Oil & Gas Exploration...

Red Oak is uniquely situated to take advantage of the dramatic increases in oil and gas pricing through development of unconventional energy resources.

According to the Energy Information Administration (“EIA”) in its release dated April 10, 2007, concerns about extreme weather conditions and rising prices in the oil market will keep upward pressure on the Henry Hub spot price during 2007 and 2008. On an annual basis, the Henry Hub spot price is expected to average about $7.83 per mcf in 2007 and $8.11 per mcf in 2008. The price of West Texas Intermediate (WTI) crude oil is expected to average over $65 per barrel during the 2007 summer months and average close to $64 per barrel annually for both 2007 and 2008. 

The Company plans to take advantage of the increase in oil and gas commodity pricing by developing unconventional gas sources and acquiring mature oil and gas producing properties where enhanced recovery technologies can be used to recover previously discovered oil and gas reserves that have been left in place. The Company will focus primarily on relatively shallow oil and gas opportunities in eastern Oklahoma, southeast Kansas and western Arkansas.