operational advisory 2/05

ROOSEVELT PROJECT, ROOSEVELT COUNTY, MONTANA
Gretel II 12KA 3 #1-30H, (SSN 100% WI, subject to a 33.34% backin right)
A workover rig has currently drilled out 10 of the 19 frac plugs on the Gretel II well. A change to the work string has enabled 5 of these plugs to be drilled in the prior 12 hour shift. Production facilities will be constructed and the pump installed once all the frac plugs have been drilled out.
Abercrombie 1-10H (SSN WI 0.75%)
The Abercrombie well is being flowed back and 185 barrels of oil and 201 mcfg were produced yesterday. To date, 13.8% of the total load water has been recovered.
HAWK SPRINGS PROJECT, GOSHEN COUNTY, WYOMING
Defender US33 #2-29H, (SSN 37.5% WI)
A jet pump was installed this past weekend on the Defender US33 #2-29H well in Goshen County, WY and is now up and running. The input parameters (power fluid rate and pressure settings) are currently being fined tuned to get the pump to run at its design rate of approximately 250 BFPD net to the power fluid input. The jet pump was installed to alleviate gas locking and sanding issues that were experienced with the traditional sucker rod pump that has been on the well since inception.
Spirit of America US34 #2-29, (SSN up to 100% WI)
Frontier Rig #11 has spud the Spirit of America US34 #2-29 well and is currently at a depth of 1,050 feet (0600 hours). Once the well is drilled to approximately 2,250 feet, 9 5/8" casing will be run and cemented. This 11,000' vertical well will test two targets in the Lower Permian and Pennsylvanian age rocks. The Company previously attempted to test these targets but was unsuccessful in doing so due to drilling difficulties in the Permian salt section. A larger, more powerful top-drive rig combined with a heavy weighted oil-based mud and an intermediate casing string set over the salt and bubble gum shale section is expected to allow us to reach our targets.