LOCATION - The Mississippian Barnett Shale serves as source, seal and reservoir to a world-class unconventional natural-gas accumulation in the Fort Worth basin of North Central Texas and is the largest natural gas field in North America.

RESERVES - With 17,000 acres in the core area of the Barnett, Hillwood's acreage is estimated to contain an estimated 6 TCF (168 BCM) of gas in place. The average Hillwood horizontal well at Alliance has proved developed, producing reserves of 3.0 BCF yielding total PDP reserves of 105 BCF.

The Barnett is widely considered to be the largest natural gas field in North America with gas in place estimates ranging from 250 to 500 tcf. With porosity of 6% and permeabilities ranging from microdarcys up to 0.01 md, the Barnett is a technology play that has been advanced with horizontal drilling and large hydraulic fracture treatments.

With advances in technology and with 17,000 acres in the thickest and most productive part of the Barnett Shale, Hillwood launched its Barnett Shale program in 2004. Today that program has grown to 50 wells in two counties that produce in excess of 45 million cubic feet of gas per day.

The key to mineral development at Alliance was building the right team to exploit a world-class mineral asset without impairing some of the most valuable real estate in North Texas. This team includes strategic partners such as Chief Operating – a pioneer in the Barnett.  Despite the developed, master planned Alliance real estate, Hillwood and Chief are executing a plan that will fully exploit and transport the area's significant natural gas resource with minimal surface impact. This experience has uniquely qualified Hillwood to explore in other urban areas around the world.

Through December 2006, Hillwood wells at Alliance had produced in excess of 16 billion cubic feet of gas in two short years. In April 2007, Hillwood and Chief pioneered a successful simultaneous hydraulic fracture simulation of two wells approximately 500 feet apart. Upon full development, Hillwood anticipates that daily production will exceed 80 million cubic feet / day.