Sanchez Energy Partners (SEPI)

Last year, SOG arranged a $102 million equity investment program to be invested in the acquisition of new proprietary 3D seismic data, mineral leases and lease options. To date, over 700,000 acres in the Texas Gulf Coast and Louisiana have been assembled. We expect these efforts will result in a substantial number of drilling opportunities beginning in 2008 and lasting for several years. Depending on the number of drilling prospects that are developed using this newly-acquired seismic, we estimate that total drilling capital requirements will be in excess of over $800 million over the next five to seven years. Our current goal is to use the equity contributions for seismic and land, and to finance both exploration and development.