MONTHLY PROGRESS REPORT for the Mth of JUNEReport on Business
The Company entered into an agreement with Shelby Resources regarding three plays in Pratt County, Kansas. Shoal Point is participating as to a 6.5% working interest and has now drilled 6 wells of which 1 was abandoned. The first well is connected to the gas pipeline and flowing gas with 20 barrels per day of oil. The expectation is that as gas production declines, oil production will increase. The second well has finished production from the lowest zone and is currently producing 30 barrels per day from the next 2 zones up the hole. 2 wells are suspended, one of which will be converted to a water disposal well and the fifth well is producing at a modest rate and being evaluated as to whether it can be improved or should be abandoned.