Pegasi Fact Sheet includes Overview, Today's Market, Company's Strengths, Recent News, 2012 Growth Strategy, and CMG's Investment Summary.

1. Corporate Profile
Company Name: Pegasi Energy Resources Corp.
Industry: Oil & Gas Drilling & Exploration
Exchange: OTCBB
Symbol: PGSI
Shares Outstanding: 54 million
Market Cap: $37.95 Million as of 3/31/2012
Website: http://www.pegasienergy.com
Overview
Pegasi Energy Resources Corporation (“PGSI”) is an independent organic growth-oriented energy
company engaged in the exploration and production of natural gas and oil through the development of a
repeatable, low geological risk, high potential project in the active East Texas oil and gas region. PGSI
currently holds interests in properties located in Marion and Cass County, Texas, home to the giant
Rodessa oil field, which has produced approximately 2.3 trillion cubic feet of gas and 400 million barrels of
oil. The field has historically been the domain of small independent operators and is not a legacy field for
any major oil company. The attractiveness of unconventional horizontal plays is the relatively low drilling
costs compared to that of deep water and offshore drilling programs.
Today’s Market
According to the Annual Energy Outlook 2012 Report, domestic crude oil production has increased over
the past few years, reversing a decline that began in 1986. U.S. crude oil production increased from 5.1
million barrels per day in 2007 to 5.5 million barrels per day in 2010. Over the next 10 years, continued
development of tight oil, in combination with the ongoing development of offshore resources in the Gulf of
Mexico, will push domestic crude oil production to 6.7 million barrels per day in 2020, a level not seen
since 1994. U.S. production of natural gas is expected to exceed consumption early in the next decade.
This reflects the increases use of liquefied natural gas in markets outside of North America, strong
domestic natural gas production, reduced pipeline imports and increased pipeline exports, and relatively
low natural gas prices in the United States compared to other global markets.
Company’s Strength
The Company holds 26,617 gross/17,983 net acres in the Bossier/Cotton
Valley shale oil play in the Rodessa field of East Texas, with over a 100 of
its 375 potential wells, identified for drilling opportunities.
PGSI has 11 producing oil and gas wells and has established a proved
reserve base in the Rodessa field region. Independent geological and
petroleum consulting experts James E. Smith and Associates has
assessed that the producing fields contain Net Proved plus Probable
Reserves of 3.7 million barrels and Possible Reserves of 10.6 million
barrels of oil and additionally Undeveloped Prospective Resources (best
estimate) to be approximately 77.1 million barrels of oil.
Presented by Century Media Group - New York, NY

2. The Company also has a significant infrastructure in place including a 45-mile gas gathering pipeline
system which is connected to an interstate gas transmission pipeline, and a salt water disposal plant; all of
which contribute to maximizing cash flow.
PGSI’s management team has an average of over 30 years of experience in the oil and natural gas
industry with specific experience in East Texas.
Recent News
March 28, 2012 - Pegasi Successfully Drills Its First Horizontal Well
…The Morse Unit # 1-H is the first horizontal well in Pegasi's planned development of its extensive
Cornerstone Project in East Texas.
Pegasi’s 2012 Growth Strategy
The Company recently raised $7 million in equity. Proceeds will be used to
drill two wells using horizontal drilling and multi-stage fracking of the proven
oil bearing shales of the Bossier/Cotton Valley formations in its “Cornerstone”
acreage in the Rodessa field of East Texas. The Company recently began
drilling on the first of its two wells. The successful development of these
horizontal wells will enable the Company to potentially achieve a positive
cash flow by Q2 2012. Following successful completion of the two wells,
PGSI plans to raise $50 to $100millionwith a strategic partner to finance an
accelerated drilling program.
CMG’s Investment Summary
We believe Pegasi Energy Resources offers a Bakken-like play in the prolific East Texas Rodessa field.
The opportunities for horizontal drilling, multi-stage fracking programs reminds us of American Oil & Gas
(AEZ) which implemented a similar strategy in late 2009 and was ultimately acquired by Hess in June
2010. The equity saw over a 500% increase in valuation during this timeframe. We feel PGSI is at that
inflection point where a similar investment opportunity may exist. Comparative stock charts below:
American Oil & Gas Inc. (AEZ) Brigham Exploration Co. (BEXP)
Acquired
by Hess
Acquired
by Statoil
Cautionary Statement This document contains certain forward-looking statements, which are made pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. Expressions of future goals and similar expressions reflecting something other than historical fact
are intended to identify forward-looking statements, but are not the exclusive means of identifying such statements. These forward-looking
statements involve a number of risks and uncertainties that could cause actual results to differ materially from those currently anticipated. Factors
that could cause or contribute to such differences include, but are not limited to, market acceptance of products, services and technologies,
competitive factors, financial market conditions and the Company’s ability to continue to secure adequate sources of financing. The Company
undertakes no obligations to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the
availability date of this document.
Presented by Century Media Group - New York, NY