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

The Company’s profit and long-term growth potential are largely determined by the amount of oil and natural gas produced from the fields and wells in which it has financial interest. Simply put, there are six main elements to the Company’s business strategy.

	Partnership with proven oil and gas companies:
	Company management has been in the oil and gas business for 35 years, building relationships with many and oil and gas companies that have significantly greater financial and professional resources. The Company’s focus is to partner with these companies who have demonstrated a proven track record of success in operations and production.

Mitigating risk by diversifying opportunities:

The Company evaluates opportunities along the oil and gas risk continuum.  These opportunities include production, development and exploratory prospects.  The Company considers the risk of each prospect to maximize and blend risk reward ratio for itself and its partners. The company will concentrate on areas of development that have been historically prolific, and on fields which have a high percentage of in-field drilling capability and future development potential. Only then will the Company evaluate higher risk, exploratory projects to balance out and maximize its investor/partners returns.

	Maintain low overhead:
	Monarch’s strategy is to keep a flat low cost but efficient management structure.  The Company is able to achieve this by partnering with larger-staffed, professional companies committed to our mutual success.

	Deploy capital to generate cash flows:
	The Company selects projects which have commitments of field operations in place. Few projects are chosen which do not have a drilling rig committed to them.  This enhances the Company’s ability to generate cash flow returns.

	Risk reward ratios:
	Monarch divides its drilling dollars as follows: 1) Low Risk Projects 50% 2) Mid Risk Projects 30% 3) High Risk Projects 20%. The risk-reward ratio is at work herein whereby the higher the risk the greater the possible return.

Use the S.A.F.E.R. methodology as part of best practices:

In order to execute its Business Strategy most effectively, and to best manage its oil and gas production, Monarch implements a methodology called S.A.F.E.R.  S.A.F.E.R. is a communicative and collaborative process which interlocks key functional areas within Monarch from a prospects cradle to grave. S.A.F.E.R. allows Monarch to assess a prospects’ economic feasibility with effective interaction of everyone on the Monarch team. Inclusive of its industry partners.