Eldorado Exploration Finds Oil

Eldorado Exploration has participated in drilling a potentially significant oil well in Stark County, North Dakota. The well was drilled to 9890' and logged Oil and Gas shows from 9600' to 9835'. The Company and its partners will initiate an acid frac to stimulate production from the carbonate mud mound called the Lodgepole Formation. The frac will commence on August 20th and the well completion should finish by the end of August.

The Lodgepole mound reef play was first initiated by a discovery well drilled by Conoco in 1993 near Dickinson, North Dakota. By the end of 1996, there were 21 producing wells and 6 new fields. The better wells produced at rates of 1000 BOPD to over 2500 BOPD with substantial volumes of natural gas.

Due to the subtle features, Lodgepole accumulations are difficult to find using conventional Seismic methods. Eldorado Exploration, Inc. is using a process called Passive Induced Polarization (PIP) to identify locations to explore. The Company has participated in the leasing of 18 PIP prospects in North Dakota since June. Future surveys using PIP are expected to identify hundreds of potential Lodgepole locations along a trend in western North Dakota and eastern Montana. Eldorado Exploration, Inc. has a 6% Working Interest in the first well with up to 20% in future Lodgepole wells found by the PIP process.

Eldorado Exploration, Inc. is an independent oil and gas company that utilizes a process called Passive Induced Polarization '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 is almost always a dry hole. When used with the standard geological tools and methods, the PIP process improves the success rate for discovering oil and gas.