Neon Operator and 20% Working Interest Holder

The Tejon area leases are located on the Tejon platform on the southern margin of the San Joaquin Basin, south east of the South Buena Vista lease area.

Targets are Miocene to Eocone age mostly shelfal sandstones (some being the shallower water equivalents to the deep water origin sands Neon is pursuing in the Buena Vista Valley area) at depths between 5,000 feet and 13,000 feet.  The acreage is surrounded by a number of small to large oil and gas fields.

The most mature prospect is the 36 million barrel prospective recoverable resource Merlot Prospect. This is a footwall structure, set up by closure in a downthrown setting against a prominent thrust fault and with numerous stacked sandstone targets. The primary reservoir within the prospect is the Vedder Formation in an updip position from a 1962 well that tested oil (40° API) and gas from that zone.