Scott Shaw Pipeline Quotations

The pipeline successfully passed a 48-hour pressure test. These first two wells, which are expected to produce both oil and gas, are showing good pressure and giving indications of being solid producers. We should have initial production rates soon. Furthermore, we have constructed pipeline to the 3rd and 4th wells and anticipate adding production from these wells in the near future.

A late change in the pipeline route required us to obtain rights of way that were not initially necessary. One last location that needed to be secured had been holding us up for the past three weeks, but we have now obtained an ideal site for our receiver equipment and are once again moving full speed ahead.

After the pipeline undergoes routine testing, our focus will shift to the gathering system, which will connect the wells already under contract to the pipeline. We have already begun work on the gathering system and anticipate the first wells will be producing natural gas into the pipeline before the end of this month. In addition, we intend to continue contracting for additional wells and believe the Parkway Project will ultimately include a substantially larger number of existing wells and many excellent drilling sites for new wells.