Current News Period of March 26 2010 to October 3 2010

Since March I have faced some tough issues.  One of the worst has been the perpetual catching up on accounting and books.  It seems like that has been all I have done in my spare time (what a joke... spare time)  But finally I think I am caught up.  I have always said that if I could put every hour I have to spend on accounting and government reports on pulling wells and fixing things in the field, I would have every well running and have double the production.  However, easily said, not so easily done.  But I am working to keep the accounting and government requirements under control as well as looking for ways to improve production in ways we can afford.

Much of our efforts in the past 6 months has been to make improvements on the Sanders lease.  We have added one new well and brought the tank battery into compliance for the EPA.  However we seem to be losing ground on the Sheets lease.  Something has changed and we are not making the same amount of oil for the same effort.  It seems we must move more water, but our equipment is maxed out.  So I am still trying to come up with solutions for that problem.

I have a long list of equipment repairs and maintenance projects that are waiting.  That backlog is hanging over my head like a safe waiting to fall.  And if that wasn't enough I have banks to pay off, and other government agencies to deal with.

So for now I don't even know if we are going to survive these problems and live to tell about it.  But for now I will hang on and hope nothing comes at me that is too big to handle.