Drilling of the PB#3 production well commenced on 27 January 2010 and operations are proceeding on schedule. A string of 9 5/8” casing has been run and cemented to 4,198’. The operation is to continue to nipple up the blow out preventer stack prior to drilling out the casing shoe and conducting a formation integrity test.

The current trajectory will be maintained for the remaining portion of the well into targets in the Pennsylvanian Paradox Group.

The Paradox basin is richly productive. It is currently home to 171 oil and gas fields containing estimated recoverable reserves of one billion barrels of oil, or six trillion cubic feet of gas. The basin has produced 500 million barrels of oil and 3.5 trillion cubic feet of gas.