Fairchild Commences Saskatchewan Drilling Program

Fairchild International has commenced drilling the first of a 10 test oil well program on the Kerrobert properties in the Canadian province of Saskatchewan. The properties have a potential for drilling up to sixty wells with each well estimated to take up to three days to drill.

Fairchild International will provide test results of each well as they become available from the operator. Previous drilling in the area, referred to geologically as the Viking Formation, has resulted in some 500 discoveries. The formation is located on the Saskatchewan-Alberta border and is considered to be a highly productive, low-risk, high-reward area. The oil is comparable to West Texas No 1. The experience by other oil companies in the area suggests an approximate fifteen-year life for the oil wells with minimal operating and drilling costs.

Currently, oil from the Kerrobert Viking properties is tank treated and trucked to Kerrobert. Technical reports indicate oil quality is at approximately 37 degrees API. Sulphur content is approximately 0.025%. Natural gas heat in quality is approximately 1050 BTU.

The Fairchild International Corporation partnership at Kerrobert is part of the company's continuing strategy to participate in low-risk oil and gas projects with other companies. It is similar to the participation farmout agreement Fairchild has with the East Corning project in Tehama County, California where the company is involved with four producing gas wells.