Cedar Creek Prospect

Cedar Creek Prospect is a 7,000 foot, Lower Cretaceous Rodessa shallower pool test of the Cedar Creek Field located in Henderson County, Texas, 160 miles north of Houston. The prospect is a multi-objective, low relief structure overlaying a deeper Jurassic Smackover reservoir discovered in 1984. The Lower Cretaceous Pettit, Rodessa and Travis Peak objectives are shallow water carbonates and calcareous sands and are prolific producers on trend.

The potential reserves net to KEI are 2.58 BCF equivalent to 3.23 BCF equivalent. KEI will have 50% working interest in the well before completion and 37.5% in all subsequent operations. KEI's proportionate estimated costs are US$75,000 for land, US$298,682 drilling and, if successful, US$200,000 for completion.