Cumberland Plateau, Morgan County,Tennessee

The strongest oil and gas fields in Tennessee are located on the Cumberland Plateau, a major Physiographic province located in Eastern Tennessee. These fields are located in Scott, Morgan, Fentress, Cumberland, Anderson, and Campbell County. The strongest fields are located in Scott, Morgan, and Cambell County. Our newest area of interest is in Morgan County. The average vertical well in Morgan County has a life expectancy of 10-20 years and accumlative production in the range of 1BCF-2BCF + 1,000-4,000 barrels of oil. Many wells have made upwards of 3-4BCF and 6,000-12,000 barrels of oil due to production in the Trenton, Black River and the Chatanooga Shale. There are more than 400 wells in this field to validate and collect data from. As of current, there is an average of 20+ rigs running full time in this field. Our management is involved in 8 wells in this area.

FHE/PMD Pipeline, Morgan County,Tennessee

FHE has completed a ten mile pipeline and gathering facility in Morgan County along with its partner PMD. FHE/PMD is in the process of modifying the compressor/stripper facility so it can also capitalize off of distillates and biproducts accumulated from the pipeline such as propane, butane, etc. The pipeline should be running in the third quarter of 2008.