MPG Petroleum, Inc

The Marietta Project Old

Executive Summary

The Marietta Prospect – Covering Multiple Counties in Texas

(specific location information is subject to confidentiality, imminent to a transaction)

Horizontal Drilling and Fracture Stimulation of a Series of Stacked, Tight Oil and Gas Sands

MPG Petroleum, Inc. has identified a series of stacked, tight, oil and gas sands that appear to exist over an expansive area. The high gravity oil and high, Btu natural gas pay targets contain proven undeveloped (PUD) reserves. The Support Well providing these data, provided flow tests reports, mud log, oil and gas sample and core analysis. 3D seismic data reveals amplitude anomalies (direct hydrocarbon indicators aka ‘bright spots’) associated with each of the potential pay sands. They range in area from 40 to 175 Acres but cannot be produced commercially from the vertically drilled Support Well because these sands are too “tight” (high clay content, low permeability and low porosity) to sustain commercial flow. The Support Well has 3600 psi shut in pressure.

MPG will utIlize the Support Well as a pilot hole from which to drill a Horizontal Well and sand fracture stimulate the largest and thickest amplitude anomaly reservoir, the 8900’ Deltaic. The technique has been proven highly successful in other formations, but MPG Petroleum, Inc. and the Participants of the Marietta Prospect will be the first to apply this technology to this area and to this specific formation.

Robust flow rates and high cumulative recoveries are expected. Many new horizontal wells may be drilled as a result. Ample infrastructure exists, creating a quick turnaround from investment to revenue in the success case.

Risked Reserves:                  965,700 BOE     (145 Ac. amplitude anomaly, 36 ft avg. thickness)

Net Valuation:                      $ 51,591,557      (Net of Royalty and Tax)

ProjectCost:                 $ 4,932,397        (D&C,GG&L)

Return on Investment:          10.5 : 1      (Based on $80 oil on avg. over life of well)

Estimated Proceeds Net/Month:    $ 624,766  (Based on 392 BOEPD, $ 80 oil)

Pay Out:     7.9 Months

TERMS: MPG Petroleum, Inc., the originator will Operate. JV Participation is direct, cutting out the middleman and passing through the IDC write offs to Participants. $49,324 per 1% Working Interest covers the Drilling and Completion Cost, non-turnkey and the Geology, Geophysics and Land Cost. 70% Net Before Payout. MPG will Back-in After Payout for 25% Working Interest, reducing Participant’s Net to 52.5%, for so long to as production exists.

Contact: Margaret P. Graham, President MPG Petroleum, Inc.

MPG Petroleum, Inc

8700 Crownhill Blvd., Suite 804, San Antonio, Texas, 78209 * 1-210-822-7770 *