• 89% of proved reserves at December 31, 2007 were natural gas & natural gas liquids
• 89% of fiscal year 2007 production was natural gas & natural gas liquids
• 77% of our wells are natural gas producers

Balanced exploration and development property base focused in

• the onshore Gulf Coast from South Texas to Mississippi
• the Permian Basin of West Texas and New Mexico
• the Fayetteville Shale in Arkansas

Track record of successful operations

• Three-year drilling success rate of 90% (based on gross wells drilled)
• Three-year reserve replacement ratio of 232%
• Three-year compounded growth rate in proved reserves of 22%
• Three-year compounded growth rate in production of 26%
• Positive growth in cash flows from operating activities since 2002

As of December 31, 2007

• Debt to total capital 37.4%
• Operated 48% of gross wells
• 60.9 MMcfe per day of total net daily production
• Net proved reserves of 163.5 Bcfe with RP Ratio of 6.8 years
• Proved reserves in: Texas - 85%, Mississippi - 6%, southeast New Mexico - 5%, and remaining 4% in south Louisiana, Michigan, Alabama and Arkansas
• Approximately 174,800 net developed, undeveloped and option acres

Our offices are located at 1301 Travis Street, Suite 2000, Houston, Texas 77002. Our phone number is (713) 654-8960 and our main fax number is (713) 650-6494.