Status of Field Pressures and Wildhorse

We forwarded you a copy of the San Arroyo Production Report from Dan
Rieneke. His report included notes concerning (1) Wildhorse removing a CAT
compressor at San Arroyo, (2) increased field pressures, and (3) comments by
Wildhorse field personnel concerning a potential lawsuit with Crescendo over
pressure.

In subsequent conversations between Dan Rieneke and Wildhorse personnel
yesterday, the following information was relayed:

(1) The CAT compressor was used only for the Natural Buttes gas being
routed through the South Canyon area. We are not sure where they took it.
It was most likely a rental unit.
(2) Increase in field pressures late last week was due to a compressor
going down. Overhaul of that unit was not complete until late yesterday
(Monday), and we should have started to see some pressure relief again last
evening. Putting the compressor back on line will only restore pressures to
their levels prior to the shutdown.
(3) Wildhorse field management will correct any mis-information obtained by
their field personnel (concerning a lawsuit).

Ken Krisa
Crescendo Energy, LLC