announcement out, page-8

Highlights

* SRH-1 (6H) WELL.... EXPECTED TO GO ON PRODUCTION THIS WEEK. CONDENSATE RICH GAS SELLS FOR OVER US$ 7 PER MCF.

* SRH-2 (8A) WELL UNLOADING FRAC FLUID. OIL HAS BROKEN THRU. CURRENTLY PRODUCING OIL AT A 109 BBL PER DAY RATE AND INCREASING.

* The fifth well, SRH-5H is our first horizontal well which is expected to have up to a 30 stage fracture stimulation program (versus 6 or 7 stages for the vertical wells).....

We are currently reviewing the possibility of utilizing the new “sleeve” technology for fracture stimulation. The new technology significantly reduces the time sequences between each frac stage. With up to 30 stages in a horizontal well, this new equipment can make a significant difference in costs and eventual payouts.