We explore for, produce and gather oil and natural gas. During the fiscal year ended February 28, 2007, we had an interest in four principal properties, (i) the Slater Dome Field, located in northwest Colorado and south central Wyoming, (ii) the Flattops Prospect located in southwest Wyoming (the "Flattops Prospect"), (iii) the Nucla Prospect, located in western Colorado (the "Nucla Prospect") and (iv) the Gibraltar Peaks Prospect ("Gibraltar Peaks"). In February 2007, we sold our interest in the Nucla Prospect. The Flattops Prospect is, undeveloped, which means it does not currently produce any oil or natural gas. Until December 14, 2006, the Slater Dome Field was operated by Cedar Ridge. The Company is now the operator of the Slater Dome Field, and the Flattops Prospect. We also own certain royalty interests in certain wells in the state of Wyoming other than in the Slater Dome Field.
Subsequent to February 28, 2007, on April 16, 2007, we entered into an agreement to acquire and take over operations, pursuant to a farmout agreement with the current operator of the Focus Ranch Unit (the "Focus Ranch Unit") in northwest Colorado. The Focus Ranch Unit consists of approximately 35,000 acres adjacent to and southeast of the Slater Dome development area. The terms of the agreement require us to test the Niobrara and Frontier formations in the Focus Ranch Federal 12-1 well in order to earn 65% of the farmor's working interest, which averages 75% in the Focus Ranch Unit. We will acquire the remaining 35% working interest from the farmor after completing a $2,000,000 production payment from the Focus Ranch Unit.
