The Company through its subsidiaries operates 115 natural gas wells, 33 oil wells, and maintains a leasehold base of approximately 17,000 acres in the Appalachian Basin. In addition, the Company maintains investments in equities, mineral rights, and corporate debt.

US Natural Gas Corp KY ("USNG KY")
USNG KY is a wholly owned subsidiary which is responsible for the day to day operations of the Company's oil producing properties in Kentucky. Presently, USNG KY operates thirty oil wells of which 14 are in production in southern central Kentucky, and maintains a leasehold base of approximately 5700 acres. USNG KY will continue to rework and place acquired wells into production while growing the leasehold base. USNG KY recently launched a new drilling program targeting the Knox formation on the Turner leasehold in Green County, Kentucky with a goal of drilling three to four wells prior to year's end.

US Natural Gas Corp WV ("USNG WV")
Formerly Wilon Resources, Inc., USNG WV is a wholly owned subsidiary which is responsible for the day to day operations of the Company's natural gas development project in Wayne County, West Virginia. USNG WV operates 115 natural gas wells, 3 oil wells, and maintains a leasehold base of approximately 12,000 acres. The Company is placing the wells back into production on an individual basis after a series of tests and installation of completion components. At present, the Company has 30 wells in production and anticipates this number to increase to 60-65 by the end of August. The Company has entered into a purchase agreement allowing for firm capacity delivery of production, alleviating any reoccurring concerns of indefinite shut-in periods.

E 3 Petroleum Corp ("E 3")
E 3 is a wholly owned subsidiary which is the sole operating and bonding entity for the Company's wells in the states of West Virginia and Kentucky.

E 2 Investments, LLC ("E 2")
E 2 is a wholly owned subsidiary which focuses on acquiring assets valued or equities trading at inherently depressed levels. At present, E 2 owns the mineral rights on 180 acres of land in Wayne County, West Virginia, and a minority stake in a publicly traded specialty retailer catering to the hunting industry.

SLMI Options, LLC ("SLMI")
SLMI is a wholly owned subsidiary which focuses on the acquisition of corporate debt. SLMI was acquired by the Company in 2009 and currently holds in excess of $1.0 million in third party corporate debt.