]> 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 -has paid $736.77/$1,000 invested.
Benevides - has paid $340.11/$1,000 invested.
N.E. Erick - Dryden - This well has excellent pressures and should produce between 400-500 mcf per day. Pipeline construction has now been completed and production numbers will be out shortly. The payout on the Dryden well is expected to be around three years, including the funds going toward the NorthEast Erick. Similar wells in the area have about 8 to 10 year life. This return is good considering the original well in another field, the Northeast Erick, was a dry hole.
Guerra C-2 - The Guerra C-2 began selling gas on February 2, 1995 and has so far produced enough to return about $108.00 for each $1,000 participation.
Flack #1 - Gas sales from this well began on July 7. Production has begun at about 4,400 mcf per day and will gradually be stepped up until it reaches 5,000 mcf per day. At the end of August the well was selling over 4.4 million cubic feet of gas and 115 barrels of condensate. First check anticipated during early October, expect $70/$1000 investment. Excellent well.
Glomp 1 - The Glomp 1 is an offset well to the Flack #1. Pressures and production are similar to that of the Flack. It is also structurally high and therefore it could be a better well. The pipeline and production facilities had already been completed. This has allowed gas sales to begin on Monday, July 24th. We expect good numbers from this well. At the end of August the well was producing 3.6 million cubic feet of gas and 140 barrels of condensate/day. We anticipate first royalty check on or about early October 1995 - expect $60/1000 investment.
Southeast Loma Blanca Field - Kebo Flack #2 well.
An offset to the Flack 1 roughly 1,400 feet away. We anticipate an exceptional low risk project with similar results to the Flack #1 and Glomp #1. We anticipate the well to be spud by early October. Glomp #1 partners have first right to participate. All indications that Flack #2 well interest will be sold out fast.
Note: a competitor is selling the same project for $65,000/1% interest, while Energy Equities is selling 1% interest for $31,500. Obviously, you would have to be an idiot to call the competitor. We anticipate that the Flack #2 will be highly successful and believe payout will be 12 - 15 months.
For more information call Chauncey Buck at 1-800-746-4GAS for an information package. Please act quickly for a chance to participate in this no brainer.

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

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