Ann: Kansas drilling update , page-20

Another interesting supportive article for EEG from Pro-active Investors Australia.
At: http://www.proactiveinvestors.com.au/companies/news/27160/empire-energy-group-set-to-add-more-oil-production-in-kansas-27160.html

Empire Energy Group set to add more oil production in Kansas
Monday, April 02, 2012 by Bevis Yeo

Empire Energy Group (ASX: EEG) is poised to add 2 new oil producers in, Kansas, where it is drilling another 8 low risk development wells this year.

Completions for the Krankenberg 8-19 and Siefkes-12 development wells in Stafford County are expected to start in the next 2 weeks.

Perforations are targeting 49 feet (15 metres) of potential pay in the Lansing and Arbuckle formations at Krankenberg 8-19 and 29 feet of pay at Siefkes-12.

The target formations are the most prolific oil producers in the Central Kansas Uplift, where Empire’s 10 well program will also delineate additional prospects and convert probable reserves into proved reserves.

Each well targets production of 30 to 40 barrels of oil equivalent per day with ultimate recoveries of more than 50,000 barrels of oil.

Current proved and probable reserves are 4.8 million barrels of oil equivalent.

Kansas has been a very prolific oil and gas producing state with cumulative production exceeding 6.1 billion barrels of oil and 37.5 trillion cubic feet of gas. Current yearly production is about 33 million barrels of oil and 342 billion cubic feet of gas from over 60,000 wells.

Empire Energy’s Central Kansas Uplift leases cover 18,000 gross acres over 16 counties and currently produce about 724 barrels of oil per day from 256 wells targeting the Arbuckle, Kansas City, Lansing and Shawnee formations.