Tartan Energy Makes Discovery on its Lost Hills Property

Tartan Energy Inc. has completed the first diatomite/fractured shale test well, which is the discovery of a new oil and natural gas pool on it's 1,560 acre Lost Hills Property. Testing commenced on two of the three hydraulic fracture stimulated intervals. During a two-week testing and cleanup period production ranged from a low of 55 barrels of oil equivalent per day to a high of 160 barrels of oil equivalent per day. Although only 1/3 of the fracture stimulation fluid has been recovered from the two intervals, the third interval has been opened to continue the formation testing and cleanup program.

The new oil and natural gas pool discovery is over 1.8 miles north of previously established diatomite/fractured shale production in the Lost Hills Field. The Corporation and its partner will establish a diatomite/fractured shale development plan based on a proposed 2 acre well spacing which is consistent with existing diatomite/fractured shale development in the Lost Hills Field.

The Corporation also announces that drilling has commenced on the Silver Oak No. 1 well to test the Corporation's Medium Temblor formations on it's Lost Hills Property. Similarly to the diatomite/fractured shale test well, the Silver Oak No. 1 well is being drilled at no cost to the Corporation under the terms of the previously announced Participation Agreement. The Corporation's partner, a private Delaware corporation, is required to pay all of Tartan's costs of drilling and testing this well. The test well is expected to take approximately 30 days to drill to contract depth.