Gulf Western Completes Red Breast # 1 & Spuds Michael Collins #1

The Red Breast # 1 Frio well has been drilled and completed, and is currently undergoing testing. The Red Breast was drilled and casing set to 3120', and will be produced from 2896' to 2906'.

The drilling rig has moved to the Michael Collins # 1 location, which is scheduled to spud October 31. The Michael Collins will be the fifth and final well in the Shamrock Project.

The Shamrock Project is a five well Frio-age prospect identified through 3-D seismic. The target objective is the Jameson Sand at 3200'. Frio-age wells have proven to be prolific natural gas producers throughout the Texas Gulf Coast region. Typical Frio wells produce at approximately 200 to 300 Mcf per day with estimated total recoverable reserves of approximately 500 million cubic feet to 1 Billion cubic feet.

Gulf Western currently has three of the five wells completed and tested. These wells are the Polinard-Lee # 1 well; the Miller-Thomas # 1 well and the Bushmill # 1 well. All three wells flow tested in excess of 300 Mcfd and are awaiting meters to be set at the delivery point of the pipeline. The extension of the gathering system that is required for the two additional wells is currently under construction and all five wells are scheduled for hook up within the next ten to fifteen days.

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