Search for Oil

Why and where are we searching for Oil?

The United States had 21.4 billion barrels of proved oil reserves as of December 31, 2004, the eleventh highest in the world according to the US Energy Information Administration’s 2004 Annual Report on U.S. oil and natural gas reserves.

Eighty percent of the entire United States reserves are concentrated in four states:

• Texas 22%
• Louisiana 20%
• Alaska 20%
• California 18%

We are currently concentrating our efforts on oil properties in Texas and Louisiana based on favorable economic and environmental/regulatory trends.

In addition to searching for Oil in within the United States, we view the province of Alberta as a prime area for drilling operations. Currently, Canada is one of the largest net importers of oil into the United States (approximately 1.6 million bbl/d). The chart below represents a list of the importers into the United States:

Source: US Energy Information Administration

Based on the political problems associated with the importers listed above, Canada, due to its proximity and political stability, will provide excellent opportunities for our drilling operations.