| Oil & Gas Drilling Programs |
| SHALLOW OIL PROGRAMS PROPOSED WELL DEPTH: 4500 feet LAHEE WELL CLASSIFICATION: Wildcat (3-D Seismic) TRAP TYPE: Structural, fault closures on 150-200 ft DTC faults (Verified by 3-D) TREND FIELD(S): Fitzsimmons (Pettus) Field (5 MBO) FIELD RESERVE ESTIMATE: +/- 0.5 MBO ESTIMATED INITIAL PRODUCTION RATE: 120-150 BOPD ESTIMATED NUMBER OF WELLS: 3-4 wells DRY-HOLE COST: $280K LEASE COST: $100K PIPELINE ACCESS: Good (low pressure line) PROSPECT NET REVENUE: 75% NRI PROSPECT GROSS RETURN ON INVESTMENT (ROI): 10:1 PROSPECT STATUS: 3-D seismic acquired ACREAGE STATUS: Lease under negotiation GEOLOGIST CONSIDERATION: $30,000 + 5% ORRI WORKING INTEREST AVAILABLE: 80% OPERATION AVAILABLE: Yes CBM PROSPECT I PROPOSED WELL DEPTH: 2500-4000 feet LAHEE WELL CLASSIFICATION: Developmental (Twin wells, zone never produced) TRAP TYPE: Stratigraphic on Monoclinal Structure TREND FIELD(S): None FIELD RESERVE ESTIMATE: 1-2 Bcf gas per well / 200-600 Bcf per field ESTIMATED INITIAL PRODUCTION RATE: 200-300 mcfpd ESTIMATED NUMBER OF WELLS: 100-200 wells DRY-HOLE COST: $250K LEASE COST: $100-200/ac PIPELINE ACCESS: Good sales line access PROSPECT NET REVENUE: 75-72% NRI PROSPECT GROSS RETURN ON INVESTMENT (ROI): 92:1 PROSPECT STATUS: No 3-D seis required! ACREAGE STATUS: Open (negotiating lease) GEOLOGIST CONSIDERATION: $50,000 + 3.125% ORRI WORKING INTEREST AVAILABLE: 100% OPERATION AVAILABLE: Yes WORK-OVER PROJECTS ATILLA PROJECT PROPOSED WELL DEPTH: 5000 feet LAHEE WELL CLASSIFICATION: OWWO (Old well work-over in unproduced zones) TRAP TYPE: Structural - High-side closure on up-to-the-coast fault TREND FIELD(S): Benavides and Longhorn (Hockley-Pettus) FIELD RESERVE ESTIMATE: 10,000-20,000 bbls oil per well w/multi zones behind pipe ESTIMATED INITIAL PRODUCTION RATE: 30-50 bopd ESTIMATED NUMBER OF WELLS: 1 well DRY-HOLE COST: $70K (Work-over) LEASE COST: $20,000 PIPELINE ACCESS: Good sales line access PROSPECT NET REVENUE: 75-72% NRI PROSPECT GROSS RETURN ON INVESTMENT (ROI): 22:1 PROSPECT STATUS: No 3-D seis required! ACREAGE STATUS: Lease under negotiation GEOLOGIST CONSIDERATION: $30,000 + 3% ORRI WORKING INTEREST AVAILABLE: 75% OPERATION AVAILABLE: Yes |