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Title Screen. LLAMAHDT BROOME COUNTY, NY MARCELLUS PROSPECT. Broome County. Vestal Leasehold. Marcellus Shale Joint Venture. LLAMA HORIZONTAL DRILLING TECHNOLOGIES, INC. 307 West 7 th Street, Suite 1250 Fort Worth, Texas 76102 Marcellus Shale Joint Venture Broome County, New York

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  1. Title Screen LLAMAHDT BROOME COUNTY, NYMARCELLUS PROSPECT Broome County Vestal Leasehold

  2. Marcellus Shale Joint Venture LLAMA HORIZONTAL DRILLING TECHNOLOGIES, INC. 307 West 7th Street, Suite 1250 Fort Worth, Texas 76102 Marcellus Shale Joint Venture Broome County, New York Terms of Proposal Introduction: LLAMAHDT controls Oil and Gas Leases covering approximately 12,000 acres in a concentrated block of leasehold (the “Prospect”) in Broome County, New York, which is highly prospective for the Marcellus Shale Gas play. LLAMAHDT continues to aggressively negotiate with Landowner Groups in the area to acquire more leasehold in the Prospect, and we are seeking a partner to participate with us in the acquisition, drilling and development of natural gas production from the Marcellus Shale as well as other prospective formations in our prospect area. Industry wide results in the area have shown initial production figures of up to 10,000 mmcfpd for horizontal completions with many wells still flowing 91% of IP rates after 60 days. The natural gas in this area has shown to be dry and ready to flow directly into pipelines where it receives a premium price due to it’s location near the major markets. Current estimates reflect the Estimated Ultimately Recoverable Reserves at approximately 5.2 BCF (billion cubic feet) per 80 acre well. This estimate seems to being going up as decline curves are reflecting less of a decline than expected. Within a 30 mile radius of our prospect there are over 100 approved Marcellus locations that have been permitted by the likes of Range Resources, Chief, Cabot, Southwest, Chesapeake, Fortuna, Anadarko and East Resources. Exxon, Marathon and Hess have all recently acquired leasehold in the area and competition for leases is increasing at a rapid pace. Most recently lease bonuses have increased to $5,500 per acre on the low side to areas directly to our south now bringing $6,900 per acre with 21% royalties. On December 31st of this year, the public review period for New York State’s Supplemental Generic Environmental Impact Statement will terminate and the DEC has indicated that it will be issueing horizontal drilling and fracing permits in the first quarter of 2010. Everyone believes the competition in Broome County, New York will increase dramatically at that time. LLAMAHDT has maintained a presence in Broome County for the last 24 months and has gained proprietory geological information reflecting key areas for development and have acquired leasehold in these areas and are in negotiations to increase our lease position in “Core Areas” of the Marcellus Shale in both New York and Pennsylvania. We have focused our leasing efforts to areas where all existing data reflects the highest possibility for long term recoverable reserves thus leading to the highest rates of returns per investment dollar.

  3. Marcellus Shale Joint Venture LLAMAHDT Proprietory Marcellus Data: Net Pay 200+ feet Average Depth 5,000 feet Vitrinite Reflectance 2.0 to 2.5 TOC 4.0 – 7.0% Est. UR per 80ac. unit 4.0-6.0 BCF and estimates are now increasing. TERMS: LLAMAHDT is seeking to assign its interest in approximately 12,000 acres that it presently has under lease. LEASEHOLD ACQUISITION: Within a specified Area of Mutual Interest, LLAMAHDT will continue to act as acquisition agent to fill in lease blocks and acquire as much additional acreage as requested by the assignee. POTENTIAL FOR EXPANSION: Although we have constructed this brief business model based on know available acreage at prices know to be current market values, additional investment opportunities do exist in the “Core Areas” of the Marcellus Shale. Years of a poor economy followed by last years severe crash has led to many peoples of the area needing money just to survive in the present economic climate. Many landowners were caught off guard when the Marcellus was first discovered and received nominal lease bonuses for their acreage (much of which was gone rather quickly) and are in desperate need of money. We have been told of several of these landowners seeking to sell out portions of their mineral rights while awaiting development and royalties. Although our focus is targeted at development of reserves in the area, it is important to remember that once purchased, mineral rights are yours forever. It is estimated that each royalty acre (based on a 12.5% royalty) in the “Marcellus Core Area” could eventually pay out $46,875. Many people in the area would welcome offers of $2,000 to $3,000 per acre. We are continuing to build a data base of names of landowners leased to other companies. I hope you find this Executive Summary of our presentation for opportunity in the Marcellus, although brief in nature, to be informative and fairly complete. If however you have any additional questions or concerns, please don’t hesitate to call us. Respectfully, Dean Lowry President LLAMAHDT (817)773-2692

  4. Industry Marcellus Shale Activity Industry Marcellus Shale Activiy LLAMA HORIZONTAL DRILLING TECHNOLOGIES INC

  5. COG’s Marcellus Wells COG’S Marcellus Wells Susquehanna County, PA

  6. Competitor Activity Competitor Activity Fortuna 5MM LLAMAHDT Vestal Leasehold CHK IP 7 MM LLAMAHDT Phase II Acquisition RRC IP 6.3MM 2.3MM Atlas 2.2MM CNX 4.1MM LLAMA HORIZONTAL DRILLING TECHNOLOGIES INC

  7. Reported Flow Rates NE Marcellus Well Permits: Reported Flow Rates LLAMA HORIZONTAL DRILLING TECHNOLOGIES INC

  8. COG’s Marcellus Wells COG’S Marcellus Wells Susquehanna County LLAMA HORIZONTAL DRILLING TECHNOLOGIES INC

  9. Recent Upstream Joint Ventures Recent Upstream Joint Ventures

  10. Gas Shale Comparison Gas Shale Comparison Gas Shale Comparison Source: Chesapeake, Deutsche Bank, DOE, Fairway Internal Estimates LLAMA HORIZONTAL DRILLING TECHNOLOGIES INC

  11. SEECO, Thomas #1-9 Cross-Section and Comparison Top Fayetteville Shale Quaker State, Kark #1 Top Marcellus Shale Top of Effective Pay Top of Effective Pay 4100 4500 4200 Base Marcellus Shale Base Fayetteville Shale Marcellus in northern Broome County is as thick and slightly deeper than the Fayetteville Shale in the core. Cross-Section and Comparison

  12. Cross-Section and Comparison Cross-Section and Comparison LLAMA HORIZONTAL DRILLING TECHNOLOGIES INC

  13. Isopach Marcellus Shale Isopach LLAMAHDT LEASEHOLD LLAMA HORIZONTAL DRILLING TECHNOLOGIES INC

  14. Vitrinite Reflectance Marcellus Shale Vitrinite Reflectance LLAMAHDT LEASEHOLD LLAMA HORIZONTAL DRILLING TECHNOLOGIES INC

  15. Depth to Drill Marcellus Shale Depth to Drill LLAMAHDT LEASEHOLD LLAMA HORIZONTAL DRILLING TECHNOLOGIES INC

  16. LLAMA HDT Leasehold LLAMAHDT Leasehold Broome County, New York LLAMA HORIZONTAL DRILLING TECHNOLOGIES INC

  17. LLAMA HDT Leasehold Schedule LLAMAHDT Leasehold Schedule LLAMAHDT Letters of Intent Phase II LLAMAHDT Letters of Intent Phase II LLAMAHDT In Negotiations Phase III LLAMAHDT Lease-in-Hand Phase I LLAMA HORIZONTAL DRILLING TECHNOLOGIES INC

  18. Possible 14 Lateral Unit Possible 14 Lateral Unit Vestal Township, New York Aqua Terre 14 Laterals LLAMA HORIZONTAL DRILLING TECHNOLOGIES INC

  19. Broome & Susquehanna Pipelines Broome & Susquehanna County Pipelines LLAMAHDT South Maine LLAMAHDT Kirkwood LLAMAHDT LEASEHOLD LLAMAHDT Windsor-Colesville LLAMA HORIZONTAL DRILLING TECHNOLOGIES INC

  20. Unconventional Resource Value Progression Unconventional Resource Value Progression XTO – undisco 7/08 12,900 acres @ 62, 015/acre Barnett CHK – Residents 3/08 2,000 acres @ $22,000/acre Barnett BP – CHK 9/08 135, 000/acres @ $14,074/acre Fayetteville XTO – Contango 2/06 20,000 acres @ $11,800/acre Fayetteville BP – CHK 8/08 90,000 acres @ $19,444/acre Woodford Value Williams – Aspeot 7/08 10,000 acres @ $16,600/acre Barnett XTO - Multiple 2/08 76,000 acres @ $6,184/acre Woodford, Fayetteville, Bakken XTO – SWN 4/08 55. 631 acres @ $9,340/acre Fayetteville CHK – STATOIL 11/08 585,000 @ $5,768/acre Marcellus Firm Concept PDP Established Development Model Verified Asset Risk Decreases LLAMA HORIZONTAL DRILLING TECHNOLOGIES INC

  21. Market Indicators Market Indicators LLAMA HORIZONTAL DRILLING TECHNOLOGIES INC

  22. Market Indicator Market Indicators LLAMA HORIZONTAL DRILLING TECHNOLOGIES INC

  23. Cabot Susquehanna Decline Curve LLAMA HORIZONTAL DRILLING TECHNOLOGIES INC

  24. Broome County MarcellusProduction Type Curve Field: Appalachia Reservoir: Marcellus Lease: Broome County County ,St: Broome, NY Working Interest: 1.00000000 GAS Init Qi: 180,000 mmcf/mon Disc Value: 5,425.79 m $ GAS Eur: 4,986.64 mmcf GAS Init Decl: 98% IROR: 95.26% LLAMA HORIZONTAL DRILLING TECHNOLOGIES INC

  25. Present Worth VS Gas Price

  26. Rate of Return VS Gas Price

  27. ECONOMIC BEFORE TAX PROJECTION Economic Before Tax Projection

  28. ECONOMIC BEFORE TAX PROJECTION Economic Before Tax Projection

  29. Marcellus Shale - Advantages Marcellus Shale Advantages • Advantages of the Marcellus Shale play • World class basin size • Spans 15 million acres; 5x the Haynesville and 10x the Barnett • Close to U.S. population centers and best natural gas markets • Over-pressured reservoir • Significant portions of play are geologically stable – structurally uncomplicated • Largely located in rural areas • LLAMAHDT advantages • Substantial leasehold position in-hand, gaining new acreage daily • Our company has formed partnerships with existing coalitions and established contact points with both county and municipality governments • Experience gained from other shale plays allows us to quickly identify the best areas • Geological and Engineering expertise • LLAMAHDT has several years of experience in the northeastern portion of the Marcellus Shale and has earned a reputation of fair and honest dealings with landowners and coalitions who often seek our advice prior to negotiating with any other companies. LLAMA HORIZONTAL DRILLING TECHNOLOGIES INC

  30. Water Sources are Abundant in the Marcellus Water Sources- Marcellus Shale • Major surface water resources in the Marcellus area • Susquehanna River • Delaware River • Chenango River • Chemung River • Ohio River • Groundwater resources • 95% of all groundwater comes from shallow aquifers • Average depth less than 200 feet • Easy to isolate and protect • Wastewater treatment facilities • Large volumes available LLAMA HORIZONTAL DRILLING TECHNOLOGIES INC

  31. Marcellus Shale - Summary Conclusion • Marcellus Shale is likely to become the largest natural gas field in the U.S. • LLAMAHDT has acquired approximately 15,000 acres to date and is currently in negotiations for an additional 110,000 acres in Broome County alone. • Our targeted 125,000 acre total lease block represents over 7 TCF net reserve potential for our prospective partners. • The Marcellus Shale has the highest rate of return of any shale play in the U.S. LLAMA HORIZONTAL DRILLING TECHNOLOGIES INC

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