Current News Period of September 14 2007 to October 31 2008

We have been endeavoring to reduce expenses and attempt to do low cost projects that can increase production.  Given enough time and a small amount of funds we hope to increase our production by 100-200 BBLS of oil per month. We have identified projects that are classified as low cost and require various amounts of work.  Each project has potential to add production to our monthly sales.  As long as we have enough funds to cover payroll we can keep working our way out of the current problem.

We really only have a two variables of which we may attempt to manipulate:

Cut costs:  This is immediate and translates onto the bottom line that month

Increase Production:  Easier said than done, and also increases costs, revenue in the hand is 2-3 months forward

However the biggest variable of which we have no control is the price of our product.  Let us hope we are at the bottom.