KEX Energy, LLC

KEX Energy, LLC, a wholly owned subsidiary of Keystone Exploration, Ltd., formed in 2005, was established to acquire leasehold acreage in the Fayetteville Shale area of Arkansas. This transaction was a joint effort of KEX and another company. A substantial portion of the total leased portfolio was sold in mid 2007. The balance of the acres retained by KEX for future development is located in northern Cleburne County, Arkansas. Leasing efforts to continue to build that position continue.

Keystone Gathering, LLC

Keystone Gathering, LLC, was formed in 2003 as a special-purpose subsidiary of Keystone Exploration Ltd., to develop gas transmission and compression of production from Keystone Exploration Ltd. prospects and others properties in the surrounding areas. The company purchases right of way, constructs, operates and maintains the gathering and compression systems to service the Keystone exploration prospects.

Keystone Gathering is a fully licensed and state certified transporter of gas.