Welder Prospect

We have entered into a participation option agreement to participate up to 50% in a proposed acquisition of 33,382 acres The purpose of this acquisition will be to perform a 3-D seismic on the Welder Prospect that will be drilled as a result of positive data obtained. Currently there are two producing wells and one salt water disposal well on 81.0 acres adjacent to this prospect. These wells are currently producing approximately 23 Bbls of oil a day and approximately 100 Mcf of gas per day. This prospect is located within a short distance of our Koliba Prospect.