Stephens Engineering is a consulting petroleum engineering firm and has the same ownership as Stephens & Johnson Operating Co. At the present time, Stephens Engineering has seven graduate petroleum engineers and two graduate geologists on their staff. Stephens Engineering specializes in planning, installation and supervision of secondary recovery projects. In this capacity the firm is currently performing the direct engineering supervision of approximately 35 water injection projects. Stephens Engineering also performs services of preparing Valuations of oil and gas properties for clients to submit to the S.E.C., for estate tax purposes, bank loans, for purchases or sales of oil and gas properties, and for other purposes. Stephens Engineering also provides economic feasibility studies for the development of oil and gas properties and in the management and operation of oil and gas producing properties through Stephens & Johnson Operating Co. Stephens Engineering and Stephens & Johnson Operating Co. have supervised projects in a total of 20 states and Canada for both independent and major oil companies.

Stephens & Johnson Operating Co. is a Texas corporation owned by Fred Stephens and Joe L. Johnson, Jr. At the present time, the company operates 371 leases with 874 active wells (678 producers and 196 water injection). The current production from these producing wells is approximately 4,900 BOPD and 16,600 MCFPD. Stephens & Johnson Operating Co. owns 100% Working Interest in the majority of these wells. These operations are located in Kansas, Louisiana, New Mexico, North Dakota, Oklahoma and Texas. Stephens & Johnson Operating Co. also operates leases for clients that it has no ownership. The actual engineering work performed by Stephens & Johnson Operating Co. is furnished by Stephens Engineering.