McDay Oil & Gas, Inc. is an independent, privately held oil and gas company involved in the acquisition, exploration and production of oil and gas properties. McDay Oil & Gas, Inc., through its operating subsidiary, McDay Energy Corporation (collectively, “McDay” or the “Company”), is a bonded operator with the Railroad Commission of Texas, and has conducted oil and gas operations since July 1990.

The principal offices of McDay Oil & Gas, Inc. are located in Dallas, Texas. McDay owns and operates producing wells in Dimmit, Frio and Zavala counties (South Texas holdings); as well as in Clay County (North Texas holdings).

The Company’s current active well count is 150 + wells producing 7,500 barrels of oil and 5,000 MCF of natural gas per month. The South Texas lease holdings encompass over 40,000 acres, or 62.5 square miles. The North Texas lease holdings are approximately 4,000 acres.

In addition to its oil and gas operations, McDay has been involved in acquisition and divestiture transactions totaling approximately $100,000,000 USD (One Hundred Million US Dollars). The Company also currently owns mineral and royalty interests in properties located in 10 states.

Field operations are supported by Company owned and operated oil-field related equipment (well servicing units, pump and vacuum trucks, backhoes, gin pole trucks, cementing unit and various other components). These assets allow the company to effectively control operating costs as well as assuring McDay access to equipment for conducting daily operations or responding quickly to any well-related situation that may arise.

McDay’s vision is to maximize production from existing properties while continuing to seek out viable acquisition opportunities for sustained growth, thereby achieving the financial strength and flexibility for further expansion.

Richard C. McPherson,    5646 Milton Ste. 716 Dallas, Texas 75206    214-369-3818      FAX 214-369-9939

J. Michael Daylong,          PO Box 86 Yancey, Texas 78886                   830-741-3388      FAX 830-426-3389