Drilling Operations Concluded at North Dakota Bakken Well

Basic Earth Science Systems reported that drilling operations on the Paulson 44-9H, a horizontal Bakken well located in Section 9, T146N R93W, Dunn County, North Dakota, has concluded. This well, reaching a total length of 19,937 feet, is the second well drilled within this 1,280-acre spacing unit. The first well, the Paulson 14-9H, is currently producing 150 barrels of oil per day and has produced over 68,000 barrels of oil since May 2008 when it was placed on production. Basic has a 1.2469% working interest (0.9975% net revenue interest) in both wells, which were drilled and are operated by Marathon Oil Company, Houston, TX. Basic expects to spend approximately $80,000 on this effort.

"We are pleased to report that by all indications this is an excellent well," commented President Ray Singleton. "We encountered excellent cuttings and gas shows during drilling operations; a positive indication of high-quality reservoir rock. Completion operations are underway, and we expect the well to be placed on production by mid-December."

Singleton continued, "By the end of 2009, we anticipate drilling two vertical wells to non-Bakken targets. In addition, as mentioned in our release of November 3, 2009, we are hopeful that our partner will propose drilling additional wells in 2010 in the Banks Prospect. This prospect is sixteen miles northwest of our just-announced Lassen and King's Canyon wells in McKenzie County, North Dakota."