Update on Funding

2-3-2006

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

To Stockholders and Interested Parties:

As I have previously stated, our proposed loan fell through so a decision was made by management to dispose of 150/200 acres at the going price in the area.

Several offers have been received and management is presently examining each offer carefully that will best serve your company's needs.  The offer suitable for your company needs to be a cash deal and be able to close within a 30 day period after the initial agreement has been signed, thereby assuring your company of immediate funds to pay off all debts and build and operate a facility capable of continuous production.  The funding must be able to carry the company until a continuous cash flow has been realized.  At that point your company will be able to produce on a continuing basis without having to raise additional funding. 

I will keep you informed as soon as the right offer has been selected by management.  When the sale has actually been consummated and the money is in the bank we will come out with a national news release.

So hold tight and thank you all so much for your continued support.

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.