Gulf South Operators

To date New Sage has entered into three separate projects with Gulf South Operators.

Project #1 - Lafourche Crossing
New Sage holds a 5% working Interest in this O&G well that is currently producing approximately 200 boe/d in Louisiana. The well is a development well in a mature O&G field. The well had targeted five development pay zones and nine were discovered. Current production is from the first zone only.

Project # 2 - Pearsall-Austin Chalk
The second project that New Sage entered into is an oil well targeting the Austin Chalk oil zone in Texas. The company holds a 25% working interest in the well and this is a development oil well in a mature field. Results are currently pending as the operator targets a potential lower oil zone.

Project #3 - Valentine
This project involves the drilling of two separate wells. The first, GSO Peltier #1, is targeting primarily gas deposits. The second, GSO Peltier #2, is targeting primarily oil deposits. These are development wells within a proven oil and gas producing field. The wells are in the process of being drilled and are both targeting four distinct pay sands. New Sage has a 10% working interest in each well.