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 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 ( ) November 15, 2011 Arkansas Oil and Gas Commission 301 Natural Resources Drive, Suite 102 Little Rock, Arkansas Re: ORDER REFERENCE NO Application of Weiser-Brown Oil Company for the formation of an exploratory drilling unit composed of the Southeast Quarter of the Northeast Quarter of Section 23, Township 18 South, Range 17 West, Union County, Arkansas and for the integration of uncommitted leasehold working interest owners in such exploratory drilling unit. Commissioners: Weiser-Brown Oil Company, P.O. Box 3050, Magnolia, Arkansas 71753, hereby applies to the Arkansas Oil and Gas Commission as follows: 1, The applicant s proposed drilling unit, described above is not subject to the field rules of the any field. The applicant and its participating partners control at least 50% of the right to drill and produce oil and gas from such proposed unit. The applicant thus requests that the above described drilling unit be designated as an exploratory drilling unit. 2. Applicant s proposed well will be drilled to an approximate depth of 3,300 feet to test the Hill Sand Formation as well as any other intervening formations. 3. Applicant owns oil and gas leases covering a substantial part of the proposed unit. Applicant should be named as operator of the well. The person or persons to be integrated are shown in Exhibit "A" attached hereto and made a part hereof. 4. Applicant has made diligent efforts to negotiate with the non-participating leasehold working interest owners, each of said parties owning an oil and gas leasehold interest in the proposed unit, but applicant has been unable to secure an assignment of the leasehold interest on an equitable basis or to secure participation by said parties in the drilling of the proposed well. 5. Applicant states that it is in the best interest of conservation and the protection of

2 correlative rights of all interested parties that the proposed unit be developed for oil and gas production without undue delay. 6. In order that applicant may proceed with the orderly development of said unit, applicant hereby requests that the Arkansas Oil and Gas Commission issue its order, in the alternative, that: (a) (b) The owners of non-consenting oil and gas leasehold working interests indicated above shall participate in the cost of drilling, testing and completion of the test well to be drilled by applicant on the captioned unit, subject to the terms of an Operating Agreement which substantially employs the terms of the AAPL Operating agreement, with a COPAS attached. All of the non-consenting oil and gas leasehold working interests within the proposed unit shall be force pooled and integrated into said unit, and a reasonable risk factor shall be established and assessed as a penalty against said integrated interest. 7. Applicant further states that due to the risks and costs inherent in the drilling of the proposed well, the Commission should fix a reasonable risk factor to be assessed as a penalty against the integrated interests within the unit. The risk factor should be applied to the proportionate cost and expenses of drilling, completing and equipping the well, which would have been borne by the interest of said parties had they participated. 8. Applicant further requests that this Commission's order specifically provide that any party electing either to participate or be force pooled subject to recoupment of a risk factor penalty be bound by the terms of the attached AAPL Operating Agreement for the life of commercial production within the unit so that all future unit operations might be proposed pursuant to the provisions of such agreement without the necessity of future action by this Commission. 9. Applicant also requests that said order be made applicable to any unknown spouse, heir, devisee, personal representative, successor or assign of said parties. 10. The names and addresses of parties interested in this proceeding are set forth in Exhibit "A" attached hereto and made a part hereof. 11. Please note the appearance of Thomas A. Daily of Daily & Woods, P.L.L.C., P.O. Box 1446, Fort Smith, Arkansas, 72902, on behalf of applicant. Very truly yours, Thomas A. Daily jmt

3 EXHIBIT A-1" Integrated Parties JANE HARVEY BURGLAND C/O MCCASLIN & CO. 500 WEST 7 TH, SUTIE 900 FORT WORTH, TX HENDRIX COLLEGE C/O BANK OF OKLAHOMA P.O. BOX 3499 TULSA, OK CAROL MCCALL HERMSEN P.O. BOX 47 MT. HOLLY, AR OUACHITA BAPTIST UNIVERSITY BUINESS OFFICE OBU BOX 3756 ARKADELPHIA, AR SALEM COLLEGE 3 RD SCHOLARSHIP FUND P.O. BOX WINSTON-SALEM, NC 27108

4 ANN BOWDEN OAKES 315 BERKSHIRE PLACE SHREVEPORT, LA MARY AGNES OAKES KENDRICK JACK KENDRICK 1600 TEXAS STREET, APT FT. WORTH, TX NANCY OAKES LOVING JAMES LOVING, JR WILLOWBROOK TRAIL MAITLAND, FL SGM FAMILY, LLLP ATTN: MARY K. GLOVER JONES ROAD, PMB 300 HOUSTON, TX CHARLES V. BEASLEY, JR. EDWINA D. BEASLEY 202 NORTH WASHINGTON, SUITE 206 EL DORADO, AR TOM WESTBROOK, IV TONI WESTBROOK COUNTRY ROAD 417 TYLER, TX CAROL K. WESTBROOK 10 PECAN DRIVE PENSACOLA, FL DAVID E. WESTBROOK PAMELA WESTBROOK 379 COUNTRY ROAD 2091 CARTHAGE, TX CHRISTIE A. HECKLER LAWRENCE HECKLER 6118 KELLY ELLIOT ROAD ARLINGTON, TX MATT T. WESTBROOK & ELIZABETH WESTBROOK 4601 EAST JIM MITCHEL TRAIL COLLEYVILLE, TX SUSAN WINDSOR WEST 156 TH TERRACE OLATHE, KS THE RUTH G. PICKENS GRANDCHILDREN S JOINT VENTURE 811 PRESTON ROAD, SUITE 800 DALLAS, TX BUFORD I. KING, TRUSTEE P.O. BOX 270 FORT WORTH, TX WILSON PROPERTIES 728 NORTH MADISON DOUGLAS S. BOONE, TRUSTEE OF THE REVOCABLE INTER VIVOS TRUST DATED JULY 3, 1992 PO.O. BOX 106 LAUREL, MS JAMES O. COTTRELL EULA F. COTTRELL 5678 CALION HIGHWAY R.T. ELLZEY, JR CALION ROAD BRUCE E. MCKINNON 509 WEST MYRTLE STREET WARRN, AR DANIEL L. MCKINNON 4925 BEECHWOOD HILLS DRIVE SHREVEPORT, LA MORRIS M. MCKINNON 6604 WESSON ROAD JUNCTION CITY, AR JERRY W. MCKINNON 819 REGMAR DRIVE SHREVEPORT, LA JESSIE F. MCKINNON 101 SOUTHPARK DRIVE THOMAS R. MCKINNON 1860 BRENT LANE FAYETTEVILLE, AR BILLYE ANN HOWELL OWENS ROBERT OWENS 4544 BELFORT DALLAS, TX JAMES MICHAEL SINNOTT PAM SINNOTT 3202 CLAIBORNE CIRCLE MONROE, LA GALE SINNOT HOUK ALLEN HOUK MAPLE ROCK DRIVE HOUSTON, TX 7707 MURPH LIMITED PARTNERSHIP P.O. BOX 769 MAGNOLIA, AR 71754

5 REBECCA HANER 1327 MT. HOLLY ROAD BOBBYE J. HOLLYFIELD 13 SOUTH BELLEVILLE FREEBURG, IL KATHLEEN WOODS JOHN A. WOODS, SR SMEDE HIGHWAY BROUSSARD, LA HENRY A. MOORE, JR. 999 MT. UNION ROAD RIBBLE INVESTMENT COMPANY P.O. BOX 9 MAGNOLIA, AR HENRY A. MURPHY, II 213 CHUBASCO LANE SLIDELL, LA ELIZABETH ETHERTON GOLL 253 VIA MARIEL EAST DRIVE DAVENPORT, FL EVELYN DUNCAN 39 WISTERIA DRIVE THIBADOUX, LA JAMES W. DUNCAN 1257 MASSMAN DRIVE NASHVILLE, TN W.L. DUNCAN, JR. 114 POST OAK CIRCLE LAFAYETTE, LA DAVID DUNCAN 112 HERMITAGE PARK DRIVE HERMITAGE, TN LEQUEITA G. ENDEL 311 EAST PARKER HAMBURG, AR JAMIE BADERTSCHER 3597 FOUNDERS CLUB DRIVE SARASOTA, FL GORDIE LOU H. BRITT P.O. BOX 3408 LITTLE ROCK, AR GARY DON TAYLOR 5911 HAYNESVILLE HIGHWAY LARRY W. TAYLOR BARBARA TAYLOR 3536 HAYNESVILLE HIGHWAY CHERYL TAYLOR SHOUP MICHAEL SHOUP 2619 HAYNESVILLE HIGHWAY LOUISE BAILEY TAYLOR REVOCABLE TRUST 6239 LOCKLEVIN COVE MEMPHIS, TN ALENE BROWNING YEAGER DON YEAGER 111 JAPONICA LANE SHREVEPORT, LA EDWARD J. BROWNING 1008 PUDUE ARLINGTON, TX GWILI BROWNING KING 1210 GLADNEY STREET MINDEN, LA LAWANA BROWNING HUTSON 328 GARY K. STREET PINEVILLE, LA L.D. MCMULLEN 101 WEST 5 TH STREET MARGARET M. HURT WAYNE HURT 413 FAIRVIEW AVENUE CROWNPOINT, IN SIMON S. STEINBERG TRUST BANCORP SOUTH, TRUSTEE P.O. BOX 751 THE MCGHEE FOUNDATION MOUNTVILLE ROAD MIDDLEBURG, VA JOSEPH G. MEINERT, LLC TIFFANY DRIVE RIVERRIDGE, LA 70123

6 RICHARD L. MEINERT, LLC HYDE PLACE RIVERRIDGE, LA MICHAEL S. MEINERT BETTE MEINERT 2321 CALION ROAD SHANNON M. GILES MICHAEL W. GILES 7188 SOUTH SORRENTO WAY WEST JORDAN, UT MELINDA M. BUTTERFIELD BRUCE BUTTERFIELD 176 WILLETT ROAD TBM PROPERTIES 2828 HOOD STREET #1403 DALLAS, TX NJB, INC. 451 NORTH WASHINGTON SHIRL, LLC 601 EAST 15 TH STREET JAMES W. GARRISON PATTY LOU MARTIN DILLAHA 601 EAST 15 TH STREET GWENDOLYN MARTIN T.M. MARTIN, JR. P.O. BOX 261 CRESTLINE, CA CUB PROPERTIES, LLC 98 SAN JACINTO BLVD. AUSTIN, TX JAMES FRANKLIN REED, JR. AUDREY REED 5419 PINE ARBOR HOUSTON, TX ROBERT FRANKLIN REED DEBORAH L. REED P.O. BOX 9 EUCHA, OK PATRICIA FOGARTY DREW BARRY PAUL DREW P.O. BOX 67 EUCHA, OK SHARON FOGARTY LONG C.F. LONG 3266 GREEN ACRES DRIVE BETHLEHEM, PA EDWARD B. SUMMERHILL 3401 VILLANOVA DRIVE DALLAS, TX MACIE C. HOLLINGER 1205 C VALLEY VIEW DRIVE PEARISBURG, VA SHERYL SHACKLEFORD WRAY LOUIS C. WRAY, JR MATILDA PLACE KINGSPORT, TN CECILE SHACKLEFORD TAYLOR 2500 FORREST LAWN DRIVE B.J. ALDERSON TRUST 5110 NORTHWEST AVENUE WALTER ALDERSON FRANCES ALDERSON 2619 TAMALPAIS DRIVE PINOLE, CA C. ELIZABETH COTTRELL 5570 HAYNESVILLE HIGHWAY SKLARCO, LLC 401 EDWARDS STREET, SUITE 1601 SHREVEPORT, LA JOSEPH H. JOINER 63 WEST WIEUCA ROAD, UNIT 3 ATLANTA, GA ANDREW CHARLES HALL 429 MIMOSA DRIVE DECATUR, GA JENNIFER HALL JOHNSON 146 SOUTH PRAIRIE KALAMAZOO, MI EDWARD KYLE HALL 3835 RUTHIN ROAD KALAMAZOO, MI WILLIAM J. BOND AND JEAN PEIRCE BOND MGMT. TRUST P.O. BOX 846 MARSHALL, TX 75671

7 MARY ROWLAND SOWELL SHELMIRE 833 COLONIAL DRIVE TYLER, TX J.C. FLAVEY ESTATE C/O FROST NATIONAL BANK P.O. BOX 1600 SAN ANTONIO, TX A.G. GRIFFIN ESTATE ADDRESS UNKNOWN

8 RESUME OF EFFORTS SE NE Sec. 23-T18S-R17W Union County, Arkansas Jane Harvey Burgland 3.125% 09/29/11 Mailed out letter with an offer to farmin acreage or participate with their acreage. 11/07/11 Mailed out AFE with letter stating we would accept farmout or asking them to participate.

9 RESUME OF EFFORTS SE NE Sec. 23-T18S-R17W Union County, Arkansas Hendrix College % 09/29/11 Mailed out letter with an offer to farmin acreage or participate with their acreage. 11/07/11 Mailed out AFE with letter stating we would accept farmout or asking them to participate.

10 RESUME OF EFFORTS SE NE Sec. 23-T18S-R17W Union County, Arkansas Carol McCall Hermsen % 09/29/11 Mailed out letter with an offer to farmin acreage or participate with their acreage. 11/07/11 Mailed out AFE with letter stating we would accept farmout or asking them to participate.

11 RESUME OF EFFORTS SE NE Sec. 23-T18S-R17W Union County, Arkansas Ouachita Baptist University.78125% 09/29/11 Mailed out letter with an offer to farmin acreage or participate with their acreage. 11/07/11 Mailed out AFE with letter stating we would accept farmout or asking them to participate.

12 RESUME OF EFFORTS SE NE Sec. 23-T18S-R17W Union County, Arkansas Salem College.78125% 09/29/11 Mailed out letter with an offer to farmin acreage or participate with their acreage. 11/07/11 Mailed out AFE with letter stating we would accept farmout or asking them to participate.

13 EXHIBIT C Applicant s statement regarding Operating Agreement The applicant requests incorporation of the Model Form Joint Operating Agreement for Liquid Hydrocarbon Wells approved by the Arkansas Oil and Gas Commission on February 22, 2010, with Paragraph III.1.A.(1) of the COPAS providing for a drilling well rate of $6, and a producing well rate of $650.00, and with the following proposed revisions, deletions and/or insertions, if applicable: NONE

AFFIDAVIT AND TESTIMONY OF RODNEY MAY, A PETROLEUM LANDMAN STATE OF ARKANSAS COUNTY OF UNION Rodney May, having been first duly sworn, makes the following affidavit: My name is Rodney May I am a

17 AFFIDAVIT AND TESTIMONY OF RODNEY MAY, A PETROLEUM LANDMAN STATE OF ARKANSAS COUNTY OF UNION Rodney May, having been first duly sworn, makes the following affidavit: My name is Rodney May I am a petroleum landman employed by Atlanta Exploration Co., an independent petroleum land service provider retained by Weiser Brown Oil Co. to assist in securing oil and gas leases and/or commitments to participate in certain wells including the applicant's planned well, which is the subject of this application (the "subject proposed well".) I understand that I am submitting this Affidavit, under oath, as testimony in this docketed matter. This Affidavit is submitted in lieu of live testimony in this matter and is materially the same as the testimony, which I would present herein as a live witness. I am familiar with the information contained within the Summary of Efforts To Secure Leases and/or Participation, which has been pre-filed as an exhibit in connection with this Application. The summary of efforts to secure such leases and/or participation documented within that exhibit is true and correct, to the best of my knowledge, as of immediately before the filing of the Application. If there are material additional efforts made to secure such leases and/or participation up to, and including, the hearing date, they will be documented on a supplemental or replaced exhibit, which, I pledge, will likewise be true and correct, to the best of my knowledge. I know of my own personal knowledge that the applicant and its participating partners have secured oil and gas leases covering approximately % of the net mineral acres contained within the unit containing the proposed subject well, as of the date of the filing of the Application. I also know of my own personal knowledge that persons consenting to the drilling of the subject proposed well controlled at least 50% of the right to drill within the unit as of the date of the filing of the Application. I also know of my own personal knowledge that either the applicant or another working owner has secured one or more oil and gas leases covering the proposed drill site of the subject proposed well or, if not, that a written surface use agreement, permitting the use of the proposed drill site, has been executed by the owner thereof.

DAILY & WOODS A PROFESSIONAL LIMITED LIABILITY COMPANY ATTORNEYS AT LAW

DAILY & WOODS A PROFESSIONAL LIMITED LIABILITY COMPANY ATTORNEYS AT LAW 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!