BIG SKY,

POWDER RIVER BASIN, MONTANA

Operator:

Running Foxes Petroleum Inc. – 50%  

Osceola – 50%

The Big Sky project is located in Carbon County, Montana.  The primary target is the Greybull sandstone.  There are several fields in the area that have been prolific producers from this formation at depths shallower than 4,000 feet.  Secondary targets are the coals and Carbonaceous shales of the Eagle formation.  To the north east of the licence Bill Barrett Resources (BBR: NYSE) has made a number of gas discoveries in the Cody shales also known to be present within the licence area.

Running Foxes and Osceola have flown and completed the interpretation of a detailed aeromagnetic survey designed

to identify features such as faulting and fracturing, horsts and grabens.  This has been followed up by a full geochemical survey, the results of which are currently being analysed.  The target sandstones have excellent reservoir characteristics with porosities exceeding 20% and multi-Darcy permeabilities.  Indigenous Cretaceous sourced oils are usually green, paraffinic, high gravity – up to 50 degree API, with low sulphur content.  The nearest oil production is from the lookalike, stratigraphically trapped, Mosser Field ten miles to the north east which has an estimated 2 billion barrels of oil in place. At the Elk Basin Field, 25 miles to the south, five wells have recovered 54 billion cubic feet of gas with a recovery factor of 600,000 cubic feet of gas per acre/foot.In excess of 15,000 acres has been acquired over the main Greybull sandstone target.  A well designed to test a 1.75 mile wide channel anomaly at approximately 4,000 feet is planned during 2009.