Color Guide

Surface Owner Mineral/Royalty Owner Community Investor Combination

Norm Steenstra, a member of the Kanawha county parks board who has a reputation as an environmentalist, was cautious about giving blanket approval to drilling on park property without first seeing where the proposed wells would go.

“The idea of producing revenue was fine,” Steenstra said. “It’s just a case of where they drill.” But after looking at the site, Steenstra said the wells would not hinder future development of the property. Steenstra also said the gas company that will drill the proposed wells – Reserve Oil & Gas Inc. of Spencer – has a good reputation in its field of business. “The company is one of the best there is,” Steenstra said.

(Taken in large part from a Charleston Gazette article “Kanawha Eyes Gas Wells for New Funds” of February 25, 2009 about drilling on Kanawha County Parks and Recreation property in North Charleston)

“Jon and I would like to say thanks to, Doug Douglass, Doug Garrett, Jay Jarvis, TM Services, and all of CSi. The entire drilling process was a wonderful experience from start to finish. We have not only learned a lot about the whole GAS/DRILLING industry (thanks to these guys and all of our conversations) but have made some new friends in the process. The whole team went above and beyond anything we expected. Our property looks even better than it did before!! Thanks Guys”

- Jon & Stacey Keeney ~ Keeney #1 East of Eden

(Sent via unsolicited email by property owner)

In North Charleston, Reserve will drill on land owned by lawyer Kent George and his wife Georgette, who moved into a hilltop home last year just outside city limits at the end of Zabel Drive. Reserve has already drilled four wells on the Georges’ property, all outside city limits, Kent George said.

“They approached us several years ago. They’ve done a tremendous job in how they treat the property. As far as how they treat the sites during and after, they’ve all been turned into feedlots for game. We planted nut trees. You end up with a small wellhead and a field. They have built roads in. We use them for mountain biking. They’ve done a good job of being minimally invasive and leave the property in good shape.”

(Taken in large part from a Charleston Gazette article “Gas Wells to be Drilled in North Charleston” of April 11, 2010 about drilling within Charleston city limits.)

Enclosed is our final contribution to our last Partnership with Reserve. This brings to a close a highly successful and satisfying series of partnerships that we have enjoyed and appreciated the work all of you at Reserve and the attention that we have received over the years. As Susie and I learned more about the gas business, we also grew more appreciative of the well thought out approach you and your father have charted out for developing the business. And, I admire the always positive outlook you have had during the few bumps along the way. Between the fieldwork and us investors, you have had a full plate.

I wish that I had more chips to keep playing the game but I decided that I needed to keep a limit on gas investment capital. I simply needed to keep a balance of income sources for our current situation but also think ahead when we may need more cash and/or liquid assets to cover aging costs. This is something that comes whether we like it or not.

(January 17, 2008 letter to Scott Freshwater from Gary Redeker, investor with Reserve)