Amity Farms Into Wilbeck Prospect

Amity Oil has concluded farm-in negotiations to test a gas/oil prospect in Wharton County, Texas. Amity will acquire a 20% interest in the Wilbeck prospect from Crawford Energy of Houston, Texas. This prospect is defined by 3D seismic, with significant reserve potential.

This well will be operated by Crawford Energy of Houston, Texas and will drill to a depth of approximately 10,000 feet. Estimated reserves are between 5-17 BCF of gas and 50,000 to 170,000 bbls of oil. This is a prospect supported by 3D seismic on trend with several producing fields. Drilling of this prospect is expected for late December to early January, depending on rig availability. Antares Energy will hold 20% working interest. This well will target the prolific Yegua Formation.

Dry hole AFE for the well is US$999,124 and Amity is paying 26.67% of the initial well costs to a maximum of US$293,076 to earn its 20% working interest.

The Wilbeck prospect is on trend with numerous Yegua discoveries in the expanded Yegua trend of Jackson and Wharton Counties, Texas. The expanded Yegua trend is the delta-front/prodelta extension of the fluvial Yegua channels that are common in the Gulf Coast. The Shanghai Field (34 BCF, 1.3 MMBO is located approximately 3 miles west of the Wilbeck Prospect) and the recent (1998) Mc-Millan Field discovery is two miles east of the prospect. Using advanced hydrocarbon indicators, this prospect has significant gas anomalies associated with it.