Valentine Field

Lafourche Parish, Louisiana

The Company owns an average 90% working interest, some of which is non-operated, in forty-four wells in the Valentine Field. Current net production is approximately 338 BOE from fourteen producing wells and approximately 3,081.54 net mineral acres are held by production in the field. There are four salt water disposal wells in the field and twenty-six wells are currently shut-in pending evaluation for future workover or recompletion in uphole zones. The processing facilities and tank batteries are strategically located throughout the field and have plenty of excess capacity. A field operations center is centrally located in the field. Access to pipelines and crude oil markets is excellent.

Evaluation of the existing well bores and overall field operations is in progress and we expect to begin an initial round of recompletions and workovers later this year. In addition to numerous recompletion and workover opportunities, there is offset developmental drilling potential as well as deep gas potential. All of those potential opportunities are currently being evaluated.