SOLITAIRE,

DENVER - JULESBURG BASIN, COLORADO

Operator:

Admiral Bay – 50%  

Osceola – 50%

The Solitaire project is located in Kit Carson County, Colorado, straddling the Colorado/Kansas border, and covers 47,000 acres.  The project is along trend with several large producing gas fields operated by Berry Petroleum (BRY: NYSE), Noble Drilling (NBL: NYSE) who have indicated that they expect the play to produce 5 TCF (trillion cubic feet) of gas, Delta Petroleum (DPTR: NYSE) and Rosewood Resources (private).The project is targeting primarily the Cretaceous Niobrara shale at less than 1,500 feet.  A major pipeline with high take away capacity runs through the centre of the licence area. Geological work and the re-interpretation of aeromagnetic data have been completed.  Three wells are being staked targeting the Mississippian formation. Below the Niobrara there are also several potential pay zones in the Lansing-Kansas City, Marmaton, Cherokee, Morrow and Mississippian horizons.

Assessment drilling is planned for late 2009.