3/10/10

Since 1982, our Laredo Energy management team has focused exclusively on natural gas development in South Texas. We have drilled over 300 wells in Webb and Zapata Counties and continue to drill about 20 to 30 wells per year.

We actively pursue new leasing opportunities and producing property acquisitions as they become available. Primarily our acquisitions and leases are in Webb and Zapata Counties, two of the leading natural gas producing counties in Texas. Extending throughout these counties is the Lobo Wilcox Trend, one of the largest gas producing regions in the United States. This play has produced more than 6.4 Tcf gas equivalent from more than 4,200 completions.

We are a significant taxpayer in Webb and Zapata Counties and we hire dozens of local contractors with hundreds of employees working on Laredo Energy projects. We also generate significant revenue for local landowners with whom we have natural gas leasing agreements.

Laredo Energy Management consists of: Glenn Hart, Jerry Holditch, Jaime Casas, Ken Cravens, Jim Flowers, Robert Swanson, Scott Stevenson, Doug Kaiser, Steve Jaques and Paul Thompson.

South Texas is a great place to have a natural gas business, particularly in Webb and Zapata Counties. We look forward to continuing to grow Laredo Energy in this vibrant area for many years to come.

Sincerely,
Glenn D. Hart President and CEO