STANSELL FIELD:
We hold a 1% working interest in an oil prospect located in Floyd County, Texas. The working interest comprises
15,000 leased acres in the southern section of the Palo Duro basin. The initial project will be the re-entry of the
Stansell #1-A well, an existing well bore that was drilled in 2006. The original drilling encountered oil shows in three
separate reservoirs and the operator intends to re-enter and recomplete the Stansell #1-A using current fracture stimulation
technology. We have a carried 1% working interest in the Stansell #1-A well through the tanks. In April 2015, the operator has
started the re-entry of the Stansell #1-A well.
Subject to our receipt of additional capital, we intend
to pursue the acquisition of additional equity interests in other oil and gas properties in North America. However,
as of the date of this report, we have no understandings or agreements in place concerning our acquisition of an
interest in any other properties.
