Vega Energy's entry into the Western Anadarko Basin in Oklahoma through the Toklan acquisition provides an operated foundation of producing unconventional and conventional wells and acreage in Oklahoma and Texas. We are currently pursuing development drilling on the newly acquired Toklan acreage with an initial focus on the prolific Red Fork play, Cherokee Shale, Cottage Grove, Meramec and Woodford Shale formations. Vega Energy will also be pursuing joint-venture drilling partnership and bolt-on acquisitions of producing properties in and around our core operating areas. Consistent with our strategy to date, we target low-geological-risk, underpinned by long-life existing production where field-level development, drilling and remediation drive stable cash flow and long-term asset value.

Vega Energy's midstream operations consist of the Deer Creek gathering system which gathers natural gas produced from our acreage as well as third party volumes from surrounding operators in Custer County, OK. As we develop this asset area, we are focused on growing system throughput, extending the system's footprint to serve neighboring producers, and evaluating synergistic bolt-on midstream acquisitions in our core operating area.