Crawford Energy is currently working with a Third Party Geophysical Consulting company who utilizes advanced geoscience technologies to identify and develop oil and natural gas reserves. This technology utilizes Prestack Time Migration with improved data conditioning to improve data accuracy. The data is reprocessed from the original field tapes to produce four wavelet-based data sets. The combination of these four data sets results in the confirmation of field pay and identifies additional prospects undetected by earlier processing techniques.

As of July 2004, this process has identified and caused to be drilled (by other E&P companies) eighteen wells. The success rate is 83%. The breakdown is as follows:
   (1) Two producers that are depleted after producing a combined 2 BCF and 40,000 BO
   (2) Eleven wells currently producing
   (3) One not completed due to mechanical problems
   (4) Two completions waiting on pipeline connection
   (5) Two dry holes.

Cumulative production to date is 5.157 BCF and 68,932 BO.

As of July 2004, Crawford Energy has drilled one well based on this technology (May 2004). Gas sales commenced August, 2004. We are actively leasing additional prospects.

Our current drilling program anticipates spudding two wells per month. To date, our in-house partners (Crawford Energy Group) have invested in the majority of the Working Interest in our prospects. However, with the amount of prospects in the "pipeline", we are seeking additional partners to participate up to 50%. The Crawford Energy Group will invest the other 50%.