Headington Oil Company

ILLINOIS BASIN
OPERATED OIL PRODUCING PROPERTIES

Illinois Basin
Hamilton and White Counties, Illinois

• Current Operations
  • North Bungay Waterflood Unit
    • 6 oil wells / 2 injection wells
    • 100% WI / 82.4% NRI
  • Mill Shoals West Waterflood Unit
    • 25 oil wells / 2 SWD wells / 3 injection wells
    • 76.7% WI / 62.4% NRI
  • Additional wells
    • 17 oil wells / 3 SWD wells
    • 99.9% average WI / 75.1% average NRI
  • Projected October 2010 production / cash flow
    • 4,669 BO gross production
    • 3,285 BO net production
    • $207,333 net monthly cash flow
  • Producing from the Aux Vases, McClosky and Cypress formations
  • Well established production base with shallow declines
  • Majority of leases are HBP
  • Estimated net PDP reserves as of October 1, 2010
    • 372.9 MBO
    • PV10 value of $10.9MM
• Upside Potential
  • 3 drilling locations identified on acreage directly offsetting the Allen Gray and Fox wells
  • $190M average well completion cost
  • Estimated PUD net reserves
    • 33.7 MBO
    • PV10 of $1.3MM