Bakken/Three Forks, North Dakota

Drilling has undoubtedly slowed down in the Bakken/Three Forks play since the oil prices began to drop last fall. However, the acquisition costs as well as the drilling and service costs have also plummeted. There were a large number of highly leveraged participants in the area that remain under pressure to liquidate assets. As you know, our fund has no debt and cash to spend. This has allowed us to selectively purchase tier one properties in the core areas of the play at pennies on the dollar. The only drilling activity taking place in the play at this time is in the core areas with traditionally high production abilities and high EUR\’s (or estimated ultimate recoveries). These are the only areas that remain economic in this price environment. As you may recall, we held votes, and subsequently made several acquisitions in the core areas of the Bakken/Three Forks since the prices dropped.