Page 4 - PennProject

ABOUT OUR OPERATING COMPANY

Royal Texan Resources LLC was established over 8 years ago and is responsible for
operating our oil & gas wells and wells for other individuals and companies. Our
Operator license number with the Texas Railroad Commission is 732111. Royal Texan
Resources will operate the oil & gas wells on all of our projects. All of the oil & gas that
we produce is sold to a local company that picks the oil up by truck and delivers it to the
refinery for processing. Gas is sold by pipeline to a local gas company.

MANAGEMENT

Brent and Brook Hatchett / Owners

Brent and Brook Hatchett have been married for almost 20 years. Brent joined the
Marine Corp in 1997 and was honorably discharged in 2001. They have been in the oil
business ever since. They began on the service side starting a roustabout company and
then a pulling unit company. In 2003 they purchased their first gas well in Stephens
County, TX. They sold those companies and decided to start a new company.

In 2009 they founded Royal Texan Resources, LLC as a company to maintain and
operate oil and gas wells. Royal Texan Resources, LLC is licensed by the Texas
Railroad Commission.

In addition, they founded Drillogix four years ago giving them the capability to drill wells
as an "in-house" operation. Brook works as office administrator dealing with all operator
filings and compliance with the Texas Railroad Commission and ongoing in-house daily
operations. Brent is the field supervisor overseeing all operations in the field including
production, compliance, and services. Brent and Brook reside on a 22 acre ranch home
with their three children.