The original Pablo Energy, Inc. was founded by Paul Engler in 1997 as a subsidiary of Cactus Feeders, Inc., for which Mr. Engler served as Chairman of the Board. It started out drilling for oil and gas on small parcels in the Texas Panhandle. In 2003, Pablo Energy, Inc. acquired 6,000 gross acres in Hemphill County, Texas, where it drilled 25 gas wells in the Granite Wash formation. In February of 2006, Pablo Energy, Inc., was sold to Dominion Exploration for $92 million.

In 2006, Pablo Energy II, LLC, ("Pablo Energy II") was formed and it acquired 21,000 acres from Devon Energy, eventually expanding that position to 31,000 acres. Pablo later transferred that position to Southridge Energy, LLC (“Southridge Energy”) and MSC Southridge, LLC (“MSC Southridge”) while remaining the operator of the asset. Pablo Energy II drilled 57 horizontal Woodford wells and also participated in 55 non-operated horizontal Woodford wells prior to forming a joint venture with Jones Energy Holdings at an implied value of $295 million. Jones Energy drilled 28 horizontal Woodford wells in the JV with Pablo Energy II. Subsequent to the JV with Jones Energy, Pablo Energy II drilled an additional 41 horizontal Woodford wells on the Southridge Energy and MSC Southridge assets and Pablo Energy II continues to operate those assets.

On behalf of Pablo Pawnee, LLC, and Black Bear Creek Energy, LLC, Pablo Energy II acquired a 70,000 acre Mississippian position in 2009. This acreage was located in Pawnee and Noble counties in Oklahoma, where it drilled 7 horizontal wells, prior to selling the position to Highmount Exploration for $106 million in 2011.

In January of 2012, Pablo Energy II was purchased by Verdugo Energy, LLC, which together with its subsidiaries continues to develop organic and outside originated prosects located in Oklahoma, North Texas, and the Permian Basin. Verdugo’s current focus is its Osage Project in Central Oklahoma.