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Baron Energy, Inc.

Pursuing Innovative Solutions In Domestic Energy

Baron Energy, Inc. (BROE:OTCBB) is an independent oil and gas exploration, exploitation and development company headquartered in New Braunfels, Texas. The Company’s primary core area of operations is the prolific Permian Basin of West Texas. The Company currently has more than 3,000 gross acres in seven West Texas counties with working interests that range from 5% to 100%. This acreage has 18 producing wells, 6 of which are operated by Baron, and produces approximately 35 barrels of oil equivalent per day (BOEPD) net to Baron.

Additionally the Company has an acreage position in South Texas in Starr County, Texas with exposure to the Deep Yegua formation. The Deep Yegua Trend is a very sparsely explored trend in the heart of some of the most prolific oil and gas production in the U.S. The Deep Yegua trend runs along the Texas Gulf Coast from the Mexican border, through Starr and Brooks Counties, Texas and to the north east to the Louisiana border.

Baron plans to grow the company to approximately 1,000 BOEPD within five years by making accretive producing property acquisitions, executing production enhancement programs, and low cost, low risk in-fill drilling in its core operating area of the Permian Basin. In addition Baron will focus on the exploitation of its South Texas property through joint ventures with industry partners.

Baron’s primary area of operations is an eight county region in the core of the Permian Basin of West Texas, one of the most prolific oil producing regions in the world. The Basin covers an area 250 miles wide and 300 miles long. The first well in the Basin was completed in Mitchell County, Texas in May, 1923 to a depth of 3,055 a process that took 20 months. Since then more than 4,500 oil pools and 1,000 natural gas pools have been discovered with a cumulative production of approximately 30 billion barrels of oil. Yet it’s estimated that more than 10 billion barrels of oil have yet to be developed. The basin is so named because it features one of the world’s thickest deposits of sedimentary rock from the Permian geological period.

The Deep Yegua gas play consists of Eocene Age sandstone conventional reservoirs producing gas from deep, over pressured reservoirs. In Starr County the Deep Yegua is found between 11,000' and 15,000' feet in depth. This is a lightly explored formation with only 39 gas fields discovered along the trend, but these fields are highly productive with an average cumulative production of 28 BCF (billion cubic feet) per field. The vast majority of these fields have been discovered since 1975 meaning the Deep Yegua is an emerging play. By integrating data and geologic information from existing wells we have identified a large structural and stratigraphic trend running diagonally across Starr County. Baron currently has approximately 800 acres under lease; this acreage is located on top of this formation and holds high potential for natural gas accumulations

For more information, visit: http://www.baronenergy.com