DST

The DST project covers approximately 1,000 acres and according to the Illinois State Geological Survey (ISGS) is on trend with and offsets fields that have produced from 764,600 to 3,570,500 barrels of oil from depths of 3,000 to 4,000 feet. The Company is currently working to secure additional working interest partners in an effort to drill an offset well on the DST acreage. This prospect was identified from geologic and historic well information provided by the ISGS.

The DST prospect is a part of broader effort by the Company to create a package of drilling prospects ranging from lower risk offsets to higher risk step-out wells. This portfolio of prospects will provide SGCA and its working interest partners a relatively low risk/high reward portfolio of drilling locations in the heart of the Illinois Basin where, according to the ISGS, recent calculations suggest that remaining mobile resources in the Illinois Basin may be as much as 4.1 billion barrels.

The DST prospect was identified and leased in-house.  SGCA is now in a position to develop internal engineering reports that will allow it to secure working interest partners to move the prospect towards the drilling stage while creating a low risk/high reward scenario. Initial evaluation of surrounding well control for this prospect shows tremendous promise and the Company looks forward to developing it to its full potential.