On January 9, 2008, Texoma Partners, L.P. (the “Fund”), a leasebank and pipeline investment fund managed by Waveland Energy Ventures LLC, closed on the sale of 50% of its working interests in the leases it held and 100% of its interests in the pipeline at the Texoma Project (“Texoma” or the “Project”), in the emerging Woodford Shale Play in southeastern Oklahoma to Chesapeake Energy (NYSE:CHK, “Chesapeake”). The Fund had acquired a 60% working interest in 35,000 leased net mineral acres at Texoma from Oracle Resources, Ltd. (“Oracle”), an independent oil and gas company based in Dallas, Texas in March 2007.

During 2007, the Fund began the joint development of the Project with Oracle by drilling nine wells and building a pipeline infrastructure. In July 2007, Chesapeake offered to buy certain working interests and pipeline assets from Oracle and the Fund at a substantial premium to the price paid by the Fund.

In late 2007, Oracle closed on the sale of the 40% interest it owned in the Project to Chesapeake. On January 9, 2008, the Fund closed on the sale of 50% of its working interests in the leases it held at Texoma and 100% of its interests in the pipeline. Excluded from the Fund’s transaction were 4,720 acres on which the nine wells were drilled by three Waveland drilling funds.