Ator #1H Drilling Begins

Devon reports that the "drilling" of the Ator GU #1H is finished, and that the Felderhoff #4 rig has moved over to the adjacent Ator #1H pad. The gas potential associated with this first well is not determined yet. The fracing of the GU #1H is likely 2 months off.

Devon is committed to selling the gas to Cross Tex Pipeline who has not yet begun their Ator lease gathering lines. Interestingly, the Enbridge pipeline just across the road will not be used.

Also, the source of water for the frac jobs is not known currently. A deep water well (down 6,000') has been staked as a possibility, but other alternatives are being evaluated.