Ann: Gary 1 24H to be drilled near Gene 1 22H Suc, page-38

re: Ann: Gary 1 24H to be drilled near Gene 1... there will be other news before the next spud.


Regarding the re-working of State GC #2, not expecting much oil but you never know.

"State GC #2 (37% working interest)
The work over of this well is progressing but, as is customary, the operations are being conducted
on a 12 hour basis. The first of the three Bone Spring zones that are being evaluated has been
perforated and tested. That test indicated that the zone is capable of producing oil but will require
fracture stimulation. An estimate of the expected post fracture stimulation flow rate has yet to be
made. Once the current work over operations are complete, the estimate will be performed as part
of the stimulation design work. The stimulation is subject to crew availability but is currently
expected be scheduled for late April or early May."