Crusader is engaged in the exploration, development and acquisition of oil and gas properties, primarily in the Anadarko Basin, Williston Basin, Permian Basin, and Fort Worth Basin in the United States. Crusader historically has sought to increase reserves and production through internally generated drilling projects, unconventional resource plays, coupled with complementary acquisitions allowing us to transfer our horizontal drilling expertise and new horizontal multistage stimulation completion assemblies from area to area. At year-end 2007, proved reserves of the oil and gas properties of the Crusader entities had the following characteristics:

• 130 Bcfe of proved reserves;

• 78% natural gas;

• 29% proved developed; and

• a reserve life of 18 years (based on fourth quarter 2007 production).

At December 31, 2007, we owned approximately 715,000 gross (248,000 net) acres of leasehold. We have built a multi-year inventory of drilling projects with an estimated 4,800 identified drilling locations.

“No other man-made device since the shields and lances of the ancient knights fulfills a man's ego like an automobile”. William Rootes