Red Arrow and its affiliates currently have two rigs running in the Maverick Basin of south Texas. It also owns 50% of an active project that is developing a large acreage block in the Bakken shale play in North Dakota. Based on expertise gained by drilling horizontal wells in the Bakken Shale play and by drilling horizontal Austin Chalk wells in Maverick County, the Company has undertaken a development program on a 6,500 acre lease play in Frio County, TX, principally targeting un-drained Austin Chalk reserves. Red Arrow prefers to operate most of its projects, but from time to time will take a non-operator role. Under the Greenfield mandate, Red Arrow rarely takes less than 50% of a project and prefers to see no more than $10MM tied up in land and G&G prior to the first well being drilled.