Vanecek Prospect - Scout Petroleum

The Vanecek Prospect was drilled and operated by Magnum Producing, LP in late August of
2005 in East Mathis Field.

A three - way high side fault closure was encountered in the Frio Schneider 4600' Sand. The
gas reservoir was confirmed by formation tests and sidewall cores and on October 18th was
tested at a rate of 240 MCFGD on an 8/64" choke with 940# WHP.

The Magnum #3 Vanecek Gas Unit is slated to be brought on-line within the next few weeks.