NORAM PROPERTIES

Iola Prospect. The Iola Prospect is a large faulted structure that has developed to the south of the Jurassic Knowles shelf edge. The prospect is down-dip to the 500 Bcf Savell field, a Bossier producer. A faulted 4-way structure is visible shallower in the section. Additional prospective zones include the Upper Cotton Valley, Travis Peak, and James Lime formations. The prospect is tied to up-dip well control with 2-D seismic, and is controlled by five reprocessed 2-D lines.

Nolte Marsh Prospect. The Nolte Marsh prospect is a small but low-risk target. It is the most northerly of two very similar amplitudes that straddle a fault and are in close proximity. The far-offset map shows that the estimated 3 Bcfe productive amplitude to the south is a look-alike, with a similar good fluid factor. The Nolte Marsh prospect is expected to be a pressured Yegua/Cook Mountain gas accumulation in a channelized point bar deposit that has been recognized from AVO anomalies. These and other amplitudes are relatively common within a large embayment. Approximately 110 wildcats have been drilled on AVO anomalies with a 90% success rate. Gas accumulations commonly range from 1-3 Bcf with condensate and reservoir sands averaging 40-50 feet thick.

Wethorford Prospect. Wethorford is of the same play type as Nolte Marsh. It has a good AVO response and is located between two stronger amplitudes that have produced 6 Bcf each. Ballard Exploration, the most successful operator in the play, has a 14,000 foot test proposed on Wethorford and controls half of the leases. The well is expected to spud in June 2007.

Wiseman Prospect. Wiseman is of the same play type as Nolte Marsh and Wethorford. It is located between faults but does not conform to them. It appears to be stratigraphic, and exhibits a good fluid factor but no AVO with offset.

Starr County Prospects ("T-Patch I, II, III, and IV"). These four prospects have easily seen amplitudes, and are located in an overlooked part of western Starr County with poor deep Wilcox sand development. Eroded canyons can be recognized where target sands abut shale channels. The play is in an upper slope bypass zone. The pressured wells are approximately 10,000 feet deep and are expected to initially flow around 12 MMcf/d. The first well is expected to spud in June 2007.

East Maben Prospect. East Maben is an in-field development prospect in Maben field. The field was discovered by the Fina #1-Sanders in 1998, and has 11 wells that have produced 40 Bcf to date (70-85 Bcf EUR) from the Ordovician Upper Knox formation "Snow" zone. The "Snow" is present in all wells, and has two zones of porosity development that improve toward the crest and the controlling fault to the east. The nearest well up-dip to the proposed location has produced approximately 7 Bcf to date.

Bideman Gully Prospect. This is a large, deep prospect with good quality 2-D and 3-D seismic and structural control. The target is the Eocene Upper Wilcox sands on the by-pass slope between the deep sea floor fans offshore Louisiana and the Holly Springs source delta system onshore in north central Louisiana. The area of interest is the most northerly embayment recognized in Louisiana. Following a review of available 2-D seismic, 26 sq mi of 3-D seismic was purchased. The structure is an up-thrown 3-way trap at the top of the Wilcox. As the controlling fault flattens with depth, the structure becomes a 4-way closure that will require a 21,000 ft well to test.

Constitution Prospect. Constitution is an up-thrown 3-way fault closure against a large WSW-ENE trending back-up normal fault to an old 100 Bcf Texaco field. Under the old field, Samson identified a deeper Yegua play using 3-D seismic and drilled the #1 Patti Broussard, flowing 35 MMcf/d with 6500 bbls condensate. There is no sand control at the deeper objective levels in the target fault block, but there is good 3-way structural closure with good growth history and an amplitude with AVO.

"Z" Sand Prospect. This is an amplitude play for the Wilcox "Z" Sand that is productive in the next up-dip fault block. The "Z" sand averages 30-40 md permeability with up to 28% porosity, is radioactive, exhibits a strong amplitude, and produces without fracing. The target amplitude is not as strong as the adjacent prototype, but it is reasonably large at 240 acres. Based upon amplitude strength calibration , 60 feet of "Z" Sand is expected on this prospect. All tested amplitudes in the 3-D survey have proven productive.

Rosita Prospect. This prospect targets a package of shallower Upper Wilcox amplitudes that were noted during mapping of the "Z" Sand prospect. The strong amplitudes are equivalent to productive up-dip sands. They are likely trapped down-thrown on a fault and may be partly stratigraphic, similar to the Rosita East field production in the adjacent fault block. All amplitudes in this area have been productive. Reserves may be up to 21 Bcf with 3 sands totalling 120 feet of pay.

Saudi Prospect. The Saudi prospect is one of two large Norphlet structures in this play. These are faulted, big, deep, 4-way turtle structures that have been set up by adjacent salt ridges. Saudi is the second-largest undrilled 4-way structure remaining in Mississippi. If Saudi is successful, the other structure will be pursued. Approximately 300-400 feet of Norphlet sand is expected, with up to 700 feet possible.

Plantation Prospect. Plantation is a simple up-thrown 3-way fault closure against a large normal fault. The Ordovician Maben over-thrust play was followed east to Plantation, which is 20 miles east of Maben field. The objective is still the Knox formation. Plantation is smaller than Maben, but has better event amplitude and more throw on the controlling fault. Estimated prospective reserves are from 30-50 Bcf, with three well locations. Two follow-up structures are in the near vicinity.

Sugar Grove Prospect. This prospect is the same type of play as the Wilburton field located 80 miles to the southwest. Approximately 400 Bcf have been produced from only six wells in the Ordovician Arbuckle formation at Wilburton. In addition, another 400 Bcf have been produced from the shallow Spiro/Wapanaka section on the Wilburton structure. As at Wilburton, the Ordovician at Sugar Grove is located in the last, most northerly buried horst block before termination of the overlying thrust. The controlling normal fault at Sugar Grove has 1,300 feet of throw. A 760 foot thick column is possible. The top of Arbuckle porosity is expected at 16,500 feet, necessitating a 17,000 foot well for a no-pipe test.

Hoffman Creek Prospect. This is a deep, amplitude driven Wilcox "Z" Sand play, developed as a result of work around the nearby Shell "Z" Sand field and the Rosita and "Z" Sand prospects. The target is at a depth of approximately 17,600 feet.

South Womack Hills Prospect. This prospect is located just down-thrown to the large controlling fault for the 30 MMbo Womack Hills Smackover oil field. There is room for 4-6 wells. Structural control is provided by well-positioned but poor quality 2-D seismic.

Oak Grove Prospect. This prospect is an anticline with 2,100 to 5,600 acres of closure seismically defined with 2-D seismic. The objective sands are expected to be relatively tight, with 7-10% porosity. The Company estimates there could be 200 feet of net sand in a 900 feet section based upon analysis of well logs from the area. The prospect is part of an expanding Bossier Sand play in the North Louisiana Salt Basin. Approximately 100 wells have been drilled in the play over the last three years. An average new well is expected to produce 3. 5 to 5. 0 Bcf with average final spacing of 40 acres.

Peach Creek. This 160 acre prospect is located in Wharton County, Texas, where there is nearby production from the shallow Frio, the Wilcox, and the Yegua/Cook Mountain formation. Pipeline infrastructure is located nearby. Six possible locations have been identified based on amplitudes with AVOs. The target is the Jackson sandstone, anticipated at a depth of 7,500 to 8,000 feet. Pool sizes are expected to be in the 1-3 Bcf range.