PROJECTS - U.S.A., Bossier Parish, Louisiana

W.T. Davis Well

The Company has re-entered the W.T. Davis Well in Bossier Parish, Louisiana, U.S.A. The well was fraced with nitrogen at the interval 10,200 feet. After the frac, the well flowed oil and natural gas to the tank. No flow rates were determined. The well was shut-in with 2,000 lbs of pressure at the surface.Prior to tying in the W.T. Davis Well to a gas pipeline, the Company plans to re-complete the Rinsland Estate #1 Well. Work crews are expected to be on-site for the Rinsland Estate #1 Well in March 2005. When a successful re-completion has occurred on the Rinsland Estate #1 Well, any natural gas from the W.T. Davis Well will be tied into the gas line at the Rinsland Estate #1 Well. The Company’s Engineer has recommended this work program as it will be more economical. The Company retains a 25% working interest in this well and is the Operator of the W.T. Davis Well and lease.

Rinsland Estate #1 Well

Flying A Petroleum Ltd. has acquired the Rinsland Estate Well and a 240 acre lease which joins the previously acquired W.T. Davis Well and lease.

The Rinsland Well was originally drilled to 11,000 feet. It is believed that the pressure at the surface of 1300 lbs. comes from the Cotton Valley zone at 9,600 feet. The Company will re-enter this well and bring this well to production in March 2005. The Company has a 50% working interest in the Rinsland Estate #1 Well and lease and is the Operator of this project.