Purchased as a 100% owned subsidiary December, 1996, Shamrock Drilling Inc. operates a Spencer-Harris 7000 drilling rig, capable of drilling to depths of 9,500 feet. Under the management of Stephen Guido, one of the founders of KFG Resources Ltd., drilling contracts are undertaken within a 150 mile radius of Shamrock's home base, in Natchez Mississippi. At present, there is only one other drilling contractor within Shamrock's commercial market zone.

A preliminary look at the wells drilled during Calendar Year 2002 says that it was a steady year but not as good as 2001; however, 2003 is shaping up to be a more active year judging by contracts in hand and estimated future work, primarily shallow gas drilling in Wilkinson and Amite Counties, Mississippi. Shamrock ended 2002 with an interest in 2 new shallow gas wells - The Duval #1 producing 220 MCF/D (an 8% working interest - 6% net interest) and the Whetstone #1, producing 100 MCF/D (11.428% working interest - 8.57% net interest). Both wells are in Wilkinson Co. Shamrock will be more aggressive in 2003, taking interests in more of the wells it drills for third parties.