Additional testing and work has been completed on the Calvin 36 # 1 well and the
Company is waiting for financial estimates on completion of this well prior to
commencing operations. The Company anticipates commencing work on the Calvin completion in mid to late October, with hook up for production shortly
thereafter.
The primary issue we have faced with Calvin has been equipment and personnel
availability in Gulf area. Whilst this still remains an issue the Company is
working through this factor diligently. The Company is confident of success now
that the testing is complete and detailed knowledge of the reservoir has been
assimilated and analyzed by our engineers. The Company owns a 60% NRI in Calvin.