There are positive rewards in evaluating any oil and gas investment related to technical, land, and economic. Oil and companies try to mitigate risk and increase opportunities over the life of a program:

Technical

• Geoscience—Xplora has experienced explorationists to recognized potential plays.

• Operator—there are cautious drilling operators available at this time looking for good prospects.

• Operations—prospects are in areas where drilling is well documented and new completions methods are available. In production most oil will be trucked and gas lines are relatively close to the prospects.

Aquisitions

• In the past land was available in both prospect areas at reasonable prices.

• Prospect areas should produce good net revenue interests (>70-75%).

• Most of the lands are not Federal leases.

Economic

• Commodity prices are fair at this time, and based on geopolitical issues oil and gas prices have the potential to increase.

• Small to mid-sized operators have reduced prospect inventories and are looking for deals.

• Drilling and completion costs are relatively stable.