EnDevCo Announces Production Increase from Short Junction

EnDevCo, Inc.

EnDevCo, Inc., the Energy Development Company, announced a 40% increase in total production at the Short Junction Field. EnDevCo assumed the role of operator at the 12,000-acre field located near Oklahoma City on April 13, 2006. At that time, the Field was producing 117 barrels of oil equivalent (BOE) per day comprised of 87 barrels of oil and 181 Mcf of gas. Daily production has been increased to a sustained 165 BOE per day comprised of 125 barrels of oil and 242 Mcf of gas. "This represents a solid 40% production increase as of July 31, 2006," stated Chris A. Dittmar, CEO.

The field currently consists of 20 oil wells and 1 gas well, 4 central collection and metering stages, and 4 salt water disposal wells. Since acquiring the field, the company has methodically performed maintenance activities on all oil wells to include improved chemical and hot oil treatments; pump jack re-alignment, bearing and rod replacement, beam compressor installation and pipeline integrity testing and cleanout. EnDevCo has also installed new pumps, a new water knockout and two new heater treaters for improved oil separation at the central collection and metering stages, and terminated the re-injection of water into the Hunton reservoir by re-piping and installing a new salt water disposal well.

These types of investment have resulted in significantly improved and sustainable production that is not frequently interrupted by mechanical breakdowns, scale buildup over casing perforations and restricted or blocked pipelines. The company's discovery of a "new pay zone" in the Prue Sand, continues to be a steady 15 barrel per day producer. "EnDevCo is currently working with its third party reservoir engineering firm to determine the extent of the discovery and its impact on the company's proved reserves," said Dick Boyce, Chief Operating Officer.

EnDevCo has received city and state approvals to establish new gas production in the E.S. Rowland A-2 and the Joe Straka #2 wells from the Skinner and Red Fork Sands respectively, as well as to establish oil production in the Zurline #3 well from a newly identified pay zone in the Lyle Sand. The Company has scheduled recompletion and fracture stimulation operations in these wells to begin later this month and is projecting a further production increase of 215 BOE per day from an additional daily production of 1,050 Mcf of gas and 40 barrels of oil from these wells. Upon successful completion, these operations will represent a further 130% production increase in the Short Junction Field.

"The company initially concentrated on refurbishment of the existing Field infrastructure primarily due to the time required to identify, design, permit and commence new operations. We have now established reliable field operations and developed a 'pipeline of new projects' for a solid foundation for future production growth. While our approach didn't produce many news releases, it did produce solid results due to the dedication of our exceptional field personnel," stated Chris A. Dittmar, Chief Executive Officer.