Basic Earth Begins Operations on Silver Spike Prospect

Basic Earth Science Systems reports that through Legent Resources, its Canadian Subsidiary, it has commenced drilling its Silver Spike prospect in Alberta, Canada. The initial well, the Westerose 6-6-46-1W5, is licensed to 2,475 meters (8,100 feet) and is targeting the Devonian LeDuc formation. Taking more than two years to assemble and license, the Company has spent approximately Cdn$71,000 on prospect, acreage, and licensing costs. Legent has a 7.8125 percent interest in the well and expects to spend an additional Cdn$85,000 to reach the target depth. The Westerose is operated by Zinke & Trumbo Canada Corp.

"The Silver Spike project is a legitimate 'wildcat'; an elephant!," said Ray Singleton, president of Basic. West of Edmonton, Alberta, the LeDuc trend, discovered in the mid 1940's, is famous in the history of the Canadian oilfields. Offsetting the main LeDuc trend, some five miles to the west, is the legendry, stand-alone, pinnacle reef, Golden Spike field. With cumulative production of over 250 million barrels, many companies have sought to discover a second Golden Spike-like field. None ever has. Using proprietary, statistically-based, exploration techniques, in addition to geophysical data, the Company and its partners believe they may have a comparable structure. Singleton continues, "In light of the numerous, unsuccessful attempts to find another 'Golden Spike,' we are quick to acknowledge that this is an arrogant, audacious project. Statistically the success of this venture is remote. However, for a relatively small investment, if successful, the rewards would be immense." The Westerose well is the third well in what is anticipated to be a level of drilling activity that for this Company has been unprecedented in the last twenty years. With widely dispersed exposure, our efforts over the next several weeks and months will search for both natural gas and oil and involve both exploration and development drilling activities in North Dakota, Montana, Colorado, Texas and Canada.

Basic's has funded this effort with existing Canadian funds which were generated by the previously disclosed sale of producing properties to Crescent Point Energy, Ltd. As of this date, the Company has not utilized any of its U.S. bank credit facility.