Dailey flows at 1,223 BOPD (1,443BOPED) IP on restircted choke...

Dailey flows at 1,223 BOPD (1,443BOPED) IP on restircted choke with potential for higher flow rates at NRI 27.29% to SEA = 333BOPD per day or 393BOPED. Increase in production over 7 days has occured on other Helis Wells.

Breeden was successfully fracture stimulated and began flowing back on a restricted choke on 13 March 2012.

The Leon Pecha 1-11H, a Company operated horizontal Anadarko Basin Mississippian well located in Alfalfa County, Oklahoma (SEA 87.5% working interest, 70% net revenue interest), has been successfully drilled to its total vertical depth. The Company has gathered initial geologic data needed to plan further development of its prospect area across multiple vertical pay zones.