On March 29, 2009, we re-entered a previously existing well bore and commenced sidetracking operations at the Blueberry Hill deep gas prospect located on Louisiana State Lease 340. As previously reported, we encountered positive drilling results in the original sidetrack (ST#1) well (drilled to true vertical depth (TVD) of 21,900 feet in July 2009) and a subsequent by-pass (BP) well (drilled to TVD of 22,778 feet in September 2009). Following mechanical issues with the ST#1 and BP wells, we drilled a second sidetrack well (ST#2). In total, the three wells (ST#1, BP and ST#2) encountered three hydrocarbon bearing zones with good porosity.
The ST#2 well was drilled to TVD of 21,942 feet in October 2009 and log-while-drilling tools, including porosity measurements, indicated that the well encountered two hydrocarbon bearing sands totaling 45 net feet of pay, including a sand believed to be connected to sands seen in the ST#1 and BP wells. This sand approximated 30 net feet of pay in the ST #2 well and increased the vertical column of this common hydrocarbon bearing zone to approximately 285 feet as measured from the top of the sand in the ST#2 well to the gas-water level in the BP well approximately 1,000 feet away.

We plan to temporarily abandon the ST#2 well and drill an offset appraisal well approximately 2,000 feet southeast of the ST#2 well. We believe the sands seen to date could thicken in the offset well as they are expected to be structurally high to the sands in the ST#1, BP and ST #2 wells. The offset well is also expected to test deeper potential in the area. A rig is on location, and we are preparing to commence drilling at the offset location, which has a proposed TVD of 21,850 feet. Development plans for the Blueberry Hill area are pending results of the well to be drilled at the offset location. We are in the planning stages for production facilities and potential offset wells as we continue to define the Blueberry Hill area.