Lease holdings located on the NW near crestal position and flank of the large Paloma anticline field that has produced 61 mmbbls oil and 432 bcf mainly from Miocene sandstone reservoirs.

Several, stacked sandstone targets are present between 9,000 and 15,000 ft.

Fractured oil shale reservoirs are also present and have been productive elsewhere in the anticlinal closure, although not targeted by the historic field development.

The project is partially 3D seismic defined and has targets in previously produced and undrilled extensions of oil and gas productive sandstone reservoirs.  Some of these reservoirs are characterised by seismic amplitude anomalies (Direct Hydrocarbon Indicators or DHI's).

The Operator, NEON, is documenting production potential in the Monterey Formation fractured oil shales that are largely untested on the entire anticline and exhibit strong shows in control wells.

Target recoverable oil resources of over 33 mmbbls.

Forward Plan:

Drill Paloma Deep-1 appraisal well.