Barnett Shale, Fort Worth Basin

Developmental drilling programs consist of infill drilling to offer low risk recovery, and drilling to untested objectives on proven traps and/or statistical reservoirs such as the Barnett Shale. The Barnett Shale has over, 3000 wells within a 4200 square mile region producing an area average of 900 million cubic feet of gas every day. The average gas in place in the Barnett Shale is approximately 2 billion cubic feet of gas per 40 acre location. Several wells within the Barnett Shale produce oil along with the gas; the oil adds more value to the project and is seen as a bonus. There has been an average of 600-700 wells drilled here every year for the two prior years with at least 900 expected to be drilled in the year 2005. Our management has been involved in 64 wells within the Barnett Shale that all hit outstanding pay zones. So far, to date there has not been a recorded "dry hole" in the Barnett. The reason for such success in this gas field is due to it being a blanketed reservoir. As long as you drill deep enough within this blanket deposit you should hit the reservoir. The Barnett is among the top 10 gas fields onshore in the United States. It is within good reason 1 of the most active gas fields in the U.S. It is 1 of the top 5 richest sources of hydrocarbon in the world.