History of Primexx Operating Corporation

In the 1950’s Sanford Fagadau, PhD founded Fagadau Energy. He built the company around a base of oil and gas reserves in north-central Texas. Recognizing the value of building midstream assets, he built two pipelines that are still in use today.

In 1982 Thomas H. Fagadau, MBA joined the company. As the result of the consistent execution of a highly focused strategy the company rapidly grew through a balance of acquisitions and drilling. He currently serves as President and Chief Executive Officer of Primexx Operating Corporation.

Today, Primexx Energy Partners Ltd. is engaged in the acquisition, development and production of domestic oil and gas reserves. The partnership was formed in 2000 to hold the assets of various individual and institutional investors, many of whom were shareholders of Fagadau Energy Corporation.

Primexx primarily focuses on properties within its core operating areas that have a significant proved reserve component and which management believes have additional development and exploration opportunities. The properties are primarily located in north-central Oklahoma, Parker County, Texas and the Permian and Delaware Basins of Texas.

During the next few years, Primexx intends to grow through an aggressive and technologically advanced drilling program by converting its backlog of drilling opportunities into proved developed producing reserves and acquiring undervalued properties.  Several key elements of this strategy include:

• - Develop oil and gas reserves in a concentrated area;
• - Grow through the drill bit;
• - Focus on reducing costs;
• - Divestment of non core assets;
• - Maintain financial flexibility;
• - Manage commodity price risk;

Primexx’s foundation is built on the values of integrity, trust, partnership and performance, which guide our actions.
In the new economy, Primexx has entered into strategic alliances to develop properties located in its core areas. Teaming with others adds complimentary resources and capabilities enabling the properties to be developed quickly and more efficiently.

Primexx is a nonoperating partner in a burgeoning play in the Delaware Basin, which targets an interval of Wolfcamp and the overlying Bone Springs formations. It will participate in 25 wells in the Delaware Basin in 2010. The wells are deep, going to some 12,000 feet. The target is a 3,000-foot (multi-sand) interval, with operators using multi-stage fracs to open up the entire interval.

"With our focus in Oklahoma, we'll be looking for additional prospects. Among our strengths are buying assets and exploiting them, identifying behind-pipe assets and those that can contribute but that we may not have to pay for upfront," says Aul.

Playing a critical role in prospect generation and exploitation efforts in Oklahoma are Eric Nelson and Travis Wilson, senior exploration manager and Midcontinent District Exploration Manager, respectively, Travis was previously an exploration geophysicst with Chesapeake Energy Corp. Both geoscientists have strong technical skills and extensive production backgrounds allowing for the seamless integration of geology, engineering and operations to maximize the efficiency of the development process.