Management has established a series of development initiatives for the Company. These initiatives are based on accessing large lease positions on defined oil and gas bearing structural anomalies at mean depths from 6,000 to 9,000 feet.

The Company is has acquired significant land positions in two project areas and plans to be able to initiate drilling operations in the last quarter of 2009. Follow-on and development drilling programs are set to begin after thoroughly testing the primary target zones in each wellbore. Wells will be tied in and put on production as soon as market access can be acquired and flowlines laid to tie in points.