Eldorado Exploration

Eldorado Exploration Inc. currently has the right to drill on approximately 40,000 acres that are under lease in New Mexico. There are several additional oil field prospects that have been identified in Texas, New Mexico and around current drilling operations in N. Dakota and Illinois.

At present, the Mesa lease is comprised of 11,300 acres. We anticipate commencement of completion operations in the first Mesa gas well during 2008.

The leased acres lie in the heart of a target area that is approximately 25 miles long and 5 miles wide with a potential of over 50 gas wells on the company leases.

Other potential sites waiting to be drilled include prospects having 16,000 acres and 13,000 acres in New Mexico, 16,400 in Texas and an estimated 50 locations in N. Dakota and Illinois.

Eldorado Exploration has agreements with Joint Venture Partners to fund additional wells on the company’s prospects with carried Working Interests which range from 12.5% to 20%.

Technology has caused an incredible increase in the success rate of locating oil and natural gas reservoirs. Eldorado Exploration’s strategic relationship with the PIP Group is at the leading forefront of that success. With Passive Induced Polarization, the PIP Group averages better then a 70% success rate for finding commercial oil and gas wells.

However, it must be remembered that the process of exploring for natural gas and petroleum deposits is rife with uncertainty and trial-and-error, simply due to the complexity of the geologic conditions required for a commercial discovery.

Although the process of digging deep into the Earth's crust to find deposits of oil and gas may seem daunting, Eldorado Exploration understands a number of innovations and techniques, which both decrease the cost and increase the efficiency of drilling for natural resources. Also, the advancements in technology have greatly contributed to the improved rates of success and overall evolution of oil and gas exploration.