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The additional funds will be used to increase the number of new development wells to be drilled on this property in 2008 from 222 to 257 and increase the number of re-fracs of existing wells from 40 to 50.
Hanes, Cimarron County, Oklahoma - The Company continued infrastructure improvements to the injection water supply system in the first quarter of 2008 and plans to drill one development well, convert one existing well to a water injector, and continue to upgrade infrastructure in the second and third quarters of 2008.
In 2008, the Company plans to drill one additional development well, convert one existing well to a water injector, and upgrade infrastructure.
Fourth quarter activity will include drilling one development well, installing injection equipment, and upgrading the tank battery and treating facilities.
Hanes, Cimarron County, Oklahoma - The Company completed one development well drilled in the fourth quarter of 2006.
Ona Morrow, Texas County, Oklahoma - One development well was drilled and is currently being readied for production.
The company completed and placed in production one development well drilled in the fourth quarter of 2005.
During the last fiscal year, the company had drilled 22 exploratory, appraisal and development wells, besides injected 18 new wells in the production gathering system, adding approximately 1,337,395 barrels crude oil and 9,348 mmcf gas in its pool.
The two development wells are expected to increase Manora production performance.
The existing Lagia 6 and 7 wells are expected to be completed with a subsurface pump whereafter two development wells and two appraisal wells are planned to be drilled to the top of the Thebes formation at around 1500 feet.
In addition, all of the development wells are expected to be on line and producing after completions operations are conducted, which is anticipated to occur by the end of the third quarter of 2012.
The 13 vertical development wells are aimed at the Cherokee and Atoka shales.
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