| Nevada                                        |   | 51-0482104                           |
|-----------------------------------------------|--------|--------------------------------------|
| (State or other jurisdictionof incorporation) |   | (IRS Employer Identification Number) |

| Three Riverway, Suite 1590Houston, Texas |   |  77056 |
|------------------------------------------|--------|-------------|
| (Address of principalexecutive offices)  |   | (zip code)  |

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| PART I. FINANCIAL INFORMATION                                                                                                                                                                | Page    |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------|
|                                                                                                                                                                                         |    |
| Item 1. Financial Statements                                                                                                                                                                 |    |
|      Consolidated Balance Sheets as of June 30, 2010 (Unaudited) and          December 31, 2009 (Unaudited)       |  3 |
|      Consolidated Statements of Operations for the three months ended          June 30, 2010 and 2009 (Unaudited) |  4 |
|     Consolidated Statements of Operations for the six months ended          June 30, 2010 and 2009 (Unaudited)         |  5 |
|      Consolidated Statements of Cash Flows for the six months ended          June 30, 2010 and 2009 (Unaudited)   |  6 |
|    Notes to Consolidated Financial Statements (Unaudited)                                                                                                                     | 7       |
| Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations                                                                                                | 14      |
| Item 3. Quantitative and Qualitative Disclosures About Market Risk                                                                                                                           | 18      |
| Item 4. Controls and Procedures                                                                                                                                                              | 18      |
|                                                                                                                                                                                         |    |
| PART II. OTHER INFORMATION                                                                                                                                                                   |    |
|                                                                                                                                                                                         |    |
| Item 1. Legal Proceedings                                                                                                                                                                    | 19      |
| Item 1A. Risk Factors                                                                                                                                                                        | 19      |
| Item 2. Unregistered Sales of Equity Securities and Use of Proceeds                                                                                                                          | 19      |
| Item 3. Defaults Upon Senior Securities                                                                                                                                                      | 19      |
| Item 5. Other Information                                                                                                                                                                    | 19      |
| Item 6. Exhibits                                                                                                                                                                             | 19      |
| Signatures                                                                                                                                                                                   | 20      |

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|                                                                                                 |   | June 30,2010 |        |   | December 31,2009 |   |
|------------------------------------------------------------------------------------------------------|--------|--------------|-------------|--------|------------------|--------|
| Assets                                                                                               |   |         |        |   |             |   |
| Current assets:                                                                                      |   |         |        |   |             |   |
| Cash and cash equivalents                                                                            |   | $            | 235,815     |   |             | $      | 142,703 |   |
| Restricted cash                                                                                      |   |         | -           |   |             |   | 1,613,637 |   |
| Accounts receivable                                                                                  |   |         | 3,110,409   |   |             |   | 2,948,159 |   |
| Prepaid expenses and other                                                                           |   |         | 111,503     |   |             |   | 132,325 |   |
|        Total current assets                                       |   |         | 3,457,727   |   |             |   | 4,836,824 |   |
|                                                                                                 |   |         |        |   |             |   |   |   |
| Property and equipment:                                                                              |   |         |        |   |             |   |   |   |
| Oil and gas properties, evaluated (full cost method)                                                 |   |         | 14,568,863  |   |             |   | 14,425,950 |   |
| Other property and equipment                                                                         |   |         | 174,676     |   |             |   | 144,625 |   |
|                                                                                                 |   |         | 14,743,539  |   |             |   | 14,570,575 |   |
| Less:  Accumulated depreciation, depletion & amortization                              |   |         | (8,532,533  | )      |             |   | (8,017,822 | ) |
|        Net property and equipment                                 |   |         | 6,211,006   |   |             |   | 6,552,753 |   |
|                                                                                                 |   |         |        |   |             |   |   |   |
| Other assets:                                                                                        |   |         |        |   |             |   |   |   |
| Goodwill (less impairment allowance of $3,400,000)                                                   |   |         | 1,536,313   |   |             |   | 1,536,313 |   |
| Other assets                                                                                         |   |         | 102,678     |   |             |   | 76,021 |   |
|        Total other assets                                         |   |         | 1,638,991   |   |             |   | 1,612,334 |   |
|                                                                                                 |   |         |        |   |             |   |   |   |
|        Total assets                                               |   | $            | 11,307,724  |   |             | $      | 13,001,911 |   |
|                                                                                                 |   |         |        |   |             |   |   |   |
| Liabilities and Stockholders’ Equity (Deficit)                                                 |   |         |        |   |             |   |   |   |
| Current liabilities:                                                                                 |   |         |        |   |             |   |   |   |
| Current portion of long-term debt - stockholders                                                     |   | $            | 854,214     |   |             | $      | 1,682,317 |   |
| Current portion of long-term debt - others                                                           |   |         | 4,294,610   |   |             |   | 5,226,861 |   |
| Accounts payable                                                                                     |   |         | 2,713,510   |   |             |   | 2,436,846 |   |
| Accrued liabilities                                                                                  |   |         | 1,320,657   |   |             |   | 1,518,698 |   |
| Fair value of oil and gas derivatives                                                                |   |         | 6,490       |   |             |   | 88,990 |   |
|        Total current liabilities                                  |   |         | 9,189,481   |   |             |   | 10,953,712 |   |
|                                                                                                 |   |         |        |   |             |   |   |   |
| Long-term debt, net of current portion                                                               |   |         | 203,762     |   |             |   | 408,179 |   |
| Deferred income taxes                                                                                |   |         | 1,575,300   |   |             |   | 1,513,847 |   |
| Asset retirement obligations                                                                         |   |         | 319,001     |   |             |   | 305,370 |   |
| Total liabilities                                                                                    |   |         | 11,287,544  |   |             |   | 13,181,108 |   |
|                                                                                                 |   |         |        |   |             |   |   |   |
| Stockholders’ equity (deficit):                                                                |   |         |        |   |             |   |   |   |
| Preferred stock, $.01 par value per share, 1,000,000 shares authorized,                              |   |         |        |   |             |   |   |   |
|        none issued                                                |   |         | -           |   |             |   | - |   |
| Common stock, $.01 par value per share, 5,000,000 shares authorized,                                 |   |         |        |   |             |   |   |   |
|        2,655,738 shares issued and outstanding                    |   |         | 26,557      |   |             |   | 26,557 |   |
| Additional paid in capital                                                                           |   |         | 12,894,489  |   |             |   | 12,808,867 |   |
| Accumulated deficit                                                                                  |   |         | (12,738,583 | )      |             |   | (12,783,790 | ) |
| Accumulated foreign currency translation adjustment                                                  |   |         | (162,283    | )      |             |   | (230,831 | ) |
|        Total stockholders’ equity (deficit)                 |   |         | 20,180      |   |             |   | (179,197 | ) |
|                                                                                                 |   |         |        |   |             |   |   |   |
|        Total liabilities and stockholders’ equity (deficit) |   | $            | 11,307,724  |   |             | $      | 13,001,911 |   |
|                                                                                                 |   |         |        |   |             |   |   |   |

----

|                                                    |   | Three Months Ended June 30, |      |
|---------------------------------------------------------|--------|-----------------------------|-----------|
|                                                    |   | 2010                        |      |   | 2009 |   |
| Revenues:                                               |   |                        |      |   |   |   |
|    Energy services                            |   | $                           | 4,245,388 |   |   | $ | 2,220,823 |   |
|    Oil and gas sales                          |   |                        | 778,045   |   |   |   | 583,912 |   |
| Other                                                   |   |                        | 30,673    |   |   |   | 7,955 |   |
|                                                    |   |                        | 5,054,106 |   |   |   | 2,812,690 |   |
| Expenses:                                               |   |                        |      |   |   |   |   |   |
|    Energy services                            |   |                        | 3,892,728 |   |   |   | 2,050,827 |   |
|    Lease operating expense                    |   |                        | 353,385   |   |   |   | 390,878 |   |
|    Depreciation, depletion & amortization |   |                        | 241,564   |   |   |   | 100,926 |   |
|    Workover expense                           |   |                        | 16,674    |   |   |   | 152,546 |   |
|    Selling, general and administrative        |   |                        | 476,346   |   |   |   | 418,057 |   |
|                                                    |   |                        | 4,980,697 |   |   |   | 3,113,234 |   |
|                                                    |   |                        |      |   |   |   |   |   |
| Operating income (loss)                                 |   |                        | 73,409    |   |   |   | (300,544 | ) |
|                                                    |   |                        |      |   |   |   |   |   |
| Other income (expense):                                 |   |                        |      |   |   |   |   |   |
|    Interest expense                      |   |                        | (190,193  | ) |   |   | (209,798 | ) |
|    Gain (loss) on oil and gas derivatives     |   |                        | 60,910    |   |   |   | (97,388 | ) |
|                                                    |   |                        |      |   |   |   |   |   |
| Loss from continuing operations before income taxes     |   |                        | (55,874   | ) |   |   | (607,730 | ) |
| Benefit for income taxes                                |   |                        | 19,000    |   |   |   | 103,100 |   |
| Net loss                                                |   | $                           | (36,874   | ) |   | $ | (504,630 | ) |
|                                                    |   |                        |      |   |   |   |   |   |
| Net loss per share, basic and diluted                   |   | $                           | (0.01     | ) |   | $ | (0.19 | ) |
|                                                    |   |                        |      |   |   |   |   |   |
| Weighted average shares outstanding, basic and diluted  |   |                        | 2,655,738 |   |   |   | 2,655,738 |   |

----

|                                                         |   | Six Months Ended June 30, |       |
|--------------------------------------------------------------|--------|---------------------------|------------|
|                                                         |   | 2010                      |       |   | 2009 |   |
| Revenues:                                                    |   |                      |       |   |   |   |
| Energy services                                              |   | $                         | 9,992,859  |   |   | $ | 7,814,737 |   |
| Oil and gas sales                                            |   |                      | 1,372,475  |   |   |   | 1,132,843 |   |
| Other                                                        |   |                      | 41,860     |   |   |   | 50,565 |   |
|                                                         |   |                      | 11,407,194 |   |   |   | 8,998,145 |   |
| Expenses:                                                    |   |                      |       |   |   |   |   |   |
| Energy services                                              |   |                      | 9,127,724  |   |   |   | 7,138,244 |   |
| Lease operating expense                                      |   |                      | 830,743    |   |   |   | 940,222 |   |
| Depreciation, depletion & amortization                   |   |                      | 409,901    |   |   |   | 222,735 |   |
| Impairment of acquisition goodwill                           |   |                      | -          |   |   |   | 1,900,000 |   |
| Workover expense                                             |   |                      | 217,169    |   |   |   | 192,144 |   |
| Selling, general and administrative                          |   |                      | 894,006    |   |   |   | 980,102 |   |
|                                                         |   |                      | 11,479,543 |   |   |   | 11,373,447 |   |
|                                                         |   |                      |       |   |   |   |   |   |
| Operating loss                                               |   |                      | (72,349    | ) |   |   | (2,375,302 | ) |
|                                                         |   |                      |       |   |   |   |   |   |
| Other income (expense):                                      |   |                      |       |   |   |   |   |   |
| Interest expense                                             |   |                      | (380,611   | ) |   |   | (388,261 | ) |
| Gain on debt extinguishment                                  |   |                      | 438,967    |   |   |   | - |   |
| Gain (loss) on oil and gas derivatives                       |   |                      | 82,500     |   |   |   | (97,388 | ) |
|                                                         |   |                      |       |   |   |   |   |   |
| Income (loss) from continuing operations before income taxes |   |                      | 68,507     |   |   |   | (2,860,951 | ) |
| Benefit (provision) for income taxes                         |   |                      | (23,300    | ) |   |   | 223,200 |   |
| Net income (loss) from continuing operations                 |   |                      | 45,207     |   |   |   | (2,637,751 | ) |
| Discontinued operations, net of tax                          |   |                      | -          |   |   |   | (25,419 | ) |
| Net income (loss)                                            |   | $                         | 45,207     |   |   | $ | (2,663,170 | ) |
|                                                         |   |                      |       |   |   |   |   |   |
| Net income (loss) per share, basic and diluted               |   |                      |       |   |   |   |   |   |
| Net income (loss) from continuing operations                 |   | $                         | 0.02       |   |   | $ | (0.99 | ) |
| Discontinued operations                                      |   |                      | -          |   |   |   | (0.01 | ) |
| Net income (loss)                                            |   | $                         | 0.02       |   |   | $ | (1.00 | ) |
|                                                         |   |                      |       |   |   |   |   |   |
| Weighted average shares outstanding, basic and diluted       |   |                      | 2,655,738  |   |   |   | 2,655,738 |   |

----

|                                                                               |   | Six Months Ended June 30, |       |
|------------------------------------------------------------------------------------|--------|---------------------------|------------|
|                                                                               |   | 2010                      |       |   | 2009 |   |
| Cash flows provided by (used in) operating activities:                             |   |                      |       |   |   |   |
| Net income (loss) from continuing operations                                       |   | $                         | 45,207     |   |   | $ | (2,637,751 | ) |
| Adjustments to reconcile net income (loss) from continuing                         |   |                      |       |   |   |   |   |   |
|      operations to cash provided by (used in) operations: |   |                      |       |   |   |   |   |   |
| Depreciation, depletion & amortization                                         |   |                      | 409,901    |   |   |   | 222,735 |   |
| Impairment expense                                                                 |   |                      | -          |   |   |   | 1,900,000 |   |
| Provision (benefit) for income taxes                                               |   |                      | 23,300     |   |   |   | (223,200 | ) |
| Stock based compensation                                                           |   |                      | 11,525     |   |   |   | 25,208 |   |
| Gain on debt extinguishment                                                        |   |                      | (438,967   | ) |   |   | - |   |
| Unrealized gain on oil and gas derivatives                                         |   |                      | (82,500    | ) |   |   | 97,388 |   |
| Changes in current assets and liabilities                                          |   |                      | 275,497    |   |   |   | 103,657 |   |
| Other changes, net                                                                 |   |                      | 91,784     |   |   |   | (184,996 | ) |
| Net cash flows from continuing operations                                          |   |                      | 335,747    |   |   |   | (696,959 | ) |
| Net cash flows from discontinued operations                                        |   |                      | -          |   |   |   | (25,419 | ) |
| Total cash flows from operating activities                                         |   |                      | 335,747    |   |   |   | (722,378 | ) |
|                                                                               |   |                      |       |   |   |   |   |   |
| Cash flows provided by (used in) investing activities:                             |   |                      |       |   |   |   |   |   |
| Decrease in restricted cash from sale of subsidiary                                |   |                      | 1,613,637  |   |   |   | 1,490,872 |   |
| Purchase of property and equipment                                                 |   |                      | (172,964   | ) |   |   | (122,597 | ) |
| Net cash flows from investing activities                                           |   |                      | 1,440,673  |   |   |   | 1,368,275 |   |
|                                                                               |   |                      |       |   |   |   |   |   |
| Cash flows provided by (used in) financing activities:                             |   |                      |       |   |   |   |   |   |
| Proceeds from long term debt                                                       |   |                      | -          |   |   |   | 525,000 |   |
| Payments of long term debt                                                         |   |                      | (1,222,454 | ) |   |   | (958,541 | ) |
| Net (payments) proceeds of stockholder advances                                    |   |                      | (460,854   | ) |   |   | (260,000 | ) |
| Net cash flows from financing activities                                           |   |                      | (1,683,308 | ) |   |   | (693,541 | ) |
|                                                                               |   |                      |       |   |   |   |   |   |
| Net increase (decrease) in cash and cash equivalents                               |   |                      | 93,112     |   |   |   | (47,644 | ) |
| Cash and equivalents at beginning of period                                        |   |                      | 142,703    |   |   |   | 203,200 |   |
|                                                                               |   |                      |       |   |   |   |   |   |
| Cash and equivalents at end of period                                              |   | $                         | 235,815    |   |   | $ | 155,556 |   |
|                                                                               |   |                      |       |   |   |   |   |   |
| Supplemental cash flow data:                                                       |   |                      |       |   |   |   |   |   |
| Cash paid for interest                                                             |   | $                         | 208,915    |   |   | $ | 265,049 |   |
| Cash paid for income taxes                                                         |   |                      | -          |   |   |   | 251,875 |   |
|                                                                               |   |                      |       |   |   |   |   |   |
| Supplemental financing activity:                                                   |   |                      |       |   |   |   |   |   |
| Gain on debt extinguishment - related party                                        |   | $                         | 74,097     |   |   | $ | - |   |

----

----

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|                                                                                                                                                                                                                                                     |   | June 30, |       |   | December 31, |   |       |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------|------------|--------|--------------|--------|------------|
|                                                                                                                                                                                                                                                     |   | 2010     |       |   | 2009         |   |       |
| $25,000,000 line of credit with a bank, maturing on January 1, 2011, interest at 1.0% above prime payable monthly, secured by first lien on CYMRI, LLC’s oil and gas properties, with a declining borrowing base of $3,076,000 as of June 30, 2010 |   | $        | 3,001,000  |   |         | $      | 3,001,000  |   |   |
|                                                                                                                                                                                                                                                     |   |     |       |   |         |   |       |   |   |
| Notes payable to individuals and entities, incurred in acquisition of CYMRI, bearing interest at 10%, with principal and accrued interest due at extended maturity in March 2010, unsecured                                                              |   |     | -          |   |         |   | 1,125,000  |   |   |
|                                                                                                                                                                                                                                                     |   |     |       |   |         |   |       |   |   |
| $2,500,000 (Cdn) revolving line of credit with a bank, interest at 6.5% above Canadian prime payable monthly through extended maturity in September 2010, secured by accounts receivable of Canadian energy services business                            |   |     | 1,200,907  |   |         |   | 1,389,667  |   |   |
|                                                                                                                                                                                                                                                     |   |     |       |   |         |   |       |   |   |
| Notes payable to 2 individuals, incurred in acquisition of Decca Consulting, Ltd., bearing interest at 9%, payable in monthly installments of $30,099 (Cdn) from April 1, 2007 through March 31, 2012, unsecured                                         |   |     | 527,976    |   |         |   | 618,179    |   |   |
|                                                                                                                                                                                                                                                     |   |     |       |   |         |   |       |   |   |
| Advances from stockholders, bearing interest at 10%, with principal and accrued interest due in March 2010, unsecured ($530,000 extended as of June 30, 2010 - see discussion below)                                                                     |   |     | 530,000    |   |         |   | 1,047,317  |   |   |
|                                                                                                                                                                                                                                                     |   |     |       |   |         |   |       |   |   |
| Other short term notes for liability insurance and accrued payables, interest rates at 7% to 9%                                                                                                                                                          |   |     | 92,703     |   |         |   | 136,194    |   |   |
|                                                                                                                                                                                                                                                     |   |     |       |   |         |   |       |   |   |
|                                                                                                                                                                                                                                                     |   |     | 5,352,586  |   |         |   | 7,317,357  |   |   |
| Current portion of long term debt - stockholders                                                                                                                                                                                                         |   |     | (854,214   | )      |         |   | (1,682,317 | ) |   |
| Current portion of long term debt - others                                                                                                                                                                                                               |   |     | (4,294,610 | )      |         |   | (5,226,861 | ) |   |
|                                                                                                                                                                                                                                                     |   |     |       |   |         |   |       |   |   |
|                                                                                                                                                                                                                                                     |   | $        | 203,762    |   |         | $      | 408,179    |   |   |

----

----

|                             |   | Number |    |   | Wtd. Avg. |   |   | Wtd. Avg. |   |   | Aggregate |   |   |
|----------------------------------|--------|--------|---------|--------|----------------|--------|--------|----------------|--------|--------|-----------|--------|--------|
|                             |   | of     |    |   | Exercise       |   |   | Remaining      |   |   | Intrinsic |   |   |
|                             |   | Shares |    |   | Price          |   |   | Term (Yrs.)    |   |   | Value     |   |   |
| Outstanding at January 1, 2009   |   |   | 47,500  |   |           | $      | 7.60   |           |   |   |      |   |   |   |   |
| Option activity                  |   |   | -       |   |           |   | -      |           |   |   |      |   |   |   |   |
| Outstanding at December 31, 2009 |   |   | 47,500  |   |           |   | 7.60   |           |   |   |      |   |   |   |   |
| Options forfeited                |   |   | (10,000 | )      |           |   | (1.50  | )              |   |   |      |   |   |   |   |
| Outstanding at June 30, 2010     |   |   | 37,500  |   |           | $      | 9.18   |           |   |   | 0.8       |   |   | $ | - |   |   |
|                             |   |   |    |   |           |   |   |           |   |   |      |   |   |   |   |   |   |
| Exercisable at June 30, 2010     |   |   | 37,500  |   |           | $      | 9.18   |           |   |   | 0.8       |   |   | $ | - |   |   |

----

|                                                                                                                                               |   | Energy   |   |    | Exploration & |   |   |    |   |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------|--------|---------|-------------------|--------|--------|---------|--------|--------|
|                                                                                                                                               |   | Services |   |    | Production        |   |   |    |   |   |
|                                                                                                                                               |   | (Canada) |   |    | (U. S.)           |   |   | Total   |   |   |
|                                                                                                                                               |   |     |   |    |              |   |   |    |   |   |
| Income Statement Data:                                                                                                                             |   |     |   |    |              |   |   |    |   |   |
|         Operating revenues                                                                                 |   | $        | 9,993  |    |              | $      | 1,372  |    |   | $      | 11,365 |   |   |
|         Other revenues                                                                                     |   |     | 41     |    |              |   | 1      |    |   |   | 42 |   |   |
|                Total revenues                                           |   |     | 10,034 |    |              |   | 1,373  |    |   |   | 11,407 |   |   |
|         Depreciation, depletion & amortization                                                         |   |     | -      |    |              |   | (410   | )  |   |   | (410 | )  |   |
|         Other allocable operating expenses                                                                 |   |     | (9,128 | )  |              |   | (1,048 | )  |   |   | (10,176 | )  |   |
|                Gross profit (loss)                                      |   |     | 906    |    |              |   | (85    | )       |   |   | 821 |   |   |
|         General & administrative                                                                       |   |     |   |    |              |   |   |    |   |   | (894 | )  |   |
|                Operating loss                                           |   |     |   |    |              |   |   |    |   |   | (73 | )  |   |
| Interest expense                                                                                                                                   |   |     |   |    |              |   |   |    |   |   | (380 | )  |   |
| Gain on debt extinguishment                                                                                                                        |   |     |   |    |              |   |   |    |   |   | 439 |   |   |
| Unrealized gain on oil and gas derivatives                                                                                                         |   |     |   |    |              |   |   | 82      |   |   |
|                 Net income from continuing operations before taxes |   |     |   |    |              |   | $      | 68      |   |   |
|                                                                                                                                               |   |     |   |    |              |   |   |    |   |   |   |   |   |
| Balance Sheet Data:                                                                                                                                |   |     |   |    |              |   |   |    |   |   |   |   |   |
|           Subsidiary assets                                                                      |   | $        | 2,668  |    |              | $      | 6,958  |    |   | $      | 9,626 |   |   |
|           Goodwill                                                                               |   |     | 1,536  |    |              |   | -      |    |   |   | 1,536 |   |   |
|                 Segment assets                                     |   |     | 4,204  |    |              |   | 6,958  |    |   |   | 11,162 |   |   |
|           Corporate assets                                                                       |   |     |   |    |              |   |   |    |   |   | 146 |   |   |
|                 Consolidated assets                                |   |     |   |    |              |   |   |    |   | $      | 11,308 |   |   |

----

| Income Statement Data:                           |   |   |   |    |   |   |   |   |   |   |
|--------------------------------------------------|--------|--------|--------|---------|--------|--------|--------|--------|--------|--------|
| Operating revenues                               |   | $      | 7,815  |    |   | $      | 1,133  |   |   | $      | 8,948 |   |   |
| Other revenues                                   |   |   | 38     |    |   |   | 12     |   |   |   | 50 |   |   |
| Total revenues                                   |   |   | 7,853  |    |   |   | 1,145  |   |   |   | 8,998 |   |   |
| Depreciation, depletion & amortization       |   |   | -      |    |   |   | (223   | )      |   |   | (223 | ) |   |
| Impairment expense                               |   |   | (1,900 | )       |   |   | -      |   |   |   | (1,900 | ) |   |
| Other allocable operating expenses               |   |   | (7,138 | )  |   |   | (1,132 | )      |   |   | (8,270 | ) |   |
| Gross profit                                     |   |   | (1,185 | )  |   |   | (210   | )      |   |   | (1,395 | ) |   |
| General & administrative                     |   |   |   |    |   |   |   |   |   |   | (980 | ) |   |
| Operating loss                                   |   |   |   |    |   |   |   |   |   |   | (2,375 | ) |   |
| Interest expense                                 |   |   |   |    |   |   |   |   |   |   | (388 | ) |   |
| Unrealized loss on oil and gas derivatives       |   |   |   |    |   |   |   |   |   |   | (97 | ) |   |
| Net loss from continuing operations before taxes |   |   |   |    |   |   |   |   |   | $      | (2,860 | ) |   |

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|    10.1 | Exhibits I through VI to Second Amended and Restated Credit Agreement, dated August 5, 2008, among CYMRI, L.L.C. and Triumph Energy, Inc. (as Borrowers) and Texas Capital Bank, N.A. (as Lender) for a Reducing Revolving Line of Credit of up to $25,000,000* |
|------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                   |                                                                                                                                                                                                                                                            |
|    31.1 | Certification of Chief Executive Officer pursuant to Rule 13a-14(a)/15(d)-14(a)                                                                                                                                                                                 |
|                   |                                                                                                                                                                                                                                                            |
|    31.2 | Certification of Chief Financial Officer pursuant to Rule 13a-14(a)/15(d)-14(a)                                                                                                                                                                                 |
|                   |                                                                                                                                                                                                                                                            |
|    32.1 | Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002                                                                                                               |
|                   |                                                                                                                                                                                                                                                            |
|    32.2 | Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002                                                                                                               |

|   * | The Second Amended and Restated  Credit Agreement, without subject exhibits, was originally filed as an Exhibit to the Company’s Quarterly Report on Form 10-Q filed on August 13, 2008. |
|---------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   |   | STRATUM HOLDINGS, INC.    |
|--------|--------|---------------------------|
|   |   |                      |
|   |   |                      |
|   |   | /s/ Larry M. Wright       |
|   |   | Larry M. Wright           |
|   |   | Chief Executive Officer   |
|   |   |                      |
|   |   | /s/ D. Hughes Watler, Jr. |
|   |   | D. Hughes Watler, Jr.     |
|   |   | Chief Financial Officer   |

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