PALO-BAKKEN Project
August 25, 2010

Big Black Dog #1 – Planned Black Shale Well in Palo Bakken
Late last night we ran 8 5/8” surface casing to 352’ and cemented it to protect the ground water sands in the area. Pictured below is the surface casing used. We returned to drilling after the cement dried this morning.

We had some brief heavy rains yesterday afternoon which cooled us down from 105 degrees to 90 degrees. Late last night on the drilling rig the temperature dropped to 66 degrees. The cold front created a welcome relief from the high temperatures. I asked the crews if they needed some jackets. They just smiled.

The pump jack has been installed on the Rainman #1 well. We have pumped 210 barrels of over 1,000 barrels of frac fluids injected into the formation plus control fluids so we could safely install the down hole pump. As we get the frac and control fluids pumped off, we should return to pumping almost 100% oil as experienced during our swab test procedure. Below is a picture showing the pump jack installation.

Also, we reinstalled the Guy #3 down hole pump after the second stage frac on it. We have also pumped about 200 barrels of control fluids off the well and lack about 300 barrels more. We plan on getting both of these wells pumping oil in the next few days.