Starlight Marcellus Shale Prospect Scott Township Wayne County PA Geologic Overview ZGS Zaengle Geoscience LLC Don Zaengle Geologist DISCLAIMER The geologic and financial data in the following presentation was gathered from public and private sources including state and federal imposed filing requirements. Zaengle Geoscience LLC and Don Zaengle make no warranty as to the enclosed data.

The Starlight Marcellus Shale prospect is a 3,000 acre contiguous block located in Northeastern Pennsylvania available for natural gas exploration. This unleased acreage located in Scott and Buckingham Townships at the very north end of Wayne County is detailed in the geologic overview outlined in this presentation. This acreage is 28 miles northeast of the Cabot Oil & Gas Dimock, Pa. Marcellus Shale field which is currently producing 100 mmcfg/d. The prospect acreage would appear to be in the over-pressured dry gas window with Marcellus Shale greater than 200 API shale thickness of approximately 150 feet at 4,100 feet below sea level. Data would suggest that the Marcellus total organic carbon content is between 3 and 4 percent with thermal maturity Ro values between 2.5 and 2.75. The data outlined in this report make this prospect a compelling opportunity. Please see the summary bullet points are outlined at the end of this presentation.

Starlight

Starlight Marcellus Shale Prospect 3,000 acres

(R. Nyahay, J. Leone, L. Smith, J. Martin, D. Jarvie, 2007) Geologic Section Marcellus Shale ~ 13,000’ Oneida Sst Oswego Sst (R. Nyahay, J. Leone, L. Smith, J. Martin, D. Jarvie, 2007) Modified D. Zaengle 10/2008 5

Oil & Gas Fields Pennsylvania Stage Coach Field Oriskany Sandstone Starlight Cabot Susquehanna Field Epsilon HWY 706 field

Marcellus Shale, Cherry Valley, NY ZGS Knapp #1, Belden & Blake Corp., 22906, TD = 5,242’, KB=1,720’, 7/01, Colesville twp., Broome cnty., NY Marcellus Shale, Cherry Valley, NY Marcellus Regional Top New York 200 API 2.0 g/cc 2.6 g/cc 3.0 g/cc 4,805’, -3,085’ 4,886’, -3,166’ Upper Marcellus Purcell Limestone Lower Marcellus Marcellus > 200API 4,670’, -2,950’ Onondaga Limestone 63’ 12’ 2.4 g/cc 80’ Total High Gamma >200 API = 155’

Cabot Oil & Gas, Susquehanna Marcellus Field, Dimock Pennsylvania (Program Results (Cabot 2009) Greenwood #1 Hubbard #1 Dimock PA 2-21-10 Field production : 100 Mmcf/d 100,000 mcfg x $4.75 mcf = $475,000 /day gross $173,375,000 / yr gross Rt. 2024 Hubbard #2 Gasford #2 First 15 vertical wells drilled 30-day average: 1.045 MMcfd Average EUR: 1.42 Bcf Carter Rd. Ely H1, H5 Gasford #3 Heitsman H1 Lewis #2 Ely #2 Horizontal wells IP 30-day EUR (Mmcfd) (Mmcfd) (Bcf) Ely #H6 6.4 5.3 4.5+ Black #H2 8.3 5.6 4.5+ Black #H1 8.8 8.3 4.5+ Heitzman #H1 9.0 6.5 4.5+ Teel #H8 7/23/09 10.3 9.8 4.5 2-21-10 Hor. Well 16.1 Estimated Ultimated Recovery 5.5 Bcf Lewis #1 Rt. 3023 Rozanski #1 Ely H4, H6 Teel #2 Teel #1 Teel #5 Black H1, H2 Tennessee Pipeline 30” Teel #6 Teel #7 7/23/09 Vertical well, IP 4.2 Mmcfg/d, Completed 370’ interval Brooks H1 Purcell Limestone 2-21-10 Hor. Well, 30 day prod. 7.3 mmcfg/d

Key Geologic Factors Starlight Prospect Marcellus: 3.0 - 4.0 Total Organic Carbon TOC Thermal Maturity Ro Natural Fractures Brittleness Gas in Place Porosity Permeability Mineralogy Depth to Top Thickness Marcellus: ~ 100’ to 150’ Marcellus: Ro = 2.5 – 2.75 Dry Gas Window Key Geologic Factors Starlight Prospect Marcellus: ? Marcellus: - 4,100’ Marcellus: 75 -100 Bcf/sec Marcellus: ? Marcellus: 3 -5%, 0.01 – 1.0 md

Thermal Maturity Starlight

150 bcf/section 25 bcf/section 75 bcf/section Marcellus Shale Regional Isopach, Engelder PSU, 2009 Gas in Place Starlight 150 bcf/section 25 bcf/section 75 bcf/section

Depth to Top Millennium pipeline Marcellus Shale Campbell #1, Gulf Oil, 04214, TD=10,992’ KB= 1,753’, 11/62 Hamden twp. 55’ >200 API Knapp #1, 22906, TD = 5,242’ Colesville twp, 155’>200 API - 3,337’ -2,950’ Marcellus Shale Depth to Top >200 API Gamma Subsea CI = 500’ DGZ 3/10 -3,000’ Texas Eastern, Shandalee Hunting Club #1, 08578 TD= 9,995’, KB=1,819’, 11/71, Rockland twp 42’ >200 API Starlight - 5,303’ -4,000’ -5,000’ - 5,259’ Shell Oil, Pease #1, 37-115-2006 TD= 8,534 10/07/73, 205’ >200API Epsilon Marcellus Hwy 706 Field Millennium pipeline Cabot’s Marcellus Susquehanna Field

Thickness Millennium pipeline Marcellus Shale >200 API Gamma Campbell #1, Gulf Oil, 04214, TD=10,992’ KB= 1,753’, 11/62 Hamden twp. 55’ >200 API Millennium pipeline Marcellus Shale >200 API Gamma Isopach CI = 50’ DGZ 3/10 Knapp #1, 22906, TD = 5,242’ Colesville twp, 155’>200 API Texas Eastern, Shandalee Hunting Club #1, 08578 TD= 9,995’, KB=1,819’, 11/71, Rockland twp 42’ >200 API Starlight 150’ Epsilon Marcellus Hwy 706 Field Shell Oil, Pease #1, 37-115-2006 TD= 8,534 10/07/73, 205’ >200API 100’ 50’ Cabot’s Marcellus Susquehanna Field

Knapp #1, Belden & Blake Corp.,22906, TD = 5,242’, 7-01 Colesville twp., Broome cnty., NY 200 API 2.0 g/cc 2.6 g/cc 3.0 g/cc Top >200 API Gamma (4,670’, -2,950’) Upper Marcellus Purcell Limestone Lower Marcellus (4,805’,-3,085) Onondaga Limestone (4,886, -3,166’) Total High Gamma >200API = 155’

Campbell #1, Gulf Oil, 04214, TD=10,992’ KB= 1,753’, 11/62 Hamden twp., Delaware cnty., NY Marcellus Shale (5,090’, -3,337’) 55’ Onondaga Limestone (5,150’, -3,397’) Total high Gamma >200 API = 55’

Top >200 API Gamma (6,490’, -5,259’) Type Log Cabot Oil & Gas Dimock PA (Marcellus Field) ~10 mi W Shell Oil, Pease #1, 37-115-2006 TD= 8,534’, Elev. =1,231’, 10/07/73, Susquehanna County, PA Purcell Limestone Onondaga Limestone 50’ 155’ 0 API 200 API 2.0 g/cc 3.0 g/cc 2.6 g/cc Lower Marcellus Upper Marcellus Top >200 API Gamma (6,490’, -5,259’) 6,683’ (- 5,452’) 6,835’ (- 5,604’) Total High Gamma> 200 API = 205’ 16 16

Texas Eastern, Shandalee Hunting Club #1, 08578 TD= 9,995’, KB=1,819’, 11/71, Rockland twp., Sullivan Cnty, NY. >200API Marcellus (7,122’,-5,303’) Upper Marcellus ? Cherry Valley LS (7,162’,-5,343’) Lower Marcellus Onondaga Limestone (7,209’, -5,390’) Marcellus Thickness Total High Gamma ~ 42’ +

Starlight Advantages Stacked Targets (Marcellus Shale, Utica Shale, Trenton Black River). Marcellus Shale > 200 API 100 - 150’ thick at -4,100’ subsea (~5,600’, ave. elev. 1,500’). Marcellus Total Organic Carbon content 3.0 – 4.0%. Thermal Maturity, Ro values ~ 2.5 – 2.75 Within dry gas window, little if any processing required, high BTU value. 28 Miles NE of Cabot’s Dimock PA Marcellus Shale field currently producing 100 mmcfg/d. Millennium pipeline ~ 5 miles east. 3,000 + contiguous acres. New York Pricing Premium (Averaged $1.05 to NYMEX). Excellent Economics relative to other shale plays. Excellent Infrastructure (Railways, Roads). Abundant Water Resources. Rural area, sparsely populated, with pro-drilling landowners. Topography consists of gently rolling hills.