Hal Clark

• Revenue of $19,660,000 versus $14,211,000 for 2007
• 171 New wells added in 2008
• Record Volumes sold in 2008
• Record $8,000,000 spent on drilling
• Record Earnings Per Share of $838.99
• Record Net Income of $9,800,183.
  

And A Sows Ear  It is a good thing 2008 was a record setting year because its been followed by the lowest gas prices we’ve seen since 2003.  The economic downturn is affecting every sector of the economy, especially ours.  Gas storage is full, the pipelines are full, and there are fewer rigs drilling.  All of these factors spell decreased oil and gas revenues for Farmers in 2009.  However, because Farmers has no debt we are able to aggressively pursue the best drilling opportunities and that will pay off for our shareholders in the long term.  In the short term your Board of Directors approved a $250 per share dividend at its March 25th, 2009 Board meeting.  Your check is enclosed.

Your Annual Report And Proxy Statement will be mailed April 17th, 2009.  Every year we ask that you read both; then fill out, sign, and return your proxy card in the stamped self addressed envelope.

YOUR VOTE IS IMPORTANT  Each year we have to hire an additional person to write second and sometimes third requests to shareholders to return their proxy cards.  Often times we have to follow up with phone calls.  If EVERYBODY returned their proxy card right away we could eliminate this unnecessary expense.

The 2009 Annual Shareholders Meeting will be held May 23rd, 2009 at 10 am. at the Embassy Suites Hotel, 1815 S. Meridian, Oklahoma City, Oklahoma 73108.  We look forward to seeing you there.