Lafourche Parish, Louisiana

The West Cut Off Prospect is located approximately 65 miles southwest of New Orleans, Louisiana and immediately west of Bayou Lafourche. It is located in Section 1, Township 18S, Range 21E. It is in a drilling unit consisting of 700 acres on pasture land. The location is not in the wetlands, but will require piling to be driven.

The initial well is to be drilled to 13,400 feet through six Miocene sands at normal pressure and is set up by two large growth faults that can be traced by both well control and seismic control. These large growth faults are typical of South Louisiana growth faults and are sealing due to the smear effect seen along these fault planes. In addition to these objectives, there are two potential pressured sands below 13,400 pipe point that will be drilled in a subsequent well. This prospect has the potential of 20 million barrels of oil with associated gas and this sand package is represented by over 400 feet of prospective sand. To the east, Cut Off Field has produced over 40 million barrels of oil and 127 billion cubic feet of gas to date. The objective sections of sands will be encountered from approximately 12,200 feet to a depth of 14,300 feet. The high pressured section will be encountered at approximately 13,400 feet.

Intrepid Drilling will observe the new Department of Natural Resources Rules from the Office of Conservation in the State of Louisiana regarding new drilling requirements, diverter systems and blowout prevention directives. Drilling begins April, 2011.