ARKHAN CORPORATION

They have been involved in the energy industry since 1968. they began to expand their operations at the end of fiscal 1998 when they acquired The Atlas Group, Inc., an energy finance and production company located in Pittsburgh, Pennsylvania. Since fiscal 1998, they have achieved consistent growth in their reserve base through developmental drilling activities, acquisitions of properties and, in 1999, the acquisition of Viking Resources Corporation, a North Canton, Ohio exploration and productio... n company. From October 1, 1998 through September 30, 2003, proved reserves net to their interest grew from 93.3 Bcfe to 144.4 Bcfe, and the PV-10 value of these reserves grew from $49.2 million to $191.4 million. During the same period, proved reserves they manage for their drilling investment partnerships grew from 142.0 Bcfe to 187.8 Bcfe, and the PV-10 value of these reserves grew from $97.6 million to $273.5 million. As of September 30, 2003, they had an acreage position of approximately 431,000 gross (379,000 net) acres, of which 205,000 gross (190,000 net) acres were undeveloped. They have also achieved substantial growth in their drilling activities. The number of net wells they have drilled increased from 145 wells in fiscal 1999 to 282 wells in fiscal 2003. They expect that they will drill approximately 530 wells in fiscal 2004. Of the 1,111 wells they drilled in the past five fiscal years, they have completed approximately 99% as producing.More