OIL PROSPECT – OKLAHOMA

Management has selected this project based on its potential for immediate production of oil from relatively shallow wells. This represents a development project for Morgan Creek Energy.

Morrow A & B Sands
Oklahoma Panhandle
Southern Oklahoma

The North Fork 3-D Prospect is located in Southern Beaver County, Oklahoma between the Prolific Booker area located to the south (adjoining our Lease) in the Panhandle of Texas and the Elwood Morrow field located two miles to the northwest of our lease line. Bonanza has shot a multi-component 3-D survey on approximately 5,600 acres to image the Morrow A & B Channel Sands that are productive in the adjoining Booker and Elmwood fields.

The primary target formation is the Upper Morrow A Channel, which produces to the south and northwest of our acreage. This Channel is part of a fluvial system that runs from southwest Kansas through Oklahoma to the Texas Panhandle. Three pairs of these A & B Channel Sans area contained in a broad valley that runs Booker through the Oklahoma Panhandle. Sands in this system are 100% productive of hydrocarbons in Texas and 95% productive in the Oklahoma Panhandle. Typically the Morrow A & B Channels have porosities in excess of 20%, high permeability, high production rates and very high acre foot recoveries. Morrow A sands in the immediate area are primarily oil productive with initial production rates from 250 – 600 BOPD. Primary reserves for the oil wells in the area average 200,000 B.O. per well. Reserves for the Morrow A on the Prospect could be in excess of 2.4 million barrels of oil with 4 BCF of associated gas.

Morrow C sands are productive immediately to the north, east and south of our acreage. These sands are part of a large delta complex and will likely be present on our acreage. Average recoveries for the Morrow C in the immediate area are in excess of 250,000 B.O. per well.

Lower Morrow is productive immediately to the east of the prospect and will provide a back up zone. Lower Morrow has recoverable reserves of up to 150,000 B.O. and 1 BCFG in the surrounding area. Many of the wells in the area did not drill deep enough to penetrate the Lower Morrow.

The Chester Lime is located below the Lower Morrow and is productive in the area. The Chester could add reserves of 25,000 B.O. and 0.5 BCFG per well. While these reserves are too low to be a primary target, they do provide a potential bail out zone.

DRILLING INITIATIVE

Morgan Creek Energy intends to begin drilling the first test well in the North Fork 3–D Prospect by year-end 2009. The Company is preparing the required administrative and logistics work to commence drilling operations.

ECONOMICS

NORTH FORK 3D PROJECT - MODEL

STRUCTURE	LOCATION	AV. DEPTH	INITIAL PRODUCTION
Morrow A	Oklahoma	Under 9000'	250-600 BOPD
Morrow B	Oklahoma	Under 9000'	250-600 BOPD
Morrow C	Oklahoma	Under 9000'	UNKNOWN