rocky mountain jar, l.l.c.

Operations

In September 2005, Dr. Chris Bailey of Orem, Utah introduced Mr. Rooks to Mr. Morris. Mr. Rooks mentioned an investment opportunity involving an oil services equipment rental business utilizing Fishing Jars in the Great Basin region. These Fishing Jars were needed to take advantage of the growing oil and natural gas energy resource market in this region. Mr. Morris researched the market extensively and became optimistic that there was a tremendous need for this fishing jar equipment. He developed a business strategy along with Mr. Rooks and Mr. Slaugh to take advantage of this opportunity.

Rooks, Slaugh and Morris signed a Letter of Intent in late October, and on November 29, 2005 formed Rocky Mountain Jar, LLC with the State of Utah. The Company began operations in the winter of 2006 and capitalized the business with approximately $800,000 in secured notes to 10 lenders. Each member received an equity interest in addition to their notes. These notes have been paid down to approximately $600,000. The Company also procured a $570,000 manufacturing line of credit from the equipment manufacturer. Proceeds were used to purchase more Fishing Jars.

The Company has been operating profitably for approximately two (2) years. 2006 revenues were approximately $550,000 and net cash earned was approximately $100,000. During 2007, the Company had revenue of approximately $1,150,000 with net cash earnings of $560,000.

The $570,000 note has been retired through payments generated from retained earnings. The Company leased a machine shop, added capital lease improvements, and hired a shop foreman and one shop employee. It began renting equipment in the early summer of 2006. The Company had positive cash flow the first year and grew substantially the second year. Year-end cash flow from operations was $550,000. Revenues were approximately $1,150,000, almost a 48% net cash return on gross revenue.

The Company will continue to operate from its leased facility in Vernal, Utah. The shop is utilized as the main office for the management team, inspectors and repairmen. The jars are refurbished each time they are used on an Oil Fishing job. Logan has a sales and inventory warehouse facility in Vernal, Utah that allows the Company access to inventory. Therefore, the Company can immediately complete repairs and refurbish the jar tools. This accessibility to Logan provides the Company with a competitive service advantage. The Company employs a Shop Manager and two shop employees that inspect and repair the jar tools and other equipment. The current facility is sufficient, therefore, the company will not incur additional expenses other than the purchase of new jars with the funding proceeds of $3,000,000. The Company anticipates hiring three additional hourly skilled labor employees to accommodate the expansion plan. Mr. Slaugh will continue to oversee the operation. He will market jar equipment and other Oil Fishing tools to his extensive contacts. Mr. Rooks will market the Company’s products and services to contacts that are synergistic with his other oil service companies.

Mr. Morris will continue to oversee the financial operations focusing on cash flow management, accounting, and financial reporting. He will also provide additional business consulting services. Mr. Morris is in contact with a major oil and gas exploration company. He plans to market rental of jar equipment to their oil and natural gas service providers. None of the Managing Members have received any salary or Management service fees. The Company looks forward to continued profitability and will pay cash distributions to all LLC members.

Management

Mr. Donald Rooks, Managing Member

Mr. Rooks is an entrepreneur. For twenty-five years he has been involved as an independent oil service provider. In 1980, he started Ace West Trucking Service, a transportation service provider hauling oil drilling equipment and supplies to production sites and facilities. Ace West Trucking has transported Chevron North America’s oil field equipment since 1980. In 1992, he purchased a gravel pit and crusher providing sand and gravel for numerous oil & gas companies in the Rangley, Colorado area. In 2000 through 2002, he purchased two works over rigs, known as Double Hook Well Service and H.T. Well Service. These rigs are still in operation in Utah. One is on the Navaho reservation in Blanding, Utah. In 2002, he started Ace West Foam Inc., which cleans out natural gas wells and enhances gas production by using chemicals and compressed air. Ace West Foam currently has 8 foam units in operation. In 2005, he formed Slaugh Fishing Tool, Inc. This enterprise retrieves damaged drilling hole equipment. He is a partner with Jim Slaugh in this operation. He continues to be involved with six companies; he has extended ownership to key employees in four of the six companies to assist in managing each respective entity. All of these entities are profitable. He graduated from Brigham Young University with a Bachelors Degree in 1976.

Mr. James Slaugh, Managing Member

For thirty years Mr. Slaugh has been involved in the management, sales, and general operation of a number of oil service companies. He currently operates Rocky Mountain Jar, LLC. He has been with the Company from its inception. He has extensive experience in the Oil Fishing sector. He has hired and trained personnel on-site in Oil Fishing procedures. Slaugh also has extensive experience as an Oil Fishing operator. He has acquired Oil Fishing tools and equipment and has set up accounting and inventory control systems and procedures. He has been an innovator in the repair of Oil Fishing tools through new procedures that have been adopted by large oil service providers. In 2005, he started his own Oil Fishing business called Slaugh Fishing Tool Inc. with Rooks as a partner.

Mr. Douglas Morris, Managing Member

Mr. Morris is a founder and director of Celtic Investment, Inc., a financial services company that wholly owns Celtic Bank a FDIC insured commercial bank located in Salt Lake City, Utah. Mr. Morris since 1990 has also owned and operated a private consulting practice, now under the entity called Hyacinth Resources LLC (Hyacinth), a Utah limited liability company. Hyacinth consults with privately held and publicly held corporations relating to management, merger and acquisitions, structured financing projects, debt and equity financing, capital market access, and market support for publicly traded securities. He is currently serving as an Officer and Director of Bio-Path Holdings, Inc., a publicly traded bio-technology company. He also has ownership interests in several privately held companies. Mr. Morris has a BA from Brigham Young University and a Masters degree from the University of Southern California.