Quad Energy Corporation (CDID)

[fla-trader]

CDID, Cave Pool Unit:
The Cave Pool Unit is located within the Artesia Vacuum Trend, more specifically within the Grayburg Jackson Pool. The Artesia Vacuum Trend contains thirteen reservoirs with more than 1 MMBO historic cumulative production. Cumulative production from these 13 reservoirs was 796 MMBO as of 2000. Depths to the top of reservoirs range from 1290 to 4700 ft. This is a mature field, especially within the highly productive San Andres carbonates. Lower permeability in the Grayburg sandstones, in the Grayburg Jackson reservoir during the mid-1990's, has been successful to the point of reversing production decline and is a major focus of current and future development.

Under the terms of the LOI The Quad Energy would pay up to $500,000 for Blugrass' 60% working interest in the Cave Pool Unit.

The company is undertaking due diligence and will announce the signing of a definitive agreement in the event that one is signed