Wolfberry Development Projects

In 2007 and 2008, Fivestones established a significant lease position in the long lived “Wolfberry” Resource Play of the Permian Basin for its investors totaling over 18,000 acres along the Eastern Portion of the Wolfberry Play in Irion, Reagan, and Glasscock counties of West Texas. Located on the flanks of the prolific Spraberry play of the Midland Basin, the “Wolfberry” play consists of drilling, completing, commingling, and producing the established Spraberry and Wolfcamp formations in a single wellbore.

Drilled to 9000’ - 10,000’, the Wolfberry play wells are typically completed from 5000’ to 9000’ using multiple stage high rate fracturing treatments to enhance their productivity.

All of the acreage lease by Fivestones is 100 % operated by Fivestones and is geographically concentrated in repeatable drilling opportunity areas with considerable upside potential. Fivestones drilled seven test wells on the acreage in 2008 and an additional 8 wells in 2010.  The results have been very favorable and has led to the sale of a 9,604 acre tract in Irion Co., TX.  A second project that includes 10,240 acres in Glasscock and Reagan Co., TX has received considerable interest from industry players in the Wolfberry trend and a sale is likely b y the end of 2010.

A third Wolfcamp/Canyon/Stawn project, the New Amigo, includes 2,240 acres was acquired in 2010.  In lieu of drilling this project, Fivestones received a very competive offer to acquire this acreage in May, 2011.

San Andres Horizontal Drilling Projects

Fivestones is also actively engaged in using horizontal drilling to develop and produce bypassed reserves in the shallow San Andres formation of West Texas. Fivestones successfully drilled two multi lateral horizontal wells in 2008 as the contract operator for a local oil and gas company and plans to be actively drilling a new 1800 acre horizontal San Andres drilling prospect later this year.

A new project in the San Andres will kick off in January 2011 that will cover over 7,000 acres and will involve addition horizontal drilling.  Fivestones will be ready to present this project in January.

Canyon Sand Drilling Project

In 2008, Fivestones drilled two successful Canyon Sand tests in the Canyon Sand play of Irion Co. In 2010, Fivestones drilled three more wells that also proved commercial in the Canyon and revealed additional commercial pay zones within the 1,200 acre project.

Additional Projects

Fivestones is Presently engaged in developing several new projecs and will be presenting them to industry investors in the Fall of 2011