
| March                  2005     |   |                    | **-**     |                   |   | 0.0                    | %                   | $                             | 2,088,012 |                                 | $      | 2,088,012 |   | $ | - |   | $ | - |   |   | - |   |
| June                  2005      |   |                    | 1,215,870 |                   |   | 7.0                    | %    | $                             | 2,175,013 |                                 | $      | 2,023,029 |   | $ | 151,984 |   | $ | - |   |   | - |   |
| September                  2005 |   |                    | 1,488,904 |                   |   | 8.6                    | %                   | $                             | 2,436,014 |                                 | $      | 2,227,567 |   | $ | 208,447 |   | $ | - |   |   | - |   |
| December                  2005  |   |                    | 1,660,140 |                   |   | 9.5                    | %                   | $                             | 4,785,028 |                                 | $      | 4,328,488 |   | $ | 456,540 |   | $ | - |   |   | - |   |
| March                  2006     |   |                    | 1,618,940 |                   |   | 9.3                    | %                   | $                             | 2,784,016 |                                 | $      | 2,524,986 |   | $ | 259,030 |   | $ | - |   |   | - |   |
| June                  2006      |   |                    | 1,410,227 |                   |   | 8.1                    | %                   | $                             | 3,132,018 |                                 | $      | 2,878,177 |   | $ | 253,841 |   | $ | - |   |   | - |   |
| September                  2006 |   |                    | 1,270,634 |                   |   | 7.3                    | %                   | $                             | 4,350,025 |                                 | $      | 4,032,366 |   | $ | 317,659 |   | $ | - |   |   | - |   |
| December                  2006  |   |                    | 1,111,045 |                   |   | 6.4                    | %                   | $                             | 5,742,033 |                                 | $      | 5,375,388 |   | $ | - |   | $ | 366,645 |   |   | 22,168 |   |
| March                  2007     |   |                    | 1,355,671 |                   |   | 7.8                    | %                   | $                             | 4,616,901 |                                 | $      | 4,257,648 |   | $ | - |   | $ | 359,253 |   |   | 22,692 |   |
| June                  2007      |   |                    | 1,363,066 |                   |   | 7.8                    | %                   | $                             | 5,407,938 |                                 | $      | 4,985,387 |   | $ | - |   | $ | 422,550 |   |   | 24,694 |   |
| September                  2007 |   |                    | 1,438,143 |                   |   | 8.2                    | %                   | $                             | 6,114,379 |                                 | $      | 5,611,029 |   | $ | - |   | $ | 503,350 |   |   | 30,678 |   |
| December                  2007  |   |                    | 1,605,164 |                   |   | 9.2                    | %                   | $                             | 9,012,670 |                                 | $      | 8,186,010 |   | $ | 826,659 |   | $ | - |   |   | - |   |
| March                  2008     |   |                    | 1,693,284 |                   |   | 9.7                    | %                   | $                             | 7,000,133 |                                 | $      | 6,322,815 |   | $ | - |   | $ | 677,318 |   |   | 41,482 |   |
| June                  2008      |   |                    | 1,655,552 |                   |   | 9.4                    | %                   | $                             | 8,651,281 |                                 | $      | 7,989,060 |   | $ | 662,221 |   | $ | - |   |   | - | (1) |

| (1) | Shares                were purchased on July 11, 2008 for the June 2008 dividend. See above                and                Note 4 for futher detail. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**Note      3:**
**Credit      Facilities and Borrowings   **

----

**Note      4:**
**Issuance      of Common Stock**
** **

**Note      5:**
**Investment      Management**
** **

***Investment      Advisory Agreement***

----

|   | · | No                incentive fee in any fiscal quarter in which the Company’s net investment                income does not exceed the hurdle                rate. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | 20%                of the amount of the Company’s net investment income, if any, that exceeds                the hurdle rate in any fiscal                quarter. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

The      second part of the incentive fee (the “Capital Gains Fee”) is determined and      payable in arrears as of the end of each fiscal year (or upon termination of      the      investment advisory agreement, as of the termination date), and equals (1)      20%      of (a) the Company’s net realized capital gain (realized capital gains less      realized capital losses) on a cumulative basis from the closing date of the      Company’s initial public offering to the end of such fiscal year, less (b) any      unrealized capital depreciation at the end of such fiscal year, less (2) the      aggregate amount of all Capital Gains Fees paid to the Manager in prior fiscal      years. There were no Capital Gains Fees earned for the second quarter of 2008.      An accrual of $966,298 was made for estimated Capital Gains Fees for the second      quarter of 2007.

----

***Administration      Agreement***

----

The      foregoing description of the administration agreement is qualified in its      entirety by reference to the full text of the document, a copy of which was      filed as Exhibit 10.2 to the Company’s Form 10-K for the year ended      December 31, 2004, and is incorporated herein by reference.

**Note      6:**
**Federal      Income Taxes**
** **

|                                                                     |   | For                the Six Months Ended |   |
|--------------------------------------------------------------------------|--------|-----------------------------------------|--------|
|                                                                     |   | June                30, 2008            |   | June                30, 2007 |   |
|                                                                     |   | (Unaudited)                             |   | (Unaudited) |   |
|                                                                     |   |                                    |   |   |   |
| Statutory                federal rate on loss from continuing operations |   |                                    | 34     | % |   | 34 | % |
| Effect                of net deferred tax assets                         |   |                                    | (34    | )% |   | (34 | )% |
|                                                                     |   |                                    |        |   |   |  |   |
| Effective                tax rate on earnings from continuing operations |   |                                    | 0      | % |   | 0 | % |

----

|                                                |   | For                the Six Months Ended |    |
|-----------------------------------------------------|--------|-----------------------------------------|---------|
|                                                |   | June                30, 2008            |    | June                30, 2007 |   |
|                                                |   | (Unaudited)                             |    | (Unaudited) |   |
|                                                |   |                                    |    |   |   |
| Deferred                tax assets                  |   |                                    |         |   |   |  |   |
| Net                operating loss carryforwards     |   | $                                       | 33,866  |   | $ | 156,674 |   |
| Net                organization costs               |   |                                    | 51,921  |   |   | 99,848 |   |
| Total                gross deferred tax assets      |   |                                    | 85,787  |   |   | 256,522 |   |
| Less                valuation allowance             |   |                                    | (85,787 | ) |   | (256,522 | ) |
| Net                deferred tax assets              |   |                                    | -       |   |   | - |   |
|                                                |   |                                    |         |   |   |  |   |
| Deferred                tax liabilities             |   |                                    |         |   |   |  |   |
| Unrealized                gains, net                |   |                                    | -       |   |   | - |   |
| Prepaid                expenses                     |   |                                    | -       |   |   | - |   |
| Total                gross deferred tax liabilities |   |                                    | -       |   |   | - |   |
|                                                |   |                                    |         |   |   |  |   |
| Net                deferred tax assets              |   | $                                       | -       |   | $ | - |   |

**Note      7:**
**Reclassifications      **

----

**Note      8:**
**Commitments      and Contingencies **

**Note      9:**
**Fair      Value**

|   | · | *Level 1*— Quoted                unadjusted prices for identical instruments in active markets to                which the                Company has 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 the Company’s own assumptions that market participants would use                to price the asset or liability based on the best available information. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                               |   |   |        |                       |   | 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      |   | $      | 346,896,083 |                       | $      | -                            |   | $                          | -      |   | $ | 346,896,083 |   |
|                    Short term investments     |   |   | 177,958,876 |                       |   | 177,958,876                  |   |                       | -      |   |   | - |   |
|                    Crude oil put options      |   |   | 1,103,659   |                       |   | -                            |   |                       | -      |   |   | 1,103,659 |   |
|                    Natural gas put options    |   |   | 228,195     |                       |   | -                            |   |                       | -      |   |   | 228,195 |   |
|                    Total assets at fair value |   | $      | 526,186,813 |                       | $      | 177,958,876                  |   | $                          | -      |   | $ | 348,227,937 |   |

|                                                              |   | Long                  Term |        |
|----------------------------------------------------------------------------------|--------|----------------------------|-------------|
| Assets                  at Fair Value Using Unobservable Inputs (Level 3)   |   | Investments                |        |
|                                                              |   |                       |        |
| Balance                  as of December 31, 2007                            |   | $                          | 272,348,573 |   |
| Transfers                  in (out) of Level 3                              |   |                       | 20,835,500  |   |
| Net                  investment income (loss)                               |   |                       | 589,096     |   |
| Net                  realized gains (losses)                                |   |                       | -           |   |
| Net                  unrealized gains (losses)                              |   |                       | (134,823    | ) |
| Purchases,                  sales and redemptions                           |   |                       | 54,589,591  |   |
| Balance                  as of June 30, 2008                                |   | $                          | 348,227,937 |   |

**Note      10: Commodity Derivative Instruments**

*Accounting      for Derivative Instruments and Hedging Activities*

----

|                                                                 |   | For the Six Months Ended |     |
|---------------------------------------------------------------------------|--------|----------------------------------------------|----------|
|                                                                      |   | June 30, 2008                      |     | June 30, 2007 |   |
|                                                                 |   |                                         |     |   |   |
| Unrealized                  gains (losses) on commodity derivatives       |   | $                                            | (214,846 | ) | $ | - |   |
| Realized                  gains (losses) on commodity derivatives         |   |                                         | -        |   |   | - |   |
| Total                  gains (losses) on commodity derivative instruments |   | $                                            | (214,846 | ) | $ | - |   |

|                                           |   |       |    | Weighted            |   |                    |   |
|----------------------------------------------------------|--------|------------|---------|---------------------|--------|-------------------------|--------|
|                                 |   |       |    | Average Strike |   |                    |   |
|                                 |   | Volumes    |    | Price per      |   | Fair Value at |   |
|                                                     |   | Bbls/MMBtu |    | Bbl/MMBtu           |   | June 30, 2008 |   |
|                                           |   |       |    |                |   |                    |   |
| Oil:                                           |   |       |         |                |   |                         |   |   |  |   |
| Put                  options:                       |   |       |         |                |   |                         |   |   |  |   |
| Remainder                  of 2008                  |   |       | 126,000 |                | $      | 101.00                  |   | $ | 549,610 |   |
| 2009                                           |   |       | 137,500 |                | $      | 98.00                   |   |   | 527,380 |   |
| 2010                                           |   |       | 7,000   |                | $      | 85.00                   |   |   | 26,669 |   |
| Total                  oil                     |   |       | 270,500 |                |   |                         |   | $ | 1,103,659 |   |
|                                           |   |       |         |                |   |                         |   |   |  |   |
| Natural                  gas:                       |   |       |         |                |   |                         |   |   |  |   |
| Put                  options:                       |   |       |         |                |   |                         |   |   |  |   |
| Remainder                  of 2008                  |   |       | 373,000 |                | $      | 10.00                   |   | $ | 189,356 |   |
| 2009                                           |   |       | 242,000 |                | $      | 10.00                   |   |   | 38,839 |   |
| Total                  natural gas                  |   |       | 615,000 |                |   |                         |   | $ | 228,195 |   |
|                                           |   |       |    |                |   |                    |   |   |   |   |
| Total                  oil & natural gas put options |   |       |    |                |   |                    |   | $ | 1,331,854 |   |

**Note      12:**
**Recent      Accounting Pronouncements**

*Disclosures      about Derivative Instruments and Hedging Activities*

*Fair      Value Measurements*

----

**Note      13:**
**Subsequent      Events**

----

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

*The      following analysis of our financial condition and results of operations should      be read in conjunction with our consolidated financial statements and the notes      thereto contained elsewhere in this report.*

**Forward-Looking      Statements**
** **

|   | · | 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; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | 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 external manager, NGP Investment Advisor, LP, which                we                refer to as 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 the SEC. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------|

**Overview**

----

**Portfolio      and Investment Activity**
** **

----

**Critical      Accounting Policies**

***Basis      of Presentation***

***Cash      and Cash Equivalents***
** **

***Prepaid      Assets***
** **

***Concentration      of Credit Risk***
** **

***Valuation      of Investments***
** **

----

*Debt      Securities: *
*pari      passu *
*pari      passu *

*Equity      Securities: *

*Property-Based      Equity Participation Rights: *

***Valuation      of Commodity Derivative Instruments***

----

***Securities      Transactions, Interest and Dividend Income Recognition***

***Payment-in-Kind      Interest***

***Fee      Income Recognition***

***Net      Realized Gains or Losses and Net Change in Unrealized Appreciation or      Depreciation***

----

***Dividends***

**Results      of Operations**
** **

***Investment      Income***
*** ***

***Operating      Expenses***
*** ***

----

***Net      Investment Income***
*** ***

***Unrealized      Appreciation or Depreciation on Investments***
*** ***

***Net      Realized Gains***

***Net      Increase in Stockholders’ Equity from Operations***
*** ***

**Financial      Condition, Liquidity and Capital Resources**
** **

----

***Commodity      Derivative Instruments***

**Contractual      Obligations**

|                                                                                     |   |   |        | Less than          |   |                       |   |                       |        | More than           |   |
|------------------------------------------------------------------------------------------|--------|--------|-------------|-------------------------|--------|----------------------------|--------|----------------------------|-------------|--------------------------|--------|
| Contractual                  Obligations                                                 |   | Total  |        | 1                  Year |   | 1-3                  Years |   | 3-5                  Years |        | 5                  Years |   |
|                                                                                     |   |   |        |                    |   |                       |   |                       |        |                     |   |
| June                  30, 2008:                                                          |   |   |             |                    |   |                            |   |                       |             |                     |   |  |   |   |  |   |
| Long-term                  debt obligations — revolving credit facilities (1) |   | $      | 224,250,000 |                    | $      | -                          |   | $                          | 224,250,000 |                     | $      | - |   | $ | - |   |
| Total                                                                                    |   | $      | 224,250,000 |                    | $      | -                          |   | $                          | 224,250,000 |                     | $      | - |   | $ | - |   |

**Off-Balance      Sheet Arrangements**

**Dividends**

**Portfolio      Credit Quality**
** **

----

**Recently      Issued Accounting Pronouncements**

**Item      3. **
**Quantitative      and Qualitative Disclosures About Market Risk**

***Commodity      Price Risk***

**Item      4. **
**Controls      and Procedures**
** **

**Disclosure      Controls and Procedures**

**PART      II – OTHER INFORMATION**

**Item      1. **
**Legal      Proceedings**
** **

**Item      1A. **
**Risk      Factors**

----

***Additional      Risk Factor***

**We      may be subject to the risks associated with the ethanol      industry.**

***Revised      Risk Factors***

**We      may be exposed to risks associated with changes in interest      rates.**

**If      we issue senior securities, such as debt or preferred stock, we will be exposed      to additional risks. **

----

**Item      2. **
**Unregistered      Sales of Equity Securities and Use of Proceeds**
** **

**Item      3. **
**Defaults      Upon Senior Securities**
** **

**Item      4. **
**Submission      of Matters to a Vote of Security Holders**
** **

|  | (a) | Our                annual meeting of stockholders was held on Wednesday, May 14,                2008. |
|--|-----|-------------------------------------------------------------------------------------------------------|

|  | (b) | Proxies                were solicited by our Board of Directors pursuant to Regulation 14A                under                the Securities and Exchange Act of 1934. There was no solicitation                in                opposition to the Board of Directors’ nominee for director as listed in                the proxy statement, and such nominee was duly elected as reported                below. |
|--|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (c) | Out                of a total of 17,500,332 shares of our common stock outstanding and                entitled to vote, 15,500,158 shares were present in person or by                proxy,                representing approximately 89% of the outstanding                shares. |
|--|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Nominees For            |   | Number Of |             | Number Of      |   |
|------------------------------|--------|----------------|------------------|---------------------|--------|
| Director                     |   | Votes For |             | Votes Withheld |   |
| Edward W. Blessing |   |           | 14,941,945  |                |   | 558,213  |   |

**Item      5. **
**Other      Information **

----

**Item      6. **
**Exhibits**

| **No.**** ** |   | **Exhibit**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|-------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3.1               | -      | Articles                    of Incorporation of NGP Capital Resources Company dated as of                    July 15,                    2004 (filed as Exhibit (a)(1) to the Company’s Registration Statement on                    Form N-2 dated November 9, 2004 (Registration No. 333-118279)                    and                    incorporated herein by reference)                                                                                                                                                                                          |
|              |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 3.2               | -      | Articles                    of Amendment and Restatement of NGP Capital Resources Company                    dated as of                    October 29, 2004 (filed as Exhibit 3.2 to the Company’s Annual Report on                    Form 10-K for the year ended December 31, 2004, and incorporated                    herein by                    reference)                                                                                                                                                                                                          |
|              |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 3.3               | -      | Bylaws                    of NGP Capital Resources Company (filed as Exhibit (b) to the                    Company’s                    Registration Statement on Form N-2 dated August 16, 2004 (Registration                    No.                    333-118279) and incorporated herein by reference)                                                                                                                                                                                                                                                                   |
|              |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 10.1              | -      | Investment                    Advisory Agreement dated as of November 9, 2004, between NGP                    Capital                    Resources Company and NGP Investment Advisor, LP (filed as Exhibit                    10.1 to                    the Company’s Annual Report on Form 10-K for the year ended December 31,                    2004, and incorporated herein by reference)                                                                                                                                                                            |
|              |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 10.2              | -      | Administration                    Agreement dated as of November 9, 2004, by and between NGP Capital                    Resources Company and NGP Administration, LLC (filed as Exhibit                    10.2 to                    the Company’s Annual Report on Form 10-K for the year ended December 31,                    2004, and incorporated herein by reference)                                                                                                                                                                                                |
|              |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 10.3              | -      | License                    Agreement dated as of November 9, 2004, by and between NGP Capital                    Resources Company and NGP Energy Capital Management, L.L.C. (formerly                    known as Natural Gas Partners, L.L.C.) (filed as Exhibit 10.3                    to the                    Company’s Annual Report on Form 10-K for the year ended December 31,                    2004,                    and incorporated herein by reference)                                                                                                  |
|              |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 10.4              | -      | Amended                    and Restated Joint Code of Ethics                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|              |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 10.5              | -      | Form                    of Indemnity Agreement (filed as Exhibit 10.5 to the Company’s Annual                    Report on Form 10-K for the year ended December 31, 2004, and                    incorporated                    herein by reference)                                                                                                                                                                                                                                                                                                                       |
|              |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 10.6              | -      | Amended                    and Restated Revolving Credit Agreement dated as of August 31,                    2006, by                    and between NGP Capital Resources Company, the lenders from time                    to time                    party thereto and SunTrust Bank (filed as Exhibit 10.6 to the                    Company’s                    Quarterly Report on Form 10-Q for the quarterly period ended                    September 30,                    2006, and incorporated herein by reference)                                           |
|              |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 10.7              | -      | First                    Amendment to Amended and Restated Revolving Credit Agreement                    effective as                    of August 31, 2006, by and between NGP Capital Resources Company,                    the                    lenders from time to time party thereto and SunTrust Bank (filed                    as                    Exhibit 10.7 to the Company’s Quarterly Report on Form 10-Q for the                    quarterly period ended September 30, 2006, and incorporated herein                    by                    reference) |
|              |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 10.8              | -      | Treasury                    Secured Revolving Credit Agreement dated as of August 31, 2006,                    by and                    between NGP Capital Resources Company, the lenders from time                    to time party                    thereto and SunTrust Bank (filed as Exhibit 10.7 to the Company’s                    Quarterly Report on Form 10-Q for the quarterly period ended                    September 30,                    2006, and incorporated herein by reference)                                                                  |
|              |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 10.9              | -      | First                    Amendment to Treasury Secured Revolving Credit Agreement effective                    as of                    August 31, 2006, by and between NGP Capital Resources Company,                    the lenders                    from time to time party thereto and SunTrust Bank (filed as Exhibit                    10.9                    to the Company’s Quarterly Report on Form 10-Q for the quarterly period                    ended September 30, 2006, and incorporated herein by                    reference)                        |
|              |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 10.10             | -      | Second                    Amendment to Treasury Secured Revolving Credit Agreement effective                    as of                    September 28, 2007, by and between NGP Capital Resources Company,                    the                    lenders from time to time party thereto and SunTrust Bank (filed                    as                    Exhibit 10.1 to the Company’s Current Report on Form 8-K on October 24,                    2007, and incorporated herein by reference)                                                                        |
|              |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 10.11             | -      | Second                    Amendment to Amended and Restated Revolving Credit Agreement                    effective as                    of March 13, 2008, by and between NGP Capital Resources Company,                    the                    lenders from time to time party thereto and SunTrust                    Bank                                                                                                                                                                                                                                                  |
|              |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 10.12             | -      | Third                    Amendment to Treasury Secured Revolving Credit Agreement effective                    as of                    March 13, 2008, by and between NGP Capital Resources Company,                    the lenders                    from time to time party thereto and SunTrust                    Bank                                                                                                                                                                                                                                                       |

----

| 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                         |

----

| NGP                  CAPITAL RESOURCES COMPANY |
|------------------------------------------------|
|                                           |   |   |
|                                           | By: | /s/                  John H. Homier |
|                                           |   | John                  H. Homier |
|                                           |   | President                  and Chief Executive Officer |
|                                           |   |   |
| NGP                  CAPITAL RESOURCES COMPANY |
|                                           |   |   |
|                                           | By: | /s/                  Stephen K. Gardner      |
|                                           |   | Stephen                  K. Gardner |
|                                           |   | Chief                  Financial Officer, Treasurer and Secretary |

----

**Index      to Exhibits**

| **No.**** ** |   | ** ****Exhibit**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |
|-------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| 3.1               | -      | Articles                  of Incorporation of NGP Capital Resources Company dated as of July                  15,                  2004 (filed as Exhibit (a)(1) to the Company’s Registration Statement on                  Form N-2 dated November 9, 2004 (Registration No. 333-118279) and                  incorporated herein by reference)                                                                                                                                                                                                   |   |
|              |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |
| 3.2               | -      | Articles                  of Amendment and Restatement of NGP Capital Resources Company dated                  as of                  October 29, 2004 (filed as Exhibit 3.2 to the Company’s Annual Report on                  Form 10-K for the year ended December 31, 2004, and incorporated                  herein by                  reference)                                                                                                                                                                                                  |   |
|              |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |
| 3.3               | -      | Bylaws                  of NGP Capital Resources Company (filed as Exhibit (b) to the Company’s                  Registration Statement on Form N-2 dated August 16, 2004 (Registration                  No.                  333-118279) and incorporated herein by reference)                                                                                                                                                                                                                                                                          |   |
|              |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |
| 10.1              | -      | Investment                  Advisory Agreement dated as of November 9, 2004, between NGP Capital                  Resources Company and NGP Investment Advisor, LP (filed as Exhibit                  10.1 to                  the Company’s Annual Report on Form 10-K for the year ended December 31,                  2004, and incorporated herein by reference)                                                                                                                                                                                     |   |
|              |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |
| 10.2              | -      | Administration                  Agreement dated as of November 9, 2004, by and between NGP Capital                  Resources Company and NGP Administration, LLC (filed as Exhibit                  10.2 to                  the Company’s Annual Report on Form 10-K for the year ended December 31,                  2004, and incorporated herein by reference)                                                                                                                                                                                      |   |
|              |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |
| 10.3              | -      | License                  Agreement dated as of November 9, 2004, by and between NGP Capital                  Resources Company and NGP Energy Capital Management, L.L.C. (formerly                  known as Natural Gas Partners, L.L.C.) (filed as Exhibit 10.3 to                  the                  Company’s Annual Report on Form 10-K for the year ended December 31, 2004,                  and incorporated herein by reference)                                                                                                             |   |
|              |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |
| 10.4              | -      | Amended                  and Restated Joint Code of Ethics                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |
|              |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |
| 10.5              | -      | Form                  of Indemnity Agreement (filed as Exhibit 10.5 to the Company’s Annual                  Report on Form 10-K for the year ended December 31, 2004, and incorporated                  herein by reference)                                                                                                                                                                                                                                                                                                                            |   |
|              |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |
| 10.6              | -      | Amended                  and Restated Revolving Credit Agreement dated as of August 31,                  2006, by                  and between NGP Capital Resources Company, the lenders from time                  to time                  party thereto and SunTrust Bank (filed as Exhibit 10.6 to the Company’s                  Quarterly Report on Form 10-Q for the quarterly period ended September                  30,                  2006, and incorporated herein by reference)                                                          |   |
|              |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |
| 10.7              | -      | First                  Amendment to Amended and Restated Revolving Credit Agreement effective                  as                  of August 31, 2006, by and between NGP Capital Resources Company,                  the                  lenders from time to time party thereto and SunTrust Bank (filed                  as                  Exhibit 10.7 to the Company’s Quarterly Report on Form 10-Q for the                  quarterly period ended September 30, 2006, and incorporated herein                  by                  reference) |   |
|              |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |
| 10.8              | -      | Treasury                  Secured Revolving Credit Agreement dated as of August 31, 2006,                  by and                  between NGP Capital Resources Company, the lenders from time to                  time party                  thereto and SunTrust Bank (filed as Exhibit 10.7 to the Company’s                  Quarterly Report on Form 10-Q for the quarterly period ended September                  30,                  2006, and incorporated herein by reference)                                                              |   |
|              |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |
| 10.9              | -      | First                  Amendment to Treasury Secured Revolving Credit Agreement effective                  as of                  August 31, 2006, by and between NGP Capital Resources Company,                  the lenders                  from time to time party thereto and SunTrust Bank (filed as Exhibit                  10.9                  to the Company’s Quarterly Report on Form 10-Q for the quarterly period                  ended September 30, 2006, and incorporated herein by                  reference)                      |   |
|              |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |
| 10.10             | -      | Second                  Amendment to Treasury Secured Revolving Credit Agreement effective                  as of                  September 28, 2007, by and between NGP Capital Resources Company,                  the                  lenders from time to time party thereto and SunTrust Bank (filed                  as                  Exhibit 10.1 to the Company’s Current Report on Form 8-K on October 24,                  2007, and incorporated herein by reference)                                                                    |   |
|              |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |
| 10.11             | -      | Second                  Amendment to Amended and Restated Revolving Credit Agreement effective                  as                  of March 13, 2008, by and between NGP Capital Resources Company,                  the                  lenders from time to time party thereto and SunTrust Bank                                                                                                                                                                                                                                                           |   |
|              |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |
| 10.12             | -      | Third                  Amendment to Treasury Secured Revolving Credit Agreement effective                  as of                  March 13, 2008, by and between NGP Capital Resources Company, the                  lenders                  from time to time party thereto and SunTrust Bank                                                                                                                                                                                                                                                                |   |

----

| 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                                        |   |

----