NORX The South Sun River Prospect was identified b

NORX The South Sun River Prospect was identified by the Company's management as an excellent target for a Bakken well. It consists of over 10,000 acres of prime Bakken acreage with almost 10 years left on most of the leases. Bakken development is considered simple and basic horizontal drilling. Under the Farm Out Agreement Norstra will provide $200,000 for short term working capital and drill and complete a first well into the Bakken Oil Formation by December 31, 2013; a second well into the Bakken Oil Formation by June 30, 2014 and drill and complete a third well into the Bakken Oil Formation by December 31, 2014. Upon completion of these drilling obligations, Norstra shall have earned 100% working interest in the entire acreage constituting the farm-out land. In the event that Norstra only completes the first and/or the first and second well, but elects not to proceed with the second and/or third well, Norstra will earn the above mentioned working interests only on the spacing unit on which well(s) have been drilled