The next nine USEG wells will be drilled very soon. BEXP now has three operated rigs running in the Williston Basin and expect to add a fourth rig around mid 2010. Two of the three current rigs are dedicated to the Rough Rider acreage. During their conference call BEXP management mentioned they expected to complete drilling the remainder of the initial fifteen well USEG joint venture wells during the 1st quarter of 2010.

I expect it will be some time before BEXP drills many of the developmental wells on any of these fifteen 1,280 acre spacing units, but do expect them to drill at least one Three Forks well on this acreage during the first half of 2010.

BEXP's main priorities' in the Rough Rider will be to:

1)Establish Bakken production throughout a cross section of their Rough Rider acreage in order to book proved non producing reserves for spacing units adjacent to producing units. SEC rules will allow them to book proved non producing reserves for each of the four 1,280 acre blocks surrounding each producing 1,280 acre unit. The initial fifteen Bakken wells can be used not only to book proved producing Bakken reserves for these fifteen 1,280 acre spacing units, but also proved non producing reserves for the remainder of their seventy four 1,280 acre spacing units in the Rough Rider acreage.

2)Drill a combination of either Bakken or Three Forks wells on each of their seventy four 1,280 acre Rough Rider spacing units in order to hold the leases on all of the 94,800 acres by production.

3)Establish Three Forks production throughout a cross section of their Rough Rider acreage in order to book proved producing and non producing reserves for the Three Forks across their Rough Rider acreage.

4) Establish developmental drilling production on a few units for a total of three to four wells per 1,280 acre spacing unit in order to increase proved reserve bookings by as much as 300% in the Bakken and 200% in the Three Forks formation.

USEG has proved very valuable to BEXP in proving the value of the Rough Rider acreage to the market place. I would expect BEXP offering USEG a similar participation agreement covering a portion of their Montana acreage. Their Montana acreage is not currently considered core Bakken acreage, but their is recent activity in the area and it has strong possibilities for the Bakken,possible Three Forks and some established Red River production.