The Camp Cooley Ranch (“CCR”) surface, mineral interests, royalty interests and other certain assets are currently being offered for sale. However, CCR is negotiating with a “stalking horse” bidder for the royalty interests (and the associated oil and gas royalty interest revenue) only.

If the stalking horse bid for the royalty interests is accepted and approved, the high bidder for CCR’s surface, mineral interests and other certain assets will have a first right and exclusive option to purchase the royalty interests (and the associated royalty interest revenue) for a set price.

In 1991, Klaus Birkel purchased the Camp Cooley Ranch including the associated mineral interests and royalty interests from the prior owner. When the prior owner sold CCR in 1991, they did NOT own 100% of the mineral
interests under the entire 10,600 acre ranch (some acreage tracts came with 0% of the minerals and some with 100% of the minerals). Actually, the prior owner owned an average of 40% (more or less) of the 8/8ths mineral interests under the ranch. At the time they sold CCR to Mr. Birkel, they retained half (and sold half) of the minerals interests. Camp Cooley Ranch, Ltd (CCR) is now offering all the mineral interests (and executory rights) owned by CCR (average 20% - more or less – of the 8/8ths mineral interests) with the ranch surface.

Minerals/Royalties Highlights

• Approximately 10,600 gross (2,100 net) mineral acres
• Sixteen wells drilled / thirteen currently producing wells in the Cotton Valley Lime / Bossier trend
• Potential undeveloped upside (approximately 70% of the ranch has not been leased or developed/drilled)
• Of the sixteen wells drilled, twelve have Estimated Ultimate Reserves (EUR) of 1 BCFE or greater. The total
  average EUR/well is 9.5 BCFE and the largest EUR/well is 53 BCFE (well centrally located on the CCR acreage)
• Active Cotton Valley Lime operators on the ranch have included Anadarko, Marathon, Sinclair Oil, and Red Willow
• CCR is believed to have some executive rights authority
• CCR believes its mineral interest rights include all depths
• 2-3 royalty checks received monthly
• CCR’s royalty interest varies from 2.5% to 10% per well
• Oil and gas royalty income is currently $70,000-$100,000 per month ($1.4 million royalty income received in 2010)
• Approximately 70-80% of CCR’s royalty income is received from 3-4 wells
• Upside potential locations could yield as many as 15-20 locations