ENXP is an independent exploration and production company focused on the acquisition, exploration, development and exploitation of unconventional oil and natural gas resources. After giving effect to the acquisition of acreage from Chesapeake Energy Corporation and the related conveyance of acreage described below, ENXP will own 84,989 net acres in three core areas: The Eagle Ford Shale and Woodbine Sandstone formations in East Texas, which we refer to as the Eaglebine; the Wolfcamp play in the Permian Basin in West Texas, which we refer to as the Wolfcamp; and the Niobrara Shale in the Denver-Julesburg Basin in Colorado and Wyoming, referred to as the Niobrara. ENXP targets liquids-rich resource plays and has built its leasehold acreage position primarily through direct acquisitions from mineral owners. ENXP has accumulated 13,935 net acres in its Eaglebine core area. ENXP has entered into two agreements with a subsidiary of Halcón Resources Corporation, or Halcón, and one agreement with a subsidiary of Constellation Energy Commodities Group related to the Eaglebine. These agreements provide for ENXP's conveyance of operated working interests in some of ENXP's Eaglebine acreage and established two areas of mutual interest, referred to as AMI #1 and AMI #2. ENXP has signed a purchase and sale agreement to acquire 57,275 net acres, eight producing wells and two non-producing wells in the Eaglebine (including 22,080 net acres in AMI #1 and AMI #2) from subsidiaries of Chesapeake Energy Corporation, or Chesapeake, for $126 million, subject to customary purchase price adjustments. This transaction Chesapeake acquisition is expected to close in the fourth quarter of 2012 Halcón (HK) elected to purchase its pro rata interest in the AMI #1 and AMI #2 acreage and AMI #2 wells ENXP will acquire in the Chesapeake acquisition. Accordingly, ENXP expects to convey to Halcón 16,529 net acres and an 80% working interest in two producing wells to be acquired in the Chesapeake acquisition for $53.1 million. In addition to acreage in the Eaglebine, ENXP will have 13,377 net acres in its Wolfcamp area, where ENXP has 100% operated working interests, and 16,931 net acres in the Niobrara area, where ENXP generally has 100% operated working interests.