5-Spot Steam Injection

With completion of Phase Two and concurrent with the drilling of Phase Three, the 5-spot steam injection development under Phase Four will be initiated in multiple locations. A steam generator will be mobilized and the five spot well locations will all be warmed up for initiation of a continuous steam drive from the center injection well. A water source well will be completed into the Madison formation. Propane will be used for initial testing followed by purchase of gas from the nearby WBI pipeline. A complete tank battery including treater and gunbarrels will be installed.

It is intended that Phase Five be duplicated 30-50 times in ongoing development including other blocks and future lease acquisitions in the area.