Historic combined monthly production figures on a working interest basis are provided in Table 1.*

Please note that this is based on a fiscal year.

* From November 2007, production figures will be provided on a quarterly basis.

Padre Island

Production commenced on September 17, 2007. This occurred less than two weeks from confirmation of a natural gas find. Initial gross production from the field was 3 million standard cubic feet of gas per day and 60 barrels a day of condensate, equating to approximately 560 barrels of oil equivalent per day.

Wilson was declared commercial on June 18, 2007. Production commenced on September 10, 2007. Initial production from the field was 2.5 million standard cubic feet of gas per day gross equating to approximately 450 barrels of oil equivalent per day.

Project Wharton

Baptist #1 encountered natural gas in April 2007 in both its primary and secondary objectives. The Baptist #1 well was drilled to test a large Frio seismic amplitude anomaly revealed by the Shell East Graceland 3D (vintage 1996). It was brought onstream on June 19, 2007.

Caddo #1 encountered natural gas in a shallow Frio formation (4,470 feet) in October 2006. It was brought onstream on February 8, 2007. The Caddo #1 discovery is located in an area of mutual interest that covers a large area where six other prospects exist. These target comparable Yegua and Frio anomalies, but Miocene objectives are also present in all of them. The Caddo well was abandonded in January 2008.

Mohawk #1 was discovered in October 2006 and brought onstream on December 1, 2006. Mohawk #1 encountered natural gas in both its primary and secondary Frio objectives.

Zebu #1 was discovered in August 2006 and commenced production on September 29, 2006. Zebu discovered natural gas in two Frio sands. It is producing from the deeper zone at around 4,280 feet ("ft"). The primary objective, which encountered natural gas at around 3,750 ft, remains to be completed for production. The Joint Venture intends to produce from the secondary zone until depleted and then complete the primary zone higher up the well bore.