Hathaway LLC acquired the Porter lease in August of 2007. The Porter lease had one idle well, no existing tank facilities and no existing electrical services. In October of 2007, Hathaway LLC drilled the Porter #4 well which IP'd at a 121 BOPD rate. Immediately thereafter the lease was electrified and complete facilities were constructed. Within months after the completion of Porter #4 Hathaway LLC acquired the DePauli lease adjacent the Porter lease. In May of 2009, Hathaway LLC, and its partners, drilled Porter #5 and Porter #10DP (Depauli's 1st well). Both wells encountered the Etchegoin formation and are now on production. Porter #5 also encountered the Lower Chanac formation which was not prevalent in either Porter #4 or Porter #10DP. All wells have been put on production and the initial test results look very good. We estimate the Porter/Depauli property will average between 85 BOPD and 110 BOPD over the next year based on initial well tests and decline curves. The company also believes the easterly fault boundary can be extended and additional PUD locations can be switched from the probable category to the proven category.