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

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

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

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

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| PART I - FINANCIAL INFORMATION                                                                                              |         | 1      |
|-----------------------------------------------------------------------------------------------------------------------------|--------------|--------|
|                                                                                                                        |         |   |
| Item 1.     Financial Statements                                                                        |         | 1      |
| Item 2.     Management’s Discussion and Analysis of Financial Condition and Results of Operations |         | 31     |
| Item 3.     Quantitative and Qualitative Disclosures About Market Risk                                  |         | 38     |
| Item 4.     Controls and Procedures                                                                     |         | 39     |
|                                                                                                                        |         |   |
| PART II – OTHER INFORMATION                                                                                           |         | 40     |
|                                                                                                                        |         |   |
| Item 1.     Legal Proceedings                                                                           |         | 40     |
| Item 1A.  Risk Factors                                                                                                 |         | 40     |
| Item 6.     Exhibits                                                                                    |    | 40     |

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|                                                               |   | March 31, 2011 |        |   | December 31, 2010 |   |
|--------------------------------------------------------------------|--------|----------------|-------------|--------|-------------------|--------|
|                                                               |   | (Unaudited)    |        |   |              |   |
|                                                               |   |           |        |   |              |   |
| Assets                                                             |   |           |        |   |              |   |
| Investments in portfolio securities at fair value                  |   |           |        |   |              |   |
| Control investments - majority owned                               |   |           |        |   |              |   |
| (cost: $94,378,591 and $89,502,910, respectively)                  |   | $              | 79,276,359  |   |              | $      | 70,973,316 |   |
| Affiliate investments                                              |   |           |        |   |              |   |   |   |
| (cost: $35,771,803 and $34,146,328, respectively)                  |   |           | 23,495,180  |   |              |   | 33,064,028 |   |
| Non-affiliate investments                                          |   |           |        |   |              |   |   |   |
| (cost: $95,726,987 and $114,852,057, respectively)                 |   |           | 94,241,048  |   |              |   | 112,025,645 |   |
| Investments in U.S. Treasury Bills at fair value                   |   |           |        |   |              |   |   |   |
| (cost: $30,600,288 and $0, respectively)                           |   |           | 30,600,314  |   |              |   | - |   |
| Total investments                                                  |   |           | 227,612,901 |   |              |   | 216,062,989 |   |
|                                                               |   |           |        |   |              |   |   |   |
| Cash and cash equivalents                                          |   |           | 57,962,633  |   |              |   | 68,456,908 |   |
| Accounts receivable and other current assets                       |   |           | 1,316,303   |   |              |   | 3,095,882 |   |
| Interest receivable                                                |   |           | 891,110     |   |              |   | 2,236,122 |   |
| Prepaid assets                                                     |   |           | 1,629,184   |   |              |   | 1,736,732 |   |
| Deferred tax assets                                                |   |           | 1,529,867   |   |              |   | - |   |
| Total current assets                                               |   |           | 63,329,097  |   |              |   | 75,525,644 |   |
|                                                               |   |           |        |   |              |   |   |   |
| Total assets                                                       |   | $              | 290,941,998 |   |              | $      | 291,588,633 |   |
|                                                               |   |           |        |   |              |   |   |   |
| Liabilities and stockholders' equity (net assets)                  |   |           |        |   |              |   |   |   |
| Current liabilities                                                |   |           |        |   |              |   |   |   |
| Accounts payable and accrued expenses                              |   | $              | 535,368     |   |              | $      | 525,111 |   |
| Management and incentive fees payable                              |   |           | 1,333,288   |   |              |   | 1,376,032 |   |
| Dividends payable                                                  |   |           | 3,893,076   |   |              |   | 3,893,076 |   |
| Income taxes payable                                               |   |           | 60,136      |   |              |   | 50,350 |   |
| Current portion of long-term debt                                  |   |           | 30,000,000  |   |              |   | - |   |
| Total current liabilities                                          |   |           | 35,821,868  |   |              |   | 5,844,569 |   |
|                                                               |   |           |        |   |              |   |   |   |
| Deferred tax liabilities                                           |   |           | 1,546,503   |   |              |   | 18,136 |   |
| Long-term debt, less current portion                               |   |           | 25,000,000  |   |              |   | 50,000,000 |   |
|                                                               |   |           |        |   |              |   |   |   |
| Total liabilities                                                  |   |           | 62,368,371  |   |              |   | 55,862,705 |   |
|                                                               |   |           |        |   |              |   |   |   |
| Commitments and contingencies  (Note 6)                  |   |           |        |   |              |   |   |   |
|                                                               |   |           |        |   |              |   |   |   |
| Stockholders’ equity (net assets)                            |   |           |        |   |              |   |   |   |
| Common stock, $.001 par value, 250,000,000 shares authorized;      |   |           |        |   |              |   |   |   |
| 21,628,202 shares issued and outstanding                           |   |           | 21,628      |   |              |   | 21,628 |   |
| Paid-in capital in excess of par                                   |   |           | 293,789,803 |   |              |   | 293,789,803 |   |
| Undistributed net investment income (loss)                         |   |           | (8,741,083  | )      |              |   | (7,845,925 | ) |
| Undistributed net realized capital gain (loss)                     |   |           | (33,303,581 | )      |              |   | (32,778,782 | ) |
| Net unrealized appreciation (depreciation) of portfolio securities |   |           |        |   |              |   |   |   |
| and commodity derivative instruments                               |   |           | (23,193,140 | )      |              |   | (17,460,796 | ) |
|                                                               |   |           |        |   |              |   |   |   |
| Total stockholders’ equity (net assets)                      |   |           | 228,573,627 |   |              |   | 235,725,928 |   |
|                                                               |   |           |        |   |              |   |   |   |
| Total liabilities and stockholders' equity (net assets)            |   | $              | 290,941,998 |   |              | $      | 291,588,633 |   |
|                                                               |   |           |        |   |              |   |   |   |
| Net asset value per share                                          |   | $              | 10.57       |   |              | $      | 10.90 |   |

----

|                                                         |   | For The Three Months Ended |        |
|--------------------------------------------------------------|--------|----------------------------|-------------|
|                                                         |   | March 31, 2011             |        |   | March 31, 2010 |   |
|                                                         |   |                       |        |   |   |   |
| Investment income                                            |   |                       |        |   |   |   |
| Interest income:                                             |   |                       |        |   |   |   |
| Control investments - majority owned                         |   | $                          | 1,355,909   |   |   | $ | 1,099,979 |   |
| Affiliate investments                                        |   |                       | 951,865     |   |   |   | 832,913 |   |
| Non-affiliate investments                                    |   |                       | 3,479,005   |   |   |   | 3,177,541 |   |
| Royalty income (loss), net of amortization:                  |   |                       |        |   |   |   |   |   |
| Control investments - majority owned                         |   |                       | 478,350     |   |   |   | 294,811 |   |
| Non-affiliate investments                                    |   |                       | 255,782     |   |   |   | (518,056 | ) |
| Commodity derivative income, net of expired options          |   |                       | -           |   |   |   | 16,079 |   |
| Other income                                                 |   |                       | 33,750      |   |   |   | 290,000 |   |
|                                                         |   |                       |        |   |   |   |   |   |
| Total investment income                                      |   |                       | 6,554,661   |   |   |   | 5,193,267 |   |
|                                                         |   |                       |        |   |   |   |   |   |
| Operating expenses                                           |   |                       |        |   |   |   |   |   |
| Management and incentive fees                                |   |                       | 1,333,288   |   |   |   | 1,338,569 |   |
| Professional fees                                            |   |                       | 199,040     |   |   |   | 265,304 |   |
| Insurance expense                                            |   |                       | 182,543     |   |   |   | 185,658 |   |
| Interest expense and fees                                    |   |                       | 309,421     |   |   |   | 313,063 |   |
| State and excise taxes                                       |   |                       | 656         |   |   |   | - |   |
| Other general and administrative expenses                    |   |                       | 829,079     |   |   |   | 946,420 |   |
|                                                         |   |                       |        |   |   |   |   |   |
| Total operating expenses                                     |   |                       | 2,854,027   |   |   |   | 3,049,014 |   |
|                                                         |   |                       |        |   |   |   |   |   |
| Net investment income before income taxes                    |   |                       | 3,700,634   |   |   |   | 2,144,253 |   |
|                                                         |   |                       |        |   |   |   |   |   |
| Benefit (provision) for income taxes                         |   |                       | (702,716    | ) |   |   | 287,074 |   |
|                                                         |   |                       |        |   |   |   |   |   |
| Net investment income                                        |   |                       | 2,997,918   |   |   |   | 2,431,327 |   |
|                                                         |   |                       |        |   |   |   |   |   |
| Net realized capital gain (loss) on investments              |   |                       |        |   |   |   |   |   |
| Net realized capital gain (loss) on portfolio securities:    |   |                       |        |   |   |   |   |   |
| Control investments - majority owned                         |   |                       | 81,275      |   |   |   | - |   |
| Non-affiliate investments                                    |   |                       | (606,361    | ) |   |   | - |   |
| Benefit (provision) for taxes on capital gain (loss)         |   |                       | 287         |   |   |   | (9,151 | ) |
|                                                         |   |                       |        |   |   |   |   |   |
| Total net realized capital gain (loss) on investments        |   |                       | (524,799    | ) |   |   | (9,151 | ) |
|                                                         |   |                       |        |   |   |   |   |   |
| Net unrealized gain (loss) on investments                    |   |                       |        |   |   |   |   |   |
| Net increase (decrease) in unrealized appreciation           |   |                       |        |   |   |   |   |   |
| (depreciation) on portfolio securities and                   |   |                       |        |   |   |   |   |   |
| commodity derivative instruments:                            |   |                       |        |   |   |   |   |   |
| Control investments - majority owned                         |   |                       | 3,427,363   |   |   |   | 6,501 |   |
| Affiliate investments                                        |   |                       | (11,194,323 | ) |   |   | 558,719 |   |
| Non-affiliate investments                                    |   |                       | 1,340,473   |   |   |   | 2,313,989 |   |
| Benefit (provision) for taxes on unrealized gain (loss)      |   |                       | 694,143     |   |   |   | (293,149 | ) |
|                                                         |   |                       |        |   |   |   |   |   |
| Total net unrealized gain (loss) on investments              |   |                       | (5,732,344  | ) |   |   | 2,586,060 |   |
|                                                         |   |                       |        |   |   |   |   |   |
| Net increase (decrease) in stockholders' equity              |   |                       |        |   |   |   |   |   |
| (net assets) resulting from operations                       |   | $                          | (3,259,225  | ) |   | $ | 5,008,236 |   |
|                                                         |   |                       |        |   |   |   |   |   |
| Net increase (decrease) in stockholders' equity (net assets) |   |                       |        |   |   |   |   |   |
| resulting from operations per common share                   |   | $                          | (0.15       | ) |   | $ | 0.24 |   |

----

|                                                                                 |   |         |       |   |      |   |   |           |   |   |          |   |   |          |       |   | Net Unrealized |   |        |          |   |
|-------------------------------------------------------------------------------------------|--------|--------------|------------|--------|-----------|--------|--------|----------------|--------|--------|---------------|--------|--------|---------------|------------|--------|----------------|--------|-------------|---------------|--------|
|                                                                                      |   |         |       |   |      |   |   | Paid-in        |   |   |          |   |   | Undistributed |       |   | Appreciation   |   |        | Total         |   |
|                                                                                      |   |         |       |   |      |   |   | Capital        |   |   | Undistributed |   |   | Net Realized  |       |   | (Depreciation) |   |        | Stockholders' |   |
|                                                                                      |   | Common Stock |       |   | in Excess |   |   | Net Investment |   |   | Capital       |   |   | of Portfolio  |       |   | Equity         |   |
|                                                                                      |   | Shares       |       |   | Amount    |   |   | of Par         |   |   | Income (Loss) |   |   | Gain (Loss)   |       |   | Securities     |   |        | (Net Assets)  |   |
| Balance at December 31, 2010                                                              |   |         | 21,628,202 |   |      | $      | 21,628 |           |   | $      | 293,789,803   |   |   | $             | (7,845,925 | )      |           | $      | (32,778,782 | )             |   | $ | (17,460,796 | ) |   | $ | 235,725,928 |   |
| Net increase (decrease) in in stockholders' equity (net assets) resulting from operations |   |         | -          |   |      |   | -      |           |   |   | -             |   |   |          | 2,997,918  |   |           |   | (524,799    | )             |   |   | (5,732,344 | ) |   |   | (3,259,225 | ) |
|                                                                                      |   |         |       |   |      |   |   |           |   |   |          |   |   |          |       |   |           |   |        |          |   |   |   |   |   |   |   |   |
| Dividends declared                                                                        |   |         | -          |   |      |   | -      |           |   |   | -             |   |   |          | (3,893,076 | )      |           |   | -           |          |   |   | - |   |   |   | (3,893,076 | ) |
| Balance at March 31, 2011                                                                 |   |         | 21,628,202 |   |      | $      | 21,628 |           |   | $      | 293,789,803   |   |   | $             | (8,741,083 | )      |           | $      | (33,303,581 | )             |   | $ | (23,193,140 | ) |   | $ | 228,573,627 |   |

----

|                                                                                                                                                   |   | For The Three Months Ended |        |
|--------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------|-------------|
|                                                                                                                                                   |   | March 31, 2011             |        |   | March 31, 2010 |   |
|                                                                                                                                                   |   |                       |        |   |   |   |
| Cash flows from operating activities                                                                                                                   |   |                       |        |   |   |   |
| Net increase (decrease) in stockholders' equity (net assets) resulting from operations                                                                 |   | $                          | (3,259,225  | ) |   | $ | 5,008,236 |   |
| Adjustments to reconcile net increase (decrease) in stockholders' equity (net assets)                                                                  |   |                       |        |   |   |   |   |   |
| resulting from operations to net cash (used in) provided by operating activities                                                                       |   |                       |        |   |   |   |   |   |
| Payment-in-kind interest                                                                                                                               |   |                       | (1,459,899  | ) |   |   | (1,731,489 | ) |
| Net amortization of premiums, discounts and fees                                                                                                       |   |                       | 464,832     |   |   |   | 2,968,431 |   |
| Net realized capital loss on portfolio securities before taxes                                                                                         |   |                       | 525,086     |   |   |   | - |   |
|           Change in unrealized  (appreciation) depreciation on portfolio securities   |   |                       |        |   |   |   |   |   |
| and commodity derivative instruments before taxes                                                                                                      |   |                       | 6,426,487   |   |   |   | (2,879,209 | ) |
| Current portion of deferred income taxes                                                                                                               |   |                       | (1,529,867  | ) |   |   | (266,975 | ) |
| Non-current deferred income taxes                                                                                                                      |   |                       | 1,528,367   |   |   |   | 266,975 |   |
| Effects of changes in operating assets and liabilities                                                                                                 |   |                       |        |   |   |   |   |   |
| Accounts receivable and other current assets                                                                                                           |   |                       | 1,779,579   |   |   |   | 9,316 |   |
| Interest receivable                                                                                                                                    |   |                       | 1,345,012   |   |   |   | 407,567 |   |
| Prepaid assets                                                                                                                                         |   |                       | 107,548     |   |   |   | 297,444 |   |
| Accounts payable and accrued expenses                                                                                                                  |   |                       | (32,487     | ) |   |   | (68,120 | ) |
| Income taxes payable                                                                                                                                   |   |                       | 9,786       |   |   |   | 15,226 |   |
| Purchase of investments in portfolio securities and commodity                                                                                          |   |                       |        |   |   |   |   |   |
| derivative instruments                                                                                                                                 |   |                       | (14,756,788 | ) |   |   | (3,294,585 | ) |
| Proceeds from the redemption of investments in portfolio securities                                                                                    |   |                       |        |   |   |   |   |   |
| and commodity derivative instruments                                                                                                                   |   |                       | 27,850,658  |   |   |   | 2,587,715 |   |
| Purchase of investments in U.S. Treasury Bills                                                                                                         |   |                       | (30,600,288 | ) |   |   | - |   |
|                                                                                                                                                   |   |                       |        |   |   |   |   |   |
| Net cash (used in) provided by operating activities                                                                                                    |   |                       | (11,601,199 | ) |   |   | 3,320,532 |   |
|                                                                                                                                                   |   |                       |        |   |   |   |   |   |
| Cash flows from financing activities                                                                                                                   |   |                       |        |   |   |   |   |   |
| Borrowings under revolving credit facilities                                                                                                           |   |                       | 55,000,000  |   |   |   | 64,905,200 |   |
| Repayments on revolving credit facility                                                                                                                |   |                       | (50,000,000 | ) |   |   | (67,500,000 | ) |
| Dividends paid                                                                                                                                         |   |                       | (3,893,076  | ) |   |   | (3,676,794 | ) |
|                                                                                                                                                   |   |                       |        |   |   |   |   |   |
| Net cash (used in) provided by financing activities                                                                                                    |   |                       | 1,106,924   |   |   |   | (6,271,594 | ) |
|                                                                                                                                                   |   |                       |        |   |   |   |   |   |
| Net increase (decrease) in cash and cash equivalents                                                                                                   |   |                       | (10,494,275 | ) |   |   | (2,951,062 | ) |
| Cash and cash equivalents, beginning of period                                                                                                         |   |                       | 68,456,908  |   |   |   | 108,288,217 |   |
|                                                                                                                                                   |   |                       |        |   |   |   |   |   |
| Cash and cash equivalents, end of period                                                                                                               |   | $                          | 57,962,633  |   |   | $ | 105,337,155 |   |

----

| Portfolio Company                                                 |   | Energy Industry Segment          |   | Investment (1) (2) (4)                             |   | Principal |       |   | Cost   |   |       | Fair Value (3) |   |
|-------------------------------------------------------------------|--------|----------------------------------|--------|----------------------------------------------------|--------|-----------|------------|--------|--------|--------|------------|----------------|--------|
| TARGETED INVESTMENTS                                              |   |                             |   |                                               |   |      |       |   |   |   |       |
| Control Investments - Majority Owned (50% or more owned)          |   |                             |   |                                               |   |      |       |   |   |   |       |
| Alden Resources, LLC (7)                                          |   | Coal Production                  |   | Senior Secured                                     |   | $         | 16,497,033 |   |   | $      | 15,254,073 |           |   | $ | 15,154,073 |   |
|                                                              |   |                             |   | Multiple-Advance Term Loan - Tranche A             |   |      |       |   |   |   |       |           |   |   |   |   |
|                                                              |   |                             |   | (The greater of 12.00% or LIBOR +                  |   |      |       |   |   |   |       |           |   |   |   |   |
|                                                              |   |                             |   | 9.00% cash, due 1/05/2013)                         |   |      |       |   |   |   |       |           |   |   |   |   |
|                                                              |   |                             |   |                                               |   |      |       |   |   |   |       |           |   |   |   |   |
|                                                              |   |                             |   | Senior Secured                                     |   |      | 25,254,049 |   |   |   | 19,519,841 |           |   |   | 19,519,841 |   |
|                                                              |   |                             |   | Multiple-Advance Term Loan - Tranche B             |   |      |       |   |   |   |       |           |   |   |   |   |
|                                                              |   |                             |   | (The greater of 12.00% or LIBOR +                  |   |      |       |   |   |   |       |           |   |   |   |   |
|                                                              |   |                             |   | 9.00% cash, 15.00% or LIBOR +                      |   |      |       |   |   |   |       |           |   |   |   |   |
|                                                              |   |                             |   | 12.00% PIK, due 1/05/2013) (9)                     |   |      |       |   |   |   |       |           |   |   |   |   |
|                                                              |   |                             |   |                                               |   |      |       |   |   |   |       |           |   |   |   |   |
|                                                              |   |                             |   | Senior Secured                                     |   |      | 6,240,000  |   |   |   | 6,240,000  |           |   |   | 6,240,000 |   |
|                                                              |   |                             |   | Multiple-Advance Term Loan - Revolver              |   |      |       |   |   |   |       |           |   |   |   |   |
|                                                              |   |                             |   | (The greater of 12.00% or LIBOR +                  |   |      |       |   |   |   |       |           |   |   |   |   |
|                                                              |   |                             |   | 9.00% cash, 15.00% or LIBOR +                      |   |      |       |   |   |   |       |           |   |   |   |   |
|                                                              |   |                             |   | 12.00% PIK, due 1/05/2013)                         |   |      |       |   |   |   |       |           |   |   |   |   |
|                                                              |   |                             |   |                                               |   |      |       |   |   |   |       |           |   |   |   |   |
|                                                              |   |                             |   | 5.8 million Class E Units - entitled  to |   |      |       |   |   |   | 5,800,000  |           |   |   | 5,800,000 |   |
|                                                              |   |                             |   |  100% of distributions of Alden Resources     |   |      |       |   |   |   |       |           |   |   |   |   |
|                                                              |   |                             |   | until payout, 80% after payout (8)                 |   |      |       |   |   |   |       |           |   |   |   |   |
|                                                              |   |                             |   |                                               |   |      |       |   |   |   |       |           |   |   |   |   |
|                                                              |   |                             |   | Royalty Interest                                   |   |      |       |   |   |   | 2,473,687  |           |   |   | 13,200,000 |   |
|                                                              |   |                             |   |                                               |   |      |       |   |   |   |       |           |   |   |   |   |
| BSR Holdings, LLC (7) (18)                                        |   | Oil & Natural Gas            |   | 100% of membership interests of                    |   |      |       |   |   |   | -          |           |   |   | - |   |
|                                                              |   |  Production and Development |   | BSR Holdings, LLC (8)                              |   |      |       |   |   |   |       |           |   |   |   |   |
|                                                              |   |                             |   |                                               |   |      |       |   |   |   |       |           |   |   |   |   |
| DeanLake Operator, LLC (7)                                        |   | Oil & Natural Gas            |   | Class A membership interests - entitled to 100%    |   |      |       |   |   |   | 14,050,255 |           |   |   | 3,500,000 |   |
|                                                              |   |  Production and Development |   | of distribution of DeanLake Operator, LLC          |   |      |       |   |   |   |       |           |   |   |   |   |
|                                                              |   |                             |   | until payout, 80% after payout (8)                 |   |      |       |   |   |   |       |           |   |   |   |   |
|                                                              |   |                             |   |                                               |   |      |       |   |   |   |       |           |   |   |   |   |
|                                                              |   |                             |   | Overriding Royalty Interest                        |   |      |       |   |   |   | 17,502     |           |   |   | 50,000 |   |
|                                                              |   |                             |   |                                               |   |      |       |   |   |   |       |           |   |   |   |   |
| Gatliff Services, LLC (7)                                         |   | Coal Processing                  |   | Senior Secured                                     |   |      | 13,212,445 |   |   |   | 13,212,445 |           |   |   | 13,212,445 |   |
|                                                              |   |                             |   | Multiple-Advance Term Loan                         |   |      |       |   |   |   |       |           |   |   |   |   |
|                                                              |   |                             |   | (8.00% during construction, 12.00%                 |   |      |       |   |   |   |       |           |   |   |   |   |
|                                                              |   |                             |   | after completion, due 9/30/2020)                   |   |      |       |   |   |   |       |           |   |   |   |   |
|                                                              |   |                             |   |                                               |   |      |       |   |   |   |       |           |   |   |   |   |
|                                                              |   |                             |   | One Membership Unit - representing 100%            |   |      |       |   |   |   | 1,100,000  |           |   |   | 1,100,000 |   |
|                                                              |   |                             |   | ownership of Gatliff Services, LLC  (8)  |   |      |       |   |   |   |       |           |   |   |   |   |
|                                                              |   |                             |   |                                               |   |      |       |   |   |   |       |           |   |   |   |   |
| Rubicon Energy Partners,                                          |   | Oil & Natural Gas            |   | 4,000 LLC Units representing                       |   |      |       |   |   |   | -          |           |   |   | - |   |
| LLC (7)                                                           |   |  Production and Development |   | 50% ownership of the assets of                     |   |      |       |   |   |   |       |           |   |   |   |   |
|                                                              |   |                             |   | Rubicon Energy Partners, LLC (8)                   |   |      |       |   |   |   |       |           |   |   |   |   |
|                                                              |   |                             |   |                                               |   |      |       |   |   |   |       |           |   |   |   |   |
| TierraMar Energy, LP (7)                                          |   | Oil & Natural Gas            |   | 212,637 Class A Preferred LP Units - entitled to   |   |      |       |   |   |   | 16,710,788 |           |   |   | 1,500,000 |   |
|                                                              |   |  Production and Development |   | 100% of distribution of TierraMar Energy LP        |   |      |       |   |   |   |       |           |   |   |   |   |
|                                                              |   |                             |   | until payout, 67% after payout (8)                 |   |      |       |   |   |   |       |           |   |   |   |   |
|                                                              |   |                             |   |                                               |   |      |       |   |   |   |       |           |   |   |   |   |
| Subtotal Control Investments - Majority Owned (50% or more owned) |   |                             |   |                                               |   | $         | 94,378,591 |   |   | $      | 79,276,359 |           |

----

| Portfolio Company                                  |   | Energy Industry Segment          |   | Investment (1) (2) (4)                             |   | Principal |       |   | Cost       |   |       | Fair Value (3) |       |
|----------------------------------------------------|--------|----------------------------------|--------|----------------------------------------------------|--------|-----------|------------|--------|------------|--------|------------|----------------|------------|
| TARGETED INVESTMENTS  - Continued        |   |                             |   |                                               |   |      |       |   |       |   |       |
| Affiliate Investments - (5% to 25% owned)          |   |                             |   |                                               |   |      |       |   |       |   |       |
| BioEnergy Holding, LLC (7)                         |   | Alternative Fuels and            |   | Senior Secured Notes                               |   | $         | 16,662,326 |   |       | $      | 15,527,504 |           |       | $ | 7,763,752 |   |
|                                               |   | Specialty Chemicals              |   | (15.00%, due 3/06/2015) (9)                        |   |      |       |   |       |   |       |           |       |   |   |   |
|                                               |   |                             |   | BioEnergy Holding Units - 11.1% of outstanding     |   |      |       |   |       |   | 1,296,771  |           |       |   | - |   |
|                                               |   |                             |   | units of BioEnergy Holdings, LLC (8)               |   |      |       |   |       |   |       |           |       |   |   |   |
|                                               |   |                             |   | Myriant Technologies Warrants (8) (13)             |   |      |       |   |       |   | 49,238     |           |       |   | 49,238 |   |
|                                               |   |                             |   | Myriant Technologies Units - 0.59% of the          |   |      |       |   |       |   | 418,755    |           |       |   | 706,132 |   |
|                                               |   |                             |   | outstanding units of Myriant Technologies, Inc.(8) |   |      |       |   |       |   |       |           |       |   |   |   |
|                                               |   |                             |   |                                               |   |      |       |   |       |   |       |           |       |   |   |   |
| Bionol Clearfield, LLC (7) (11) (17)               |   | Alternative Fuels and            |   | Senior Secured Tranche C                           |   |      | 4,950,000  |   |       |   | 4,950,000  |           |       |   | 2,475,000 |   |
|                                               |   | Specialty Chemicals              |   | 2nd Lien Term Loan (8)                             |   |      |       |   |       |   |       |           |       |   |   |   |
|                                               |   |                             |   | (LIBOR + 7.00% cash, LIBOR + 9.00%                 |   |      |       |   |       |   |       |           |       |   |   |   |
|                                               |   |                             |   | default, due 9/06/2016) (19)                       |   |      |       |   |       |   |       |           |       |   |   |   |
|                                               |   |                             |   |                                               |   |      |       |   |       |   |       |           |       |   |   |   |
| Resaca Exploitation Inc.                           |   | Oil & Natural Gas            |   | Senior Unsecured Term Loan                         |   |      | 10,282,611 |   |       |   | 10,044,281 |           |       |   | 10,044,281 |   |
|                                               |   |  Production and Development |   | (9.50% cash or 12.0% PIK,                          |   |      |       |   |       |   |       |           |       |   |   |   |
|                                               |   |                             |   | due on 12/31/2014) (7)                             |   |      |       |   |       |   |       |           |       |   |   |   |
|                                               |   |                             |   |                                               |   |      |       |   |       |   |       |           |       |   |   |   |
|                                               |   |                             |   | Warrants (7) (8) (21)                              |   |      |       |   |       |   | 250,000    |           |       |   | 250,000 |   |
|                                               |   |                             |   |                                               |   |      |       |   |       |   |       |           |       |   |   |   |
|                                               |   |                             |   | Common Stock (1,345,595 shares) - representing     |   |      |       |   |       |   | 3,235,254  |           |       |   | 2,206,777 |   |
|                                               |   |                             |   | 6.82% of outstanding common stock of               |   |      |       |   |       |   |       |           |       |   |   |   |
|                                               |   |                             |   | Resaca Exploitation Inc. (6) (8) (14)              |   |      |       |   |       |   |       |           |       |   |   |   |
|                                               |   |                             |   |                                               |   |      |       |   |       |   |       |           |       |   |   |   |
| Subtotal Affiliate Investments - (5% to 25% owned) |   |                             |   |                                               |   |      |       | $      | 35,771,803 |   |       | $              | 23,495,180 |   |
|                                               |   |                             |   |                                               |   |      |       |   |       |   |       |           |       |   |   |   |
| Non-affiliate Investments - (Less than 5% owned)   |   |                             |   |                                               |   |      |       |   |       |   |       |           |       |   |
|                                               |   |                             |   |                                               |   |      |       |   |       |   |       |           |       |   |   |   |
| Anadarko Petroleum Corporation                     |   | Oil & Natural Gas            |   | Multiple-Advance Net Profits Interest              |   | $         | 9,433,760  |   |       | $      | 9,478,460  |           |       | $ | 9,778,459 |   |
| 2007-III Drilling Fund (7)                         |   |  Production and Development |   | (Due 4/23/2032)                                    |   |      |       |   |       |   |       |           |       |   |   |   |
|                                               |   |                             |   |                                               |   |      |       |   |       |   |       |           |       |   |   |   |
| ATP Oil & Gas Corporation (7)                  |   | Oil & Natural Gas            |   | Limited Term Royalty Interest                      |   |      |       |   |       |   | 4,530,324  |           |       |   | 4,530,324 |   |
|                                               |   |  Production and Development |   | (Dollar Denominated - 16.00% Return)               |   |      |       |   |       |   |       |           |       |   |   |   |
|                                               |   |                             |   |                                               |   |      |       |   |       |   |       |           |       |   |   |   |
| Black Pool Energy                                  |   | Oil & Natural Gas            |   | Senior Secured                                     |   |      | 17,609,600 |   |       |   | 17,509,047 |           |       |   | 17,509,047 |   |
| Partners, LLC (7)                                  |   |  Production and Development |   | Multiple-Advance Term Loan                         |   |      |       |   |       |   |       |           |       |   |   |   |
|                                               |   |                             |   | (The greater of 15.00% or LIBOR +                  |   |      |       |   |       |   |       |           |       |   |   |   |
|                                               |   |                             |   | 11.00% cash, due 10/24/2011)                       |   |      |       |   |       |   |       |           |       |   |   |   |
|                                               |   |                             |   | Overriding Royalty Interest                        |   |      |       |   |       |   | 9,343      |           |       |   | 100,000 |   |
|                                               |   |                             |   | Warrants (8) (15)                                  |   |      |       |   |       |   | 10,000     |           |       |   | 10,000 |   |
|                                               |   |                             |   |                                               |   |      |       |   |       |   |       |           |       |   |   |   |
| Chroma Exploration &                           |   | Oil & Natural Gas            |   | 10,930 Shares Series A Participating               |   |      |       |   |       |   | 2,221,710  |           |       |   | 100,000 |   |
| Production, Inc. (7)                               |   |  Production and Development |   | Convertible Preferred Stock (9)                    |   |      |       |   |       |   |       |           |       |   |   |   |
|                                               |   |                             |   | 9,981 Shares Series AA Participating               |   |      |       |   |       |   | 2,089,870  |           |       |   | 650,000 |   |
|                                               |   |                             |   | Convertible Preferred Stock (9)                    |   |      |       |   |       |   |       |           |       |   |   |   |
|                                               |   |                             |   | 8.11 Shares Common Stock (8)                       |   |      |       |   |       |   | -          |           |       |   | - |   |
|                                               |   |                             |   | Warrants (8) (10)                                  |   |      |       |   |       |   | -          |           |       |   | - |   |
|                                               |   |                             |   |                                               |   |      |       |   |       |   |       |           |       |   |   |   |
| Crestwood Holdings, LLC (7)                        |   | Natural Gas                      |   | Senior Secured Term Loan                           |   |      | 8,857,500  |   |       |   | 8,710,486  |           |       |   | 8,710,486 |   |
|                                               |   | Gathering and Processing         |   | (The greater of 10.50% or LIBOR + 8.50%,           |   |      |       |   |       |   |       |           |       |   |   |   |
|                                               |   |                             |   | due 10/01/2016)                                    |   |      |       |   |       |   |       |           |       |   |   |   |
|                                               |   |                             |   |                                               |   |      |       |   |       |   |       |           |       |   |   |   |
| Greenleaf Investments, LLC (7)                     |   | Oil & Natural Gas            |   | Senior Secured                                     |   |      | 8,065,189  |   |       |   | 8,054,076  |           |       |   | 8,054,076 |   |
|                                               |   |  Production and Development |   | Multiple-Advance Term Loan                         |   |      |       |   |       |   |       |           |       |   |   |   |
|                                               |   |                             |   | (The greater of 10.50% or LIBOR + 6.50%,           |   |      |       |   |       |   |       |           |       |   |   |   |
|                                               |   |                             |   | due 4/30/2011)                                     |   |      |       |   |       |   |       |           |       |   |   |   |
|                                               |   |                             |   | Overriding Royalty Interest                        |   |      |       |   |       |   | 16,305     |           |       |   | 400,000 |   |

----

| Portfolio Company                                            |   | Energy Industry Segment          |   | Investment (1) (2) (4)                             |   | Principal |       |   | Cost        |   |       | Fair Value (3) |        |
|--------------------------------------------------------------|--------|----------------------------------|--------|----------------------------------------------------|--------|-----------|------------|--------|-------------|--------|------------|----------------|-------------|
| TARGETED INVESTMENTS  - Continued                  |   |                             |   |                                               |   |      |       |   |        |   |       |
| Non-affiliate Investments - (Less than 5% owned) - Continued |   |                             |   |                                               |   |      |       |   |        |
| GMX Resources, Inc. (6)                                      |   | Oil & Natural Gas            |   | Senior Convertible Notes                           |   | $         | 4,661,000  |   |        | $      | 3,918,451  |           |        | $ | 4,352,209 |   |
|                                                         |   |  Production and Development |   | (5.00%, due 2/1/2013)                              |   |      |       |   |        |   |       |           |        |   |   |   |
|                                                         |   |                             |   |                                               |   |      |       |   |        |   |       |           |        |   |   |   |
| Nighthawk Transport I, LP (7)                                |   | Energy Services                  |   | LP Units (8) (20)                                  |   |      |       |   |        |   | -          |           |        |   | - |   |
|                                                         |   |                             |   | Warrants (8) (20)                                  |   |      |       |   |        |   | -          |           |        |   | - |   |
|                                                         |   |                             |   |                                               |   |      |       |   |        |   |       |           |        |   |   |   |
| Pallas Contour Mining, LLC (7)                               |   | Coal Mining                      |   | Senior Secured                                     |   |      | 13,661,290 |   |        |   | 13,709,145 |           |        |   | 13,709,145 |   |
|                                                         |   |                             |   | Multiple-Advance Term Loan                         |   |      |       |   |        |   |       |           |        |   |   |   |
|                                                         |   |                             |   | (14.00%, due 10/14/2015)                           |   |      |       |   |        |   |       |           |        |   |   |   |
|                                                         |   |                             |   |                                               |   |      |       |   |        |   |       |           |        |   |   |   |
| Powder River Acquisitions, LLC (7)                           |   | Oil & Natural Gas            |   | Senior Secured                                     |   |      | 3,000,000  |   |        |   | 3,000,000  |           |        |   | 3,000,000 |   |
|                                                         |   |  Production and Development |   | Promissory Note                                    |   |      |       |   |        |   |       |           |        |   |   |   |
|                                                         |   |                             |   | (8.00%, due 9/30/2011)                             |   |      |       |   |        |   |       |           |        |   |   |   |
|                                                         |   |                             |   |                                               |   |      |       |   |        |   |       |           |        |   |   |   |
| Tammany Oil & Gas, LLC (7)                               |   | Oil & Natural Gas            |   | Senior Secured                                     |   |      | 22,332,804 |   |        |   | 22,317,302 |           |        |   | 22,317,302 |   |
|                                                         |   |  Production and Development |   | Multiple-Advance Term Loan                         |   |      |       |   |        |   |       |           |        |   |   |   |
|                                                         |   |                             |   | (The greater of 13.0% or LIBOR + 8.00%,            |   |      |       |   |        |   |       |           |        |   |   |   |
|                                                         |   |                             |   |  due 9/30/2012)                               |   |      |       |   |        |   |       |           |        |   |   |   |
|                                                         |   |                             |   |                                               |   |      |       |   |        |   |       |           |        |   |   |   |
|                                                         |   |                             |   | Overriding Royalty Interest                        |   |      |       |   |        |   | 132,468    |           |        |   | 1,000,000 |   |
|                                                         |   |                             |   | After Pay-Out Overriding Royalty Interest (8) (16) |   |      |       |   |        |   | 10,000     |           |        |   | 10,000 |   |
|                                                         |   |                             |   | Warrants (8) (12) (16)                             |   |      |       |   |        |   | 10,000     |           |        |   | 10,000 |   |
|                                                         |   |                             |   |                                               |   |      |       |   |        |   |       |           |        |   |   |   |
| Subtotal Non-affiliate Investments - (Less than 5% owned)    |   |                             |   |                                               |   |      |       | $      | 95,726,987  |   |       | $              | 94,241,048  |   |
|                                                         |   |                             |   |                                               |   |      |       |   |        |   |       |           |        |   |   |   |
| Subtotal Targeted Investments (86.55% of total investments)  |   |                             |   |                                               |   |      |       | $      | 225,877,381 |   |       | $              | 197,012,587 |   |
|                                                         |   |                             |   |                                               |   |      |       |   |        |   |       |           |        |   |   |   |
| GOVERNMENT SECURITIES (5)                                    |   |                             |   |                                               |   |      |       |   |        |   |       |           |        |   |
| U.S. Treasury Bills                                          |   |                             |   | U.S. Treasury Bills, 0.03%, due 04/28/2011         |   |      | 30,000,000 |   |        |   | 29,999,300 |           |        |   | 29,999,325 |   |
| U.S. Treasury Bills                                          |   |                             |   | U.S. Treasury Bills, 0.025%, due 04/28/2011        |   |      | 601,000    |   |        |   | 600,988    |           |        |   | 600,989 |   |
|                                                         |   |                             |   |                                               |   |      |       |   |        |   |       |           |        |   |   |   |
| Subtotal Government Securities (13.45% of total investments) |   |                             |   |                                               |   | $         | 30,600,288 |   |        | $      | 30,600,314 |           |
|                                                         |   |                             |   |                                               |   |      |       |   |        |   |       |           |        |   |   |   |
| TOTAL INVESTMENTS                                            |   |                             |   |                                               |   |      |       | $      | 256,477,669 |   |       | $              | 227,612,901 |   |

----

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

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

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

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

| (5) | Investments are level 1 securities hierarchy. |
|-----|-----------------------------------------------|

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

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

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

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

| (10) | Chroma warrants expire on April 5, 2012 and provide us the right to purchase 2,462 shares of common stock at a purchase price of $75.00 per share. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------|

| (11) | BioEnergy Holdings, LLC owns 100% of Bionol Clearfield, LLC. |
|------|--------------------------------------------------------------|

| (12) | Tammany Oil & Gas, LLC warrants expire five years after repayment of principal and interest and provide us the right to purchase approximately 20% of membership shares at the exercise price of approximately $17.61 per share. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| (15) | Black Pool warrants expire seven years after repayment of principal and interest and provide us the right to purchase approximately 25% of membership interest at the exercise price of $0.01 per unit. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| (18) | Oil and gas assets owned by BSR Holdings, LLC were sold on October 13, 2010. |
|------|------------------------------------------------------------------------------|

| (19) | Bionol Clearfield, LLC (Bionol) has not paid scheduled interest payments since  March 10, 2010 due to a default event involving a Bionol customer, as per the terms of our credit agreement with Bionol.  Bionol and the customer are currently in arbitration and we do not know when or whether Bionol will be able to make its scheduled interest payments. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| (21) | Resaca Exploitation, Inc. warrants expire 10 business days following termination of the credit agreement and entitle us to purchase up to 2,420,000 shares of Resaca common stock at a purchase price of $1.93 per share. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

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

----

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

----

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

----

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

----

|                                                            |   | For The Three Months Ended |    |
|-----------------------------------------------------------------|--------|----------------------------|---------|
|                                                            |   | March 31, 2011             |    |   | March 31, 2010 |   |
|                                                            |   |                       |    |   |   |   |
| Per Share Data  (1)                                   |   |                       |    |   |   |   |
|                                                            |   |                       |    |   |   |   |
| Net asset value, beginning of period                            |   | $                          | 10.90   |   |   | $ | 11.10 |   |
|                                                            |   |                       |    |   |   |   |   |   |
| Net investment income                                           |   |                       | 0.14    |   |   |   | 0.11 |   |
| Net realized and unrealized gain (loss) on portfolio securities |   |                       |    |   |   |   |   |   |
| and commodity derivative instruments (3)                        |   |                       | (0.29   | ) |   |   | 0.13 |   |
|                                                            |   |                       |    |   |   |   |   |   |
| Net increase (decrease) in stockholders' equity (net assets)    |   |                       |    |   |   |   |   |   |
| resulting from operations                                       |   |                       | (0.15   | ) |   |   | 0.24 |   |
|                                                            |   |                       |    |   |   |   |   |   |
| Dividends declared                                              |   |                       | (0.18   | ) |   |   | (0.17 | ) |
|                                                            |   |                       |    |   |   |   |   |   |
| Net asset value, end of period                                  |   | $                          | 10.57   |   |   | $ | 11.17 |   |
|                                                            |   |                       |    |   |   |   |   |   |
| Market value, beginning of period                               |   | $                          | 9.20    |   |   | $ | 8.13 |   |
| Market value, end of period                                     |   | $                          | 9.64    |   |   | $ | 8.52 |   |
| Market value return  (2)                              |   |                       | 6.73    | % |   |   | 7.06 | % |
| Net asset value return (2)                                      |   |                       | (1.22   | )% |   |   | 2.81 | % |
|                                                            |   |                       |    |   |   |   |   |   |
| Ratios and Supplemental Data                                    |   |                       |    |   |   |   |   |   |
| ($ and shares in thousands)                                     |   |                       |    |   |   |   |   |   |
|                                                            |   |                       |    |   |   |   |   |   |
| Net assets, end of period                                       |   | $                          | 228,574 |   |   | $ | 241,507 |   |
| Average net assets                                              |   | $                          | 232,150 |   |   | $ | 240,841 |   |
| Common shares outstanding at the end of the period              |   |                       | 21,628  |   |   |   | 21,628 |   |
| Net investment income/average net assets (4)                    |   |                       | 5.24    | % |   |   | 4.09 | % |
| Portfolio turnover rate                                         |   |                       | 12.22   | % |   |   | 1.07 | % |
| Total operating expenses/average net assets (4)                 |   |                       | 4.99    | % |   |   | 5.13 | % |
|                                                            |   |                       |    |   |   |   |   |   |
| Additional ratios                                               |   |                       |    |   |   |   |   |   |
| Total operating expenses less management and                    |   |                       |    |   |   |   |   |   |
| incentive fees and interest expense/average net assets (4)      |   |                       | 2.12    | % |   |   | 2.35 | % |
| Total operating expenses less management                        |   |                       |    |   |   |   |   |   |
| and incentive fees/average net assets (4)                       |   |                       | 2.66    | % |   |   | 2.88 | % |
| Net increase (decrease) in net assets resulting from            |   |                       |    |   |   |   |   |   |
| operations/average net assets (4)                               |   |                       | (5.69   | )% |   |   | 8.43 | % |

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

| (2) | Return calculations assume reinvestment of dividends and are not annualized. |
|-----|------------------------------------------------------------------------------|

| (3) | Calculated as a balancing amount necessary to reconcile the change in net assets value per share with the other per share information presented.  This amount may not agree with the aggregate gains and losses for the period because the difference in the net asset value at the beginning and end of year may not equal the per share changes of the line items disclosed. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Annualized. |
|-----|-------------|

----

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

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

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

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

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

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

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

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

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

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

| Note 2: | Significant Accounting Policies |
|---------|---------------------------------|

----

|   | · | Non-affiliate investments - we own less than 5% of a portfolio company’s outstanding voting securities |
|--------|--------|--------------------------------------------------------------------------------------------------------------|

|   | · | Affiliate investments - we own 5% or more but not more than 25% of a portfolio company’s outstanding voting securities |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------|

|   | · | Control investments - we own more than 25% but less than 50% of a portfolio company’s outstanding voting securities |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------|

|   | · | Control investments – majority owned – we own 50% or more of a portfolio company’s outstanding voting securities. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

| Distribution History |
|----------------------|
| Declaration Date     |   | Amount |   | Record Date |   | Payment Date |
| March 10, 2009       |   | $ | 0.20 |   | March 31, 2009 |   | April 10, 2009 |
| June 11, 2009        |   | $ | 0.12 |   | June 30, 2009 |   | July 10, 2009 |
| September 10, 2009   |   | $ | 0.15 |   | September 30, 2009 |   | October 9, 2009 |
| December 3, 2009     |   | $ | 0.17 |   | December 31, 2009 |   | January 7, 2010 |
| March 10, 2010       |   | $ | 0.17 |   | March 31, 2010 |   | April 9, 2010 |
| June 15, 2010        |   | $ | 0.17 |   | June 30, 2010 |   | July 9, 2010 |
| September 14, 2010   |   | $ | 0.17 |   | September 30, 2010 |   | October 8, 2010 |
| December 14, 2010    |   | $ | 0.18 |   | December 31, 2010 |   | January 7, 2011 |
| March 9, 2011        |   | $ | 0.18 |   | March 31, 2011 |   | April 8, 2011 |

|           |   |          |      |   | Percentage of |   |   |         |   |   |           |   |   | Common Stock Dividends |      |
|----------------|--------|---------------|-----------|--------|---------------|--------|--------|--------------|--------|--------|----------------|--------|--------|------------------------|-----------|
|           |   | Participating |      |   | Outstanding   |   |   | Total        |   |   |           |   |   | Purchased in           |      |   | Purchased |   |
| Dividend       |   | Shares        |      |   | Shares        |   |   | Distribution |   |   | Cash Dividends |   |   | Open Market (1)        |      |   | Price |   |
| March 2009     |   |          | 2,179,204 |   |          |   | 10.1   | %            |   | $      | 4,325,640      |   |   | $                      | 3,889,799 |   |   | $ | 435,841 |   |   | $ | 6.4340 |   |
| June 2009      |   |          | 1,889,207 |   |          |   | 8.7    | %            |   | $      | 2,595,384      |   |   | $                      | 2,368,679 |   |   | $ | 226,705 |   |   | $ | 5.7848 |   |
| September 2009 |   |          | 2,306,518 |   |          |   | 10.7   | %            |   | $      | 3,244,230      |   |   | $                      | 2,898,252 |   |   | $ | 345,978 |   |   | $ | 7.6243 |   |
| December 2009  |   |          | 2,372,306 |   |          |   | 11.0   | %            |   | $      | 3,676,794      |   |   | $                      | 3,273,502 |   |   | $ | 403,292 |   |   | $ | 8.8884 |   |
| March 2010     |   |          | 2,343,298 |   |          |   | 10.8   | %            |   | $      | 3,676,794      |   |   | $                      | 3,278,433 |   |   | $ | 398,361 |   |   | $ | 7.7955 |   |
| June 2010      |   |          | 2,262,290 |   |          |   | 10.5   | %            |   | $      | 3,676,794      |   |   | $                      | 3,292,205 |   |   | $ | 384,589 |   |   | $ | 7.7944 |   |
| September 2010 |   |          | 2,256,691 |   |          |   | 10.4   | %            |   | $      | 3,676,794      |   |   | $                      | 3,293,157 |   |   | $ | 383,637 |   |   | $ | 9.7349 |   |
| December 2010  |   |          | 2,768,595 |   |          |   | 12.8   | %            |   | $      | 3,893,076      |   |   | $                      | 3,394,729 |   |   | $ | 498,347 |   |   | $ | 9.4803 |   |
| March 2011     |   |          | 2,237,186 |   |          |   | 10.3   | %            |   | $      | 3,893,076      |   |   | $                      | 3,490,383 |   |   | $ | 402,693 |   |   | $ | 9.5432 |   |

----

| Note 3: | Credit Facilities and Borrowings |
|--------------|----------------------------------|

|   | · | maintaining a ratio of net asset value to consolidated total indebtedness (excluding net hedging liabilities) of not less than 2.25:1.0, |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | maintaining a ratio of net asset value to consolidated total indebtedness (including net hedging liabilities) of not less than 2.0:1.0, |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------|

|   | · | maintaining a ratio of EBITDA (excluding revenue from cash collateral) to interest expense (excluding interest on loans under the Treasury Facility) of not less than 3.0:1.0, and |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | maintaining a ratio of collateral to the aggregate principal amount of loans under the Treasury Facility of not less than 1.02:1.0. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------|

----

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

----

----

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

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

----

| Note 7: | Reclassifications |
|---------|-------------------|

| Year |   | Undistributed NetInvestmentIncome (Loss) |    |   | UndistributedNet RealizedCapital Gain(Loss) |   |    | Paid-in Capitalin Excess ofPar |   |
|------|--------|-----------------------------------------------|---------|--------|-------------------------------------------------------|--------|---------|------------------------------------------|--------|
| 2010 |   | $                                             | 779,934 |   |                                                  | $      | 604,326 |                                     |   | $ | (1,384,260 | ) |

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

|                                           |   | March 31, 2011 |        |
|------------------------------------------------|--------|--------------------------|-------------|
|                                           |   |                     |        |   | % of |   |   |   |   |   | % of |   |
|                                           |   | Cost                     |        |   | total |   |   | Fair Value |   |   | total |   |
| Investments                                    |   |                     |        |   |   |   |   |   |   |   |   |   |
| Long term investments                          |   |                     |        |   |   |   |   |   |   |   |   |   |
| Senior secured debt                            |   | $                        | 148,003,919 |   |   |   | 57.7 | % |   | $ | 137,665,167 |   |   |   | 60.5 | % |
| Senior unsecured debt                          |   |                     | 10,044,281  |   |   |   | 3.9 | % |   |   | 10,044,281 |   |   |   | 4.4 | % |
| Senior convertible notes                       |   |                     | 3,918,451   |   |   |   | 1.5 | % |   |   | 4,352,209 |   |   |   | 1.9 | % |
| Royalty interests                              |   |                     | 2,659,305   |   |   |   | 1.0 | % |   |   | 14,760,000 |   |   |   | 6.5 | % |
| Limited term royalties                         |   |                     | 4,530,324   |   |   |   | 1.8 | % |   |   | 4,530,324 |   |   |   | 2.0 | % |
| Net profits interests                          |   |                     | 9,478,460   |   |   |   | 3.7 | % |   |   | 9,778,459 |   |   |   | 4.3 | % |
| Membership and partnership units               |   |                     | 39,376,569  |   |   |   | 15.4 | % |   |   | 12,606,132 |   |   |   | 5.6 | % |
| Participating preferred stock                  |   |                     | 4,311,580   |   |   |   | 1.7 | % |   |   | 750,000 |   |   |   | 0.3 | % |
| Common stock                                   |   |                     | 3,235,254   |   |   |   | 1.3 | % |   |   | 2,206,777 |   |   |   | 1.0 | % |
| Warrants                                       |   |                     | 319,238     |   |   |   | 0.1 | % |   |   | 319,238 |   |   |   | 0.1 | % |
|                                           |   |                     |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total long term investments                    |   |                     | 225,877,381 |   |   |   | 88.1 | % |   |   | 197,012,587 |   |   |   | 86.6 | % |
|     Short term investments |   |                     |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| U.S. Treasury Bills                            |   |                     | 30,600,288  |   |   |   | 11.9 | % |   |   | 30,600,314 |   |   |   | 13.4 | % |
|                                           |   |                     |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total investments                              |   | $                        | 256,477,669 |   |   |   | 100.0 | % |   | $ | 227,612,901 |   |   |   | 100.0 | % |

----

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

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

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

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

----

|                                       |   |  Fair Value Measurements as of March 31, 2011 |        |
|--------------------------------------------|--------|---------------------------------------------------------------------------------------|-------------|
|                                       |   |                                                                                  |        |   |   |   |   | Prices with |   |   |   |   |
|                                       |   |                                                                                  |        |   | Quoted Prices |   |   | Observable |   |   |   |   |
|                                       |   |                                                                                  |        |   | in Active |   |   | Market |   |   | Unobservable |   |
|                                       |   |                                                                                  |        |   | Markets |   |   | Inputs |   |   | Inputs |   |
| Assets at Fair Value        |   | Total                                                                                 |        |   | (Level 1) |   |   | (Level 2) |   |   | (Level 3) |   |
|                                       |   |                                                                                  |        |   |   |   |   |   |   |   |   |   |
| Long term investments                      |   |                                                                                  |        |   |   |   |   |   |   |   |   |   |
| Control investments                        |   |                                                                                  |        |   |   |   |   |   |   |   |   |   |
| Senior secured debt                        |   | $                                                                                     | 54,126,359  |   |   | $ | - |   |   | $ | - |   |   | $ | 54,126,359 |   |
| Royalty interests                          |   |                                                                                  | 13,250,000  |   |   |   | - |   |   |   | - |   |   |   | 13,250,000 |   |
| Membership and partnership units           |   |                                                                                  | 11,900,000  |   |   |   | - |   |   |   | - |   |   |   | 11,900,000 |   |
| Total control investments                  |   |                                                                                  | 79,276,359  |   |   |   | - |   |   |   | - |   |   |   | 79,276,359 |   |
|                                       |   |                                                                                  |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Affiliate investments                      |   |                                                                                  |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Senior secured debt                        |   |                                                                                  | 10,238,752  |   |   |   | - |   |   |   | - |   |   |   | 10,238,752 |   |
| Senior unsecured debt                      |   |                                                                                  | 10,044,281  |   |   |   | - |   |   |   | - |   |   |   | 10,044,281 |   |
| Equity                                     |   |                                                                                  |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common stock                               |   |                                                                                  | 2,206,777   |   |   |   | - |   |   |   | 2,206,777 |   |   |   | - |   |
| Membership and partnership units           |   |                                                                                  | 706,132     |   |   |   | - |   |   |   | - |   |   |   | 706,132 |   |
| Warrants                                   |   |                                                                                  | 299,238     |   |   |   | - |   |   |   | - |   |   |   | 299,238 |   |
| Sub-total equity                           |   |                                                                                  | 3,212,147   |   |   |   | - |   |   |   | 2,206,777 |   |   |   | 1,005,370 |   |
| Total affiliate investments                |   |                                                                                  | 23,495,180  |   |   |   | - |   |   |   | 2,206,777 |   |   |   | 21,288,403 |   |
|                                       |   |                                                                                  |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-affiliate investments                  |   |                                                                                  |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Senior secured debt                        |   |                                                                                  | 73,300,056  |   |   |   | - |   |   |   | - |   |   |   | 73,300,056 |   |
| Senior convertible notes                   |   |                                                                                  | 4,352,209   |   |   |   | - |   |   |   | 4,352,209 |   |   |   | - |   |
| Royalty interests                          |   |                                                                                  | 1,510,000   |   |   |   | - |   |   |   | - |   |   |   | 1,510,000 |   |
| Limited term royalties                     |   |                                                                                  | 4,530,324   |   |   |   | - |   |   |   | - |   |   |   | 4,530,324 |   |
| Net profits interests                      |   |                                                                                  | 9,778,459   |   |   |   | - |   |   |   | - |   |   |   | 9,778,459 |   |
| Equity                                     |   |                                                                                  |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Participating preferred stock              |   |                                                                                  | 750,000     |   |   |   | - |   |   |   | - |   |   |   | 750,000 |   |
| Warrants                                   |   |                                                                                  | 20,000      |   |   |   | - |   |   |   | - |   |   |   | 20,000 |   |
| Sub-total equity                           |   |                                                                                  | 770,000     |   |   |   | - |   |   |   | - |   |   |   | 770,000 |   |
| Total non-affiliate investments            |   |                                                                                  | 94,241,048  |   |   |   | - |   |   |   | 4,352,209 |   |   |   | 89,888,839 |   |
|                                       |   |                                                                                  |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total long term assets                     |   |                                                                                  | 197,012,587 |   |   |   | - |   |   |   | 6,558,986 |   |   |   | 190,453,601 |   |
|                                       |   |                                                                                  |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Short term investments U.S. Treasury Bills |   |                                                                                  | 30,600,314  |   |   |   | 30,600,314 |   |   |   | - |   |   |   | - |   |
|                                       |   |                                                                                  |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total assets at fair value                 |   | $                                                                                     | 227,612,901 |   |   | $ | 30,600,314 |   |   | $ | 6,558,986 |   |   | $ | 190,453,601 |   |

----

|                             |   |                                            |        |   |          |   |   |        |   |   |         |   |
|----------------------------------|--------|-------------------------------------------------|-------------|--------|---------------|--------|--------|-------------|--------|--------|--------------|--------|
|                             |   | Fair Value Measurements as of December 31, 2010 |        |
|                             |   |                                            |        |   |          |   |   |        |   |   |         |   |
|                             |   |                                            |        |   |          |   |   | Prices with |   |   |         |   |
|                             |   |                                            |        |   | Quoted Prices |   |   | Observable  |   |   |         |   |
|                             |   |                                            |        |   | in Active     |   |   | Market      |   |   | Unobservable |   |
|                             |   |                                            |        |   | Markets       |   |   | Inputs      |   |   | Inputs       |   |
| Assets at Fair Value             |   | Total                                           |        |   | (Level 1)     |   |   | (Level 2)   |   |   | (Level 3)    |   |
|                             |   |                                            |        |   |          |   |   |        |   |   |         |   |
| Long term investments            |   |                                            |        |   |          |   |   |        |   |   |         |   |
| Control investments              |   |                                            |        |   |          |   |   |        |   |   |         |   |
| Senior secured debt              |   | $                                               | 49,223,316  |   |          | $      | -      |        |   | $      | -            |   |   | $ | 49,223,316 |   |
| Royalty interests                |   |                                            | 10,450,000  |   |          |   | -      |        |   |   | -            |   |   |   | 10,450,000 |   |
| Membership and partnership units |   |                                            | 11,300,000  |   |          |   | -      |        |   |   | -            |   |   |   | 11,300,000 |   |
| Total control investments        |   |                                            | 70,973,316  |   |          |   | -      |        |   |   | -            |   |   |   | 70,973,316 |   |
|                             |   |                                            |        |   |          |   |   |        |   |   |         |   |   |   |   |   |
| Affiliate investments            |   |                                            |        |   |          |   |   |        |   |   |         |   |   |   |   |   |
| Senior secured debt              |   |                                            | 29,146,310  |   |          |   | -      |        |   |   | -            |   |   |   | 29,146,310 |   |
| Equity                           |   |                                            |        |   |          |   |   |        |   |   |         |   |   |   |   |   |
| Common stock                     |   |                                            | 2,152,954   |   |          |   | -      |        |   |   | 2,152,954    |   |   |   | - |   |
| Membership and partnership units |   |                                            | 1,715,526   |   |          |   | -      |        |   |   | -            |   |   |   | 1,715,526 |   |
| Warrants                         |   |                                            | 49,238      |   |          |   | -      |        |   |   | -            |   |   |   | 49,238 |   |
| Sub-total equity                 |   |                                            | 3,917,718   |   |          |   | -      |        |   |   | 2,152,954    |   |   |   | 1,764,764 |   |
| Total affiliate investments      |   |                                            | 33,064,028  |   |          |   | -      |        |   |   | 2,152,954    |   |   |   | 30,911,074 |   |
|                             |   |                                            |        |   |          |   |   |        |   |   |         |   |   |   |   |   |
| Non-affiliate investments        |   |                                            |        |   |          |   |   |        |   |   |         |   |   |   |   |   |
| Senior secured debt              |   |                                            | 76,183,779  |   |          |   | -      |        |   |   | -            |   |   |   | 76,183,779 |   |
| Senior convertible notes         |   |                                            | 6,676,813   |   |          |   | -      |        |   |   | 6,676,813    |   |   |   | - |   |
| Senior corporate notes           |   |                                            | 10,450,100  |   |          |   | -      |        |   |   | 10,450,100   |   |   |   | - |   |
| Royalty interests                |   |                                            | 1,510,000   |   |          |   | -      |        |   |   | -            |   |   |   | 1,510,000 |   |
| Limited term royalties           |   |                                            | 6,548,318   |   |          |   | -      |        |   |   | -            |   |   |   | 6,548,318 |   |
| Net profits interests            |   |                                            | 9,886,635   |   |          |   | -      |        |   |   | -            |   |   |   | 9,886,635 |   |
| Equity                           |   |                                            |        |   |          |   |   |        |   |   |         |   |   |   |   |   |
| Participating preferred stock    |   |                                            | 750,000     |   |          |   | -      |        |   |   | -            |   |   |   | 750,000 |   |
| Warrants                         |   |                                            | 20,000      |   |          |   | -      |        |   |   | -            |   |   |   | 20,000 |   |
|   Sub-total equity          |   |                                            | 770,000     |   |          |   | -      |        |   |   | -            |   |   |   | 770,000 |   |
| Total non-affiliate investments  |   |                                            | 112,025,645 |   |          |   | -      |        |   |   | 17,126,913   |   |   |   | 94,898,732 |   |
|                             |   |                                            |        |   |          |   |   |        |   |   |         |   |   |   |   |   |
| Total assets at fair value       |   | $                                               | 216,062,989 |   |          | $      | -      |        |   | $      | 19,279,867   |   |   | $ | 196,783,122 |   |

----

|                                                   |   | Control     |       |   | Affiliate   |   |        | Non-affiliate |   |   | Total       |   |
|--------------------------------------------------------|--------|-------------|------------|--------|-------------|--------|-------------|---------------|--------|--------|-------------|--------|
|                                                   |   | Investments |       |   | Investments |   |        | Investments   |   |   | Investments |   |
|                                                   |   |        |       |   |        |   |        |          |   |   |        |   |
| Fair value December 31, 2010                           |   |        |       |   |        |   |        |          |   |   |        |   |
| Senior secured debt                                    |   | $           | 49,223,316 |   |        | $      | 29,146,310  |          |   | $      | 76,183,779  |   |   | $ | 154,553,405 |   |
| Royalty interests                                      |   |        | 10,450,000 |   |        |   | -           |          |   |   | 1,510,000   |   |   |   | 11,960,000 |   |
| Net profits interests                                  |   |        | -          |   |        |   | -           |          |   |   | 9,886,635   |   |   |   | 9,886,635 |   |
| Membership and partnership units                       |   |        | 11,300,000 |   |        |   | 1,715,526   |          |   |   | -           |   |   |   | 13,015,526 |   |
| Warrants                                               |   |        | -          |   |        |   | 49,238      |          |   |   | 20,000      |   |   |   | 69,238 |   |
| Limited term royalties                                 |   |        | -          |   |        |   | -           |          |   |   | 6,548,318   |   |   |   | 6,548,318 |   |
| Participating preferred stock                          |   |        | -          |   |        |   | -           |          |   |   | 750,000     |   |   |   | 750,000 |   |
| Total fair value December 31, 2010                     |   |        | 70,973,316 |   |        |   | 30,911,074  |          |   |   | 94,898,732  |   |   |   | 196,783,122 |   |
|                                                   |   |        |       |   |        |   |        |          |   |   |        |   |   |   |   |   |
| Net amortization of premiums, discounts and fees       |   |        |       |   |        |   |        |          |   |   |        |   |   |   |   |   |
| Senior secured debt                                    |   |        | 147,319    |   |        |   | 153,907     |          |   |   | 90,000      |   |   |   | 391,226 |   |
| Senior unsecured debt                                  |   |        | -          |   |        |   | 11,670      |          |   |   | -           |   |   |   | 11,670 |   |
| Royalty interests                                      |   |        | (12,638    | )      |        |   | -           |          |   |   | (11,613     | )      |   |   | (24,251 | ) |
| Net profits interests                                  |   |        | -          |   |        |   | -           |          |   |   | (9,213      | )      |   |   | (9,213 | ) |
| Total net amortization of premiums, discounts and fees |   |        | 134,681    |   |        |   | 165,577     |          |   |   | 69,174      |   |   |   | 369,432 |   |
|                                                   |   |        |       |   |        |   |        |          |   |   |        |   |   |   |   |   |
| Net realized gains (losses)                            |   |        |       |   |        |   |        |          |   |   |        |   |   |   |   |   |
| Royalty interests                                      |   |        | 81,275     |   |        |   | -           |          |   |   | -           |   |   |   | 81,275 |   |
| Total realized gains (losses)                          |   |        | 81,275     |   |        |   | -           |          |   |   | -           |   |   |   | 81,275 |   |
|                                                   |   |        |       |   |        |   |        |          |   |   |        |   |   |   |   |   |
| Net unrealized gains (losses)                          |   |        |       |   |        |   |        |          |   |   |        |   |   |   |   |   |
| Senior secured debt                                    |   |        | -          |   |        |   | (10,238,752 | )             |   |   | -           |   |   |   | (10,238,752 | ) |
| Royalty interests                                      |   |        | 2,827,363  |   |        |   | -           |          |   |   | 11,613      |   |   |   | 2,838,976 |   |
| Membership and partnership units                       |   |        | 600,000    |   |        |   | (1,009,394  | )             |   |   | -           |   |   |   | (409,394 | ) |
| Total net unrealized gains (losses)                    |   |        | 3,427,363  |   |        |   | (11,248,146 | )             |   |   | 11,613      |   |   |   | (7,809,170 | ) |
|                                                   |   |        |       |   |        |   |        |          |   |   |        |   |   |   |   |   |
| Purchases                                              |   |        |       |   |        |   |        |          |   |   |        |   |   |   |   |   |
| Senior secured debt                                    |   |        | 4,755,724  |   |        |   | -           |          |   |   | 1,064       |   |   |   | 4,756,788 |   |
| Senior unsecured debt                                  |   |        | -          |   |        |   | 9,750,000   |          |   |   | -           |   |   |   | 9,750,000 |   |
| Warrants                                               |   |        | -          |   |        |   | 250,000     |          |   |   | -           |   |   |   | 250,000 |   |
| Total purchases                                        |   |        | 4,755,724  |   |        |   | 10,000,000  |          |   |   | 1,064       |   |   |   | 14,756,788 |   |
|                                                   |   |        |       |   |        |   |        |          |   |   |        |   |   |   |   |   |
| Payment-in-kind                                        |   |        |       |   |        |   |        |          |   |   |        |   |   |   |   |   |
| Senior secured debt                                    |   |        | -          |   |        |   | 1,177,287   |          |   |   | -           |   |   |   | 1,177,287 |   |
| Senior unsecured debt                                  |   |        | -          |   |        |   | 282,611     |          |   |   | -           |   |   |   | 282,611 |   |
| Total payment-in-kind                                  |   |        | -          |   |        |   | 1,459,898   |          |   |   | -           |   |   |   | 1,459,898 |   |
|                                                   |   |        |       |   |        |   |        |          |   |   |        |   |   |   |   |   |
| Sales and repayments                                   |   |        |       |   |        |   |        |          |   |   |        |   |   |   |   |   |
| Senior secured debt                                    |   |        | -          |   |        |   | (10,000,000 | )             |   |   | (2,974,787  | )      |   |   | (12,974,787 | ) |
| Royalty interests                                      |   |        | (96,000    | )      |        |   | -           |          |   |   | -           |   |   |   | (96,000 | ) |
| Net profits interests                                  |   |        | -          |   |        |   | -           |          |   |   | (98,963     | )      |   |   | (98,963 | ) |
| Limited term royalties                                 |   |        | -          |   |        |   | -           |          |   |   | (2,017,994  | )      |   |   | (2,017,994 | ) |
| Total sales and repayments                             |   |        | (96,000    | )      |        |   | (10,000,000 | )             |   |   | (5,091,744  | )      |   |   | (15,187,744 | ) |
|                                                   |   |        |       |   |        |   |        |          |   |   |        |   |   |   |   |   |
| Fair value March 31, 2011                              |   |        |       |   |        |   |        |          |   |   |        |   |   |   |   |   |
| Senior secured debt                                    |   |        | 54,126,359 |   |        |   | 10,238,752  |          |   |   | 73,300,056  |   |   |   | 137,665,167 |   |
| Senior unsecured debt                                  |   |        | -          |   |        |   | 10,044,281  |          |   |   | -           |   |   |   | 10,044,281 |   |
| Royalty interests                                      |   |        | 13,250,000 |   |        |   | -           |          |   |   | 1,510,000   |   |   |   | 14,760,000 |   |
| Net profits interests                                  |   |        | -          |   |        |   | -           |          |   |   | 9,778,459   |   |   |   | 9,778,459 |   |
| Membership and partnership units                       |   |        | 11,900,000 |   |        |   | 706,132     |          |   |   | -           |   |   |   | 12,606,132 |   |
| Warrants                                               |   |        | -          |   |        |   | 299,238     |          |   |   | 20,000      |   |   |   | 319,238 |   |
| Limited term royalties                                 |   |        | -          |   |        |   | -           |          |   |   | 4,530,324   |   |   |   | 4,530,324 |   |
| Participating preferred stock                          |   |        | -          |   |        |   | -           |          |   |   | 750,000     |   |   |   | 750,000 |   |
| Total fair value March 31, 2011                        |   | $           | 79,276,359 |   |        | $      | 21,288,403  |          |   | $      | 89,888,839  |   |   | $ | 190,453,601 |   |

----

|                                                   |   | Control     |       |   | Affiliate   |   |       | Non-affiliate |   |   | CommodityDerivative |   |   | Total       |    |
|--------------------------------------------------------|--------|-------------|------------|--------|-------------|--------|------------|---------------|--------|--------|---------------------|--------|--------|-------------|---------|
|                                                   |   | Investments |       |   | Investments |   |       | Investments   |   |   | Instruments         |   |   | Investments |    |
|                                                   |   |        |       |   |        |   |       |          |   |   |                |   |   |        |    |
| Fair value December 31, 2009                           |   |        |       |   |        |   |       |          |   |   |                |   |   |        |    |
| Senior secured debt                                    |   | $           | 48,019,620 |   |        | $      | 25,692,581 |          |   | $      | 53,364,835          |   |   | $           | -       |   |   | $ | 127,077,036 |   |
| Senior corporate notes                                 |   |        | -          |   |        |   | -          |          |   |   | 9,062,200           |   |   |        | -       |   |   |   | 9,062,200 |   |
| Royalty interests                                      |   |        | 5,830,000  |   |        |   | -          |          |   |   | 1,500,000           |   |   |        | -       |   |   |   | 7,330,000 |   |
| Net profits interests                                  |   |        | -          |   |        |   | -          |          |   |   | 11,012,799          |   |   |        | -       |   |   |   | 11,012,799 |   |
| Common stock                                           |   |        | -          |   |        |   | 4,086,834  |          |   |   | -                   |   |   |        | -       |   |   |   | 4,086,834 |   |
| Membership and partnership units                  |   |        | 18,600,000 |   |        |   | 1,715,526  |          |   |   | -                   |   |   |        | -       |   |   |   | 20,315,526 |   |
| Warrants                                               |   |        | -          |   |        |   | 84,004     |          |   |   | 10,000              |   |   |        | -       |   |   |   | 94,004 |   |
| Limited term royalties                                 |   |        | -          |   |        |   | -          |          |   |   | 20,577,744          |   |   |        | -       |   |   |   | 20,577,744 |   |
| Participating preferred stock                          |   |        | -          |   |        |   | -          |          |   |   | 500,000             |   |   |        | -       |   |   |   | 500,000 |   |
| Commodity derivative instruments                       |   |        | -          |   |        |   | -          |          |   |   | -                   |   |   |        | 49,000  |   |   |   | 49,000 |   |
| Total fair value December 31, 2009                     |   |        | 72,449,620 |   |        |   | 31,578,945 |          |   |   | 96,027,578          |   |   |        | 49,000  |   |   |   | 200,105,143 |   |
|                                                   |   |        |       |   |        |   |       |          |   |   |                |   |   |        |    |   |   |   |   |   |
| Net amortization of premiums, discounts and fees       |   |        |       |   |        |   |       |          |   |   |                |   |   |        |    |   |   |   |   |   |
| Senior secured debt                                    |   |        | 125,886    |   |        |   | 56,033     |          |   |   | 110,673             |   |   |        | -       |   |   |   | 292,592 |   |
| Senior corporate notes                                 |   |        | -          |   |        |   | -          |          |   |   | (12,323             | )      |   |        | -       |   |   |   | (12,323 | ) |
| Royalty interests                                      |   |        | (6,501     | )      |        |   | -          |          |   |   | (19,375             | )      |   |        | -       |   |   |   | (25,876 | ) |
| Net profits interests                                  |   |        | -          |   |        |   | -          |          |   |   | (7,409              | )      |   |        | -       |   |   |   | (7,409 | ) |
| Limited term royalties                                 |   |        | -          |   |        |   | -          |          |   |   | (3,215,415          | )      |   |        | -       |   |   |   | (3,215,415 | ) |
| Total net amortization of premiums, discounts and fees |   |        | 119,385    |   |        |   | 56,033     |          |   |   | (3,143,849          | )      |   |        | -       |   |   |   | (2,968,431 | ) |
|                                                   |   |        |       |   |        |   |       |          |   |   |                |   |   |        |    |   |   |   |   |   |
| Net unrealized gains (losses)                          |   |        |       |   |        |   |       |          |   |   |                |   |   |        |    |   |   |   |   |   |
| Senior corporate notes                                 |   |        | -          |   |        |   | -          |          |   |   | 366,523             |   |   |        | -       |   |   |   | 366,523 |   |
| Royalty interests                                      |   |        | 6,501      |   |        |   | -          |          |   |   | 19,375              |   |   |        | -       |   |   |   | 25,876 |   |
| Net profits interests                                  |   |        | -          |   |        |   | -          |          |   |   | (50,000             | )      |   |        | -       |   |   |   | (50,000 | ) |
| Common stock                                           |   |        | -          |   |        |   | 558,719    |          |   |   | -                   |   |   |        | -       |   |   |   | 558,719 |   |
| Limited term royalties                                 |   |        | -          |   |        |   | -          |          |   |   | 1,746,991           |   |   |        | -       |   |   |   | 1,746,991 |   |
| Participating preferred stock                          |   |        | -          |   |        |   | -          |          |   |   | 250,000             |   |   |        | -       |   |   |   | 250,000 |   |
| Commodity derivative instruments                       |   |        | -          |   |        |   | -          |          |   |   | -                   |   |   |        | (18,900 | ) |   |   | (18,900 | ) |
| Total net unrealized gains (losses)                    |   |        | 6,501      |   |        |   | 558,719    |          |   |   | 2,332,889           |   |   |        | (18,900 | ) |   |   | 2,879,209 |   |
|                                                   |   |        |       |   |        |   |       |          |   |   |                |   |   |        |    |   |   |   |   |   |
| Purchases                                              |   |        |       |   |        |   |       |          |   |   |                |   |   |        |    |   |   |   |   |   |
| Senior secured debt                                    |   |        | 2,046,172  |   |        |   | 1,247,220  |          |   |   | -                   |   |   |        | -       |   |   |   | 3,293,392 |   |
| Net profits interests                                  |   |        | -          |   |        |   | -          |          |   |   | 1,193               |   |   |        | -       |   |   |   | 1,193 |   |
| Total purchases                                        |   |        | 2,046,172  |   |        |   | 1,247,220  |          |   |   | 1,193               |   |   |        | -       |   |   |   | 3,294,585 |   |
|                                                   |   |        |       |   |        |   |       |          |   |   |                |   |   |        |    |   |   |   |   |   |
| Payment-in-kind                                        |   |        |       |   |        |   |       |          |   |   |                |   |   |        |    |   |   |   |   |   |
| Senior secured debt                                    |   |        | 813,770    |   |        |   | 917,719    |          |   |   | -                   |   |   |        | -       |   |   |   | 1,731,489 |   |
| Total payment-in-kind                                  |   |        | 813,770    |   |        |   | 917,719    |          |   |   | -                   |   |   |        | -       |   |   |   | 1,731,489 |   |
|                                                   |   |        |       |   |        |   |       |          |   |   |                |   |   |        |    |   |   |   |   |   |
| Sales and repayments                                   |   |        |       |   |        |   |       |          |   |   |                |   |   |        |    |   |   |   |   |   |
| Senior secured debt                                    |   |        | -          |   |        |   | (12,500    | )             |   |   | (766,105            | )      |   |        | -       |   |   |   | (778,605 | ) |
| Net profits interests                                  |   |        | -          |   |        |   | -          |          |   |   | (349,890            | )      |   |        | -       |   |   |   | (349,890 | ) |
| Limited term royalties                                 |   |        | -          |   |        |   | -          |          |   |   | (1,429,120          | )      |   |        | -       |   |   |   | (1,429,120 | ) |
| Total sales and repayments                             |   |        | -          |   |        |   | (12,500    | )             |   |   | (2,545,115          | )      |   |        | -       |   |   |   | (2,557,615 | ) |
|                                                   |   |        |       |   |        |   |       |          |   |   |                |   |   |        |    |   |   |   |   |   |
| Settlements                                            |   |        |       |   |        |   |       |          |   |   |                |   |   |        |    |   |   |   |   |   |
| Commodity derivative instruments                       |   |        | -          |   |        |   | -          |          |   |   | -                   |   |   |        | (30,100 | ) |   |   | (30,100 | ) |
| Total settlements                                      |   |        | -          |   |        |   | -          |          |   |   | -                   |   |   |        | (30,100 | ) |   |   | (30,100 | ) |
|                                                   |   |        |       |   |        |   |       |          |   |   |                |   |   |        |    |   |   |   |   |   |
| Fair value March 31, 2010                              |   |        |       |   |        |   |       |          |   |   |                |   |   |        |    |   |   |   |   |   |
| Senior secured debt                                    |   |        | 51,005,448 |   |        |   | 27,901,053 |          |   |   | 52,709,403          |   |   |        | -       |   |   |   | 131,615,904 |   |
| Senior corporate notes                                 |   |        | -          |   |        |   | -          |          |   |   | 9,416,400           |   |   |        | -       |   |   |   | 9,416,400 |   |
| Royalty interests                                      |   |        | 5,830,000  |   |        |   | -          |          |   |   | 1,500,000           |   |   |        | -       |   |   |   | 7,330,000 |   |
| Net profits interests                                  |   |        | -          |   |        |   | -          |          |   |   | 10,606,693          |   |   |        | -       |   |   |   | 10,606,693 |   |
| Common stock                                           |   |        | -          |   |        |   | 4,645,553  |          |   |   | -                   |   |   |        | -       |   |   |   | 4,645,553 |   |
| Membership and partnershup units                  |   |        | 18,600,000 |   |        |   | 1,715,526  |          |   |   | -                   |   |   |        | -       |   |   |   | 20,315,526 |   |
| Warrants                                               |   |        | -          |   |        |   | 84,004     |          |   |   | 10,000              |   |   |        | -       |   |   |   | 94,004 |   |
| Limited term royalties                                 |   |        | -          |   |        |   | -          |          |   |   | 17,680,200          |   |   |        | -       |   |   |   | 17,680,200 |   |
| Participating preferred stock                          |   |        | -          |   |        |   | -          |          |   |   | 750,000             |   |   |        | -       |   |   |   | 750,000 |   |
| Total fair value March 31, 2010                        |   | $           | 75,435,448 |   |        | $      | 34,346,136 |          |   | $      | 92,672,696          |   |   | $           | -       |   |   | $ | 202,454,280 |   |

----

| Note 9: | Commodity Derivative Instruments |
|--------------|----------------------------------|

|                                           |   | For the Three Months EndedMarch 31, |   |
|------------------------------------------------|--------|--------------------------------------------------------------|--------|
|                                           |   | 2011                                                         |   |   | 2010 |   |
|                                           |   |                                                         |   |   |   |   |
| Unrealized losses on commodity derivatives     |   | $                                                            | -      |   |   | $ | (18,900 | ) |
| Realized gains on commodity derivatives        |   |                                                         | -      |   |   |   | 16,079 |   |
|                                           |   |                                                         |   |   |   |   |   |   |
| Net losses on commodity derivative instruments |   | $                                                            | -      |   |   | $ | (2,821 | ) |

| Note 10: | Recent Accounting Pronouncements |
|---------------|----------------------------------|

----

| Note 11: | Subsequent Events |
|---------------|-------------------|

----

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

|   | · | uncertainties associated with the timing of transaction closings; |
|--------|--------|-------------------------------------------------------------------|

|   | · | changes in the prospects of our portfolio companies; |
|--------|--------|------------------------------------------------------|

|   | · | changes in interest rates; |
|--------|--------|----------------------------|

|   | · | changes in regional, national or international economic conditions and their impact on the industries in which we invest; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------|

|   | · | continued disruption of credit and capital markets; |
|--------|--------|-----------------------------------------------------|

|   | · | the future operating results of our portfolio companies and their ability to achieve their objectives; |
|--------|--------|--------------------------------------------------------------------------------------------------------|

|   | · | changes in the conditions of the industries in which we invest; |
|--------|--------|-----------------------------------------------------------------|

|   | · | the adequacy of our cash resources and working capital; |
|--------|--------|---------------------------------------------------------|

|   | · | the timing of cash flows, if any, from the operations of our portfolio companies; |
|--------|--------|-----------------------------------------------------------------------------------|

|   | · | the ability of our Manager to locate suitable investments for us and to monitor and administer the investments; and |
|--------|--------|---------------------------------------------------------------------------------------------------------------------|

|   | · | other factors enumerated in our filings with the Securities and Exchange Commission, or SEC. |
|--------|--------|----------------------------------------------------------------------------------------------|

----

|   | · | Non-affiliate investments - we own less than 5% of a portfolio company’s outstanding voting securities |
|--------|--------|--------------------------------------------------------------------------------------------------------------|

|   | · | Affiliate investments - we own 5% or more but not more than 25% of a portfolio company’s outstanding voting securities |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------|

|   | · | Control investments - we own more than 25% but less than 50% of a portfolio company’s outstanding voting securities |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------|

|   | · | Control investments – majority owned - we own 50% or more of a portfolio company’s outstanding voting securities. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------|

----

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

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

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

----

|   | · | 69.9% in senior secured debt, |
|--------|--------|-------------------------------|

|   | · | 5.1% in senior unsecured debt, |
|--------|--------|--------------------------------|

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

|   | · | 7.5% in royalty interests, |
|--------|--------|----------------------------|

|   | · | 0.4% in participating preferred stock, |
|--------|--------|----------------------------------------|

|   | · | 1.1% in common stock, |
|--------|--------|-----------------------|

|   | · | 6.4% in membership and partnership units, |
|--------|--------|-------------------------------------------|

|   | · | 5.0% in net profits interests, |
|--------|--------|--------------------------------|

|   | · | 2.3% in limited term royalty interests, and |
|--------|--------|---------------------------------------------|

|   | · | 0.1% in warrants. |
|--------|--------|-------------------|

----

----

----

|                            |   |   |       |   | Less than |   |       |           |   |   |           |   |   | More than |   |
|---------------------------------|--------|--------|------------|--------|----------------|--------|------------|----------------|--------|--------|----------------|--------|--------|----------------|--------|
| Contractual Obligations    |   | Total  |       |   | 1 Year    |   |       | 1-3 Years |   |   | 3-5 Years |   |   | 5 Years   |   |
|                            |   |   |       |   |           |   |       |           |   |   |           |   |   |           |   |
| March 31, 2011:                 |   |   |       |   |           |   |       |           |   |   |           |   |   |           |   |
| Revolving credit facilities (1) |   | $      | 55,000,000 |   |           | $      | 30,000,000 |           |   | $      | 25,000,000     |   |   | $              | -      |   |   | $ | - |   |
| Total                           |   | $      | 55,000,000 |   |           | $      | 30,000,000 |           |   | $      | 25,000,000     |   |   | $              | -      |   |   | $ | - |   |

|                      |   | March 31, 2011 |      |   | December 31, 2010 |   |
|---------------------------|--------|--------------------------|-----------|--------|-----------------------------|--------|
| Unused credit commitments |   | $                        | 7,776,429 |   |                        | $      | 8,682,153 |   |
| Letter of credit          |   |                     | 2,676,200 |   |                        |   | 2,676,200 |   |

----

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

----

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

----

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

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

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

----

|                         | NGP CAPITAL RESOURCES COMPANY |
|------------------------------|-------------------------------|
|                         |                          |   |   |
| Date:  May 6, 2011 |                          | By: | /s/ Stephen K. Gardner |
|                         |                          |   | Stephen K. Gardner |
|                         |                          |   | President and Chief Executive Officer |
|                         |                          |   |   |
| Date:  May 6, 2011 |                          | By: | /s/ Stephen K. Gardner |
|                         |                          |   | Stephen K. Gardner |
|                         |                          |   | Chief Financial Officer, Treasurer and Secretary |

----

| Exhibits No. |   | Exhibit                                                                                                                                                                                                                                                                                                                 |
|-------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  3.1         |   | Articles of Incorporation (filed as Exhibit (a)(1) to our Registration Statement on Form N-2 filed on August 16, 2004 (Registration No. 333-118279) and incorporated herein by reference)                                                                                                                               |
|  3.2         |   | Articles of Amendment and Restatement (filed as Exhibit 3.2 our Annual Report on Form 10-K for the year ended December 31, 2004 and incorporated herein by reference)                                                                                                                                                   |
|  3.3         |   | Bylaws (filed as Exhibit (b) to our Registration Statement on Form N-2 filed on August 16, 2004 (Registration No. 333-118279) and incorporated herein by reference)                                                                                                                                                     |
|  4.1         |   | Form of Stock Certificate (filed as Exhibit (d) to our Pre-Effective Amendment No. 2 to Registration Statement on Form N-2 filed on October 7, 2004 (Registration No. 333-118279) and incorporated herein by reference)                                                                                                 |
|  4.2         |   | Dividend Reinvestment Plan (filed as Exhibit (e) to our Registration Statement on Form N-2 filed on August 16, 2004 (Registration No. 333-118279) and incorporated herein by reference)                                                                                                                                 |
| 10.1              |   | Amendment No. 3 to Custody Agreement dated as of February 28, 2011, between the Company and Wells Fargo Bank, N.A. (filed as Exhibit (j)(4) to our Amendment No. 1 to Registration Statement on Form N-2 filed on April 28, 2011 (Registration No. 333-160923) and incorporated herein by reference)                    |
| 10.2              |   | Treasury Secured Revolving Credit Agreement effective as of March 31, 2011, between the Company, the lenders from time to time party thereto and SunTrust Bank (filed as Exhibit 10.1 to our Current Report on Form 8-K filed on April 6, 2011 and incorporated herein by reference)                                    |
| 10.3              |   | Consent and Fifth Amendment to Amended and Restated Revolving Credit Agreement effective as of March 31, 2011, between the Company, the lenders from time to time party thereto and SunTrust Bank (filed as Exhibit 10.2 to our Current Report on Form 8-K filed on April 6, 2011 and incorporated herein by reference) |
| 31.1*             |   | Certification required by Rule 13a-14(a)/15d-14(a) by the Chief Executive Officer                                                                                                                                                                                                                                       |
| 31.2*             |   | Certification required by Rule 13a-14(a)/15d-14(a) by the Chief Financial Officer                                                                                                                                                                                                                                       |
| 32.1*             |   | Section 1350 Certification by the Chief Executive Officer                                                                                                                                                                                                                                                               |
| 32.2*             |   | Section 1350 Certification by the Chief Financial Officer                                                                                                                                                                                                                                                               |

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