The Company continues to be bullish in its estimates for natural gas prices and points not only to the energy futures and the option pricing on the longer term delivery dates, but notes that the four top executives from Southwestern Energy, EOG Resources, Range Resources, and XTO Energy share similar views based on fundamental data. All agreed, during a panel discussion earlier this year, that prices could be expected to range between $6 and $10 per Mcf in 2010, due to production trail-off in response to lower rig counts.

XTO chairman Bob Simpson looks for $7 to $10 long term. XTO estimates U.S. gas production will fall 10% to 12% year-over-year by December 2009 -- and this will outstrip the recent softening in demand.

Range Resources CEO John Pinkerton indicated that the longer term outlook is for $7 to $8/Mcf. He further warns that without IDC tax deductions (intangible drilling costs), less capital will go into the ground, delaying any production ramp-up.

Norex believes that the declining rig counts and rate of decline curves of the largest suppliers will lead to a market balance prior to the winter season and could buoy gas prices back to the $5-plus range by calendar year-end.

Beyond that, the Company plans to identify and make strategic acquisitions consisting of realistic overriding royalty interest leave-backs such that greater revenue percentages are available to the working interest partners. Indications from property owners are that they understand the market bottom requires them to soften their demand for overriding royalties and be realistic in their expectations.

The Company also announced today that it has entered into an option purchase agreement with Dominus Energy, A.G., a Swiss corporation ("Dominus"), to acquire gas wells in the Adams-Baggett field in Crockett County, Texas. Dominus and the Company have effectively terminated and released themselves from the acquisition agreement announced in early June 2009. Due to the difficulties encountered with delays in financing arising from current economic and industry conditions, including a recent decline in gas prices, the parties have postponed the acquisition and instead have entered into the option purchase agreement which management believes could result in the Company's acquisition of the wells and other assets, within 90 days, at terms more favorable to the Company.