EXHIBIT 99.1



                    RYDER SCOTT COMPANY PETROLEUM CONSULTANTS










                            MAINLAND RESOURCES, INC.








                                    ESTIMATED

                           FUTURE RESERVES AND INCOME

                             ATTRIBUTABLE TO CERTAIN

                               LEASEHOLD INTERESTS






                                 SEC PARAMETERS





                                      AS OF

                                FEBRUARY 28, 2009





                                                   /s/ JOSEPH E. BLANKENSHIP
                                                   ____________________________
                                                   Joseph E. Blankenship, P.E.
                                                      TBPE License No. 62093
                                                      Senior Vice President

                            RYDER SCOTT COMPANY, L.P.
                        TBPE Firm Registration No. F-1580



                   RYDER SCOTT COMPANY  PETROLEUM CONSULTANTS

<PAGE>


RYDER SCOTT COMPANY
PETROLEUM CONSULTANTS


TBPE REGISTERED ENGINEERING FIRM F-1580                       FAX (713) 651-0849
1100 LOUISIANA  SUITE 3800   HOUSTON, TEXAS 77002-5218  TELEPHONE (713) 651-9191




                                                              March 2, 2010




Mainland Resources, Inc.
20333 State Highway 249, Suite 200
Houston, Texas 77070

Gentlemen:

         At your request,  we have prepared an estimate of the proved  reserves,
future  production,  and income  attributable to certain leasehold  interests of
Mainland  Resources,  Inc.  (Mainland)  as of  February  28,  2009.  The subject
property is the Griffith 11-1 well,  located in the Holly field,  Desoto Parish,
Louisiana.  The income data were  estimated  using the  Securities  and Exchange
Commission (SEC) requirements for future price and cost parameters which were in
effect as of February 28, 2009. Please note that the SEC  requirements,  used in
this report, are different than the new SEC requirements, which went into effect
as of December 31, 2009.

         The  estimated  reserves and future  income  amounts  presented in this
report  are  related  to  hydrocarbon  prices.  Hydrocarbon  prices in effect at
February 28, 2009 were used in the preparation of this report as required by SEC
rules;  however,  actual future prices may vary  significantly from February 28,
2009 prices.  Therefore,  volumes of reserves actually  recovered and amounts of
income actually received may differ  significantly from the estimated quantities
presented in this report. The results of this study are summarized below.


                                 SEC PARAMETERS
                     Estimated Net Reserves and Income Data
                         Certain Leasehold Interests of
                            MAINLAND RESOURCES, INC.
                             As of February 28, 2009
  ___________________________________________________________________________

                                                   Total Proved
                                                    Developed
                                                    Producing
                                                ___________________
NET REMAINING RESERVES
  Gas - MMCF                                                 1,256

INCOME DATA
  Future Gross Revenue                                  $4,091,960
  Deductions                                             1,653,361
                                                        __________
  Future Net Income (FNI)                               $2,438,599

  Discounted FNI @ 10%                                  $2,167,985





               1200, 530 8TH AVENUE, S.W.CALGARY, ALBERTA T2P 3S8
                      TEL (403) 262-2799 FAX (403) 262-2790

             621 17TH STREET, SUITE 1550DENVER, COLORADO 80293-1501
                     TEL (303) 623-9147 FAX (303) 623-4258


<PAGE>

Mainland Resources, Inc.
March 2, 2010
Page 2


         All gas  volumes  are sales gas  expressed  in  millions  of cubic feet
(MMCF) at the official temperature and pressure bases of Louisiana, which are 60
degrees Fahrenheit and 15.025 psi.

         The future gross revenue is after the  deduction of  production  taxes.
The  deductions  comprise the normal  direct costs of  operating  the wells,  ad
valorem taxes,  gathering fees and certain abandonment costs net of salvage. The
future net income is before the deduction of state and federal  income taxes and
general administrative overhead, and has not been adjusted for outstanding loans
that  may  exist  nor  does  it  include  any  adjustment  for  cash  on hand or
undistributed  income.  No attempt was made to quantify or otherwise account for
any accumulated gas production  imbalances that may exist.  Gas reserves account
for 100 percent of total future gross revenue.

         The  discounted  future net income shown above was  calculated  using a
discount rate of 10 percent per annum compounded monthly.  Future net income was
discounted  at four other  discount  rates which were also  compounded  monthly.
These results are shown on the estimated  projection  of future  production  and
income  presented  in a later  section of this  report  and in  summary  form as
follows.

                                             Discounted Future Net Income
                                                As of February 28, 2009
                                      __________________________________________
         Discount Rate                                   Total
            Percent                                      Proved
     ____________________                       _____________________

               12                                      $2,122,583
               15                                      $2,058,905
               20                                      $1,963,152
               25                                      $1,878,425

         The results shown above are presented for your  information  and should
not be construed as our estimate of fair market value.

RESERVES INCLUDED IN THIS REPORT

         The PROVED  RESERVES  included  herein conform to the definition as set
forth in the Securities and Exchange  Commission's  Regulation S-X Part 210.4-10
(a) as  clarified by  subsequent  Commission  Staff  Accounting  Bulletins.  The
definition of proved reserves is included under "Petroleum Reserves Definitions"
in this report.

         Various reserve status categories are defined under "Petroleum Reserves
Definitions" in this report.

ESTIMATES OF RESERVES

         The reserves in this report were estimated by the  performance  method.
The performance  method is based on analysis of various  historical data trends.
The reserves are based on primary recovery.  The reserves are  unconventional in
nature; they are being produced from the Haynesville Shale. The well is a single
lateral horizontal type well.

         The reserves  included in this report are estimates only and should not
be  construed  as  being  exact  quantities.  They  may or may  not be  actually
recovered, and if recovered, the revenues therefrom and the actual costs related
thereto could be more or less than the estimated amounts. Moreover, estimates of
reserves may increase or decrease as a result of future operations.


                   RIVER SCOTT COMPANY PETROLEUM CONSULTANTS

<PAGE>

Mainland Resources, Inc.
March 2, 2010
Page 3


FUTURE PRODUCTION RATES

         Initial  production  rate is based on the current  producing  rate. The
current  decline trend was used as the basis for  estimating  future  production
rates.

         The future  production rates may be more or less than estimated because
of changes in market demand or allowables set by regulatory bodies.

HYDROCARBON PRICES

         In  accordance  with FASB  Statement  No. 69,  February 28, 2009 market
prices were determined  using the daily gas sales price ("spot price")  adjusted
for  gas   gathering   hub  and  wellhead   price   differences   (e.g.   grade,
transportation,  and gravity) as  appropriate.  Also in accordance  with SEC and
FASB  specifications,  changes in market prices  subsequent to February 28, 2009
were not considered in this report.

         The effects of derivative instruments designated as price hedges of gas
quantities were not considered or included in this report.

COSTS

         Operating  costs for the well in this report are based on the operating
expense reports of Mainland and include only those costs directly  applicable to
the well.  Operating  costs for this  non-operated  property  include  the COPAS
overhead  costs  allocated  directly  to the well under  terms of the  operating
agreement.  No deduction was made for loan repayments,  interest  expenses,  and
exploration and  development  prepayments  that are not charged  directly to the
well.

         The  estimated net cost of  abandonment  after salvage was included for
this property.  The estimates of the net abandonment costs furnished by Mainland
were accepted without independent verification.

         Current costs were held constant throughout the life of the properties.

GENERAL

         Table 1 presents our estimated  projection of production  and income by
years beginning March 1, 2009.

         While it may reasonably be anticipated  that the future prices received
for the sale of production  and the operating  costs and other costs relating to
such production may also increase or decrease from existing levels, such changes
were, in accordance with rules adopted by the SEC, omitted from consideration in
making this evaluation.

         The estimates of reserves  presented  herein were based upon a detailed
study of the property in which Mainland owns an interest;  however,  we have not
made any field  examination of the property.  No consideration was given in this
report to potential environmental  liabilities that may exist nor were any costs
included for potential liability to restore and clean up damages, if any, caused
by past operating  practices.  Mainland has informed us that they have furnished
us all of the accounts,  records,  geological and engineering  data, and reports
and other data required for this investigation. The ownership interests, prices,
and other factual data furnished by Mainland were accepted  without  independent
verification.  Please note that although this report is issued on March 2, 2010,


                   RIVER SCOTT COMPANY PETROLEUM CONSULTANTS

<PAGE>

at Mainland's request,  the estimates presented in this report are based only on
data available through March 2009.

         Neither we nor any of our  employees  have any  interest in the subject
property and neither the employment to make this study nor the  compensation  is
contingent  on our  estimates  of  reserves  and future  income for the  subject
property.

         This report was  prepared  for the  exclusive  use and sole  benefit of
Mainland  Resources,  Inc.  and may not be put to other  use  without  our prior
written  consent  for such use.  The data,  work  papers,  and maps used in this
report are  available  for  examination  by  authorized  parties in our offices.
Please contact us if we can be of further service.


                                           Very truly yours,

                                           RYDER SCOTT COMPANY, L.P.
                                           TBPE Firm Registration No. F-1580



                                           /s/ JOSEPH E. BLANKENSHIP

                                           Joseph E. Blankenship, P.E.
                                           TBPE License No. 62093
                                           Senior Vice President

                                           [STATE SEAL - STATE OF TEXAS
                                            PROFESSIONAL ENGINEERING]
JEB/sm

<PAGE>



                         PETROLEUM RESERVES DEFINITIONS

                       SECURITIES AND EXCHANGE COMMISSION



INTRODUCTION

         Reserves are those  quantities of petroleum which are anticipated to be
commercially  recovered from known accumulations from a given date forward.  All
reserve  estimates involve some degree of uncertainty.  The uncertainty  depends
chiefly on the amount of reliable geologic and engineering data available at the
time of the estimate and the  interpretation  of these data. The relative degree
of  uncertainty  may be conveyed by placing  reserves  into one of two principal
classifications,  either proved or unproved.  Unproved reserves are less certain
to be  recovered  than  proved  reserves  and may be further  sub-classified  as
probable and possible reserves to denote progressively increasing uncertainty in
their recoverability. It should be noted that Securities and Exchange Commission
Regulation S-K prohibits the  disclosure of estimated  quantities of probable or
possible  reserves  of oil  and  gas  and any  estimated  value  thereof  in any
documents publicly filed with the Commission.

         Reserves estimates will generally be revised as additional  geologic or
engineering data become available or as economic conditions change.  Reserves do
not include quantities of petroleum being held in inventory,  and may be reduced
for usage or processing losses if required for financial reporting.

         Reserves  may be  attributed  to  either  natural  energy  or  improved
recovery   methods.   Improved   recovery   methods   include  all  methods  for
supplementing  natural  energy or altering  natural  forces in the  reservoir to
increase ultimate recovery.  Examples of such methods are pressure  maintenance,
cycling,  waterflooding,  thermal  methods,  chemical  flooding,  and the use of
miscible and immiscible displacement fluids. Other improved recovery methods may
be developed in the future as petroleum technology continues to evolve.


PROVED RESERVES  (SEC DEFINITIONS)

         Securities and Exchange  Commission  Regulation S-X Rule 4-10 paragraph
(a) defines proved reserves as follows:

PROVED OIL AND GAS  RESERVES.  PROVED  OIL AND GAS  RESERVES  ARE THE  ESTIMATED
QUANTITIES OF CRUDE OIL,  NATURAL GAS, AND NATURAL GAS LIQUIDS WHICH  GEOLOGICAL
AND ENGINEERING DATA DEMONSTRATE WITH REASONABLE  CERTAINTY TO BE RECOVERABLE IN
FUTURE  YEARS  FROM KNOWN  RESERVOIRS  UNDER  EXISTING  ECONOMIC  AND  OPERATING
CONDITIONS,  I.E.,  PRICES AND COSTS AS OF THE DATE THE ESTIMATE IS MADE. PRICES
INCLUDE CONSIDERATION OF CHANGES IN EXISTING PRICES PROVIDED ONLY BY CONTRACTUAL
ARRANGEMENTS, BUT NOT ON ESCALATIONS BASED UPON FUTURE CONDITIONS.

       (I)  RESERVOIRS  ARE  CONSIDERED  PROVED  IF  ECONOMIC  PRODUCIBILITY  IS
       SUPPORTED BY EITHER ACTUAL  PRODUCTION OR CONCLUSIVE  FORMATION TEST. THE
       AREA OF A RESERVOIR CONSIDERED PROVED INCLUDES:

              (A) THAT  PORTION  DELINEATED  BY DRILLING  AND DEFINED BY GAS-OIL
AND/OR OIL-WATER CONTACTS, IF ANY; AND


<PAGE>

PETROLEUM RESERVES DEFINITIONS
Page 2



              (B) THE IMMEDIATELY  ADJOINING PORTIONS NOT YET DRILLED, BUT WHICH
              CAN BE REASONABLY  JUDGED AS ECONOMICALLY  PRODUCTIVE ON THE BASIS
              OF AVAILABLE  GEOLOGICAL AND  ENGINEERING  DATA. IN THE ABSENCE OF
              INFORMATION  ON  FLUID  CONTACTS,   THE  LOWEST  KNOWN  STRUCTURAL
              OCCURRENCE OF HYDROCARBONS  CONTROLS THE LOWER PROVED LIMIT OF THE
              RESERVOIR.

       (II) RESERVES WHICH CAN BE PRODUCED  ECONOMICALLY  THROUGH APPLICATION OF
       IMPROVED  RECOVERY  TECHNIQUES  (SUCH AS FLUID INJECTION) ARE INCLUDED IN
       THE "PROVED"  CLASSIFICATION  WHEN SUCCESSFUL TESTING BY A PILOT PROJECT,
       OR THE  OPERATION  OF AN  INSTALLED  PROGRAM IN THE  RESERVOIR,  PROVIDES
       SUPPORT FOR THE ENGINEERING  ANALYSIS ON WHICH THE PROJECT OR PROGRAM WAS
       BASED.

       (III) ESTIMATES OF PROVED RESERVES DO NOT INCLUDE THE FOLLOWING:

              (A) OIL THAT MAY BECOME  AVAILABLE  FROM KNOWN  RESERVOIRS  BUT IS
CLASSIFIED SEPARATELY AS "INDICATED ADDITIONAL RESERVES";

              (B) CRUDE OIL, NATURAL GAS, AND NATURAL GAS LIQUIDS,  THE RECOVERY
              OF WHICH IS SUBJECT TO REASONABLE  DOUBT BECAUSE OF UNCERTAINTY AS
              TO GEOLOGY, RESERVOIR CHARACTERISTICS, OR ECONOMIC FACTORS;

              (C) CRUDE OIL,  NATURAL  GAS,  AND NATURAL GAS  LIQUIDS,  THAT MAY
              OCCUR IN UNDRILLED PROSPECTS; AND

              (D) CRUDE OIL,  NATURAL GAS, AND NATURAL GAS LIQUIDS,  THAT MAY BE
              RECOVERED FROM OIL SHALES, COAL, GILSONITE AND OTHER SUCH SOURCES.

PROVED DEVELOPED OIL AND GAS RESERVES. PROVED DEVELOPED OIL AND GAS RESERVES ARE
RESERVES  THAT CAN BE  EXPECTED  TO BE  RECOVERED  THROUGH  EXISTING  WELLS WITH
EXISTING EQUIPMENT AND OPERATING METHODS.  ADDITIONAL OIL AND GAS EXPECTED TO BE
OBTAINED  THROUGH THE APPLICATION OF FLUID INJECTION OR OTHER IMPROVED  RECOVERY
TECHNIQUES  FOR  SUPPLEMENTING  THE  NATURAL  FORCES AND  MECHANISMS  OF PRIMARY
RECOVERY SHOULD BE INCLUDED AS "PROVED DEVELOPED RESERVES" ONLY AFTER TESTING BY
A PILOT  PROJECT OR AFTER THE  OPERATION OF AN INSTALLED  PROGRAM HAS  CONFIRMED
THROUGH PRODUCTION RESPONSE THAT INCREASED RECOVERY WILL BE ACHIEVED.

PROVED  UNDEVELOPED  RESERVES.  PROVED  UNDEVELOPED  OIL  AND GAS  RESERVES  ARE
RESERVES THAT ARE EXPECTED TO BE RECOVERED FROM NEW WELLS ON UNDRILLED  ACREAGE,
OR FROM  EXISTING  WELLS WHERE A RELATIVELY  MAJOR  EXPENDITURE  IS REQUIRED FOR
RECOMPLETION.  RESERVES ON UNDRILLED  ACREAGE SHALL BE LIMITED TO THOSE DRILLING
UNITS OFFSETTING PRODUCTIVE UNITS THAT ARE REASONABLY CERTAIN OF PRODUCTION WHEN
DRILLED.  PROVED RESERVES FOR OTHER UNDRILLED UNITS CAN BE CLAIMED ONLY WHERE IT
CAN BE  DEMONSTRATED  WITH CERTAINTY THAT THERE IS CONTINUITY OF PRODUCTION FROM
THE EXISTING PRODUCTIVE  FORMATION.  UNDER NO CIRCUMSTANCES SHOULD ESTIMATES FOR
PROVED  UNDEVELOPED  RESERVES  BE  ATTRIBUTABLE  TO ANY  ACREAGE  FOR  WHICH  AN
APPLICATION  OF  FLUID  INJECTION  OR  OTHER  IMPROVED  RECOVERY   TECHNIQUE  IS
CONTEMPLATED,  UNLESS SUCH TECHNIQUES HAVE BEEN PROVED EFFECTIVE BY ACTUAL TESTS
IN THE AREA AND IN THE SAME RESERVOIR.

         Certain  Staff  Accounting   Bulletins  published   subsequent  to  the
promulgation  of  Regulation  S-X  have  dealt  with  matters  relating  to  the
application  of  financial  accounting  and  disclosure  rules  for  oil and gas
producing activities.  In particular,  the following  interpretations  extracted
from  Staff  Accounting  Bulletins  set forth  the  Commission  staff's  view on
specific questions pertaining to proved oil and gas reserves.


<PAGE>

PETROLEUM RESERVES DEFINITIONS
Page 3


         ECONOMIC PRODUCIBILITY OF ESTIMATED PROVED RESERVES CAN BE SUPPORTED TO
THE SATISFACTION OF THE OFFICE OF ENGINEERING IF GEOLOGICAL AND ENGINEERING DATA
DEMONSTRATE  WITH  REASONABLE  CERTAINTY THAT THOSE RESERVES CAN BE RECOVERED IN
FUTURE YEARS UNDER  EXISTING  ECONOMIC AND  OPERATING  CONDITIONS.  THE RELATIVE
IMPORTANCE OF THE MANY PIECES OF GEOLOGICAL AND ENGINEERING DATA WHICH SHOULD BE
EVALUATED WHEN CLASSIFYING  RESERVES CANNOT BE IDENTIFIED IN ADVANCE. IN CERTAIN
INSTANCES,  PROVED  RESERVES  MAY BE  ASSIGNED TO  RESERVOIRS  ON THE BASIS OF A
COMBINATION  OF ELECTRICAL  AND OTHER TYPE LOGS AND CORE ANALYSES WHICH INDICATE
THE RESERVOIRS  ARE ANALOGOUS TO SIMILAR  RESERVOIRS IN THE SAME FIELD WHICH ARE
PRODUCING  OR HAVE  DEMONSTRATED  THE  ABILITY TO PRODUCE ON A  FORMATION  TEST.
(EXTRACTED FROM SAB-35)

         IN DETERMINING WHETHER "PROVED UNDEVELOPED  RESERVES" ENCOMPASS ACREAGE
ON WHICH FLUID INJECTION (OR OTHER IMPROVED RECOVERY TECHNIQUE) IS CONTEMPLATED,
IS IT APPROPRIATE TO DISTINGUISH  BETWEEN (I) FLUID  INJECTION USED FOR PRESSURE
MAINTENANCE  DURING THE EARLY LIFE OF A FIELD AND (II) FLUID  INJECTION  USED TO
EFFECT SECONDARY  RECOVERY WHEN A FIELD IS IN THE LATE STAGES OF DEPLETION?  ...
THE OFFICE OF ENGINEERING BELIEVES THAT THE DISTINCTION  IDENTIFIED IN THE ABOVE
QUESTION MAY BE APPROPRIATE IN A FEW LIMITED CIRCUMSTANCES,  SUCH AS IN THE CASE
OF CERTAIN  FIELDS IN THE NORTH SEA.  THE STAFF WILL REVIEW  ESTIMATES OF PROVED
RESERVES  ATTRIBUTABLE  TO FLUID  INJECTION  IN THE LIGHT OF THE STRENGTH OF THE
EVIDENCE  PRESENTED BY THE  REGISTRANT IN SUPPORT OF A CONTENTION  THAT ENHANCED
RECOVERY WILL BE ACHIEVED. (EXTRACTED FROM SAB-35)

         COMPANIES  SHOULD REPORT  RESERVES OF NATURAL GAS LIQUIDS WHICH ARE NET
TO THEIR LEASEHOLD INTEREST,  I.E., THAT PORTION RECOVERED IN A PROCESSING PLANT
AND ALLOCATED TO THE LEASEHOLD  INTEREST.  IT MAY BE  APPROPRIATE IN THE CASE OF
NATURAL GAS LIQUIDS NOT CLEARLY ATTRIBUTABLE TO LEASEHOLD INTERESTS OWNERSHIP TO
FOLLOW  INSTRUCTION  (B) OF ITEM  2(B)(3)  OF  REGULATION  S-K AND  REPORT  SUCH
RESERVES  SEPARATELY AND DESCRIBE THE NATURE OF THE OWNERSHIP.  (EXTRACTED  FROM
SAB-35)

         THE STAFF BELIEVES THAT SINCE COALBED METHANE GAS CAN BE RECOVERED FROM
COAL IN ITS  NATURAL  AND  ORIGINAL  LOCATION,  IT SHOULD BE  INCLUDED IN PROVED
RESERVES, PROVIDED THAT IT COMPLIES IN ALL OTHER RESPECTS WITH THE DEFINITION OF
PROVED OIL AND GAS  RESERVES  AS  SPECIFIED  IN RULE  4-10(A)(2)  INCLUDING  THE
REQUIREMENT THAT METHANE PRODUCTION BE ECONOMICAL AT CURRENT PRICES, COSTS, (NET
OF THE TAX CREDIT) AND EXISTING OPERATING CONDITIONS. (EXTRACTED FROM SAB-85)

         Statements   in   Staff   Accounting   Bulletins   are  not   rules  or
interpretations  of the  Commission  nor  are  they  published  as  bearing  the
Commission's  official approval;  they represent  interpretations  and practices
followed  by the  Division  of  Corporation  Finance and the Office of the Chief
Accountant  in  administering   the  disclosure   requirements  of  the  Federal
securities laws.


SUB-CATEGORIZATION OF DEVELOPED RESERVES  (SPE/WPC DEFINITIONS)

         In  accordance  with  guidelines  adopted by the  Society of  Petroleum
Engineers (SPE) and the World Petroleum  Congress (WPC),  developed reserves may
be sub-categorized as producing or non-producing.

PRODUCING.  Reserves  sub-categorized  as producing are expected to be recovered
from  completion  intervals  which  are  open and  producing  at the time of the
estimate.  Improved  recovery  reserves are considered  producing only after the
improved recovery project is in operation.


<PAGE>

PETROLEUM RESERVES DEFINITIONS
Page 4


NON-PRODUCING.  Reserves  sub-categorized  as non-producing  include shut-in and
behind pipe  reserves.  Shut-in  reserves are expected to be recovered  from (1)
completion  intervals  which are open at the time of the estimate but which have
not  started   producing,   (2)  wells  which  were  shut-in  awaiting  pipeline
connections or as a result of a market interruption, or (3) wells not capable of
production  for  mechanical  reasons.  Behind pipe  reserves  are expected to be
recovered from zones in existing wells, which will require additional completion
work or future recompletion prior to the start of production.




<PAGE>

RYDER SCOTT COMPANY
PETROLEUM CONSULTANTS

TBPE FIRM LIC. NO. F-1580                                                TABLE 1

                            MAINLAND RESOURCES, INC.
                      ESTIMATED FUTURE RESERVES AND INCOME
                   ATTRIBUTABLE TO CERTAIN LEASEHOLD INTERESTS
                                (SEC PARAMETERS)
                             AS OF FEBRUARY 28, 2009

<TABLE>
<CAPTION>

HOLLY FIELD, DESOTO PARISH, LOUISIANA                                                                    GAS LEASE
PETROHAWK - OPERATOR      S11-T13N-R14W                                                                  PROVED
GRIFFITH 11-1      (HAYNESVILLE SHALE)      API #17031244560000                                          PRODUCING

                                 REVENUE INTEREST                PRODUCT PRICES
                         ________________________________    _________________________________            DISCOUNTED
               Expense      Oil/       Plant                 Oil/Cond   Plt. Prod.      Gas            FUTURE NET INCOME - $
              Interest   Condensate  Products     Gas           ($bbl)   ($bbl)       ($/Mcf)          COMPOUNDED MONTHLY
            __________   __________  __________ __________   __________ __________  __________         ______________________
<S>         <C>                                 <C>                                       <C>           <C>       <C>
INITIAL     0.40000000                          0.30000000                                3.55          10.00%    2,167,985
FINAL       0.40000000                          0.30000000                                3.55          12.00%    2,122,583
                                                                                                        15.00%    2,058,905
                                                                                                        20.00%    1,963,152
                                                                                                        25.00%    1,878,425
</TABLE>

REMARKS  HORIZONTAL WELL WITH 12 STAGE FRAC - GAS SALES BEGAN 1/29/2009
         SINGLE LATERAL - APPROXIMATELY 5000 FT LENGTH
         4,054 FT OF LATERAL PERF'ED  (12,099 - 16,153'MD)
         OTHER DEDUCTIONS ARE GATHERING FEES

<TABLE>
<CAPTION>

                   ESTIMATED 8/8THS PRODUCTION              COMPANY NET PRODUCTION                      AVERAGE PRICES
                __________________________________  ________________________________________  _________________________________
       Number   Oil/Cond.  Plant Products    Gas    Oil/Cond.   Plant Procuts  Sales Gas (A)   Oil/Cond.    Plt Prod.     Gas
Year  of Wells  (Barrels)     (Barrels)     (MMcf)  (Barrels)      (Barrels)       (MMcf)       ($/bbl)     ($/bbl)     ($Mcf)
____  ________  _________  ______________  _______  _________  ______________  _____________  ___________   _________   _______
<C>     <C>             <C>             <C>  <C>            <C>             <C>          <C>         <C>         <C>       <C>
2009    1               0               0    1,872          0               0            550         0.00        0.00      3.55
2010    1               0               0      754          0               0            222         0.00        0.00      3.55
2011    1               0               0      445          0               0            131         0.00        0.00      3.55
2012    1               0               0      318          0               0             93         0.00        0.00      3.55
2013    1               0               0      246          0               0             72         0.00        0.00      3.55
2014    1               0               0      202          0               0             59         0.00        0.00      3.55
2015    1               0               0      171          0               0             50         0.00        0.00      3.55
2016    1               0               0      148          0               0             44         0.00        0.00      3.55
2017    1               0               0      115          0               0             34         0.00        0.00      3.55
2018    0               0               0        0          0               0              0         0.00        0.00      3.55


Sub-Total               0               0    4,271          0               0          1,256         0.00        0.00      3.55
Remainder               0               0        0          0               0              0         0.00        0.00      0.00
Total Future            0               0    4,271          0               0          1,256         0.00        0.00      3.55

Cumulative              0               0      437          0               (A) NET GAS VOLUMES ACCOUNT FOR SURFACE LOSSES,
Ultimate                0               0    4,708          0               SHRINKAGE = 2.00%

</TABLE>

<TABLE>
<CAPTION>


                        COMPANY FUTURE GROSS REVENUE (FGR) - $                         PRODUCTION TAXES - $
     __________________________________________________________________________  ______________________________________  FGR AFTER
           From                From           From                                    Oil/      Plant Prod./             PRODUCTION
Year   Oil/Condensate     Plant Products       Gas      Other       Total          Condensate      Other        Gas      TAXES - $
____ ___________________  ______________  __________  _________  ______________  _____________  ___________   _________  __________
<C>                    <C>             <C> <C>                <C>     <C>                    <C>          <C>   <C>       <C>
2009                   0               0   1,953,303          0       1,953,303              0            0     160,138   1,793,165
2010                   0               0     787,113          0         787,113              0            0      64,530     722,582
2011                   0               0     464,768          0         464,768              0            0      38,103     426,665
2012                   0               0     331,811          0         331,811              0            0      27,203     304,608
2013                   0               0     257,154          0         257,154              0            0      21,082     236,072
2014                   0               0     210,426          0         210,426              0            0      17,251     193,174
2015                   0               0     178,102          0         178,102              0            0      14,601     163,500
2016                   0               0     154,798          0         154,798              0            0      12,691     142,107
2017                   0               0     119,918          0         119,918              0            0       9,831     110,087
2018                   0               0           0          0               0              0            0           0           0


Sub-Total              0               0   4,457,391          0       4,457,391              0            0     365,432   4,091,960
Remainder              0               0           0          0               0              0            0           0           0
Total Future           0               0   4,457,391          0       4,457,391              0            0     365,432   4,091,960

</TABLE>

<TABLE>
<CAPTION>


                                     DEDUCTIONS - $                                FUTURE NET INCOME BEFORE TAXES - $
     __________________________________________________________________________  ________________________________________
                                                                                        Undiscounted
       Operating           Ad Valorem     Development                            __________________________  Discounted
Year     Costs               Taxes           Costs      Other         Toal         Annual       Cumulative     @ 10.00%
____ ___________________  ______________  __________  _________  ______________  _____________  ___________   _________
<C>               <C>             <C>              <C>  <C>             <C>          <C>          <C>         <C>
2009              80,000          19,533           0    336,920         436,453      1,356,711    1,356,711   1,316,846
2010              96,000           7,871           0    135,767         239,638        482,944    1,839,656     425,656
2011              96,000           4,648           0     80,167         180,814        245,850    2,085,506     195,748
2012              96,000           3,318           0     57,233         156,551        148,056    2,233,563     106,629
2013              96,000           2,572           0     44,356         142,927         93,144    2,326,707      60,699
2014              96,000           2,104           0     36,296         134,400         58,774    2,385,481      34,677
2015              96,000           1,781           0     30,720         128,501         34,999    2,420,480      18,704
2016              96,000           1,548           0     26,701         124,249         17,858    2,438,338       8,658
2017              83,943           1,199           0     20,684         105,826          4,261    2,442,599       1,890
2018                   0               0       4,000          0           4,000         -4,000    2,438,599      -1,521


Sub-Total        835,943          44,574       4,000    768,844       1,653,361      2,438,599                2,167,985
Remainder              0               0           0          0               0              0    2,438,599           0
Total Future     835,943          44,574       4,000    768,844       1,653,361      2,438,599                2,167,985

</TABLE>

Life of evaluation is 8.71 years.
Final production rate: 10.418 MMcf/month

       These data are part of a Ryder Scott report and are subject to the
                      conditions in the text of the report