Monarch Gulf Exploration, Inc.

Corporate Office
8921 N. Indian Trail Rd. suite 288
Spokane, Washington 99208
Phone: (509) 434-8161

Oil and Gas Exploration Division
4022 Wingren Road, Irving, Texas 75062
Attention: Bucky Woy C.O.O.
972 717 3960

www.MonarchGulf.com
Monarch Inc, a Public Washington State C Corporation, is listed on the Pink Sheets under the symbol MGFX

Solid financial planning is a priority for Monarch Gulf Exploration’s successful business development.  The Company has a predetermined financial philosophy that contains 5 fundamental elements:

	Diversification of risk
	Multi-geographical selection of prospect location
	Cost averaging of funds
	Selection of prospects with multiple pay zones
	Pre determined investment Paradigm

Monarch’s takes great care in generating and selection of oil and gas prospects and uses a core value system of spreading risk over multiple well prospects.  This system reduces the overall risk factor prevalent in the search for hydrocarbons and enhances the return on the investment programs we undertake.   By utilizing this core value approach, the Company also incorporates an income averaging concept whereby similar amounts of risk capital are allocated over a 20 well package.  Using this concept provides Monarch increased success ratios which in turn provide potentially higher returns on investment. 

Monarch Gulf Exploration also attempts to keep a geographical spread across known oil and gas producing regions within the United States.  This plan tracks existing producing reserves in key states like Texas, Oklahoma, Louisiana, Wyoming and California and provides flexibility to incorporate newly discovered prolific trends. When possible, prospects with multiple pay zones of both oil and gas reserves have first priority because they provide opportunity to recapture more investment returns.

Our investment paradigm plays the greatest role in success, because it sets a pre determined program where the Company selects 50% in lower risk prospects, 30% in mid risk prospects and 20% in higher risk endeavors.  Using this program allows the Company to employ a conservative approach and yet capitalize on higher risk/reward potentials which come from deeper drilling or new discoveries that have BCFE (billions of cubic feet equivalents).  A good comparison to our business model is a well diversified mutual fund, whereby risk is spread over many investments.  Monarch Gulf Exploration believes in our formula for success.