Escondido Ups Ante in S. Texas, Acquires 17 Producing Wells

Escondido Resources II has increased its presence in south Texas with the acquisition from Kaiser-Francis Oil Company of 17 producing wells located in northern Webb county. The wells acquired produce from the Olmos and Escondido formations and hold 2,300 gross acres.

Escondido also announces that it has acquired new leasehold acreage in Webb, La Salle and McMullen Counties totaling in excess of 40,000 gross acres. Both the Kaiser-Francis acquired acreage and the new leasehold acreage are prospective in the Olmos and Escondido formations which have been historically targeted in the area, along with the newly discovered Eagleford Shale formation. The Company intends to begin a drilling program targeting these reservoirs beginning in the 3rd quarter of this year.

Escondido Resources II, LLC was formed in November 2007 by partners William E. Deupree, Mark E. Semmelbeck, J. Kurt von Plonski, and J. David Wrather. The Company is the successor to Escondido Resources, LP, which sold essentially all of its south Texas assets in October, 2007, for $249.5 million.