A recompletion to test additional zones in the Baker-Bartlett Unit #1 (Sec. 35-T12S-R35W, Logan County, KS) was completed today. The well will be placed back into production and pumped for evaluation.

The company announced today that after discussions with Southwind Drilling, Inc., the drilling schedule for the next 60 days has been set. The Laura #1-2 (Sec. 2-T11S-R23W, Trego County, KS) is set to spud December 16, 2009 with Southwind Rig #1.  In Barton County, KS the Betty Radke #1-6 is slated for a January 2, 2009 commencement utilizing Southwind Rig #2.  The Seele B #1-36 (Sec. 36-T10S-R34W, Thomas County) is rescheduled for January 23, 2010. Southwind Drilling Rig #1 will be providing drilling services. (The Seele B #1-36 has been pushed back on the schedule several times due to excessive muddy conditions.)

Drilling on the Seele B #1-36 has been delayed. Extreme rains have made the lease location and county roads inaccessible.

Plugging was completed today on the Windholz C#1-19 (W/2 Sec. 19-T10S-R22W, Graham County, KS). The Windholz C #1-19 was a wildcat well drilled in July 2005 and completed as the discovery well for the Chalk Creek Field. Express Well Service and Allied Cementing, Inc. provided plugging services.

Plugging was completed today on the Chalfant C #1-5 (SE/4 Sec. 5-T8S-R22W, Graham County, KS). The Chalfant C #1-5 was drilled in May 2005 in the Harmony South Field. Express Well Service and Allied Cementing, Inc. provided plugging services.

In other Graham County news injection commenced on the Bollig D #3-25 injection well.

The Kansas Corporation Commission issued authorization to commence injection into the Kansas City formation on the Bollig D #3-25 injection well (SE/4 Sec. 25-T10S-R23W, Graham County, KS.

The Lloyd C #1-31 (Sec. 31-T10S-R22W, Graham County, KS) was completed as a dry hole. This well is the third test hole drilled on the Wakeeney North 3-D Prospect.

Southwind Drilling Rig #1 is scheduled to commence drilling the Seele B #1-36 approximately October 16, 2009. The Seele B lease is located in the S/2 Sec. 36-T11S-R34W, Thomas County, KS. The Seele #1-36 is a northeast offset to the Seele A #1-35 Seele Field discovery well drilled by Russell Oil, Inc. in October 2008.

Results of the May 2009 workover on the Lloyd B #1-2 were released today. The Lloyd B #1-2 (Trego County, KS) is currently producing at a stabilized rate of 90 BOPD; 15 BWPD from undisclosed zones.

In Russell County,  KS a change in the pumping configuration on the Keil A #1-32 is yielding 98 BOPD; 1 BWPD.

Southwind Drilling, Inc. confirmed today the proposed spud date of September 30, 2009 for the Lloyd C #1-31 well located in Sec. 31-T10S-R22W, Graham County, KS. The well had been delayed from July 2009 due to scheduling conflicts.

The Plainfield, IL office was relocated to a new location. The new physical address of the Plainfield office is 24118 West Chicago Street, Suite 204, Plainfield, IL 60544.

Final work was completed on an extensive upgrade project of the Russell, Kansas equipment yard and field office.

The conversion of the Bollig D #3-25 as an injection well was completed today. The mechanical integrity test was passed with KCC personnel onsite. The KCC application process is pending.

Commencement of drilling on the Lloyd C #1 has been delayed due to recent damage to the derrick of Southwind Rig #1. Current projections are for a mid-September spud date.

Southwind Drilling Rig #1 is moving onto location and rigging up to drill the Bollig D #3-25 well located in SE/4 Sec. 25-T10S-R22W, Graham County, KS. It is anticipated the well will be spud on Wednesday June 17, 2009. Todd Morgenstern is slated as well site geologist.

Express Well Service finalized a work over of the Lloyd B #1-2 oil well located in Trego County, KS. Additional undisclosed zones were perforated and treated and the well placed back into production.

The Kansas Corporation Commission approved the Intent to Drill for the Lloyd C #1-31 located in the W/2 Sec. 31-T10S-R22W. Southwind Drilling is scheduled to spud in mid to late July.

Ivan Holt passed away today at the age of 93.  Ivan remained an active investor with Russell Oil, Inc. from the inception of the company in 1987 until his death. He worked as a superintendent for Skelly Oil Company from 1935 until 1952. In 1952 he started Ivan Holt Well Servicing, Inc. in Russell, KS. He operated oil well servicing rigs for over 45 years, actively drilled and explored for oil, and his company still operates oil leases in central Kansas. Ivan is the grandfather of Russell Oil, Inc. President Ivan LeRoy Holt II.

The Bixenman #1-24 located in Sec. 24-T10S-R31W, Thomas County, KS was completed as a dry hole. Reevaluation and reinterpretation of the Angelus II 3-D Prospect is to be conducted by geophysicist Kirk Rundle to determine potential viability of additional prospect acreage.

It was announced today that the SK #1-13 well located in Sec. 13-T10S-R31W, Thomas County, KS was plugged and abandoned as a dry hole.

Southwind Drilling Rig #1 is currently drilling at 2685’on the  SK #1-13 well located in Sec. 13-T10S-R31W, Thomas County, KS. The SK #1-13 is the fourth well drilled on the Angelus 3-D Prospect. The first three wells drilled on the prospect were completed as producing oil wells.  Steve Angle is well site geologist. Kevin Bailey, owner of GeoCertified, LLC, is providing mud logging/gas detection unit services.

Rig #1 is scheduled to move directly to the Bixenman #1-24 located in Sec. 24-T10S-R31W, Thomas County, KS following the drilling of the SK #1-13.

Lockhart Geophysical has completed field data acquisition on Phase II of the Monument Northwest Prospect. The data is now in the interpretation and mapping process withWichita based geophysicist Kirk Rundle.

The Lloyd B #1-2 was completed and placed into production as a commercial oil well. Initial production: 50 BOPD, 33 BWPD from undisclosed perforations and zone.

The Hubert Radke #1-6 was completed and placed in production as a commercial oil well. Initial production: 35 BOPD, 13 BWPD from undisclosed Lansing-Kansas City perforations.

The Virginia #1-6 was plugged and abandoned as a dry hole.

Southwind Drilling Rig #1 is scheduled to spud the Virginia #1-6 well this week. The Virginia #1-6 will be the second test well drilled on the Wakeeney North 3-D Prospect, and is located 1 mile east of the successful Lloyd B #1-2 test well. Steve Angle is slated as well site geologist. Kevin Bailey, owner of GeoCertified, LLC, is providing the mud logging/gas detection unit.