Lancer Resources Co.
6034 West Courtyard Dr, Suite 205, Austin, Texas, United States

Lancer Resources Company is a private Oil & Gas Exploration Company located in Austin, TX. The company was established in 1984 and incorporated in Texas. Primary operations are located in Texas, Louisiana, and Pennsylvania.  Owned and operated by Rod C. Roberts for the past 29 years, the company specializes in assembling prospects for oil and gas exploration. During that time, the company has discovered in excess of 150 BCF of natural gas reserves.  Lancer Resources is currently assembling natural gas prospects in the Marcellus Shale Play in Pennsylvania and the Haynesville Shale Play in East Texas together with Eagleford, Austin Chalk, Cotton Valley Sands, and Cotton Valley Lime Pinnacle Reef prospects in Robertson County, Texas.

Lancer Resources, L.P. — Company History

Lancer Resources has been owned and operated by Rod C. Roberts for the past 29 years, the company specializes in assembling prospects for oil and gas exploration. During that time, the company has discovered in excess of 150 BCF of natural gas reserves. Lancer Resources is currently assembling natural gas prospects in the Marcellus Shale Play in Pennsylvania and the Haynesville Shale Play in East Texas together with Eagleford, Austin Chalk, Cotton Valley Sands, and Cotton Valley Lime Pinnacle Reef prospects in Robertson County, Texas.  Mr. Roberts owns four additional companies, Lancer Gas Company, The Pennsylvania Express Pipeline L.P., The Express Gas Pipeline and Marcellus Surface & Mineral Holdings, Inc. which control and own inactive pipelines together with strategic rights of way in the Houston Ship Channel, Harris County, Texas and the Haynesville/Bossier Shale Play in Shelby, Rusk, Nacogdoches and Angelina Counties, Texas. Additionally, The Pennsylvania Express Pipeline Company owns a key 8” pipeline located near Marcellus production in Blair and Huntingdon Counties, Pennsylvania.

Pennsylvania Marcellus Prospect Information

The map to the right identifies the Marcellus rock and log evaluation conducted by Nutech from a well located just south of the prospect acreage, identified as point "B" on the map. This data was then correlated to another data point, identified as point "A", which contains Marcellus rock and well data on depositional strike with the prospect acreage. This data point is located within the center of 20 successful wells drilled by Anadarko, with initial rates of 20MMcfd and Avg. EURs of 10 BCF/well.

This study proved that the Hydrocarbon Pore Volume (HCPV) within our prospect area is 6.1 ft which is higher that the HCPV of 5.7 ft within the highly productive analog Western Lycoming study area which has proven EURs averaging 10BCF/well. With an initial investment of $26MM, a exploration company can control the 21,000 acre position, drill and complete two horizontal Marcellus wells and prove up the 2 TCF prospect area.

PENNSYLVANIA MARCELLUS PROSPECT - SUMMARY

Lancer Resources, L.P. has conducted proprietary studies which verify a New High Potential, Low Risk, Exploration Area for Drilling Marcellus horizontal wells. The prospect Acreage is on strike with analogous proven productive Marcellus Shale wells with IPs of 20 MMcfd and Average EURs of 10 BCF/well. Lancers proprietary data with NuTech Energy Alliance and Core Labs substantiates that the prospective area contains the following key attributes for Successful Drilling:

• Proprietary Core Labs Study shows Rock Properties and Gas In Place similar to producing areas that have 10 BCF EURs
• Proprietary NuTech Petrophysical Study confirms that the prospect area has Free Gas-In-Place similar to the proven Prolific Marcellus Gas Production in Western Lycoming County, PA (view map).
• Good Marcellus Thickness and Thermal Maturity
• Gentle Dipping Marcellus with No Faulting
• Hydrocarbon Pore Volume Numbers within the Prospect Area are similar to Western Lycoming and 30% to 80% Higher than Counties located west of the prospect acreage (e.g. Center, Clearfield, Somerset Counties, PA).
• Rock Properties (e.g. Clay Content) are similar to Western Lycoming which allows for Excellent Completions and High Recovery Rates. (view NuTech letter)