The company purchased the properties of United States Oil Company in Weston, Crook and Sweetwater Counties, Wyo., in the fall of 2002. Since the last quarter report, the Company has paid its obligation to United States Oil Company.
The Sweetwater County property, the Ten Mile Creek Field, is currently producing gas from three wells. Proved undeveloped reserves exist at 3,300' in the Almond Sand. The first well to be drilled is expected to encounter the Almond Sand. Average Almond Sand wells produce at 1,000 mcfpd and have low declines. This would produce $180,000 per month at current gas prices.
"We plan on drilling this well in May," said John Ehrman. "Weather is a factor in this area and as April could still be tough weather, we would just as soon schedule for May."
The company recently announced that it executed the agreement to drill 20 wells in its Trinidad area gas property.
"In paying United States Oil we now own the field free and clear," said John Ehrman. "In development of the Wyoming properties we have ongoing operations on all of our leases. We continue to increase cash flows from under performing assets."
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