Bridge, Paramax to Commence Drilling at Willow Project

Bridge and Paramax provided the following update on Idaho development activities.

Hamilton Project

The second phase development program in the Hamilton area consisted of the successful drilling and completion of three follow up wells: Tracy Trust 3-2; White 1-10; and Korn 1-22. These wells followed the initial discovery wells, the Espino 1-2 and State 1-17. Following completion of the wells, an extensive testing program had been undertaken that confirmed the presence of four separate gas-bearing zones. The Espino and Tracy Trust wells have all four zones developed whereas the other three wells have three zones. Evaluation of the wells, that included flow testing, pressure build up tests, and gas analyses, allows the Companies to be in a position to begin operations for the commercial delivery of gas from the Hamilton area.

It is expected that these Hamilton area wells will be capable of delivering in excess of 5.0 mmcf/d into the nearby gas delivery system. The nearby pipeline infrastructure and low capital costs significantly enhance project economics. All wells have high shut-in pressures and the gas is of uniformly high quality with a btu range from 1012 to 1050. The five wells confirm a minimum gas-bearing area of 5,000 acres. Design of the gas gathering system has commenced.

Willow Project

The first development well as a follow up to the ML Investments ("ML") 1-10 discovery is expected to commence drilling on or around October 24 on receipt of final permits and agreements for three development wells. The well locations are based on new seismic data acquired and processed over Willow during the months of July and August. Access and drilling location preparation activities are underway.

The first development well, the ML 1-15, is 1.1 miles south of the ML 1-10 discovery. The second development well, the ML 1-14, is 0.8 miles southeast of the ML 1-15 and the third development well, the ML 1-13 is 1.1 miles due east of the ML 1-15. Several additional locations have been identified for ongoing development.

Drilling and completion of the ML 1-15 is expected to take approximately 15 days.