Amend Permit to Drill

OKLAHOMA CORPORATION COMMISSION

OIL & GAS CONSERVATION DIVISION

P.O. BOX 52000 OKLAHOMA CITY, OK 73152-2000

(Rule 165:10-3-1)

API NUMBER: 083 23945 A

WELL LOCATION: Approval Date: 11/03/2010 Expiration Date: 05/03/2011 Sec: 32 Twp: 17N Rge: 4W County: LOGAN SPOT LOCATION: C SW NE FEET FROM QUARTER: FROM SOUTH FROM SECTION LINES: 660 660 WEST

Lease Name: 4/S RANCH Well No: 1-32

Operator Name: ARROWHEAD ENERGY INC

Telephone: 4058485777

OTC/OCC Number: 10239

2934 NW 156TH ST

EDMOND, OK 73013-2102

4-S Ranch

11300 S. Portland

Edmond, Okla 73003

Formation(s) (Permit Valid for Listed Formations Only): 3 PERRY 4800 4 LAYTON 5050 5 CLEVELAND 5350 2 TONKAWA 4450 1 OREAD 3800 Name Depth 8 MISS LM (MERAMEC) 6250 9 WOODFORD 6600 10 HUNTON 6700 7 BARTLESVILLE 6150 6 BIG LIME-OSWEGO 5850

AMEND PERMIT TO DRILL Spacing Orders: Special Orders: Total Depth: 7100 Ground Elevation: 1067 Surface Casing: 700 Location Exception Orders: Pending CD Numbers: Depth to base of Treatable Water-Bearing FM: 490 PIT 1 INFORMATION Type of Pit System: Type of Mud System: Pit is located in a Hydrologically Sensitive Area. Category of Pit: Liner not required for Category: C Pit Location is AP/TE DEPOSIT Pit Location Formation: TERRACE C CLOSED Closed System Means Steel Pits WATER BASED Chlorides Max: 1400 Average: 600 Is depth to top of ground water greater than 10ft below base of pit? Within 1 mile of municipal water well? Wellhead Protection Area? Y Y Y Approved Method for disposal of Drilling Fluids: Under Federal Jurisdiction: No Fresh Water Supply Well Drilled: No Surface Water used to Drill: Yes Notes: 586456 D. One time land application -- (REQUIRES PERMIT) PERMIT NO: 10-16569 H. CLOSED SYSTEM=STEEL PITS (PER OPERATOR OPTION) Straight Hole Oil & Gas Increased Density Orders: Amend reason: ADD MISSISSIPPI LIME ORDER #586456 Well will be 660 feet from nearest unit or lease boundary. This permit does not address the right of entry or settlement of surface damages. The duration of this permit is SIX MONTHS, except as otherwise provided by Rule 165: 10-3-1. Rule 165: 10-3-4 (c) (7) (e) - The Operator shall give 24 Hours notice by telephone to the appropriate District Office of the Conservation Division as to when Surface Casing will be run. Page 2 of 2

083 23945 4/S RANCH 1-32