Key Highlights of Pegasi Energy Resources Corp. (OTCBB: PGSI)

Key Highlights of Pegasi Energy Resources Corp. (OTCBB: PGSI)

Pegasi Energy Resources Corp. (OTCBB:PGSI) is an independent organic growth-oriented energy company engaged in the exploration and production of natural gas and oil through the development of a repeatable, low geological risk, high potential project in the active East Texas oil and gas region. Pegasi currently holds interests in properties located in Marion and Cass County, Texas, home to the giant Rodessa oil field, which has produced approximately 2.3 trillion cubic feet of gas and 400 million barrels of oil.

The Company has several significant advantages over its competition, namely:

Leading acreage position in highly active East Texas Cotton Valley liquids trend. The Company's 20,000+ gross acreage position in the Cornerstone Project area make it one of a few entities to have effectively amassed large contiguous acreage blocks.

Larger operators increasingly active in acquiring acreage.

Established production/proved reserves in high quality basin. Drilled 5 producing wells & established proved reserve base in Rodessa field w/ 21.4 bcfe of gross reserves & 1,166 mmcfe of current gross daily production.

Large volumes of hydrocarbons in place in multiple geologic horizons.

Strong platform to further grow our reserves and production.

Significant drilling inventory/long-term growth potential. Identified 109 locations on present acreage position.

Continued development of properties allow us to increase our proved reserves and average daily production.

Significant infrastructure in place. 40-mile pipeline, established gathering system, & salt water disposal plant, contribute to maximizing cash flow.

Ready access to several interstate pipelines & local end uses.

Experienced, proven management and operations team. Management team has average of 30+ years of experience in oil & natural gas industry.

Access to proprietary deal flow.

Acquisition and leasing opportunities due to expertise in area & contacts.

Price: $0.85 - Mkt Cap: $46 m. - Revs (ttm): $1.19 million - Cash: $6.75, Debt: $8.35, PP&E: $22 m