Neon 25% Working Interest Holder

Neon earned its 25% interest in this area by paying a promoted share of costs of the North Yowlumne-1 well drilled and tested during 2006.

North Yowlumne-1 tested oil of 32º - 36º API from the primary target but was not able to be completed as a commercial producer.

A second well drilled in 2007 also found light oil but did not prove a better reservoir.  The Company is reviewing its geological model before determining whether further investment in the area is warranted.