Magoffin County Project

Appalachian Gas Production

The Company has a 5% overriding royalty interest in all gas production from various oil and gas interests located in Magoffin County, Kentucky (Leases). The royalty interest continues over any new oil and gas lease where that new oil and gas lease is in respect of any part of an area that was the subject of the Leases that may be relinquished, surrendered or not renewed.