BIT STATUS & REQUIREMENTS: July 2007 - July 2008

WSW OIL WELL WIW Horiz. WELL TOTAL BITS BITS IN Requested TO BE
BIT SIZE REMARKS
06 well 25 wells 10 wells 04 Wells REQUIRED STOCK PR/PO ORDER
26" Bit (1-1-1) 0 0 0 0 2 2 2 0
17 1/2" Bit (1-1-4) 4 15 6 3 28 26 0 0
12 1/4" Bit (1-1-7) 12 50 20 12 94 6 30 25
12 1/4" Bit (4-3-7) 0 0 8 0
12 1/4" Bit (4-4-7) 5 15 5 25 4 10 10
12 1/4" Bit (5-1-7) 5 10 5 6 26 4 5 10
12 1/4" Bit (5-3-7) 5 5 12 0 0
12 1/4" Bit (5-4-7) 5 15 5 25 0 0 15
12 1/4" Bit (6-1-7) 5 15 10 30 0 10 25
12 1/4" Bit (6-2-7) 10 10 20 9 10 5
12 1/4" Bit (6-3-7) 10 5 15 6 0 5
8 1/2" Bit (1-1-7) 0 5 0 0
8 1/2" Bit (2-1-5) 3 12 5 2 22 14 0 0
8 1/2" Bit (4-3-7) 0 6 0 0
8 1/2" Bit (5-3-7) 0 13 0 0
8 1/2" Bit (5-4-7) 0 2 0 0
8 1/2" Bit (6-1-7) 6 4 10 3 0 5
8 1/2" Bit (6-2-7) 6 3 9 7 0 5
8 1/2" Bit (6-3-7) 6 8 14 3 6 5
0

Note: Estimated 45 wells to be drilled between August 2007 and June 2008
12 1/4" AND 8 1/2" PDC BITS STATUS
QTY DESCRIPTION REMARK
01 12 1/4" PDC Bit, HCM507ZX OP071260 - Received on June 19, 07 (B-09H NC186)
01 12 1/4" PDC Bit, MDM949 OP071328 - Received on July 13, 07 (in stock)
01 12 1/4" PDC Bit, HC607Z OP071369 - On order
01 12 1/4" PDC Bit, HC607Z OP071370 - On order
01 12 1/4" PDC Bit, HC607Z OP071437 - Receieved on June 14, 07 (O-05 NC115-Junk)
02 12 1/4" PDC Bit, HC507ZX OP071498 - On order
01 12 1/4" PDC Bit, MKS66G1 OP071497 - Received on July 24, 07 (H-23 NC186 -In good condition)
01 12 1/4" PDC Bit, MKS57DG1 OP071497 - Receieved on July 24,07 (In stock)
01 12 1/4" PDC Bit, R60ST OP071502 - Received on July 23, 07 (New on B-09H NC186)
02 12 1/4" PDC Bit, RSX616M-A14 OP071507 - On custom ?
02 12 1/4" PDC Bit, DSX813M-E5 OP071507 - On custom ?
01 12 1/4" PDC Bit, VYZ816 OP071516 - On order
01 12 1/4" PDC Bit, MKS76DG2 OP071516 - On order
04 12 1/4" PDC Bit, HCM507ZX PE071590 - WAPPR ?
01 8 1/2" PDC Bit, M816FPX OP061443 - In stock
01 8 1/2" PDC Bit, MNS58SDR5DG1 OP061460 - In stock
01 8 1/2" PDC Bit, HCM408Z OP061442 - New on B-09H NC186
01 8 1/2" PDC Bit, MDM949 OP071328 - Received on July 13, 07 (in stock)
 02 6 1/8" PDC Bit, MA32QPX OP061816 - In stock

Prepared by: Elias Aguirre July 31, 2007