Permits Approved By Texas Railroad Commission since January 01, 2012 for Cass County

Texas Mineral Rights Cass County, TX
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District 06 County CASS 01/01/2012 thru 11/16/2012

Approved 01/20/2012 Submitted 12/20/2011 730393 067-30771 SULPHUR RIVER EXPLORATION, INC. (828880) FROST UNIT NO. 2 1 06 CASS Vertical New Drill - 10500

Approved 02/14/2012 Submitted 01/25/2012 678616 067-30524 BROOKS PETROLEUM COMPANY (097323) STARCKE 2 06 CASS Vertical Reenter 13000

Approved 02/23/2012 Submitted 02/10/2012 733668 067-30772 STROUD PETROLEUM, INC. (828082) GROGAN-PHILLIPS 1 06 CASS Vertical New Drill - 10800

Approved 03/08/2012 Submitted 02/14/2012 733886 067-30773 MACHIN & ASSOCIATES, INC. (520328) CASS COUNTY IRON CO. 2A 06 CASS Vertical New Drill - 6400

Approved 05/16/2012 Submitted 05/04/2012 739948 067-30774 HENLEY & ASSOCIATES, LLC (378396) HEBERT 1 06 CASS Vertical New Drill - 11500

Approved 06/25/2012 Submitted 06/15/2012 729240 067-30770 PEGASI OPERATING INC. (650623) MORSE UNIT 1 H 06 CASS Horizontal New Drill Yes 10850

Approved 08/16/2012 Submitted 04/27/2012 739302 067-30395 STETSON PETROLEUM CORP. (819479) MCBRAYER, J.R. 1 06 CASS Vertical Recompletion - 10800

Approved 11/09/2012 Submitted 10/24/2012 750420 067-30775 STROUD PETROLEUM, INC. (828082) HAGGARD 1 06 CASS Vertical New Drill - 12000

Clint Liles

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Do you know if any of these projects have been completed? What about results of any thay have?

Norwood Smith

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Norwood,

FROM: HAYNESVILLEPLAY.COM

Wednesday, July 11, 2012 Oil in Cass County For all of you Texas oil rumor believers, the Oil and Gas Journal reported earlier this week that Pegasi Energy Resources Corp. reported a successful horizontal oil well in Cass County. The Morse Unit #1 averaged 281 b/d of 40 degree gravity oil. The find is in the "Jurassic Bossier shale" in the Rodessa field. That's north of the Haynesville/Bossier Shale as we describe it, but it certainly gives some credence to some interesting activity that has been observed in Marion County and other places nearby. I haven't seen the TRRC filing pop up yet, but it will be interesting to review. The horizontal was supposedly 2,000 feet, but Pegasi is looking at doing 3,000 to 5,000 horizontals in the future.

Clint Liles