Paul Bunyan #1 Woodbine

BOPD = Barrels of oil per day; MCF = Thousand cubic feet of natural gas also the standard unit for gas sales; MCFPD = Thousand cubic feet of natural gas per day . Glossary.

8/11/2008 For the month of June, the well produced 253 MCF.

7/17/2008 For the Month of May, the well produced 272 MCF.

6/4/2008 For the month of April, the well produced 294 MCF.

5/12/2008 MPI is only providing monthly totals, so we are unable to post daily averages, as we have previously.

For the month of March, the well produced 312 MCF.

For the month of February, the well produced 277MCF.

2/24/2008 For the month of January, the well produced a total of 408 MCF.

1/23/2008 For the month of December, the well produced a total of 431 MCF.

12/26/2007 For the month of November, the well produced a total of 354 MCF.

12/10/2007 For the month of October, the well was shut in for most of the month. It produced a total of 392 MCF.

11/2/2007 For the month of September, the well was shut in waiting for downhole repairs.

9/25/2007 For the month of August, the well was shut in for most of the month, the well produced a total of 489 MCF. Well is waiting for additional downhole repairs.

8/21/2007 For the month of July, the well was down for 20 days due to compression problems. The well averaged 128.54MCFPD for the days it was online.

7/17/2007 For the month of June, the well averaged 141.16 MCFPD.

6/28/2007 For the month of May, the well averaged 160.4 MCFPD.

5/04/2007 For the month of April the well averaged 177.17 MCFPD.

For the month of March the well was online for 17days and averaged 94MCFPD. The well was shut in to add a wellhead compressor.

4/04/07 For the month of February, the well was shut in building pressure for 10 days and for the remaining 18 days the well averaged 58 MCFPD. On 3/26/07 a new wellhead compressor that has raised production to over 150 MCFPD.

2/20/2007 For the month of January, averaged 146,000 cubic feet of natural gas per day.

1/19/07 For the month of December, averaged 200,000 cubic feet of gas per day

12/12/06 For the month of November, averaged 223,000 cubic feet of gas per day. Production running between 200,000-250,000 cubic feet of natural gas per day. We will continue to monitor this well and monitor the results of the Lumberjack Mid Cox completion which started on 12/08.

11/14/2006 Production remaining between 225,000 and 250,000 cubic feet of natural gas. We will continue to monitor this well as well as the results of the Lumberjack Mid Cox completion scheduled within the next month.

11/08/2006 For the month of October, the well was shut in for majority of month. Once production was resumed, average production was 171,000 cubic feet of gas per day, along with the recovery of frac fluids.

11/01/2006 Frac fluids primarily flowing back. Currently producing at approximately 225,000 cubic feet of natural gas per day.

10/26/2006 Frac fluids primarily flowing back. Currently producing at approximately 200,000 cubic feet of natural gas per day.

10/20/2006 Flowing back frac fluids and producing some natural gas.

10/17/2006 Jetting out frac sand plug and frac fluid.

10/10/2006 For the Month of September, Averaged 1.2 MMCF per day from the one open sand zone. Also on 10/09/2006 additional zones were perforated and fraced.

9/06/2006 - For the month of August, Averaged 3.8 MMCF per day

8/22/2006 -Production curtailment over. Currently producing over 4 MMCF per day.

8/15/2006 Production flow temporarily curtailed due to line capacity constraints. Expected to be resolve within a couple of weeks. Prior to curtailment, well was averaging 5 MMCF per day. Currently averaging 2 MMCF per day.

- A frac has been scheduled for October, but we are in line for any earlier openings.

- Cash flow to investors projected to begins in October 2006.

7/31/2006 Producing approximating 5 MMCF @ 7,000 + PSI. Scheduling frac and perforation of upper zones in August.

7/18/2006 Pipeline in test and drying. Expect to begin selling gas into the line tomorrow.

7/6/2006 Pipeline continues under construction. Rain is delaying ditching. Pictures attached.

6/27/2006 Pipeline under construction, expected completion date 7/5 -7/10.

6/14/2006 County Board to approve boring for pipeline under roadway on 6/16. Construction of pipeline to commence 6/17. Expected to be completed by 6/30, so that sales can begin 7/1.

6/7/2006 On 12/64th choke flowing approx. 8 million cfpd rate at 9400-9500 psi. Have only recovered about 1/3 of frac fluids back, expect to test for one more day at reduced choke in order to recover more frac fluids.

6/6/2006 We started flowing the well back on a 8/64 @ 10,200# at a rate of 3.0 mmcfgpd then moved to a 10/64" choke @ 9,990# with a rate of 5.5 mmcfgpd. This is for the bottom sand only. The next sand zone will likely be fracture treated in a few weeks, after the first sand has been thoroughly tested.

6/5/2006 Frac treatment initiated this morning.

5/25/2006 Well shut in with 10,000 psi shut in pressure. Fracture treatment scheduled to begin June 5, 2006, Anticipate pipeline completion and initiation of production and sales sometime between June 15 and June 30.

5/23/2006 Flowing at 2.2-2.3 MMCFPD at 2200-2400 psi on 12/64th choke.

5/19/2006 Testing of the lower sand after perforation on an 8/64th choke (1/8" in diameter), flowing at a 4600 psi, about 2 million cubic feet per day rate, still cleaning up mud in formation, so oil production is very uneven, and difficult to predict at this stage. There are multiple sands in the well that look potentially productive.

5/16/2006 Schlumberger began rigging up at 9:00 a.m. to perforate the lower sand for testing.

5/10/2006 Squeeze cement job appears to be successful based on new cement bond logs. Target zones appear to be well isolated. Perforation and test of the lowest sand block is scheduled for Saturday, with testing to continue for several days thereafter. Fracture treatment tentatively scheduled for Monday June5, 2006

5/3/2006 Cement Bond Log demonstrated that the attempt to cement final casing string resulted in the cement going into the Buda formation below the Woodbine formation, with no cement behind the pipe. Currently engaged in performing a squeeze job, during which perforations are made in the casing where the cement is needed, and cement is squeezed out through the perforations to establish the cement between the casing and the formation.

4/27/2006 Workover rig on location engaged in completion operations. Expect to perforate and test lower zone early next week. Following that test, if successful, the zone will be fracture stimulated and then the next zone up will be similarly perforated and fracture stimulated.

4/17/2006 Drilling rig rigging down to move out to start drilling Lumberjack Austin Chalk well. Workover rig currently completing Lumberjack Woodbine to move in to finish completion after drilling rig is moved out.

4/13/2006 Ran and cemented liner in well bore; cleaned out cement in well bore. Preparing to run 5" liner into well bore .

4/6/2006 Logged well. Base sand 29' thick with 15' of good indicated porosity. Numerous other sands up the hole throughout the formation interval.

4/5/2006 Reached TD at 16,293, conditioning well bore to log well.

3/29/2006 Drilling Woodbine formation at 15,500'. Several good shows during drilling.

3/20/2006 Running 7-5/8" intermediate casing through the Austin Chalk zone at 14,280'.

3/14/2006 Drilling at 13,994'.

3/6/2006 Set 9-5/8" intermediate casing above Austin Chalk zone, cemented in, ran cement bond log, tested BOP in preparation for drilling out cement.

3/2/2006 Running 9-5/8" casing to 12,865'.

2/21/2006 Drilling at 12,786 feet approaching depth to log well and set intermediate casing.

2/14/2006 Drilling at 9,435 feet

2/7/2006 Well spudded and 1680 feet of surface casing set and cemented in.

2/2/2006 3 inch rain in area has slowed the rig move by a day or two.

2/1/2006 Rig moving in on location. Scheduled to spud well 2/4/2006.

1/3/2006 Drilling rig on Timberwolf to move to Paul Bunyan well upon completion of Timberwolf Austin Chalk well.

Paul Bunyan #1 Woodbine

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