Description

Petroleum Unlimited projects are progressing on schedule and are expected to hit peak activity levels in late summer / fall time frame. We are currently fully under way on three projects (Bradley and Shannon in Texas and the Carter County project in Oklahoma). We are in the leasing and final acquisition stage in an additional six projects that will be announced over the next few months. As they are readied, each project will be announced with project descriptions and geologic reports will be posted on a new section of our website. As each project progresses, milestones achieved and results of operations will be posted in a current status section for each of the projects.
BRADLEY PROJECT
We have our leasing people leasing additional acreage around the Bradley. June 2, 2008 our operator O’Neal Oil applied to the Texas Railroad Commission for a permit to drill the Bradley lease. We are in liwith Muenster Drilling for a drilling Drilling is expected to commence before July 15. 2008.
CARTER COUNTY PROJECT
Leasing is completed. The confirming geologists’ report is finished and Ardmore Production has been Selected as the Operator. We plan to permit
the well and contract for a driller in July.
SHANNON PROJECT
The operator on this project is Pryor Petroleum. We have contracted for Breckenridge Geophysical to do a close grid three-dimensional seismic study of our acreage. The permitting has been completed and we are next in line for surveying and shooting. Subject to weather, this should be completed within the next three weeks. The processed data will then be interpreted. This interpretation will be used to finalize the best drilling locations.
In closing, some of our partners have requested some time parameters for various oil field operations. Many of these time frames can vary significantly, but here are some rules of thumb. Remember the oil patch is subject to weather and emergencies that can force contractors to alter their plans.
• Drilling Permit – 15-30 days
• Drilling rig after ordered – 30-120 days, depending on area depth and demand
• Drilling time – 10-15 days, depending on amount of testing
• Completion rig after ordered – 5-15 days
• Well completion and preproduction testing – 2-4 days per zone
• Pump and infrastructure installation – 5 to 15 days, depending on equipment used
• Electrification of site by local utility – 10-60 days
• Production and sales of oil – immediately, as required
• Assignments – 1-5 days
• Division Orders – 45-90 days
Of course, we do everything in our power to accelerate these timeframes and it is in everyone’s’ interest to move as quickly and safely as prudent business operations permit. It should be noted that some of these items may overlap.
Future Status letters will be sent out monthly. New developments and projects will be posted in the new Projects Section on the website. Thank you for your interest in the details of our continued progress.
Sincerely,< br/>Petroleum Unlimited
Managing Member,
Reserve Oil & Gas, LLC
By:
Roger A. Kimmel, Jr.
President