STANDARD ENERGY COMPANY INC.328 mob neck road , 22473 , Heathsville, Virginia, United States

Standard Energy Company Inc. (“Standard Energy”) is a Delaware corporation operating in Virginia, West Virginia and Texas. Standard Energy is focused on energy development and production. The concentration of future energy development in the United States includes production of natural gas, unconventional Shale Gas and to include coalbed methane (CBM), shallow gas and strategic coal in northeastern West Virginia, Ohio and Western Pennsylvania.  The Shale Gas and shallow gas to include coal bed methane and potential coal production will be initially from the Company’s 17,000 acre property that the Company owns. This effort will initially concentrate upon acquiring Marcellus shale gas revenue production within and near our project area. This project is adjacent/on the fairway with one of the hottest natural gas development markets in the USA and is uniquely located to feed the export LNG market, the domestic market and the rejuvenated petrochemical business in this area. This area has in the last year been the focus of new planned developments by several petrochemical companies have immediate plans to construct petrochemical plants in this region after a long hiatus due to a lack of large volumes of available reasonably priced natural gas.  world-natural-gas-consumptionStandard Energy’s business plan focuses on rapid revenue growth by identifying and developing projects that will return immediate revenue and profitability.

This would include the development of the natural gas production business in West Virginia-Pennsylvania that will include coal bed methane (CBM), shale gas and coal production. This effort includes the expansion of its current property position as leases that offer favorable upside development opportunities to maximize future growth. Additionally, Standard Energy will continue to seek to acquire advanced upstream projects, proven producing and cash flow positive oil and gas projects that have the potential for above average revenue expansion through additional capital investments to maximize rapid internal growth.  The process of development of our project will start with the currently owned West Virginia property located in Preston County includes more than 17,000 acres that the Company owns 100% interest that will include alternative natural gas development within the Marcellus Shale gas, potential coalbed methane, conventional shallow gas production and potential strategic coal production. Engineering estimates indicate that the project contains a substantial coal reserve/resources of high quality thermal coal 14,000 btu within seven (7) coal seams on this property. There is considerable opportunity to expand the coal resource base in this area to support future coal production and shallow gas production growth. The Shale gas program will require long term funding program as well as the acquisition of existing production. The growth of the Shale gas (Marcellus/Utica shale) program in this area could easily double the initial CBM and coal development program.

This program would include the acquisition of production and development costs for the Marcellus shale project.  The gas price projections are sensitive to commodity prices and production rates. However, we believe that the future for natural gas indicates excellent growth and a stable pricing structure into the future. This is due primarily to the basic infrastructure and new industry development in the petrochemical industry, other domestic industry growth (electric utility conversions to natural gas) and natural gas (LNG) export markets. A production life of 10+ years is expected. The overall development program will continue to maintain the production stream and make modifications to the operation to enhance production, profitability and growth. This effort will include selective infill drilling within the more productive areas and the use of horizontal drilling to increase production. Horizontal drilling has the potential to achieve considerable (several fold) increases in the daily production rates of vertical wells on a per well basis within the project area. This has been proven to be the case in the Shale gas and CBM development programs.  Finally, SEC’s strategy will be to seek to build immediate revenue working with the identified and available Marcellus Shale Gas production that is on or near our Preston County area as well as other strategic properties within the region. Concurrently, we will commence the CBM project that we have proposed in the PPM.