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Nearly all of Famcor's gas production in Southeast Texas comes from the Yegua/ Cockfield Wilcox formation. We believe that the Wilcox has been overlooked by many operators due to difficulties in well log interpretation, completion techniques and well stimulation methods. Famcor has spent the past twenty years working the Wilcox in Polk, Montgomery, and San Jacinto Counties, focusing on these problems and has dramatically improved flow rates, total reserves and the rate of successful commercial completions in the Wilcox trend.

Cold Springs Field was discovered in 1951 and had produced 27 BCF of gas and 1,300,000 barrels of distillate from various Wilcox reservoirs through 1991. Since the purchase, Famcor has recompleted some of the older wells and drilled several new wells. At present, Famcor operates over 20 wells in Cold Springs Field, and has plans for drilling many more as our evaluation ablities improve. Since the purchase, Famcor has produced an additional 35 BCF of gas and 3 million barrels of distillate. As of January 2008, The field is producing 6000 MCF and 360 barrels of distillate per day.

Livingston Field is the third field purchase by Famcor in this Wilcox trend. In November 2002 Famcor purchased ExxonMobil's interest in Livingston Field in Polk County. Livingston Field was discovered in 1932 and had produced 20 million barrels of oil and 8 BCF of gas primarily from Upper Wilcox and Upper Yegua sands. Famcor has increased field production from the existing wells, primarily through secondary recovery methods, and shot a 3-D seismic survey to identify partially drained fault blocks as well as new undrilled fault blocks on this deep seated salt structure.

Schwab Field is another deep seated salt structure a few miles southeast of Livingston Field in Polk County. Schwab Field was also found in the early 1930's and has produced oil and gas from multiple fault blocks, primarily Wilcox and Yegua sands. In 2000 Famcor shot a 3-D seismic survey and has since found new production or extended older production in four separate fault blocks and various stratigraphic traps. More drilling is planned for untested prospects.