TERRA INSIGHT SERVICES OIL AND GAS EXPLORATION

Deweyville, Oil and Gas, East Texas

Field Description The Deweyville Prospect was located in Newton County, Texas. The primary objectives for the Deweyville Prospect were the same prolific producing sands from the West Starks (cumulative production in excess of 41 BCF Gas with 5.8 million barrels of oil) the Yegua # 3, # 4 and # 7 Sands. The Yegua #5 sand is an additional objective that produces regionally along trend. The West Starks Field is located just across the Texas border, on the Louisiana side of the Sabine River in Calcasieu Parish. The proposed drilling depth to test these objectives was 13,000’. One string of protective pipe is necessary in order to drill for these prolific producing, objective sands. Substantial subsurface well data and 2D and 3D seismic data defined the Deweyville Prospect. The prospect is situated in the down-dip section of the Yegua Trend, within the Gulf Coast Salt Dome Basin. Geopressure is present in the shaly Jackson Formation directly above the Yegua Formation. One string of protective pipe needs to be set in order to drill for the Yegua objective sands. Elongate, subtle, fault closures and anticlinal structures downthrown to regional trending northeast — southwest down-to-the-coast faults can trap significant hydrocarbon reserves. The Deweyville Prospect was positioned along the same fault or fault segment that traps hydrocarbons at many prolific oil and gas fields. West Starks (in excess of 41 .4 BCF Gas, 5.9 million BBL Oil), Lunita (in excess of 13.4 BCF Gas, 1 million BBL Oil), DeQuincy (in excess of 4.8 BCF Gas, 1.2 million BBL Oil), East Perkins (in excess of 2 BCF Gas, 114 thousand BBL Oil), West Buxton Creek (in excess of 1.3 BCF Gas, 1.4 BBL Oil), Buxton Creek (in excess of 9.1 BCF Gas, 1.5 BBL Oil), and Long Prairie (in excess of 4.7 BCF Gas, 160 thousand BBL Oil).

Project Objective The objective was to evaluate the prospect utilizing the STeP® technology and confirm the depths of productive sands and the drilling location.

Project Results As STeP® predicted, the Whitmar Exploration # 1 Hankamer Well was abandoned as a dry hole on September 11, 2006. The well was drilled as an “S” shaped hole to a measured depth of 13,343’ (TVD 13,000). All the objective sands, the Yegua #3 Sand, Yegua # 4 Sand, Yegua # 5 Sand and Yegua # 7 Sand were all water-wet.

Terra Insight Services, Inc

99 Park Avenue, 16th Floor, New York, NY 10016

Phone: +1-212-286-9197 Fax: +1-917-591-5988

E-mail: services@terrainsight.com

Structure contour map, top of Yegua formation Regional Marker

STeP® Structure-metric interpretation of the prospect

C A S E S T U D Y

TERRA INSIGHT SERVICES OIL AND GAS EXPLORATION

Deweyville, Oil and Gas, East Texas Drilling Results - Confirmation

The prospect sponsor has interpreted the 3-D seismic surveys and expected the well to come in 50’ to 100’ structurally high to down dip wet wells. In reality, the well came in flat to 50’ low to the downdip water-wet wells. Remapping, using the new subsurface data point, the Deweyville Prospect maps to be an elongated, west-dipping structural nose.

Paleo-reconstruction of the area

Well log confirming water-wet sands and STeP® prediction

For more information on the Terra’s technologies, case studies as well as our services please visit

www.terrainsight.com

Increase success rate

Reduce costs & time

Terra Insight Services, Inc.

99 Park Avenue, 16th Floor, New York, NY 10016

Phone: +1-212-286-9197 Fax: +1-917-591-5988

E-mail: services@terrainsight.com

A N A L Y S I S R E S U L T S

Yegua 3 Sand – Water-wet(as predicted by STeP)

Yegua 3 Sand – Water-wet(as predicted by STeP)

Yegua 5 Sand – Water-wet(as predicted by STeP)

Yegua 5 Sand – Water-wet(as predicted by STeP)