Topaz Resources Inc. (TOPZ)

[DFLY]

The Barnett Gas Project

Topaz has approximately 3,300 Barnett gross acres in the natural gas heart of the Barnett play and surrounded by existing production and current drilling activity. Approximately 1,850 of this Barnett acreage were included in a 2006 farm-out agreement. Under this agreement the Topaz group participated in drilling and completing sixteen wells, all of which were successful commercial wells. Six of these wells were funded and acquired by a privately held company and ten wells have been acquired by Pioneer Natural Resources Company ("NYSE:PXD").

Our immediate capital budget includes drilling one to three new Barnett horizontal gas well at a depth of 8,000 to 9,000 feet. Topaz's acreage in this project area easily could accommodate drilling 20 to 30 new horizontal Barnett wells.