**Update from CHAG on the CHAG Club site:
"We remain on schedule to close the MDG / Cornell funding next Thursday or Friday, subject to having the 11 separtate and in several instances complex financing and closing documents all in final form by Monday - which should be OK as things now stand. Drilling should certainly be underway on July 5, with the commencement of the first granite wash infill well down to 2800 feet. While that is being drilled we expect to drill and complete 4 wells down to the squirrel formation at 1300 feet. The drilling and completion timeframe should not exceed 14 days for all these wells combined.
We also start work early next week on a registration statement for both MDG/Cornell and Barkley. This will entail us entering into a "quiet" period and our concern is that we may be in a situation where as the drilling results come in we won't be able to publicly announce them. Of course, if a shareholder should just happen to be passing the property.....
The roadworks will start next week, with initial reinforcement work which will take several days. We are also expanding the storgae tank battery to accomodate increased production.
Oil shipments from these first 5 new wells should neccessitate twice or 3 times daily crude oil shipments from the third week in July. This excludes continuing production from existing wells and the assumption is based on estimates from both Bill Stinson and Zeke Pearson that each Squirrel well will produce at least 50 barrels per day, and that they expect at least 150 from the granite wash well, with possibly a good deal more if oil is actually derived from the granite wash itself.
We will be shipping out a load of crude oil tomorrow, and will announce the details when the volume is confirmed."
Peace,
M&M Man
