Fairchild Reports Positive Results from Coalinga Nose

Fairchild International Corporation reports that the site operator at the Coalinga Nose oil and gas drilling prospect in California reports e-log activity is extremely encouraging at the Brown Mountain formation. The operator reports seeing excellent SP values throughout both sand and shale intervals within the Brown Mountain formation. The sand intervals in particular correlate to very good resistivity and also correlate to gas shows on the mud log. The operator also stated it appears initially that there may be more than 150 feet of net pay throughout the Brown Mountain section. Drilling to 11,200 feet has been completed and the results from the sonic log will be available early next week.

The site operator is now proceeding with the placement of a 2-7/8" liner and moving in a completion rig for testing. In his report, the site operator stated: "If all goes well, this should commence by Wednesday, November 14, with test results made public prior to the Thanksgiving Holiday, November 22." Prior to the commencement of drilling, a cased hole evaluation log (TMD-L) and a cased hole cement bond log were run over the secondary Martinez Sand target. The main intervals, 9,877' to 9,896' (19 feet), 9,899' to 9,922' (23 feet) and 9,924' to 9,933' (9 feet) have returned excellent resistivity and correlate to the Neutron curve on the Bond log indicating mostly sand throughout the interval. The Halliburton TMD-L logs reveal strong indications of hydrocarbons within these intervals confirming the live oil and gas shows encountered while drilling. Above average porosities are also indicated from these same intervals. These results correlate with the open hole mud log gas shows increasing overall confidence in the data. Other potential intervals are indicated but require further evaluation.

Located in the San Joaquin basin, one of the most prolific oil and gas basins on the North American continent, the Coalinga Nose is in Fresno County near the historic community of Coalinga. It is southeast of the East Coalinga Extension which has produced some 458-million barrels of oil and the famed Kettleman Hills Field to the northwest which has produced 2.9 (TCF) trillion cubic feet of natural gas and 458-million barrels of oil. Independent evaluations indicate the property could contain some 800 billion cubic feet of gas.