]> SA Advisory

Natural Gas

We are continuing to be very active in Natural Gas drilling joint ventures. Our successes to date have been excellent. We appreciate all the letter commending our efforts. We will continue to search out programs that offer investors limited risk with huge upside potential. We believe in Natural Gas and anticipate a very bright future for its uses. By diversifying into these programs, investors can receive the benefits of monthly cash flow, tax free income, inflation protection, and the most favorable drilling environment we have seen in over a decade.

Well Summary

Garcia and Benevides Garcia about $502.00 for each $1,000. Benevides about $210 per $1,000 has been returned in the distributions. It is expected that following the Christico buy-out that has been announced, we will receive a lump sum of back revenues owed to us. This lump sum should almost equal the amount we have received in revenue to date. This will almost double our return to date. Very bullish development.
N.E. Erick-Dryden This well has produced 450 mcf. Once the permanent pipeline is in place, this should be obtainable. The payout is not as favorable as the other wells due to the dry hole on the original money - we expect less than a five year payout even with the original Northeast Eric dry hole. A yawn of a well, but still a producer.
C-2 This project is also still in the completion stage. It has been producing over 1.3 million mcf since February 2, 1995. $100,000 is still available from the collected completion funds to refract the 9100 foot sand. The 2.5 million a day is a conservative estimate for this well. The second distribution check going out next week will include all 3 months sale of condensate and Aprilís gas sales. At this point about $40 per $1,000 participated has been earned income. The second fracture job should step up production considerably. A good well in time.
Flack #1 This well has tested showing the best potential of any well we have participated in. Only three days after the Hydraulic Fracture the well produced 165 barrels of condensate and 3.4 million cubic feet of gas per day. The well is shut-in awaiting pipeline and surface facilities. There are four other sands in this well for future production and the preliminary production results of the sand we are in now shows that this well may be three times the Garcia well and was offered by Energy Equities Inc. at 68% of the cost of participating in the Garcia. A real power house gas and oil well! Three thumbs up.
Glomp #1 This is an offsetting well to the Flack #1 and will be using the same proven drilling and completion procedures as the Flack, C-2, Garcia and Benevides. This well has started drilling and is expected to be on line by August. We expect the same results as the Flack #1. You have to buy into this one! A no brainer!
For more information on any of the existing projects or information on future opportunities, please call Chauncy at 1-800-746-4GAS (minimum investment $3,000). We at S.A. Advisory are very bullish toward Natural Gas. It is our future!

S. A. Advisory's Undervalued Hotline
1-900-990-0909 Ext. 192

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