DeGolyer and MacNaughton 5001 Spring Valley Road Suite 800 East Dallas, Texas 75244 This is a digital representation of a DeGolyer and MacNaughton report.This file is intended to be a manifestation of certain data in the subject report and as such aresubject to the same conditions thereof. The information and data contained in this file may besubject to misinterpretation; therefore, the signed and bound copy of this report should beconsidered the only authoritative source of such information.
10DeGolyer and MacNaughtonPg estimate of 0.182 for the Devonian shale was also determined from the product ofthe probabilities of four geologic chance factors: trap, source, reservoir, andmigration. Reservoir is the critical geologic chance factor reflecting the uncertaintyregarding porosity, permeability, thermal maturity, hydraulic fracture susceptibility(brittleness), and other factors controlling producibility. Estimates of gross prospective gasresources and the Pg estimates, as of December 31, 2010, for the shale gas playevaluated herein are shown in the Summary and Conclusion section of this report.Each Pg-adjusted mean estimate in the table is the product of Pg and the meanestimate of gas resources. The Pg-adjusted mean estimates are both statisticallyaggregated and arithmetically summed, which results in the same numbers. Application of the Pg factor to estimatethe Pg-adjusted prospective resources quantities does not equate prospectiveresources with reserves or contingent resources. Pg-adjusted estimates of prospectiveresources quantities cannot be compared directly to or aggregated with eitherreserves or contingent resources. Estimates of Pg are interpretive and are dependenton the quality and quantity of data currently available. Future data acquisition,such as additional drilling or seismic acquisition can have a significant effect on Pgestimation. These additional data are not confined to the area of study but alsoinclude data from similar geologic settings or from technological advancements thatcould affect the estimation of Pg. There is no certainty that any portion of theprospective resources estimated herein will be discovered. If discovered, there is nocertainty that it will be commercially viable to produce any portion of theprospective resources evaluated. Nonassociated gas is gas at initialreservoir conditions with no crude oil present in the reservoir. Gas-cap gas is gas atinitial reservoir conditions and is in communication with an underlying oil zone.Solution gas is gas dissolved in crude oil at initial reservoir conditions. In knownaccumulations, solution gas and gas-cap gas are sometime produced together, and asa whole, referred to as associated gas. However, it is not certain whether prospectivereservoirs will be gas bearing, oil bearing, or water bearing. Due to this uncertainty,prospective resources volumes are identified in this report as gas. Prospective gas quantities included hereinshould not be confused with potential prospective sales gas quantities that wouldtake into account shrinkage reductions as described above and would only be