Ness Energy has entered into a joint venture with Cavalier Oil & Gas, Inc., Houston, Texas to originate and develop Oil & Gas properties located in Lavaca, Karnes, & DeWitt Counties, Texas. The development of these properties will involve directional and horizontal drilling technology to help enhance hydrocarbon recovery from the Edwards limestone and Lower Wilcox formations. Ness has acquired 5 properties that will be developed in the second and third quarter of 2004