A strong financial position is essential to take advantage of today’s acquisition and drilling opportunities. Tanos possesses that financial strength through strong positive cash flow, $130 million dollars in committed capital from our private equity partner NGP and our recently acquired $250 million dollar Senior Secured Revolving Credit Facility. In addition, our track record of providing our investors with superior returns provides access to several hundred million dollars of additional capital if warranted.

Technology

• Equity ownership is provided by Tanos’ management and Natural Gas Partners (NGP), the Irving-based $7.3 billion family of private equity funds in the energy industry.
• $130 million equity commitment from Natural Gas Partners.
• In late 2010, instituted a $250 million Revolving Credit Facility with a bank syndication led by Comerica Bank.
  
• Tanos’ cash flow is insulated with over 75% of natural gas production hedged through 2012 and 55% of natural gas production hedged in 2013.
  
• Simple balance sheet with no debt maturities until 2014.
• Tanos’ financial strength and access to capital makes it well positioned to exploit its developmental projects in the future.

Assets

• The company’s assets have an average economic life in excess of 50 years, providing a stable cash flow from which to fund the company’s future developmental opportunities.
  
• In 2010, increased gross proved reserves to 230 BCF.
  
• Acquisitions made in 2010 significantly increased both the company’s producing reserves as well as its inventory of developmental projects.
  
• 190 operated wells and 125 non-operated wells.