K2 Energy has a significant exposure to the Woodford and Caney shale gas plays that are being developed in Oklahoma. The primary focus of the company’s efforts has been on the Bad creek 3D project area in Oklahoma.

The acreage is prospective for multiple conventional gas zones and many conventional oil and gas drill targets have been identified from 3D seismic interpretation. In addition there is potential for a significant unconventional gas resource in the Bad Creek Project area.

In February 2010 a new operator, Trey Resources Inc. was appointed to the project which has begun the process of re-evaluating all geological data for the project to design a revised exploration and development plan.

In June 2010, K2 Energy combined its oil and gas interests with the oil and gas interests controlled by Trey Resources Inc. As a result, K2 Energy now holds a 30% interest in Trey Resources 1 LLC, which gives K2 an economic interest in a more diverse oil and gas and production undertaking in the USA. K2 Energy will have the opportunity to invest further in additional exploration at its election, in proportion to its holding in Trey Resources 1 LLC.