"Completed development infrastructure (water disposal and...

"Completed development infrastructure (water disposal and takeaway pipelines) at Pawnee and Noble County development nodes, with the commencement of a second top-drive rig shortly (due to spud the McMurtry 1-22H well) will enable a scale-up in drilling and completion activity. Well results will drive re-rate of RFE’ s operated, contiguous, oil prone area focused, 73k acre position.

· The first Mississippi Lime well, Tahara-1 28H (RFE 81.25% NRI) has stabilized production (ie neglible decline) after 4mnths on production. Oil cut remains 80% with the residual high BTU gas.

· The second well, Abunda 1-24H (81.25%) is currently recovering load water, and has already begun to recover oil and gas. We expect an ‘initial’ production rate to be declared this month.

· McMurtry well (65.6%) in Noble County (with SandRidge Energy 30%), should be stimulated this month.

· The Noble County rig, currently drilling Blair 1-24H (74.75%), will be skidded to drill the State well (40.6% & Operator with Devon) well immediately after. Blair will be fracc’d in May and the State well likely immediately afterwards.

· Based upon review of the Schlumberger logs (McMurtry vs Tahara), we view the Noble County acreage to be more naturally fracture and liquids prone than that in Pawnee.

· Recent deals peg signifi cant value growth for packaged Mississippi Lime acreage: RFE has 73k net operated acres. See Devon divestment to Sinopec for $5,500/acre blended); Repsol JV with SandRidge (Dec 2011 @ $3,300 acre blended); Atinum JV with SandRidge (Aug 2011 @ $4,425/acre).

· Closing of SandRidge’s second Mississippi Trust this H may provide a significant value marker for blended Mississippi acres; $10k acre is the implied asking price for the net 53k acres"