UPDA Operators, Inc.

UPDA Operators, Inc. ("UPDA-OI"), a Nevada corporation, was formed in 2006 as a wholly-owned subsidiary of UPDA. UPDA-OI is certified by the Texas Railroad Commission as an operator of oil and gas wells and acts as operator of all of the UPDA leases in the state of Texas. UPDA-OI employs the personnel that engage in the managerial and administrative activities that are necessary to operate the oil and gas wells owned by Canyon Creek Oil and Gas, Inc. and Catlin Oil and Gas, Inc. UPDA-OI provides operational, geological, engineering, legal and land management services and handles accounting and bookkeeping activities necessary to commercially operate the exploration and production assets of the company in the state of Texas. By centralizing these operations in UPDA-OI, UPDA takes advantage of economies of scale, maximizes the productivity of employees and avoids duplicative costs and activities.