Update on Funding

1-20-2006

Information Submitted by Russell Twiford, Vice President in charge of Research and Operations

To Stockholders and Interested Parties:

Well, the 10th day of January has come and gone and the proposed loan has not been closed, in fact after investigating the situation more fully, your President, Scott Gardner, has determined that there is no loan commitment and no loan ready to close as we all thought previously.

After your officers and directors discussed the situation thoroughly it was mutually agreed to sell off 150/200 acres that we really do not need.  We have contacted several brokers with ties to the area and they have all expressed an interest in selling the property for us, in fact, one broker that I know personally, stated that they have buyers with cash interested in the area.  Hopefully several offers will be forth coming in the very near future and you will be notified by a posting on your web site as soon as that happens.  Land in our particular area has been moving from $18,000 to $30,000 per acre.

By selling off part of the land that we do not need, we are eliminating loan and interest payments and nobody has any control over what we do. 

Thanks for hanging in there and we will get the funding we need, one way or another.

This communication to shareholders and the public contain certain forward looking statements. Actual results may vary materially from those indicated by such statements. All statements, other than statements of historical fact, included herein, including, without limitation, statements regarding estimated reserves, estimated future production, and the value thereof, are forward looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.