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, acquiring and developing leasehold in key regional resource development plays by utilizing existing infrastructure and engaging in long-term drilling and development programs, and acquiring leasehold in mature fields to implement enhanced oil recovery programs. In fiscal year 2010, the company made significant accomplishments in leasehold acquisition and development. Its main area of interest in the Barnett Shale play is located in the "oil window" of the Barnett in southwest Cooke County, Texas, where it completed and began production in two wells that were in process as of March 31, 2009. For the Corsicana Enhanced Oil Recovery ("EOR") Project, ReoStar Energy CORP entered negotiations to test a new chemical foam technology. The company also engaged in Corsicana deeper zone exploration.