Independent Reports on Running Foxes Petroleum Inc.’s Cherokee Basin Oil and Gas Fields

• Independent Engineering Report by consultant Dr. Nafi Onat of Sure Engineering estimates the gross and PV10 values of Running Foxes Petroleum’s oil and gas reserves for the Devon, Devon South and Thomas Fields in Kansas and Missouri at $99.27 M (US) and $35.39 M (US).
• Sure Engineering’s report also highlights P1 and P2 reserves of 1,810,044 million barrels of oil and 2,355,417 MCF of gas in the three fields.
• The reserve report represents evaluation of only three percent of the land developed by the Company presently under lease and does not include Mantey, Timberhill, Xenia, Feagins, Pleasanton and Dunlop fields.
• Benavides Petroleum Engineering, Inc. did a report for the Company in 2009 covering only the Xenia CBM and Shale Gas Field in Bourbon County. The production from individual wells is matching the type curve established by the report.

Dr. Nafi Onat of Denver-based Sure Engineering, LLC provided the Company with an independent engineering report which provides an independent geo-technical review and economic evaluation of the conventional waterflood fields in Running Foxes Petroleum Inc.’s Cherokee Basin. This has been prepared in accordance with the standards of the Society of Petroleum Engineers (“SPE”).

Dr. Nafi Onat, Ph.D., is a Petroleum Engineer with over 30 years of industry experience. Mr. Nafi has held positions with major and independent oil and gas companies, including Mobil Oil and Wenner Petroleum. In September of 1997, Dr. Onat founded Sure Engineering, LLC, a consulting company specializing in petroleum and natural gas engineering. Dr. Onat received his Ph.D. in Petroleum Engineering in 1975 from Colorado School of Mines, Golden, Colorado, and is a member of the Society of Professional Engineers (“SPE”).

Dr. Onat assessed the potential economic values of the oil fields in both in terms of the recoverable reserves for both oil and gas from present wells as well as behind pipe or offset locations as shown in the table below. The reserves for Xenia were evaluated by Benavides Petroleum Engineering, Inc. and include existing producing wells as wells as potentials offsets.

For the purposes of its report, Sure Engineering used the Petroleum Resources Management System (PRMS) published by the Society of Petroleum Engineers / World Petroleum Council / American Association of Petroleum Geologists / Society of Petroleum Evaluation Engineers in March 2007 (“SPE PRMS”).

Previous reports done for the Company’s former partner by Oilfield Production Consultants (OPC) Ltd. for the Devon, Devon South and Thomas fields also listed P3 which is not reported here. OPC’s reports speculated about the potential of extension of existing or additional reservoirs under un-drilled acreage.

Total Petroleum Initially-In-Place (PIIP)


Increasing Chance of Commerciality