Since the state’s first oil discovery near Jennings in the opening year of the last century, 1901, Louisiana has had a close association with the Oil Industry. Even though today it ranks roughly 7th and 8th among the states in proved natural gas and crude oil reserves, Louisiana, more than any other state, comes to mind when we think of the Gulf Coast Oil Industry. It could be because the processes associated with hydrocarbon generation are so associated with present day South Louisiana landforms, wetlands, sediment flow and deposition. For whatever the reason, Louisiana comes to mind when you think of the Gulf Coast Oil Industry. Osyka currently has two properties in Louisiana and they account for less than 5% of our proved reserves. We see great opportunity for our company in the state.

During the past year Osyka successful drilled a near record deviated well extending well under the Mississippi River. It found over 30 feet of oil in Tuscaloosa sands. Reserves are estimated to be over 600 MBO. Evaluation of this project is ongoing.

Plans are underway to expand our property holdings in Louisiana. We will focus on acquisitions and submittals with emphasis on mature properties with established production history and infrastructure. We are looking to partner with a successful exploration group in our quest to develop opportunities primarily targeting prolific Miocene and Oligocene trends of South Louisiana and Tuscaloosa trend of North Louisiana.