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 wells with enhancement potential. We have enhanced and streamlined our software, and we are using the final version of our new Microsoft{trademark} Access/Excel programs. During the last quarter of 2002, we received additional data for approximately 2,200 wells from Great Lakes. This information pertains to their Cooperstown field located in northwestern Pennsylvania. We recognized approximately 130 potential remediation candidates, and Great Lakes' personnel are currently reviewing this list for viable remediation. 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