Conecuh County, Alabama

The Little Cedar Creek Field, located approximately 72 miles north of Pensacola, Florida and 90 miles northeast of Mobile, Alabama, is in a field drilling unit consisting of 160 acres in the southwest quarter of Section 28, Township 4North, Range 12East, Conecuh County, Alabama. The well is to be drilled to 12,000 feet to test the Smackover Jurassic carbonate reservoir on the southwest side of the field.

The field producing rate is holding up very well. The field has produced 11,677,215 barrels of oil through December 31, 2010, and 11,358 MCFG. The most recent monthly production was reported to be 114,259 BO and 180,290 MCFG. Reserves based on the field history are estimated to be 800,000 BO and 300 MMCFG, per 160 acre unit.

The Little Cedar Creek Field has approximately 86 wells currently in a pattern roughly 15 miles long and up to 4 miles wide extending to the east/northeast from the field discovery well. Field development is ongoing.

The discovery of Little Cedar Creek Field and its production levels have stimulated a search for analogues and the value of the field, at current oil prices, make the venture well worth the capital expenditures. This is, of course, if all of the factors can be proven to be in place to justify the cost. In the case of Little Cedar Creek Field these factors are present. Continual development is well justified if acreage can be had. Intrepid Drilling was fortunate to acquire a 160 acre lease at a good development location at a late date.