Fossil’s current drilling project for 2012 involves drilling multiple oil wells in Escambia County, Alabama (Southwest Alabama).  The Fossil-Smackover Multi-Well JV will initially drill back to back two (2) Smackover prospects called the South Ingram and Roll Tide.  The reserves potential for these two 3D seismic based prospects are estimated to be a total of 1,200,000 barrels of oil.  Each well will be drilled to 14,500’ and test the prolific Upper Smackover formation.  There are eleven (11) nearby oil wells to these two prospects that have produced in excess of 7,100,000 barrels of oil.  Fossil Oil Company has again partnered with Choice Exploration, Inc. to operate and drill the first two of several Smackover oil prospects in this core area.

You will find this multiple well oil project is very exciting with the 3-D seismic based South Ingram Prospect Well (14,500’ Smackover test) and Roll Tide Prospect Well (14,500’ Smackover test) providing significant economic upside to this JV.  These exciting deep exploratory tests could provide a return of 4-6 times on your investment alone with estimated payout ranging between 13 – 26 months.

Precision Drilling Rig #86 commenced drilling the South Ingram Prospect well and it drilling at approximately 4,000′ this morning.