gulf & beyond

MAD discloses that the operational focus since the raising has been on
testing perimeter wells along the edges of the fairways and that these wells take more evaluation
time and that completion testing is underway. MAD has also been experimenting with completion
processes in the Het Limestone formation seen in the Nash Dome which has taken time. As a
result, the fairway drilling has taken a back seat.

MAD has also suggested that recent fairway drilling has been
curtailed, as it is more valuable to them to do the drilling once the deal is finalized with Gulf South
than to do it 100% themselves.