The  Company recently (Aug. 30, 2008) acquired non-proprietary 3-D seismic data covering some 172 square miles of Kenedy County.  Initial review and re-processing of this data has indicated 3 to 4 possible “bright spots”  (gas) associated with significant structures.  The Company is currently reviewing available drilling data in the area of these prospects to determine location of any past drilling, reservoir potential and other factors.  Once the geology and engineering reviews are completed, the company will attempt to acquire leases covering the target structures.

The Company was also granted the right to acquire four additional 3-D surveys as part of the Kenedy database acquisition.  The additional surveys will be selected within the next twelve months (Aug.31, 2008 – August 31, 2009).
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