Assets – In a prior venture directed by Mr. Kane the title strategies that are part of Sherwood’s current methodology culminated in the assembling of a 6000 acre position in the Savell Field. The position encompassed leases that were the drill site or a major portion of the unit acreage in some of the best wells in the field (Reagan – 16MMCFG/D, Sullivan - 25MMCFG/D, Carelton – 15MMCFG/D , Read – 27MMCFG/D and Tullos – 15MMCFG/D). Using these same methodology, The Company controls over 1000 acres of leasehold, mineral and royalty in the core of The Holly Branch Field. It will spud a direct offset to the best well in the field – Anadarko #2 Storey Well (12 BCF EUR, 18.2MMCFG/D with 8150 FCP IP) in partnership with Chesapeake Energy in the first quarter of 2008. The Company controls 10 additional offsets to this proposed test with estimate reserves of over 80 BCF. In addition, the Company controls 250 net acres in a direct offsets to the Marathon #1 Jones which is a test that could extend the Holly Branch Field 2 miles to the south. If the Marathon Test is successful the Company will control 3 net wells with estimated reserves in excess of 30 BCF.

Investors and Industry Partners – The Company is currently pursuinng lease and royalty acquisition in the Reagan Bossier Play and the Deep Bossier Outboard. It also is soliciting industry partners with operational capabilities as well as sources of mezzanine finance to fully develop its Holly Branch leasehold.