Bridge to Spud Well in Western Idaho Basin

Paramax provided an operations update on their Western Idaho Basin Project.

The second phase of the project began in early August with the spud of the Tracy Trust 3-2 well. The well was drilled to a total depth of 2,815 feet, and after evaluation of the cores and logs, the well was cased as a potential gas well. The drilling program then continued with the drilling of the White 1-10 well. This well which was west of the Tracy Trust well was drilled total depth of 2,415 feet, and has been cased as a potential gas well. Testing of the Tracy Trust 3-2 has begun and will be followed with testing of the White 1-10.

The drilling rig has now been moved to the third well in the development phase, the Korn State 1-22, and it is expected that this well will be spud within the next 2 days. These three wells are located between the previously drilled State 1-17 and Espino 1-2 wells. Upon the completion of the Korn well, the rig will move to the forth location, the May 1-13, which is approximately six miles to the North.

Paramax and its partner, Bridge Resources Corp., have also begun a series of long term deliverability testing of all four cased wells within the Hamilton Project area. To date extensive testing has been completed on the previously drilled State 1-17 and Espino 1-2 wells. The testing of both wells has confirmed the results from the original program. The testing program for all four wells is expected to be completed within the next two weeks and at that time further results will be released.

In addition to the work on the Hamilton Area, Paramax and its partner have completed the shooting of the seismic program on the Willow Project area, and are in the final stages of the processing and interpretation of the data. This interpretation will be utilized in the selection of the drilling locations to follow up the successful ML Investments well.