As of January 1, 2010 the Spring Hill Nos. 1, 2, 5, and 6 wells at Fayette continue to produce a total of approximately 135 BOPD.  The Company owns 100% of the working interest(79.16% net) in the Spring Hill wells reverting after payout of about USD$1.8 million of seismic, drilling,lands, exploration, development,taxes, and operating expenses, to a 74.6% working interest(59.1% net).  At a current price of $90.00 per barrel, the Company's net back after royalty, taxes, and operating expenses is in excess of US $61 per barrel.

In mid-January, 2011, the Company will re-enter the Smith #30 well, about 1.5 miles south west of Spring Hill, and attempt to put the well on production in the 4600' Sand - the zone cored six feet of oil sand between shale but was never produced.  Also, the Company will drill another 4100-foot Wilcox test, the Spring Hill #7, weather permitting.  At present, a deep test(10,000 feet) is planned to test the Lower Tuscaloosa in the late spring of 2011.

This page updated January 3, 2011