Arizona Oil

Forest Gate has acquired a 70% equity interest in all Arizona oil and gas licenses belonging to Vanterra Energy Inc., and will be targeting oil in the Sacramento Valley Neogene Sub-Basin of Arizona which lies within what is known as the Basin and Range Geologic Province which loosely runs north to south from northern Nevada to southern Arizona and east to west from Utah to California.

Forest Gate and Vanterra are planning to drill an 11,000 foot well targeting the Navajo sands at 6000 feet, the Mississippian carbonates at 9,160 feet, and the Devonian carbonates at 10,160 feet. A drill site has been selected using the results of a seismic program acquired by Phillips Petroleum in 1981 and subsequently licensed to Vanterra. The area is very accessible for drilling equipment and has been approved for drilling by both the Federal and State land agencies.