Arkansas Oil and Gas Commission Little Rock, Arkansas 72205 133

JERRY L. CANFIELD, P.A.THOMAS A. DAILY, P.A.WYMAN R. WADE, JR., P.A.DOUGLAS M. CARSON, P.A.ROBERT R. BRIGGS, P.A. †C. MICHAEL DAILY, P.A. † !"L. MATTHEW DAVIS, P.A. †COLBY T. ROE

† Also Licensed in Oklahoma! Also Licensed in Wyoming & North Dakota" Certified Mediator

DAILY & WOODSA PROFESSIONAL LIMITED LIABILITY COMPANY

ATTORNEYS AT LAW

KMW BUILDING58 SOUTH SIXTH STREET

P.O. BOX 1446FORT SMITH, AR 72902

TELEPHONE (479) 782-0361FAX (479) 782-6160

______________

JAMES E. WESTDALE CARLTON

PHILLIP E. NORVELL †

OF COUNSEL_______

HARRY P. DAILY (1886-1965)JOHN P. WOODS (1886-1976)JOHN S. DAILY (1912-1987)

BEN CORE (1924-2007)

May 2, 2012

Arkansas Oil and Gas Commission301 Natural Resources Drive, Suite 102Little Rock, Arkansas 72205

Re: ORDER REFERENCE NO. 133-2012-05

Application of SEECO, Inc. for an exceptional location pursuant to Arkansas Oiland Gas Commission General Rule B-43(i)(5) for its Cohan 10-15 #4-36H1 Welllocated in Section 36, Township 10 North, Range 15 West, Van Buren County,and Section 1, Township 9 North, Range 15 West, Conway County, Arkansas

Commissioners:

SEECO, Inc., 2350 N. Sam Houston Parkway E, Houston, TX 77032, hereby applies tothe Arkansas Oil and Gas Commission as follows:

1. The Applicant proposes the drilling and completion of a cross unit horizontal well,the Cohan 10-15 #4-36H1 (“Cohan #4”) Well located in Section 36, Township 10 North,Range 15 West, Van Buren County and Section 1, Township 9 North, Range 15 West,Conway County, Arkansas. The projected perforated lateral of the proposed Cohan10-15 #4 Well is expected to be 419 feet from the toe of the Alley 9-15 #1-1H (“Alley#1") Well, located in Section 1, Township 9 North, Range 15 West; 535 feet from thetoe of the Bryant, Juanita 9-14 #6H1 (“Bryant, Juanita #6") Well, located in Section 6and 1, Township 9 North, Range 15 West; and, 261 feet from the toe of the Bryant, Coy9-14 #6-7H1 (“Bryant, Coy #6") Well, located in Sections 7, 6 and 1, Township 9 North,Range 15 West. The Applicant requests that it be granted a location exception toenable it to produce the Cohan #4 Well notwithstanding such encroachments, providedthat the perforated wellbore of the Cohan #4 Well is no less than 240 feet from anyother wellbore.

2. The Applicant has solicited spacing waivers from most of the persons who havethe right to drill within Section 36, Township 10 North, Range 15 West and Sections 1, 6and 7, Township 9 North, Range 15 West, but has not yet obtained a waiver from everysuch owner.

3. The Applicant states that the granting of this application will be protective of thecorrelative rights of all interested parties and will prevent waste of natural gas by

permitting the most efficient method of developing the resource within thegovernmental sections which are the subject of this application.

4. The names and addresses of parties interested in this proceeding are set forth inExhibit "A" attached hereto and made a part hereof.

5. Please note the appearance of Thomas A. Daily of Daily & Woods, P.L.L.C.,P.O. Box 1446, Fort Smith, Arkansas, 72902, on behalf of applicant.

Very truly yours,

Thomas A. Dailyjmt

Cohan 10-15 #4-36H1

Section 1, T9N-R15WSection 2, T9N-R15W

Conway County, AR

Section 35, T10N-R15WSection 36, T10N-R15W

Van Buren County, AR

EXHIBIT “A”

SEECO, Inc.2350 N. Sam Houston Pkwy E., Suite 125Houston, TX 77032

BHP Billiton Petroleum (Fayetteville) LLC1360 Post Oak Blvd., Suite 150Houston, TX 77056-3030Attn: Fayetteville Shale Joint Interest Land

BP America Production Company501 Westlake Park Blvd.Houston, TX 77079

XTO Energy, Inc.810 Houston St.Fort Worth, TX 76102

XTO Energy, Inc.As Agent for ExxonMobil, Inc.810 Houston St.Fort Worth, TX 76102

Cade Oil & Gas, LLC11342 Birolli PlaceLittleton, CO 80125

Christopher R. F. EckelsP. O. Box 30Cedar Edge, CO 81413

Western Interior Energy, Inc.P. O. Box 247Crested Butte, CO 81224

The Robert & Maxine Hannifin TrustP. O. Box 218Midland, TX 79702Attn: Robert H. Hannifin

The New Mexico CompanyP. O. Box 2479Midland, TX 79702

Philpott Oil & Gas Company, Inc.P. O. Box 450Atwood, KS 67730-0450

Fairway, L.L.C.4999 S. Birch St.Littleton, CO 80121

Blasco, LLC6235 Savannah WayColorado Springs, CO 80919

Robert Edward Eckels, Jr. LLCP. O. Box 1093Cedar Edge, CO 81413

Jan C. IceP. O. Box 7366Covington, WA 98042

Elizabeth Jane Kay Family TrustP. O. Box 9602Colorado Springs, CO 80932

Buttram Energies, Inc.2601 NW Expwy, Suite 501WOklahoma City, OK 73112

Fall River Resources, Inc.P. O. Box 13456Denver, CO 80201

FFF, Inc.P. O. Box 8687Denver, CO 80202

Shawn P. and Frances A. Hannifin730 17th Street, Suite 325Denver, CO 80202

The Craig G. Tirey Family Limited PartnershipP. O. Box 20093Oklahoma City, OK 73156

Shakti Energy, LLC2017 Woodcrest LnEdmond, OK 73034

Anthony Ferrera449 SW AirportCache, OK 73527

Shantanu Bhattacharya6128 Pepperbark Dr.Frisco, TX 75034

Martin L. & Cynthia S. Blair655 India St. #321San Diego, CA 92101

Cohan 10-15 #4-36H1 Before Payout After Payout Waiver Granted

SEECO 0.91573934 0.91573927 YRobert & Maxine Hannifin Trust 0.00000011 0.00000011 YNew Mexico Co. 0.00000004 0.00000004 YWestern Interior Energy 0.00000008 0.00000008 YPhilpott Oil & Gas 0.00000000 0.00000001 NoChristopher R. F. Eckels 0.00000000 0.00000000 YBlasco, LLC 0.00000000 0.00000000 YRobert E. Eckels, Jr. LLC 0.00000000 0.00000000 YJan C. Ice 0.00000000 0.00000000 NoElizabeth Kay Fam Trust 0.00000000 0.00000000 YFairway, LLC 0.00000019 0.00000019 YFall River Resources, Inc. 0.00000001 0.00000001 YFFF, Inc. 0.00000001 0.00000001 YShawn & Frances Hannifin, JTWROS 0.00000001 0.00000001 YCraig G. Tirey FLP 0.00000001 0.00000001 YButtram Energies 0.00000002 0.00000002 YShakti Energy 0.00000000 0.00000005 YAnthony Ferrera 0.00000001 0.00000001 YShantanu Bhattacharya 0.00000000 0.00000000 NoMartin & Cynthia Blair 0.00000005 0.00000005 YCade Oil & Gas 0.00016755 0.00016755 YXTO, Agent for ExxonMobil 0.05000250 0.05000250 YBP 0.00850160 0.00850160 YBHP Billiton Petroleum 0.02558847 0.02558847 YInterest Consenting to Planned Spacing 1.00000000 0.99999998

Cohan 10-15 #5-36H2 Before Payout After Payout Waiver Granted

SEECO 0.86315844 0.86315598 YRobert & Maxine Hannifin Trust 0.00000391 0.00000391 YNew Mexico Co. 0.00000157 0.00000157 YWestern Interior Energy 0.00000282 0.00000282 YPhilpott Oil & Gas 0.00000000 0.00000047 NoChristopher R. F. Eckels 0.00000000 0.00000004 YBlasco, LLC 0.00000000 0.00000002 YRobert E. Eckels, Jr. LLC 0.00000000 0.00000004 YJan C. Ice 0.00000000 0.00000002 NoElizabeth Kay Fam Trust 0.00000000 0.00000004 YFairway, LLC 0.00000673 0.00000673 YFall River Resources, Inc. 0.00000039 0.00000039 YFFF, Inc. 0.00000039 0.00000039 YShawn & Frances Hannifin, JTWROS 0.00000039 0.00000039 YCraig G. Tirey FLP 0.00000039 0.00000039 YButtram Energies 0.00000065 0.00000065 YShakti Energy 0.00000000 0.00000183 YAnthony Ferrera 0.00000022 0.00000022 YShantanu Bhattacharya 0.00000000 0.00000009 NoMartin & Cynthia Blair 0.00000191 0.00000191 YCade Oil & Gas 0.00010256 0.00010256 Y

XTO, Agent for ExxonMobil 0.01566214 0.01566214 YBP 0.02630117 0.02630115 YBHP Billiton Petroleum 0.09475632 0.09475626 YInterest Consenting to Planned Spacing 1.00000000 0.99999943

Bryant, Juanita 09-14 #9-6H1 Before Payout After Payout Waiver Granted

SEECO 0.90118766 0.90118766 YBHP Billiton Petroleum 0.04052426 0.04052426 YBP America Production Co. 0.01350809 0.01350809 YXTO, Agent for ExxonMobil 0.04477436 0.04477436 YCade Oil & Gas, LLC 0.00000563 0.00000563 Y

1.00000000 1.00000000

Alley 09-15 #1-1H Before Payout After Payout Waiver Granted

SEECO 0.91761949 0.91761949 YBHP Billiton Petroleum 0.02471414 0.02471414 YBP America Production Co. 0.00823805 0.00823805 YXTO, Agent for ExxonMobil 0.04942832 0.04942832 Y

1.00000000 1.00000000

Bryant, Coy 09-14 #6-7H1 Before Payout After Payout Waiver Granted

SEECO 0.81964189 0.81964189 YBHP Billiton Petroleum 0.12083265 0.12083265 YBP America Production Co. 0.04027755 0.04027755 YXTO, Agent for ExxonMobil 0.01924791 0.01924791 Y

1.00000000 1.00000000

ALLEY 09-15 #1-01H

ALLEY 09-15 #2-01H

ALLEY 09-15 #3-01H06

ALLEY 09-15 #4-01H06-ST1

ALLEY 09-15 #5-01H06

ALLEY 09-15 #6-01H06

BOWMAN 09-14 A RD A #1-08H05

BOWMAN 09-14 A RD A #10-08H




BOWMAN 09-14 A RD A #9-08H05

BOWMAN 09-14 A RD C #7-05H

BOWMAN 09-14 A RD J #4-08H

BRYANT, COY 09-14 #1-07H-ST1

BRYANT, COY 09-14 #2-07PH-ST1

BRYANT, COY 09-14 #5-07H01

BRYANT, COY 09-14 #6-07H01

BRYANT, JUANITA 09-14 #1-06H


BRYANT, JUANITA 09-14 #3-06H31





BRYANT-KORDSMEIER 09-14 #1-17H

COHAN 10-15 #1-36H

COHAN 10-15 #2-36H35

COHAN 10-15 #3-36H-ST1

CROW 10-15 #7-28H27

CROW, RANDALL 10-15 #4-27H34


DIXON 10-15 #1-35H

GRAVES 10-15 #3-26H-ST1GRAVES 10-15 #5-26H

GRAVES 10-15 #6-26H

NOLEN 09-14 A RD B #1-05H

NOLEN 09-14 A RD B #2-05H08



PETERSON 09-15 #1-12H


PETERSON 09-15 #3-12H01-ST1

REEVES, CHARLES 09-15 #2-10H

REEVES, CHARLES 09-15 #3-10H3REEVES, CHARLES 09-15 #4-10H3-ST1

REEVES, CHARLES 09-15 #5-10H3


SHIP, DON 09-15 #1-11H

SHIP, DON 09-15 #2-11H

STARK, GARY 09-15 #1-14H


STARK, GARY 09-15 #11-14H15


WARD 10-14 #1-31H

WARD 10-14 #2-31H

WARD 10-14 #3-31H06

WARD 10-14 #4-31H06

WARD 10-14 #5-31H06

WARD-BOWMAN 09-14 A RD E #1-08H05

WELLS 09-15 #1-02H11

WELLS, JOHN 09-15 #1-02H



WELLS, JOHN 09-15 #4-02H35

WELLS, JOHN 09-15 #5-02H35

WILLIAMS, KENNETH 10-15 #1-25H


WOOLVERTON 09-15 #1-11PH-ST1

WOOLVERTON 09-15 #2-11H-ST1

WOOLVERTON 09-15 #3-11H



2 6

7

1

1112

3135 36

12868700

EXHIBIT “B”Section 36 Township 10 North, Range 15 West

Van Buren County, Arkansas

Lower Fayetteville UPD MapGeologist: Katherine Hahn

Map Prepared By: Kelvin Latson Sr

SEECO,Inc.’s ProposedCohan 10-15 4-36H1, & 5-36H2

*Planned wells outside of central section of display

may be subject to further revision for spacing.

45

-1

1

00

07

13

6

-

00

92

0

-

-2

-

80

0

30

0

0

00

27

-

ALLEY 09-15 #1-01H

ALLEY 09-15 #2-01H

ALLEY 09-15 #3-01H06

ALLEY 09-15 #4-01H06-ST1

ALLEY 09-15 #5-01H06

ALLEY 09-15 #6-01H06

BOWMAN 09-14 A RD A #1-08H05





BOWMAN 09-14 A RD A #9-08H05





BRYANT, COY 09-14 #5-07H01

BRYANT, COY 09-14 #6-07H01









COHAN 10-15 #1-36HCOHAN 10-15 #2-36H35

COHAN 10-15 #3-36H-ST1

CROW 10-15 #7-28H27



DIXON 10-15 #1-35H


GRAVES 10-15 #6-26H


NOLEN 09-14 A RD B #2-05H08







REEVES, CHARLES 09-15 #3-10H3REEVES, CHARLES 09-15 #4-10H3-ST1



SHIP, DON 09-15 #1-11H

SHIP, DON 09-15 #2-11H


STARK, GARY 09-15 #11-14H15


WARD 10-14 #1-31H

WARD 10-14 #2-31H

WARD 10-14 #3-31H06

WARD 10-14 #4-31H06

WARD 10-14 #5-31H06


WELLS 09-15 #1-02H11




WELLS, JOHN 09-15 #4-02H35

WELLS, JOHN 09-15 #5-02H35








3135 36

2

1211

1

7

6

EXHIBIT “C”Section 36 Township 10 North, Range 15 West


Lower Fayetteville Structure MapGeologist: Katherine Hahn



45

820

082

27

0

ALLEY 09-15 #1-01H

ALLEY 09-15 #2-01H

ALLEY 09-15 #3-01H06

ALLEY 09-15 #4-01H06-ST1

ALLEY 09-15 #5-01H06

ALLEY 09-15 #6-01H06

BOWMAN 09-14 A RD A #1-08H05





BOWMAN 09-14 A RD A #9-08H05





BRYANT, COY 09-14 #5-07H01

BRYANT, COY 09-14 #6-07H01









COHAN 10-15 #1-36HCOHAN 10-15 #2-36H35

COHAN 10-15 #3-36H-ST1

CROW 10-15 #7-28H27



DIXON 10-15 #1-35H



NOLEN 09-14 A RD B #2-05H08








REEVES, CHARLES 09-15 #4-10H3-ST1



SHIP, DON 09-15 #1-11H

SHIP, DON 09-15 #2-11H



STARK, GARY 09-15 #11-14H15


WARD 10-14 #1-31H

WARD 10-14 #2-31H

WARD 10-14 #3-31H06

WARD 10-14 #4-31H06

WARD 10-14 #5-31H06


WELLS 09-15 #1-02H11




WELLS, JOHN 09-15 #4-02H35

WELLS, JOHN 09-15 #5-02H35








3135 36

2

1211

1

7

6

12868700

EXHIBIT “D”Section 36 Township 10 North, Range 15 West


Lower Fayetteville Isopach MapGeologist: Katherine Hahn



45

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Arkansas Oil and Gas Commission Little Rock, Arkansas 72205 133