SCOUT CHECK REPORT^(T)

THE SCOUT CHECK REPORT, INC. P.O. BOX 4095
EVANSVILLE, INDIANA 47724
(812) 425-4321, (812) 464-9195 fax
(800) 327-4321
http://www.ScoutCheck.com
ScoutCheck@bellsouth.net

“YOUR SOURCE FOR ILLINOIS BASIN INFORMATION”

INTERESTING TESTS IN THE TRI-STATE AUGUST 28, 2008

UPDATES OF INTERESTING TESTS

EFFINGHAM COUNTY, ILLINOIS – MDM ENERGY, INC. Addison, Texas have a Schuette’s Well Service rotary drilling below 2750’ this week on a 3999’ Devonian wildcat with their #1 Anita Lake Community. Located 330’FSL 1317’FEL SE SE in section 26-8N-5E, this is one mile southwest of a well MDM drilled and completed last summer. Their #1 Pike-Root Community, 330’FNL 390’FEL NE NE, section 25-8N-5E was drilled to a total depth in the Devonian of 3920’ and completed as a Salem oil producer. The #1 Pike-Root Community is the discovery well of the Effingham West Field. This 3-D seismic prospect is five miles northeast of the Watson West Field. Effingham, Illinois is one mile to the east. Next MDM ENERGY, INC. will drill a 4500’ Silurian test with their #2 Denton, 890’FSL 410’FWL SW NE, section 4-7N-5E. The Denton site is slightly west of a successful exploration effort by RK PETROLEUM, Midland, TX. Drilled in 2005 RK’s #1 Decker Community, a Geneva discovery well is located 929’FNL 137’FWL NW in section 3-7N-5E. The #1 Decker Community was initialed for 174 barrels of oil per day flowing from the Geneva, and is the discovery well for the Funkhouser Field. This activity is nine miles east of production on the Louden anticline and Altamont, Illinois is five miles to the southwest.

SCOUT CHECK REPORT^(T)

THE SCOUT CHECK REPORT, INC. P.O. BOX 4095
EVANSVILLE, INDIANA 47724
(812) 425-4321, (812) 464-9195 fax
(800) 327-4321
http://www.ScoutCheck.com
ScoutCheck@bellsouth.net

“YOUR SOURCE FOR ILLINOIS BASIN INFORMATION”

INTERESTING TESTS IN THE TRI-STATE SEPTEMBER 4, 2008

PAGE 2

UPDATES OF INTERESTING TESTS (Cont’d)

CASING SET ON EFFINGHAM COUNTY, ILLINOIS WILDCAT – MDM ENERGY, INC. Addison, Texas have set production casing to T.D. on their #1 Anita Lake Community. Located 330’FSL 1317’FEL SE SE in section 26-8N-5E, a Schuette’s Well Service rotary drilled this well to a total depth of 3811’ early this week. A drill stem test was run across the Devonian section, though no recoveries are being released. This is one mile southwest of a well MDM drilled and completed last summer. Their #1 Pike-Root Community, 330’FNL 390’FEL NE NE, section 25-8N-5E, was drilled to a total depth in the Devonian of 3920’ and completed as a Salem oil producer. The #1 Pike-Root Community is the discovery well of the Effingham West Field. This 3-D seismic prospect is five miles northeast of the Watson West Field and one mile west of Effingham, Illinois.
Late this week MDM ENERGY, INC. were scheduled to move Schuette’s Well Service rotary on a 4500’ Silurian test with their #2 Denton, 890’FSL 410’FWL SW NE, section 4-7N-5E. The Denton site is slightly west of a successful exploration effort by R K PETROLEUM, Midland, Texas. Drilled in 2005 RK’S #1 Decker Community, a Geneva discovery well, is located 929’FNL 137’FWL NW in section 3-7N-5E. The #1 Decker Community was initialed for 174 barrels of oil per day flowing from the Geneva, and is the discovery well for the Funkhouser Field. This is nine miles east of production on the Louden anticline and Altamont, Illinois is five miles to the southwest.

INTERESTING TESTS IN THE TRI-STATE OCTOBER 2, 2008

McCLOSKY STEP-OUT TO BE DRILLED IN WAYNE COUNTY ILLINOIS – MDM ENERGY, INC. have permitted their #2 Cesario, a 3300’ McClosky test located 330’FNL 330’FWL NW SW, section 30-1S-5E, in western Wayne County, Illinois. This is two locations south of a well MDM Energy drilled in late 2007. Their #1 Cesario, 990’FSL 330’FWL SW NW section 30-1S-5E, was drilled to a total depth of 5020’ by a GEORGE N. MITCHELL DRILLING rotary. Though hydrocarbon shows were recorded in the Aux Vases a completion attempt was not made. This is twelve miles northeast of Mt. Vernon, Illinois and the closest production is ½ of one mile south of production in the Coil Field. Discovered in 1942 the Coil structure has produced 3.5 MMBO from Mississippian sands and carbonates.

INTERESTING TESTS IN THE TRI-STATE OCTOBER 9, 2008

CASING SET ON EFFINGHAM COUNTY, ILLINOIS WILDCAT – MDM Energy, INC. Addison, TX, have set 4 ½’’ production casing to 2750’, through the Upper Salem, in their #2 Denton, 890’FSL 410’FWL SW NE, section 4-7N-5E. A Schuette’s Well Service rotary drilled the #2 Denton to a T.D. of 3702’ in the Devonian. The Denton site is slightly west of the Funkhouser Field and nine miles east of production on the Louden anticline. Altamont, Illinois is five miles to the southwest. To the northeast in Effingham County, MDM ENERGY, INC. are completing a Lingle interval this week on their #1 Anita Lake Community. Located 330’FSL 1317’FEL SE SE in section 26-8N-5E, a Schuette’s Well Service rotary drilled this well to a total depth 3811’ this past summer. A drill stem test was run across the Devonian section, though no recoveries are being released. This is one mile southwest of a well MDM drilled and completed in June 2007. Their #1 Pike-Root Community, 330’FNL 390’FEL NE NE, section 25-8N-5E, was drilled to a total depth of 3920’ in the Devonian and completed for 65 barrels of oil per day from Salem perforations 2786-94 following an acid stimulation. The #1 Pike-Root Community is the discovery well of the Effingham West Field. This is five miles northeast of the Watson West Field and one mile west of Effingham, Illinois. PHIL CASEROTTI is the geologist/geophysicist on these 3D seismic based prospects.

Illinois Basin

   There continues to be a number of interesting wildcats through the Illinois Basin. There are a number of Warsaw wildcats in Clay and Lawrence counties in Illinois, and also in Lawrence County, O’Brien Energy will drill a 4,500 foot Trenton test. MDM Energy set casing on a Salem wildcat in Effingham County, Ill., and extended drilling in its newly discovered Effingham West Field.
   Western Kentucky is seeing an increase in horizontal New Albany shale activity with Daugherty Petroleum completing and permitting wells in Christian County. Core Minerals permitted additional horizontal New Albany shale wells in Union County.
   In Indiana, as reported by Scout Check, El Paso Production expanded its drilling program in Daviess County with five additional horizontal New Albany shale tests. This is located in the Plainsville field where El Paso completed several horizontal gas wells in the last few years. Noble Energy continues its New Albany shale program with horizontal wells in Sullivan County as well as permits for additional horizontal wells in Pike and Dubois counties.
   Experienced landmen seem to continue to have to work, but the overall amount of leasing appears to have reached a level pace. As reported previously, the Tri-State association continues to concentrate its efforts on education at monthly meetings by utilizing the expertise of professionals from across the oil and gas industry.
“Thanks to Becky Weber for previously providing the reporting for this article. It takes two of us to replace her.”

( Wayne Presson and Jay Ritter, “Field Update-Illinois Basin,” LANDMAN 2, November 2008: 28-29. )