SHOGUN,

ILLINOIS BASIN, INDIANA

Operator:

Running Foxes Petroleum Inc. – 50%  

Osceola – 50%

The Shogun project is offset from the Marion Trenton trend and located in north western Indiana, targeting the Trenton – Black River dolomitic breccias or “collapse features”.  The reservoirs in this area tend to have high porosity and permeability, and are generally elongated, narrow and highly prolific producers.

The partners have flown a proprietary aeromagnetic survey over the area that has been evaluated for Basement faulting, a key factor in establishing prospectivity.  Running Foxes has also executed a regional geochemical survey which has yielded a number of areas where hydrocarbons are believed to be present.  These coincide with the Basement faulting highlighted by the interpretation of the aeromagnetic data and sub-surface geology.

The programme for 2009 is to expand the geochemical survey by detailing those areas that have indicated hydrocarbons at depth.  Following this phase, a selective leasing programme is planned.