DAILY & WOODS A PROFESSIONAL LIMITED LIABILITY COMPANY ATTORNEYS AT LAW

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1 JERRY L. CANFIELD, P.A. THOMAS A. DAILY, P.A. WYMAN R. WADE, JR., P.A. DOUGLAS M. CARSON, P.A. ROBERT R. BRIGGS, P.A. C. MICHAEL DAILY, P.A.!" L. MATTHEW DAVIS, P.A. COLBY T. ROE Also Licensed in Oklahoma! Also Licensed in Wyoming & North Dakota " Certified Mediator DAILY & WOODS A PROFESSIONAL LIMITED LIABILITY COMPANY ATTORNEYS AT LAW KMW BUILDING 58 SOUTH SIXTH STREET P.O. BOX 1446 FORT SMITH, AR 7292 TELEPHONE (479) FAX (479) JAMES E. WEST DALE CARLTON PHILLIP E. NORVELL OF COUNSEL HARRY P. DAILY ( ) JOHN P. WOODS ( ) JOHN S. DAILY ( ) BEN CORE ( ) May 2, 212 Arkansas Oil and Gas Commission 31 Natural Resources Drive, Suite 12 Little Rock, Arkansas 7225 Re: ORDER REFERENCE NO Application of SEECO, Inc. for an exceptional location pursuant to Arkansas Oil and Gas Commission General Rule B-43(i)(5) for its Wood, Mark 1-14 #16-25H24 Well located in Sections 25 and 24, Township 1 North, Range 14 West, Van Buren County, Arkansas Commissioners: SEECO, Inc., 235 N. Sam Houston Parkway E, Houston, TX 7732, hereby applies to the Arkansas Oil and Gas Commission as follows: 1. The Applicant proposes the drilling and completion of a cross unit horizontal well, the Wood, Mark 1-14 #16-25H24 ( Wood, Mark #16 ) Well located in Sections 25 and 24, Township 1 North, Range 14 West, Van Buren County, Arkansas. The Wood, Mark #16 Well well be drilled between the Wood, Mark 1-14 #15-25H24 Wood, Mark #15") and the Wood, Mark 1-14 #4-25H24 ( Wood, Mark #4") Wells. The projected perforated lateral of the proposed Wood, Mark #16 Well is expected to be 525 feet, at its heel from the heel of the Wood, Mark #15 Well, located in Sections 25 and 25, Township 1 North, Range 14 West. The projected perforated lateral of the Wood, Mark #16 Well is expected to be no less than 56 feet from the perforated lateral of the Wood, Mark #4 Well. However, due to possible deviation during drilling, it is possible that the wellbore could drift to less than 56 feet from said Wood, Mark #4 Well. The Applicant requests that it be granted a location exception to enable it to produce the Wood, Mark #16 Well notwithstanding such encroachment, provided that the perforated wellbore of the Wood, Mark #16 Well is no less than 48 feet, at any point, from any other wellbore. 2. The Applicant has solicited spacing waivers from most of the persons who have the right to drill within Sections 24 and 25, Township 1 North, Range 14 West, but has not yet obtained a waiver from every such owner. 3. The Applicant states that the granting of this application will be protective of the

2 correlative rights of all interested parties and will prevent waste of natural gas by permitting the most efficient method of developing the resource within the governmental sections which are the subject of this application. 4. The Applicant requests an expedited drilling permit for the Wood, Mark 1-14 #16-25H24 Well. 5. The names and addresses of parties interested in this proceeding are set forth in Exhibit "A" attached hereto and made a part hereof. 6. Please note the appearance of Thomas A. Daily of Daily & Woods, P.L.L.C., P.O. Box 1446, Fort Smith, Arkansas, 7292, on behalf of applicant. Very truly yours, Thomas A. Daily jmt

3 Wood Mark 1-14 #16-25H24 Working Interest Owner List EXHIBIT A Mr. Ronald C. Agel 279 Marlborough Street Boston, Massachusetts 2116 BHP Billiton Petroleum (Fayetteville), LLC. 136 Post Oak Boulevard Houston, Texas 7756 Attn: Fayetteville Joint Interest Land BP America Production Company 51 Westlake Park Drive Houston, Texas Attn: Ms. Kimberly Moss Daniels Petroleum Company 1499 Blake Street, Suite 7-K Denver, Colorado 822 Attn: Mr. Barrett D. Baker Gunsmoke Production Company 172 Wazee Street, Suite 2E Denver, Colorado 822 Attn: Mr. Lawson Stiff, Jr.

4 Panhandle Oil and Gas, Inc. 54 N. Grand Boulevard, Suite 3 Oklahoma City, Oklahoma Attn: Mr. Ben Spriestersbach Rock River Investments, LLC. 211 N. Robinson, Suite 1525 Oklahoma City, Oklahoma 7312 Attn: Mr. Robert Scott XTO Energy, Inc., Agent for Exxon Mobil Production Company 81 Houston Street Fort Worth, Texas Attn: Mr. Braden White

5 Wood Mark 1-14 #16-25H24 Before Payout After Payout SEECO, Inc % % BHP Billiton Petroleum (Fayetteville), LLC % % BP America Production Company % % XTO Energy, Inc., Agent for Exxon % % Panhandle Oil and Gas, Inc % % Daniels Petroleum Company.22888%.22888% Gunsmoke Production Company.22888%.22888% Interest consenting to planned spacing Wood Mark 1-14 #15-25H24 Before Payout After Payout SEECO, Inc % % BHP Billiton Petroleum (Fayetteville), LLC % % BP America Production Company % % XTO Energy, Inc., Agent for Exxon % % Panhandle Oil and Gas, Inc % % Daniels Petroleum Company.21394%.21394% Gunsmoke Production Company.21394%.21394% Rock River Investments, LLC..1555%.1555% Interest consenting to planned spacing Wood Mark 1-14 #4-25H24 Before Payout After Payout SEECO, Inc % % BHP Billiton Petroleum (Fayetteville), LLC % % BP America Production Company % % XTO Energy, Inc., Agent for Exxon.74376%.74376%

6 Panhandle Oil and Gas, Inc % % Daniels Petroleum Company % % Gunsmoke Production Company % % Ron Agel % % Interest consenting to planned spacing

7 Waiver Rec'd?

8

9 Wood Mark & 16-25H24 Waiver Section 24, Township 1N, Range 14W, Van Buren County Section 25, Township 1N, Range 14W, Van Buren County È 63' 6' = 7 = 7 621' È 24 WOOD MARK H24 Wood Mark H24 Wood Mark H24 CORNETT H ' " 525' " 7 7 H 25 3 Legend - Proposed Well Existing Well 7 First & Last Perf Locations = H Bottom Hole Surface Hole Perforated Lateral Path " Existing Surface È Existing BHL Existing WellBore Existing Completed Lateral Scale: 1 " = 1,5 ' 1:18, 1,5 75 1,5 Scale in Feet Created by Larry Saranthus, GIS Analyst - Date: 4/3/ N. Sam Houston Pkwy E. Suite 125 Houston, Texas 7732

10 HUIE 1-14 #2-15H WSTAGG 1-14 #1-26H23 STAGG 1-14 #9-26H23 STAGG 1-14 #8-26H23 STAGG 1-14 #7-26H23 EXHIBIT B Section 25 Township 1 North, Range 14 West Van Buren County, Arkansas RAGLAND-PARISH 1-14 #5-23H14 RAGLAND-PARISH 1-14 #2-23H STAGG 1-14 #4-26H23 LEE, JOE 1-14 #1-22H23 STAGG 1-14 #5-26H23 WOOD, MARK 1-14 #7-25H24 WOOD, MARK 1-14 #3-25H WOOD, MARK 1-14 #14-25H24 SIMPKINS 1-14 #1-13PH-ST1 CORNETT 1-13 #5-3H19 CORNETT 1-13 #6-3H CORNETT 1-13 #11-3H19 CORNETT 1-13 #4-3H19 CORNETT 1-13 #1-3H19 19 MOBBS, ALICE 1-13 #1-19H DOUVEAS 1-13 #1-18H-ST2 CORNETT 1-13 #12-3H19 MOBBS, ALICE 1-13 #2-19H JERRELL 1-13 #3-2H LEE, JOE 1-14 #2-22H23 LEE, JOE 1-14 #3-22H26 SISSON, LESTER 1-14 #2-27H WOOD, MARK 1-14 #1-25H STAGG 1-14 #1-26H STAGG 1-14 #3-26H STAGG 1-14 #13-26H STAGG 1-14 #11-26H 26 STAGG 1-14 #2-26H 25 WOOD, MARK 1-14 #2-25H-ST1 STAGG 1-14 #6-26H WOOD, MARK 1-14 #1-25H MOBBS, ALICE 1-13 #4-19H3 3 CORNETT 1-13 #1-3H MOBBS, ALICE 1-13 #3-19H3 BINTLIFF #3-29H-ST1 CORNETT 1-13 #9-3H HUTTO 1-13 #5-32H29 CORNETT 1-13 #7-3H STAGG 1-14 #12-26H RAGLAND-PARISH 1-14 #3-23H26 STAGG 1-14 #14-26H RAGLAND-PARISH 1-14 #4-23H26 SISSON 1-14 #2-35H WOOD, MARK 1-14 #12-25H WOOD, MARK 1-14 #11-25H WOOD, MARK 1-14 #5-25H WHISENHUNT 1-14 #1-36PH-ST1 WOOD, MARK 1-14 #6-25H CORNETT 1-13 #2-3H CORNETT 1-13 #3-3H CORNETT 1-13 #8-3H WHISENHUNT 1-13 #5-31H WHISENHUNT 1-13 #3-31H SEECO,Inc. s Proposed SISSON 1-14 #4-35H2 Wood Mark H24, 35& 16-25H24 36 WHISENHUNT 1-14 #9-36H WHISENHUNT 1-13 #1-31H WHISENHUNT 1-14 #2-36H WHISENHUNT 1-14 #3-36H WHISENHUNT 1-14 #1-36H31 31 WHISENHUNT 1-13 #6-31H WHISENHUNT 1-13 #2-31PH-ST1 SISSON 1-14 #3-35PH-ST1 SISSON 1-14 #1-35H SISSON, LESTER 1-14 #3-27H3 SISSON, LESTER 1-14 #6-27H3 JENNETTE 9-14 #1-2H WHISENHUNT 1-14 #7-36H WHISENHUNT 9-14 #3-1H WHISENHUNT WHISENHUNT 1-14 #8-36H 1-14 #4-36H WHISENHUNT 1-14 #5-36H31 WHISENHUNT 1-14 #6-36H31 *Planned wells outside of central section of display may be subject to further revision for spacing. WHISENHUNT 1-13 #4-31H WOOD, CHARLES 9-13 #8-6H1 WHISENHUNT 1-13 #2-31PH WHISENHUNT 1-13 #7-31H HUTTO 1-13 #2-32H5 JOHNSON, CLAUDE 9-13 #3-5H Map Prepared By: Kelvin Latson Sr Lower Fayetteville UPD Map Geologist: Michael Garrigan

11 HUIE 1-14 #2-15H RAGLAND-PARISH 1-14 #5-23H14 14W RAGLAND-PARISH 1-14 #2-23H STAGG 1-14 #4-26H23 STAGG 1-14 #1-26H23 STAGG 1-14 #9-26H23 WOOD, MARK 1-14 #7-25H24 STAGG 1-14 #8-26H23 STAGG 1-14 #7-26H23 EXHIBIT C Section 25 Township 1 North, Range 14 West LEE, JOE 1-14 #1-22H23 Van Buren County, Arkansas STAGG 1-14 #5-26H23 WOOD, MARK 1-14 #3-25H WOOD, MARK 1-14 #14-25H24 CORNETT 1-13 #5-3H19 CORNETT 1-13 #6-3H SIMPKINS 1-14 #1-13PH-ST1 CORNETT 1-13 #11-3H19 CORNETT 1-13 #4-3H19 CORNETT 1-13 #1-3H19 19 MOBBS, ALICE 1-13 #1-19H DOUVEAS 1-13 #1-18H-ST2 CORNETT 1-13 #12-3H19 MOBBS, ALICE 1-13 #2-19H JERRELL 1-13 #3-2H LEE, JOE 1-14 #2-22H23 LEE, JOE 1-14 #3-22H26 SISSON, LESTER 1-14 #2-27H STAGG 1-14 #1-26H STAGG 1-14 #3-26H STAGG 1-14 #13-26H STAGG 1-14 #11-26H 26 STAGG 1-14 #2-26H WOOD, MARK 1-14 #1-25H 25 WOOD, MARK 1-14 #2-25H-ST1 CORNETT 1-13 #1-3H STAGG 1-14 #6-26H WOOD, MARK 1-14 #1-25H MOBBS, ALICE 1-13 #4-19H3 MOBBS, ALICE 1-13 #3-19H3 BINTLIFF #3-29H-ST1 CORNETT 1-13 #9-3H HUTTO 1-13 #5-32H29 CORNETT 1-13 #7-3H STAGG 1-14 #12-26H STAGG 1-14 #14-26H SISSON 1-14 #2-35H SISSON 1-14 #3-35PH-ST1 SISSON 1-14 #1-35H - 2 RAGLAND-PARISH 1-14 #3-23H26 RAGLAND-PARISH 1-14 #4-23H26 SEECO,Inc. s Proposed Wood Mark H24, & 16-25H24 6 SISSON, LESTER 1-14 #3-27H3 SISSON, LESTER 1-14 #6-27H3 JENNETTE 9-14 #1-2H WHISENHUNT 1-14 #1-36PH-ST1 WHISENHUNT 1-14 #9-36H SISSON 1-14 #4-35H WHISENHUNT 1-14 #2-36H WOOD, MARK 1-14 #12-25H WOOD, MARK 1-14 #11-25H WOOD, MARK 1-14 #5-25H WHISENHUNT 1-14 #3-36H WHISENHUNT 1-14 #7-36H WHISENHUNT 9-14 #3-1H WOOD, MARK 1-14 #6-25H - 5 CORNETT 1-13 #2-3H WHISENHUNT WHISENHUNT 1-14 #8-36H 1-14 #4-36H WHISENHUNT 1-14 #5-36H31 WHISENHUNT 1-14 #6-36H31 2 CORNETT 1-13 #3-3H CORNETT 1-13 #8-3H WHISENHUNT 1-13 #5-31H WHISENHUNT 1-13 #1-31H WHISENHUNT 1-14 #1-36H31 WHISENHUNT 1-13 #4-31H WOOD, CHARLES 9-13 #8-6H1 WHISENHUNT 1-13 #3-31H 31 WHISENHUNT 1-13 #6-31H WHISENHUNT 1-13 #2-31PH-ST1 WHISENHUNT 1-13 #2-31PH WHISENHUNT 1-13 #7-31H Map Prepared By: Kelvin Latson Sr HUTTO 1-13 #2-32H5 JOHNSON, JOHNSON, CLAUDE JOHNSON, CLAUDE 9-13 CLAUDE #3-5H #4-5H#5-5H Lower Fayetteville Structure Map Geologist: Michael Garrigan

12 EXHIBIT D Section 25 Township 1 North, Range 14 West Van Buren County, Arkansas HUIE 1-14 #2-15H WOOD, MARK 1-14 #3-25H24 DOUVEAS 1-13 #1-18H-ST2 SIMPKINS 1-14 #1-13PH-ST1 RAGLAND-PARISH 1-14 #5-23H14 14W CORNETT 1-13 #5-3H19 CORNETT 1-13 #12-3H19 RAGLAND-PARISH 1-14 #2-23H CORNETT 1-13 #11-3H19 STAGG 1-14 #4-26H23 JERRELL 1-13 #3-2H STAGG 1-14 #1-26H23 STAGG 1-14 #9-26H23 WOOD, MARK 1-14 #7-25H24 CORNETT 1-13 #6-3H19 CORNETT 1-13 #1-3H19 STAGG 1-14 #8-26H23 WOOD, MARK 1-14 #14-25H24 STAGG 1-14 #5-26H23 CORNETT 1-13 #4-3H19 STAGG 1-14 #7-26H MOBBS, ALICE 1-13 #1-19H MOBBS, ALICE 1-13 #2-19H LEE, JOE 1-14 #1-22H23 19 LEE, JOE 1-14 #2-22H23 LEE, JOE 1-14 #3-22H SISSON, LESTER 1-14 #2-27H WOOD, MARK 1-14 #1-25H STAGG 1-14 #1-26H STAGG 1-14 #3-26H STAGG 1-14 #13-26H STAGG 1-14 #11-26H 26 STAGG 1-14 #2-26H WOOD, MARK 1-14 #2-25H-ST1 CORNETT 1-13 #1-3H STAGG 1-14 #6-26H WOOD, MARK 1-14 #1-25H MOBBS, ALICE 1-13 #4-19H3 MOBBS, ALICE 1-13 #3-19H3 BINTLIFF #3-29H-ST1 CORNETT 1-13 #9-3H HUTTO 1-13 #5-32H29 CORNETT 1-13 #7-3H STAGG 1-14 #12-26H STAGG 1-14 #14-26H RAGLAND-PARISH 1-14 #3-23H26 RAGLAND-PARISH 1-14 #4-23H26 WOOD, MARK 1-14 #12-25H WOOD, MARK 1-14 #11-25H WOOD, MARK 1-14 #5-25H WOOD, MARK 1-14 #6-25H CORNETT 1-13 #2-3H CORNETT 1-13 #3-3H CORNETT 1-13 #8-3H WHISENHUNT 1-13 #5-31H SISSON 1-14 #2-35H WHISENHUNT 1-14 #1-36PH-ST1 WHISENHUNT 1-13 #3-31H WHISENHUNT 1-14 #9-36H SEECO,Inc. s Proposed Wood Mark H24, & 16-25H24 WHISENHUNT 1-13 #1-31H SISSON 1-14 #4-35H2 WHISENHUNT 1-13 #6-31H SISSON 1-14 #3-35PH-ST1 31 SISSON 1-14 #1-35H WHISENHUNT 1-14 #2-36H WHISENHUNT 1-13 #2-31PH-ST1 WHISENHUNT 1-14 #3-36H WHISENHUNT 1-14 #1-36H31 SISSON, LESTER 1-14 #3-27H3 WHISENHUNT 1-13 #2-31PH WHISENHUNT WHISENHUNT 1-14 #8-36H 1-14 #4-36H 3 WHISENHUNT 1-14 #5-36H31 SISSON, LESTER 1-14 #6-27H3 WHISENHUNT 1-14 #7-36H WHISENHUNT 1-14 #6-36H31 WHISENHUNT 1-13 #7-31H JENNETTE 9-14 #1-2H WHISENHUNT 9-14 #3-1H WHISENHUNT 1-13 #4-31H WOOD, CHARLES 9-13 #8-6H1 HUTTO 1-13 #2-32H5 JOHNSON, CLAUDE 9-13 #3-5H Map Prepared By: Kelvin Latson Sr Lower Fayetteville Isopach Map Geologist: Michael Garrigan

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