RE:MONTHLY PROGRESS REPORT for the month of MAYLooks like it may take longer as ststed here.......
At the Mount Evans project in Kansas, the company continues to pump the lower, secondary zone in its first well. The goal is to ascertain whether the reservoir is a water FORM 7 – MONTHLY PROGRESS REPORT November 14, 2008 Page 2 drive or a solution gas drive, and this would also provide valuable information about the upper, primary zone prior to completing it. The company is pumping very slowly in case it is a water drive, and at current oil prices, there is little incentive to take the risk of increasing production. Consequently, it may be another two months or more before we have the information necessary to increase the pumping rate. When on production, the oil cut has ranged between 7 and 35 barrels per day. There is no incentive to move up the hole and complete our primary zone or to drill any more wells until oil prices improve.