The Mid-continent region and more specifically, the state of Kansas, has historically been one of the top 10 domestic oil producing regions.

For the year-ended December 31, 2006 the state of Kansas produced 35.7 million barrels of oil.

Of the total barrels produced in the state, 15 companies accounted for 30% of the total 35.7 million barrels.

The remaining 70%, or 26 million barrels, came from approximately 2,300 different operators and 23,000 producers that are primarily farmers and ranchers. This represents a large potential for future acquisitions in this resouce-rich region.