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April 28, 2006

The Company wishes to announce that it has entered into an agreement with Western States International, Inc. and Gas & Oil Technologies, Inc., both of Monrovia, California and their principal shareholders (the “Vendors”) to purchase a 60% working interest in an oil and gas property known as the Kern Front Filed (the “Property”) in consideration for the issuance of 7,500,000 common shares of the company and a royalty based equal to 10% of the net operating revenue received by the company from the Property, payable in cash or by the issuance of special warrants at a deemed price of $0.20, each of which may be converted into one common share of the Company, subject to certain limitations if as a result of such conversion the royalty holder would own 10% or more of the shares of the Company.  In addition, the Vendors have agreed to offer the Company a right of first refusal to purchase up to 60% of any natural resource property located within an area of mutual interst of 1 mile from the external boundaries of the Property or other areas mutally agreed by the parties for a period of three years. 

The Property is located approximatley 12 miles northwest of Bakersfield, California in the historic Kern County oil production field and is comprised of approximately 890 acres with 180 wells, 110 of which have been capped and abandoned.  Of the remaining 70 wells capable of production, 14 are currently equipped and tested for production.  Of these 14 wells, 10 are currently designated for production and 4 are designated as water injection wells.  Production is currently on standby, pending State approval for the water injection wells, which is anticipated shortly. 

The transaction is subject to due diligence and completion of a number of other conditions including receipt of a satisfactory technical report compliant with NI 51-101, and receipt of regulatory approval, which remains outstanding. 


“Charles Ross”
Secretary and Director

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