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EC 36 Well #1

On August 25, 2008 the Company announced the discovery of commercial reserves in multiple horizons at the EC 36 Well #1. The well was spud on August 5, 2008 and was drilled under budget to a total depth of 10,450 feet. Production casing has been installed in the well, a caisson has been over-driven, and a caisson deck installed. The Company is evaluating its development plan for the EC 36 Well #1.

Probe WI:
Probe NRI:
52.0% BPPO / 41.6% APPO
36.4% BPPO / 30.784% APPO

Water Depth:
Objective:
Est. Target Depth:
Actual Target Depth:
Result:
Additional Pay:
Actual Target Depth:
Result:
Gross Reserves Estimate:
39 feet
Miocene Cris I M-7
9,150’ TVD
9,160’ TVD
Pay Sand (full to base)
Miocene Cris I M-8
9,340’ TVD
Pay Sand (Pay on Water)
5.7 BCFG

Expected gross rate of production is 5-7 MMcfd