Maverick’s principal oil and gas assets are leases in the Blue Ridge Dome field, a piercement type salt dome located south of Houston, Texas in the United States. Maverick’s net interest in these leases is independently estimated at 1P reserves of 7.8 million barrels and 2P reserves of 25.6 million barrels of oil. The Directors believe there are over 400 drilling locations to exploit on these leases.

Since October 2009, 10 new wells have been drilled, all of which are completed and currently producing an average of 26.5 BOPD per well, within the target average of 25 to 30 BOPD per well. As a result, Maverick’s cash flow has strengthened, with revenue generated from Maverick’s April, May and June 2010 production expected to be more than USD 470,000 per month (up from USD 328,000 for Maverick’s March 2010 production). The Board believes Maverick’s initial drilling success can be replicated in the ongoing drilling program, in which case the activities on the Blue Ridge Dome Leases would, with cash flow from production revenue and contract drilling, have sufficient free cash flow to fund two new wells each month, within 9 months of listing on the ASX, assuming oil prices of USD 70 per barrel and assumed average production rates of 25 BOPD per well. The Board is optimistic of continued success and Maverick’s current focus is to continue this drilling program to enhance its cash flow.

Maverick’s future objectives include acquiring and developing other low risk leases in proven oil fields similar to Blue Ridge Dome and conservatively pursuing higher risk/higher return opportunities within the capabilities of its drilling, exploration and production expertise. To maintain diversity of cash flow, Maverick will continue its contract drilling business, as it has done successfully since 1973. Maverick also intends to maintain its capability to support and manufacture its own rigs, as needed, through its manufacturing facility in Oklahoma in the United States.