ReoStar Energy CORP

ReoStar Energy CORP is engaged in the exploration, development, and acquisition of oil and gas properties, primarily located in the state of Texas. The company aims to increase oil and gas reserves and production through internally generated drilling projects on currently owned assets and complementary acquisitions. As of year-end 2010, ReoStar Energy CORP owned approximately 9,000 acres of leasehold. This includes 5,000 acres designated for exploratory and developmental prospects and 4,000 acres for enhanced oil recovery prospects. The company has developed a multi-year inventory of drilling projects and locations, possessing sufficient acreage to support several years of drilling activities. ReoStar Energy CORP's business strategy focuses on controlling operations of all its leases through affiliated operating companies. It also aims to acquire and develop leasehold in key regional resource development plays, leveraging existing infrastructure and engaging in long-term drilling and development programs. Additionally, the company seeks to acquire leasehold in mature fields to implement enhanced oil recovery programs. In fiscal year 2010, significant accomplishments included leasehold acquisition and development, particularly in the Barnett Shale play in southwest Cooke County, Texas, where two wells completed as of March 31, 2009, began production. The company also entered negotiations for a new chemical foam technology for its Corsicana Enhanced Oil Recovery (EOR) Project and explored deeper zones in Corsicana.