ADVANCED TECHNOLOGIES FOR STRIPPER GAS WELL ENHANCEMENT

As part of Task 1 in Advanced Technologies for Stripper Gas Well Enhancement, Schlumberger Data & Consulting Services (DCS) joined with two Appalachian Basin producers, Great Lakes Energy Partners, LLC, and Belden & Blake Corporation to develop methodologies for identification and enhancement of stripper wells with economic upside potential. These industry partners previously provided us with data for more than 700 wells in northwestern Pennsylvania. Phase 1 goals of this project are to develop and validate methodologies that can quickly and cost-effectively identify underperforming wells with remediation potential. We have enhanced and streamlined our software and are using it with the latest versions of Microsoft's{trademark} Access and Excel programs. During the last quarter of 2002, Great Lakes provided us with additional data for approximately 2,200 wells located in their Cooperstown field situated in northwestern Pennsylvania. We identified approximately 130 potential remediation candidates, and Great Lakes personnel are currently reviewing this list for viable remediation. Within the last few weeks, a list of five candidates have been chosen for refract, in addition to two alternate wells. This field has provided a rigorous test of our software and analytical methods. We have processed all the information provided to us including the Cooperstown data. Great Lakes also provided supplemental data listing the original operator of the wells. We have determined whether a statistically significant number of underperformers correlate to specific operators and/or their associated completion/stimulation methods. In addition, the DOE has reviewed a draft version of a final report