Weekly News Week of Feb 2-12, 2003

Feb 12: Spent today re-claiming 320 acres of the Khan South lease which had expired about a year ago.  We shot seismic last year and have identified several drilling locations for coal gas.  This is important as we are wheeling and dealing with a potential suitor for a farm-in, or will put together our own joint venture group to get two wells drilled SOON.  This is the first time we have had to pay a lease bonus for the land.

Feb 11: Repaired a hole in the tubing on Sarcoxie 17.  Brown is starting to make oil again (off since Nov 02),  Akin is also starting to make oil again (off most of summer 02), Hayhurst starting to make oil again (off spring of 02).  Sold oil on Feb 7 for $33.75/BBL.  Please let these prices last for a few more  months!!!!

Other news: We filed the M.I.T. to the OCC for Sheets 21-A and a couple of days later I heard word back from the OCC Field inspector that the OK City office was going to file Contempt charges (a $5000.00 fine).  As you may guess this caused me quite a bit of stress.  The paperwork crossed a different guys desk, and unlike Sheets 16-A which got a nasty letter and 15 days to clear things up, this guy wanted to jump right to Contempt charges.  The OCC Field inspector told me I should not agree to anything and make them take me to court.  He did not agree with the Contempt charges and promised to back me all the way to court.  He hoped it would all blow over in a few days.  I contacted the UIC supervisor and tried to head them off at the pass.  I am hoping they are going to re-consider filing the Charges.  However I have no word yet.

Feb 3: Sheets 21-A did pass the M.I.T. at 500 LBS.  This is great as it leaves me with just one more disposal well to work over.  Annual reports completed for disposal wells in Kansas and Oklahoma.  Working on blown clutch on red pulling unit, waiting for parts.