Most recently, EPM is evaluating an existing technology that targets reservoirs consisting of an oil column floating on top of a water drive aquifer column. These types of reservoirs typically have low recovery due to the higher permeability of the rock to water compared to oil, thus oil wells tend to “water out” early. The completion technology being evaluated by EPM attempts to preferentially produce the oil.

In addition, EPM is developing a proprietary artificial lift technology that targets residual oil and gas reserves in certain types of wells. We expect to field test the technology in 2008.

These technologies are experimental and may not prove useful to our plans for increasing production or ultimate recoveries from known reservoirs. None of our active projects at November 1, 2007 depend on the success of these technologies.