[LETTERHEAD]


July 18, 1996


Dear Fellow Shareholders:

Since assuming control of Summit in August 1989, returning value to the
Shareholders has certainly been a challenge.  Recalling a statement I made in my
Letter to Shareholders in the 1994 Annual Report regarding the condition of
Summit in August 1989:

     "... THE COMPANY WAS VIRTUALLY BANKRUPT.  LONG TERM DEBT OBLIGATIONS AND
     OVERHEAD EXCEEDED THE GROSS MONTHLY REVENUES BY ALMOST 200 PERCENT, TAXES
     WERE DELINQUENT, ROYALTY PAYMENTS WERE DELINQUENT, WORKING INTEREST REVENUE
     PAYMENTS WERE DELINQUENT, VENDOR ACCOUNTS WERE DELINQUENT, AND THE LIST
     WENT ON.  FUNDS WERE SIMPLY UNAVAILABLE TO MEET ORDINARY DAILY OPERATING
     EXPENSES.  SHAREHOLDER EQUITY HAD BEEN REDUCED TO A $173,000 DEFICIT AND
     THE COMPANY HAD JUST FINISHED THE 1989 YEAR WITH A $413,000 LOSS."

We have come a long way since then and I am pleased to report to you that we now
have the opportunity to "cash-in" on the effort.

On July 3, 1996, the Board of Directors voted unanimously to recommend to all
shareholders of Summit Petroleum Corporation that they accept the offer by
Midland Resources, Inc. (through a subsidiary corporation, MRI Acquisition Corp)
to purchase all the outstanding stock of Summit at a purchase price of $0.70 per
share.

I certainly enjoyed the challenge of rebuilding the Company and the support I
have received from the shareholders.

Sincerely,


/s/ Deas H. Warley

Deas H. "Gene" Warley
President