Year-End 2007 Proved Reserves 170.1 Bcfe Proved Developed Reserves 52% Percentage of Total Proved Reserves 16% 3P Reserves 355 Bcfe Gas/Oil Mix 96%-4% Total Net Leased Acres 99,700 Net Undeveloped Leased Acres 65% Mineral Servitude Acres 9,788 2008 2008 Budgeted Capital Expenditures $161 MM		Our capital budget for the ArkLaTex region in 2008 is $161 million, 51 percent of which will be operated by us. The largest portion of this year’s budget relates to Cotton Valley programs, where 50 percent of the region’s capital will be deployed. Of the capital allocated for Cotton Valley programs, 60 percent will be invested at Elm Grove Field where development continues to be highly successful. Development of the field on 20-acre spacing continues to drive activity levels, and a successful horizontal well completed at the end of 2007 could set the stage for horizontal development at Elm Grove Field. The remaining Cotton Valley allocation for 2008 will be split roughly evenly between the program at Terryville Field and the St. Mary operated program at Carthage. Our operated horizontal James Lime program will represent 34 percent of the region’s 2008 budget. We plan to operate two drilling rigs throughout the year, with plans to drill more than 20 horizontal James Lime wells in 2008.