April 1996 - America Cometra finishes drilling the Frost #1 in Freestone Co., Texas to a depth of 15,570 ft. Well was a dryhole.

Target was a pinnacle reef in the Cotton Valley Lime.

Pinnacle Reef play was the hottest play going in the U.S.A. in 1995 to 1998. The play was driven by 3D seismic with over $250,000,000 spent for seismic, land and drilling. Individual reefs ranged in size from 40 to 200 acres with reserves of 10 to 200+ BCF.

Wildcat wells cost $2.5 to $5 million to drill and evaluate.

Sonat Exploration (SNT) had over 200,000 acres and some 40 plus potential reef locations and was promoting it's acreage in this play in it's Annual Reports and 10Ks.

November 1996 - RRT ‘shoot' for Sonat Exploration over 100,000 acres as exploration technology research funded by corporate exploration department. Objective was to test remote sensing technologies to use in conjunction with Sonat's 3D surveys.

This is an example of a RRT hydrocarbon seepage identified over competitor's acreage. Seepage showed definite pinnacle signature.

America Cometra had begun drilling two pinnacle test wells at the time of this analysis, but wells were not down to target depth yet and would not reach the target depth of the pinnacle reef formation until December 1996, one month after Sonat had received this analysis.

January 1997 - America Cometra declares success in two wildcats over the acreage shown. Frost # 2, IP's for 28.8 million cubic feet of gas a day and the Pearlstone #1, IP's for 14.2 million cubic feet a day.

Wells are presented to the state oil and gas regulatory board (Texas Railroad Commission) as being in two separate reefs. This allowed America Cometra to get full allowables (maximum producing rates) due to the declared ‘independent‘ and non-competitive nature of the wells.

Ultimate Recoverable Reserves (EUR) were calculated in March 2000. Red circles shown are the drainage areas calculated if the wells were independent and separate reefs. But, the producing analysis shows the two wells to be in communication and draining ONE large reservoir.

April 2000 – RRT correctly identified the success of the two wells that were drilling at the time of the survey.

RRT also recognized the fact that the two wells were draining one reservoir and not two separate reservoirs as believed in 1997. The single reservoir is shown in red.

Had America Cometra use the result of the RRT in conjunction with it's 3D program only one well would have been drilled into the optimum part of the hydrocarbon bearing reservoir. In this instance that would have saved America Cometra over $8,000,000 in well cost. In addition the well would have IP'd for over 40 million cubic feet a day, drained more efficiently the reservoir and had a faster payback.

This would have turned this project from marginal into a very successful business venture.