FNRC ~  The Company has experienced a 100% success rate at Clabaugh Ranch where the 42 drilled wells have encountered developed coal seams in the Werner, Upper and Lower Smith, Wyodak/Anderson Lower, Gates and Wall formations. Well log analysis of the drilled wells demonstrates gross pay zones of approximately 150-200 feet, the most significant of these being the Werner, Wyodak/Andersen, and Gates coals. Clabaugh Ranch is about 20% developed; currently the 42 drilled wells are commingling  gas produced from three coals - the upper and lower Smith, and the Wyodak/Anderson. In total the Company has identified 515 separate coals seams for development of which only 126 (42 wells X 3 seams) have been completed. There are 8 permitted locations for future development and acreage for 28 additional locations which will be permitted in the future.