Black Hawk Reaches TD at Kansas Well

Black Hawk has reached its total depth in the historically oil producing Arbuckle zone and early indications from its first stage targets in the Layton and Mississippi zones. Preliminary results have given a good gas showing through the Layton to the Mississippi zones and a nice oil show in the Mississippi lime zone at 3150 feet. "We hit total depth in the Arbuckle zone at 3,630 feet at 3:15 AM and await results of Logs. BHWX is coming out of the hole with the drill pipe and drill collars and this should be done by 10pm. We will then start running casing and expect to be cementing around midnight Sunday night," stated Black Hawks geologist, James E. Melland, P.E., P.G. of Melland Engineering.

Upon completion of the drill program, a massive Slick Water Frac is scheduled. Select data from the immediately surrounding wells show the Moon wells in the SE/4, when receiving a frac in the Mississippi zone had good initial production and continued cumulative production. The Moon #1 well in the NE/4 and the Kindt well in the SE/4 received a frac in the Mississippi zone and produced low initial production and low cumulative production which we attributed to less than adequate frac size. The frac sizes (with data) ranged from 22,000 to 35,000 lbs of sand. Black Hawk will perform a modern large scale frac procedure on the Sellers 'B' well designed for 103,500 lbs of proponent, which is 3 to 4 times the size of previous fracs targeting an area known to have Mississippi zone oil.