Eldorado Proceeds with Mesa Drilling

Eldorado Exploration, Inc.

Eldorado Exploration, Inc. reported that the Mesa well being drilled in Roosevelt County, New Mexico has reached a depth of 2816 ft. After evaluating an oil show at 2700 ft a decision was made to set intermediate casing and continue drilling to test a potential Canyon Reef gas zone at a depth of 6000 ft and a Montoya Dolomite zone at 7200 ft that may contain both oil and gas.

The potential reef gas play was found using Passive Induced Polarization (PIP) and passive reflection seismology in combination with supportive subsurface geology. Eldorado has a 33% working interest in 11,300 acres over the center of the (PIP) identified structure. The company has also leased over 28,000 acres on two nearby structures found using the PIP process.

Eldorado Exploration, Inc. is an independent oil and gas company that utilizes PIP to detect electrostatic signals given off of some geological anomalies. In most cases a positive response indicates a hydrocarbon accumulation and a negative reading almost is always a dry hole. When used with the standard geological tools and methods, the PIP process enhances the odds of success for discovering oil and gas.