The Wichita Uplift and the western extension the Amarillo Uplift comprise a gas/oil productive east-west trending structural high that extends from southwestern Oklahoma through the Texas Panhandle for approximately 120 miles. The uplift along with the northern extending Texas and Kansas Hugoton fields together make up the largest gas province in North America with an original gas in-place estimated to have been as much as 117 Tcf. Gas production occurs from draped structures created over an uplifted basement complex and is from the Pennsylvanian and Permian aged Granite Wash and Brown Dolomite.

These reservoirs were charged by the rapid burial and maturation of source rocks in the adjacent Anadarko Basin starting in the Late Pennsylvanian and were sealed by the Late Permian aged Panhandle Lime/Wellington Evaporite sequence. Migration of the gas/oil out of the basin to the uplift occurred along the northern bounding fault system that separates the uplift from the Anadarko Basin.

Jester-Bloomington Project – 33 1/3% Working Interest

The Jester-Bloomington Field is located in Greer County, Oklahoma and is part of the eastern most extension of the Panhandle East Field. Discovery of the field occurred in June of 1959 with production from the Brown Dolomite and Granite Wash. Two wells together made, prior to the field being shut-in, a total recorded volume of 431 million cubic feet from depths no greater than 1,400 feet.

Combined Jester-Bloomington has a productive footprint of 14,200 acres and a structural footprint of 24,000 acres. To date the cumulative volume of gas produced from the field stands at 7.9 Bcf with the field all but being shut-in since 1998. Original gas in-place for the two reservoirs averages 131 mcf per Acre/Foot (“AC/FT”). Production and reservoir analysis suggest an optimum spacing for both reservoirs of 40 acres/well. Taking into consideration that there are two reservoirs and a total of 33 wells have been drilled and completed to date, there remains room for an additional 268 new drill locations.

Marion has leased to date a total of 10,981.76 net acres (12,575.16 gross), drilled and completed one deviated well, purchased 9 producing and/or shut-in wells, and has acquired through a buyout portions of the gathering system and access to a regional sale point. Rates of individual wells have been tested at sustained rates of 280-750 mcf/day.

Willow Project – 66 2/3% Working Interest

Situated north of the Jester-Bloomington Project, Marion’s recent acquisition of the Willow, South Erick, North Bloomington, and Moravia Fields adds a total of 18,354.32 net acres (23,802.99 gross) to the Company’s Wichita Uplift development program. These fields have produced a combined total from the Granite Wash and Brown Dolomite reservoirs of 5.7 Bcf from 48 wells.

Similar to the Jester-Bloomington Field original gas in-place for the two reservoirs averages 131 mcf per AC/FT and the optimized spacing for both reservoirs is 40 acres/wells. Using a drainage pattern of 40 acres/well leaves behind an undrained acreage position capable of having an additional 327 new drill locations.

Current Operations

Marion Energy, Inc. has completed four new drills in Beckham County, Oklahoma in December of 2007. The Eagon #1-18, Eagon #1-7, Speed B #6, and Dalton-Counts #1-16 were perforated and fracture stimulated in the Permian aged Brown Dolomite Formation and are currently flowing back the fracture with strong gas shows and high flowing pressures. Marion anticipates perforating and commingling secondary gas productive formations. All four wells are currently tied into the field pipeline infrastructure.