l l 27 Additional Devonian Horizontal wells l l 20 Dundee, 2 Traverse Lime, 3 Richfield, and 2 Detroit River Wells completed l l Average production about 30 bbls oil/day l l Total annual production - 300,000 bbls l l Gross wellhead value ($17/bbl) - $5,000,000/year l l Royalty owners’ share - $630,000/year l l State severance taxes - $250,000/year l l Federal, State, and local income taxes - $1,650,000/year l l Capital investment cost (27 wells) - $10,000,000 Economic Summary: HORIZONTAL WELLS