Production / Texas

Summary FY 2008 (ended March 31):

• Production rose 225% in FY 2008, rising to 28,626 boe (barrels of oil equivalent) compared to 8,075 boe for the Fiscal Year ended March 31, 2007.
• Drilled 6 out of 7 wells planned.
• Currently 4 producing (Cason, Outlar, Ducroz and Shadyside).

West Wharton, Wharton, TX

• Outlar well, High impact – Producing
• Index's Working Interest – 9.375%
• Index's Net Revenue Interest – 8.2%
• Potentially 3-4 additional wells

Fern Lake, Nacogdoches, TX

• Cason wells #1, 2, 3 – Producing
• Index's Working Interest – 25%
• Index's Net Revenue Interest – 18.36%

Cow Trap, Brazoria, TX

• Ducroz well – Producing
• Index's Working Interest – 7.5%
• Index's Net Revenue Interest – 5.25%

Supple Jack Creek, Lavaca, TX

• HNH #1 well – Suspended
• Index's Working Interest – 20%
• Index's Net Revenue Interest – 14.71%