70% working interest

Situated at the northern end of the Ferron Coal Bed Methane (CBM) Fairway, the Helper Project (“Helper”) represents a major proven under-developed asset for Marion. Production from the fairway currently exceeds 6.5 BCF of gas per month and combined has produced since the inception of the play a total of 824 BCF of gas from 879 wells.

Productive western, eastern, and southern boundaries for the fairway were defined by drilling in the 1990’s – early 2000’s. The northern extent of the fairway was developed down-dip to the base of the Book Cliffs. Marion’s Helper position of 9,220 acres is situated in-trend to the CBM fairway and extends down-dip into the canyons and up onto the bluffs of the Book Cliffs. Development drilling by Marion through year-end 2007 has included the completion of six vertical and one deviated well into the Ferron. These completions have proven the productivity of the down-dip CBM fairway in conjunction with significant conventional gas in the sands of the Ferron. Based on reduced spacing of 160 acres/well, an additional 50 new drill locations exist.

In the process of development drilling in the Ferron, and similar to the Clear Creek Unit, Marion discovered the presence of gas in the overlaying Mancos Shale. The presence of gas can be observed on mud logs through the Mancos Shale and is found to be most concentrated in the sandier Emery Member sequence. One well has been drilled and completed to-date in the Emery by Marion and is currently being produced. The results of this well indicate the productivity of the Mancos Shale and sets up a development drilling program of 115 wells (spacing of 80 acres per well).