Since that time, the test period has ended and the well has been tied in to a new battery facility owned by the company and its partners.

The well is now on full production flowing naturally on a 4.5/64th choke at the restricted rate of 41bopd at a relatively constant flowing pressure of 980psi.

The company and its partners may increase production to the 60bopd to 65bopd range with a view to further increases as is deemed sustainable after the production stability has been achieved.

The total production for the last 16 days of August 2010 was 665 barrels of high quality light gravity oil with zero water produced.

A complete suite of logs run on the well indicated approximately 13ft of oil pay with an average porosity of 30%.

The company and its partners are required by the terms of the lease to commence drilling on the second well on the lease within six months of completing the Donner #1 well and as such, the company has instructed its consultants to set a location for the next well based on the 3-D Seismic and the success of Donner #1.

The Texas project contemplates the drilling of up to three wells in the Newton County area.