Matador Resources Company (the "Company") is an early-stage independent energy company incorporated in Texas in July 2003 to engage in oil and natural gas exploration, production, development and acquisition activities. Our primary founder is Joseph Wm. Foran, President, Chairman, and Chief Executive Officer. Mr. Foran began his career as an oil and gas independent in 1983 when he and his wife, Nancy, founded Foran Oil Company with $270,000 in contributed capital from 17 of his closest friends and neighbors. Foran Oil Company was later contributed into Matador Petroleum Corporation upon its formation by Mr. Foran in 1988, and Mr. Foran served as chairman and chief executive officer of that company from its inception until it was sold in June 2003 to Tom Brown, Inc. in an all cash transaction for an enterprise value of $388 million.

Matador Petroleum Corporation grew in value at an average annual rate of 21% for 15 years and at an average annual rate of 30% for the last six of those years (an investment of $10,000 in Matador Petroleum Corporation in July 1988 would have increased in value to $183,000 at the time of the sale of Matador Petroleum Corporation in 2003). Our goal at Matador Resources Company is to replicate the growth and success of Matador Petroleum Corporation. Neither Matador Petroleum Corporation, its purchaser Tom Brown, Inc., nor Tom Brown's successor EnCana Corporation has any current affiliation or relation to us.

Matador Resources Company's business strategy focuses on achieving sustainable growth through (i) the exploration for oil and gas reserves in well-established, historically productive basins; (ii) the aggressive management of reserves and maintenance of a low operating cost structure; (iii) the strategic acquisition of producing properties, upon attractive terms, that offer significant development and exploration potential; (iv) the periodic sale or farmout of producing properties, upon attractive terms, that we determine may be best developed and exploited by other companies; and (v) emphasis on developing expertise and internal operating systems and on applying new technologies that support our decision-making process and the execution of a sustainable growth strategy.

The Company's primary business plan is to be a low-cost producer and to acquire or obtain low-cost reserves through exploration and drilling, acquisitions, or other means using the latest technology, using fundamental techniques of oil and natural gas prospecting and pursuing transactions negotiated to obtain the best possible terms for the Company and our shareholders. Many of our technical staff hold advanced degrees and have accumulated an average of more than 20 years of experience in the oil and gas industry. We believe that, with the experience of Mr. Foran and our staff, we are well prepared to continue growing our business.

The Company's primary focus is on natural gas operations in East Texas and North Louisiana, the Permian and Delaware Basins of West Texas and Southeastern New Mexico, and the Rocky Mountains in southwestern Wyoming, northeastern Utah, and Southeastern Idaho. As of May 2007, we have leased or acquired approximately 340,000 gross acres of mostly undeveloped oil and gas leasehold and mineral properties in gas-prone producing areas of East Texas, North Louisiana, Southeast Texas, West Texas, Southeastern New Mexico, and the Rocky Mountains. In particular, our acreage position includes approximately 90,000 gross acres in East Texas and North Louisiana, 26,000 gross acres in Southeast Texas, 139,000 gross acres in the Rocky Mountains, and 81,000 gross acres in the newly emerging Barnett and Woodford gas shales play in far West Texas.

Matador Resources Company completed its first well in November 2004 and is producing oil and gas from several assets in East Texas and North Louisiana, including Woodlawn field (Harrison County, Texas), Elm Grove/Caspiana field (Caddo Parish, Louisiana), and the Longwood/Pine Island area (Harrison County, Texas and Caddo Parish, Louisiana). The Company has additional production in Orange County, Texas and Lea and Eddy Counties, New Mexico. Matador's proved reserves as of December 31, 2007 are estimated to be 34.1 Bcfe (billion cubic feet gas equivalent), which includes estimates for proved reserves only and does not include any unproved reserves classified as probable or possible that may exist on the Company's undeveloped acreage.

Matador is currently drilling exploration and development wells in our East Texas/North Louisiana assets, as well as testing several new, internally generated prospects in North Louisiana. The Company anticipates beginning to test its acreage positions in the Permian and Delaware Basins of West Texas during the summer of 2008. Matador operates the vast majority of its properties, allowing us to better manage operating expenses, capital expenditures and the allocation of our exploration and development resources.

Matador will continue to drill wells and develop prospects on our undeveloped acreage, continue to search for opportunities to buy properties in our areas of interest, and continue to workover and recomplete wells on our existing properties. The Company will also continue to acquire leasehold interests in non-producing areas which, in the opinion of management, are suitable for oil and gas exploration and development, and will actively develop new oil and gas prospects on these properties as well.

Areas of Activity
Matador Resources Company has leased or acquired approximately 340,000 gross acres of mostly undeveloped oil and gas leasehold and mineral properties in gas-prone producing areas of East Texas, North Louisiana, Southeast Texas, West Texas, Southeastern New Mexico, and the Rocky Mountains as shown in the figure below.



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