The Milford 36 well (25% WI) was drilled in March of 2005 and encountered
approximately 103 feet of net pay in the reef. Initial production tests were
indicative of a potentially 'tight' zone in the reef and exhibited limited
porosity. The acid wash injected in the well bore did not counter this issue
and the Company, along side our joint venture partners, proposes to drill a
series of lateral legs using a coiled tubing unit, a method which was
successfully utilized at the Calvin 36 # 1 well. We look forward to undertaking this work with completion and subsequent hook up occurring later this year.
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