The company said that, based on sample log core data, the formations are potentially oil and gas productive at commercial rates of flow and may have significant reserves. Four of these zones are in the Wilcox formation and four in the Midcox formation.

The Gerdes-1 well is the second in a 10-15 well program that is planned in the Halletsville South Project Area. The program is based on exploration for stratigraphically trapped oil and gas reserves, using 3D seismic data to define the position of the channel and point bar sands, which are present in the area. The first well, the Scheinemann South-1 was cased for production testing approximately two weeks ago.

Additional drilling for both the Wilcox and Midcox objectives will be conducted in the third and fourth quarters of this year. During the balance of this year, it is anticipated that a further 8-10 wells will be drilled on the Red Creek, Raccoon Bend and Lavaca County areas of interest.

The company will continue to evaluate suitable producing property acquisitions and also continue the expansion of Amadeus' exploration and development drilling activities.