Ann: Testing Update , page-2

PRODUCTION TESTING UPDATE ¡V27 JULY 2009
Paradox Basin #2 Grand County Utah
„h The Ismay Formation was perforated over the interval 10344¡¦ to 10,376¡¦ (3152.8m to 3162.6m).
„h An immediate increase in pressure was observed at surface.
„h The well was shut in for a brief period prior to an initial flow test.
„h Gas was produced at a rate of 237 Mscf/day which was flared.
„h Paradox Basin #2 has tested Ismay Formation gas 317¡¦ structurally lower than Paradox Basin #1 considerably extending the thickness of the gas column in the Golden Eagle gas field.
„h Preparations are now underway to conduct a fracture stimulation which is currently scheduled for Thursday Central Mountain Time.