Item 4 — Purpose of Transaction
The securities were acquired for investment purposes. One or more persons identified in Item 2 may buy or sell additional securities of the Issuer from time to time in open market or private transactions, depending on its evaluation of the Issuer's business, prospects and financial condition, the market for the Issuer's securities, other developments concerning the Issuer, other investment opportunities available to such person, general economic, money market and stock market conditions, and other considerations as such person deems relevant. Except as described herein, none of the persons identified in Item 2 have a present plan or proposal that relate to or would result in any of the transactions described in subparagraphs (a) through (j) of Item 4 of Schedule 13D of the Securities Exchange Act of 1934 (the "Act"). However, each such person reserves the right to propose or participate in future transactions which may result in one or more of such actions. In addition, consistent with their investment purpose, such persons may engage in communications with persons associated with the Issuer, including stockholders of the Issuer, officers of the Issuer and/or members of the board of directors of the Issuer, to discuss matters regarding the Issuer, including but not limited to its operations and strategic direction. Until the date on which this Schedule 13D was filed with the SEC, Mr. Hammer served as a director of the Issuer and therefore engaged in discussions with the Issuer's board of directors and management as part of his duties as a director. Pursuant to the Purchase Agreement, subject to the Issuer receiving shareholder approval, FNL (together with the other purchasers) may also elect to purchase additional shares of the Company's convertible preferred stock (the "AIR Preferred Stock") with an aggregate stated value of up to $91,000,000, representing up to 91,000 shares of AIR Preferred Stock (the "Additional Investment Right"). At each additional closing of the sale of AIR Preferred Stock pursuant to an exercise of the Additional Investment Right, the AIR Preferred Stock will be issued in a separate series (e.g., Series A-2, Series A-3, etc.) pursuant to a new certificate of designation for each such series filed by the Company with the Nevada Secretary of State. FNL (together with the other purchasers) has the right to participate in up to 33% of any subsequent issuance by the Company of Common Stock or Common Stock Equivalents, on the same terms, conditions and price provided for in such financing. The Company expects to use the net proceeds from the private placement for (i) the acquisition of certain oil and gas assets in Eastern Louisiana, and (ii) general corporate purposes, including working capital.