3D seismic defined exploration prospect with target in JV and primary Vedder Sandstone reservoir targets.  Footwall trap against NNE-SSW trending Salt Creek fault.  Up dip to west is 60 mmboe Tejon North gas and oil field.  The 40 mmboe Tejon oil and gas field is adjacent to the east side on the up thrown side of the Salt Creek fault.

Deviated test well planned to measured depth +12,000 feet.

Project has geological similarities to the large 175 - 250 mmboe OXY discovery made in 2009.  Also a San Joaquin Basin footwall trap.

Targeting a 25-50 mmboe recoverable resource.

Forward Plan:

Update reservoir evaluation by comparison with offsetting Tejon and Tejon North oil and gas fields.  Drill approximately 12,000 ft exploration well in Q1 2012.