Volume 8, Number 68 FEBRUARY 2001

TOGA MEETS AT MOUNTAIN VIEW, FEBRUARY 22^nd-The Tennessee Oil & Gas Association will hold its monthly meeting at the Mountain View Golf Course and Lodge at 6:30 p.m.(CST),Thursday, February 22, 2001. The 2001 Annual Convention and the legislative agenda are two topics now slated for discussion. The Mountain View Golf Course and Lodge is south of Allardt, which is south of Jamestown. At the four-way stop in Allardt, turn south (toward Crossville). The Mountain View Golf Club and Lodge is on the left about 3 miles down. Informal reception at 6:00 pm.(CST), dinner at 6:30 p.m. and the meeting will begin at 7:00 pm.

STATE LEGISLATURE ASKS HOW IT CAN HELP EXPLORATION-Bill Goodwin, President, TOGA, told Tennessee lawmakers that the two major things they can do to help oil and gas exploration in Tennessee is to help producers market their gas and develop a uniform policy for exploration on state owned and state managed land. Testifying before Chairman Joe Armstrong’s sub-committee on natural gas deregulation on Thursday, February 1, Goodwin told the legislators, "We have just scratched the surface in Tennessee. Help us market our gas and we will drill deeper from Overton County to the Virginia border." Goodwin noted that 204 wells were drilled in Tennessee in 2000, up from just over 100 in 1999. "With oil and gas prices where they are now, I believe we will drill 400 or more wells in 2001," he predicted.

TENGASCO’S 60-MILE PIPELINE READY TO GO-The Tengasco, Inc. 60-mile natural gas pipeline from its Swan Creek field to Eastman Chemical Company is in the final stages of completion and is scheduled to go on stream in early March 2001. The company expects to soon be selling 10 million cubic feet of Tennessee gas to Eastman in the very near future.

Tengasco also announced in January the completion of construction of a five-mile natural gas pipeline utility system to begin immediate deliveries of retail natural gas to residential, commercial and industrial customers in Hancock County and the city of Sneedville.

SOUTHEASTERN HITS BIG CLINTON COUNTY WELL-Edmonton, KY-based Southeastern Energy reports that it hit a good Knox well in Clinton County, Kentucky, that came in flowing in December. When it settled down just a bit, they put it on pump and it is marking more than 100 BOD. More drilling in the area is anticipated.

MICROFRAC PRESIDENT SPEAKS AT TOGA MEETING-Beth Mayberry, President, Microfrac Technologies, Crossville, was the featured speaker at the January meeting of the Tennessee Oil & Gas Association. She outlined how the Microfrac stimulation technique works. The technique is economical and similar in cost to perforating. A propellant tool is placed across the perforated zone and ignited producing a high amplitude pressure pulse of relative low frequency. This pulse brings about three potential stimulating mechanisms as the propellant burns. For more information, contact Beth at 800-242-0363, extension 5827. Her e-mail address is mew@gte.net.

CITIZENS GAS, JAN $6.90 FEB $6.13 MMBTU-On January 15^th, Citizens Gas Utility District notified producers that it would continue to take gas into its gathering system for a price of $6.90 mmbtu. Citizens said that due to the warm month of January as compared to the cold December, it was having problems moving gas priced at the first of the month index (about $8.90) that comes into it’s system for markets other than its own system. The February price Citizens will be paying is $6.13 mmbtu.

CRUDE DIPS BELOW $25, RECOVERS TO $26-South Kentucky Purchasing Company was paying $25.50 for oil on January 26^th. It bumped up to $25.75 on the 27^th, dropped to $25 on the 30^th and on February tumbled down to $24.75. However, on February 2^nd it was at $26.

WANT TO SPEAK AT A TOGA MEETING? CALL-If you would like to tell the TOGA board and members about your idea, plan, project, product or service that is related to the oil business, we will try to schedule you to speak at one of our monthly meetings. Just call the TOGA office at 615-263-1291. The speaking slot for the February meeting is open, so call today.

CANADIAN PROSPECT EXCHANGE, APRIL 26-27-The Canadian Association of Petroleum Landmen is hosting its Prospect Expo in Calgary, April 26-27. It provides companies with an opportunity to present and view domestic and international prospects, as well as joint ventures, trade, acquisition and divesture opportunities. For more information, call 403-237-6635.

NEW TOGA MEMBERS-New TOGA members signed up recently include Novatech Corp., C.H. Fenstermaker & Associates, EMATS, Inc., Prior Oil Co., Inc. and Cumberland Wood Products.

IPAA REPORTS TYPICAL INDEPENDENT IN BUSINESS 23.5 YEARS-According to the Independent Petroleum Association of America, the typical independent has been in business 23.5 years, employs 12 full-time and 2 part-time people and produces median gross revenues of $4.6 million. Some 41.5% are in the 40-49 age range and 26.1% are over 66 years of age. Engineering and finance are the predominant areas of professional background representing 55.2% of the total. Geologists make up 13.8%, accountants 8%, marketing types 4.8%, while lawyers make up 4.2% of independents responding to the survey.

LINCOLN, WASHINGTON COUNTY OPPORTUNITY-With gas prices topping $6 mmbtu, operators are looking for leases and deals that were overlooked years ago because of low prices. One such case are the wells drilled by Hickory Creek Development in Lincoln County. The landowners of one such well would like to hear from an operator interested in the area. They are Lanny & Audra Bradford, 110 Mimosa Road, Fayetteville, TN. 37334, 931-438-2717, e-mail audra.a.bradford@boeing.com. Another opportunity is near Jonesborough in Washington County, where a landowner believes Shell Oil once wanted to drill. He is Mike Garland, 2332 Highway 81S, Jonesborough, TN 37659, 423-753-2362. Give him or the Bradfords a call if interested.

TENNESSEE JANUARY WELL PERMITS- Clay County- TMD Energy Inc., Permit # 9675, Anna Penrod Etal #1, Burristown Quad, 1200 ft. Fentress County- Basin Oil & Gas Corp., Permit #9677, Joe Pile #13, Riverton Quad, 2000 ft. Hancock County Tengasco, Inc., Permit #9684, Laura J. Lawson #3, Swan Island Quad, 5000 ft. Overton County- Target Oil & Gas Corp., Permit #9676, Gary Allen #15, Alpine Quad, 2000 ft./ Pryor Oil Co., Permit #9674, Randy Campbell B-2, Alpine Quad, 2500 ft./ Pryor Oil Co., Permit #9678, Allen Sells #4, Overton Quad, 2500 ft./ Young Oil Corp., Permit #9679, Ronald Smith #3, Alpine Quad, 2000 ft./ Southeastern Energy, Inc., Permit # 9680, Ray Parrott #4, Livingston Quad, 2000 ft./ Hall & Maher Enterprise, Permit # 9681, Doris E. Edridge Cooper #1, Alpine Quad, 2000 ft./ Young Oil Corp., Permit # 9682, Douglas & Bowmer #1-A, Alpine Quad, 2000 ft./ Pryor Oil Co., Permit #9683, Fred Hoover 1 Unit, Alpine Quad, 2500 ft.

KENTUCKY JANUARY WELL PERMITS-Clinton County- Kendle Davidson, Permit #91903, Ila Mae Speck #1/ Steve Oil Buchett, Permit #91905, Joe Summers #1/ Southeastern Energy, Inc., Permit #91908, Tommy Wood #2/ Cherry Oil & Gas, Permit #91910, Stockton Heirs #1/ Floco-KY Oil Inc., Permit #91921, David Stockton #1 RE, Wilco Leasing, LLC, Permit #91923, Paul Wood #10/ Ohio – Ky Oil Corp., Permit # 91934, Eugene Groce #1/ Wilco Leasing LLC., Permit #91937, Edward Taylor #2/ Wilco Leasing, LLC, Permit #91943, Charlie Glidwell etal # 2/ Southeastern Energy Inc., Permit #91944, JK Brown & Tommy Wood #1/ Wilco Leasing LLC., Permit #91945, Paul Wood #13/ Southeastern Energy, Inc., Permit #91946, J.K. Brown #2/ Ohio Ky Oil Corp., Permit #91955, Will E. Lowhorn #1A/ Cumberland County- Joe Todd Oil Project, Permit # 91914, Frankie J. Sells #1/ Leonard Pfannestiel, Permit #91919, Richard Keen #1/ Barrett Oil Co., Permit #91931, Leon Goss #1/ Cherry Oil & Gas , Inc., Permit #91968, Dwight Huddleston/ Cherry Oil & Gas , Inc., Permit #91969, Dwight Huddleston #2/ Knox County- Huntington Energy Corp., Permit #91958, Samuel & Alice Davis # 1/ Daugherty Petroleum, Inc., Permit #91959, Equitable Production #HE-67/ Letcher County- Charles Bradley & Basin Energy Co., Permit #91902, Owen Wright etal #1/ Charles Bradley & Basin Energy Co., Permit #91920, Owen Wright Etal #2/ Charles Bradley & Basin Energy Co., Permit #91950, Ted Sexton Etal #1/ McCreary County- Forexco Inc., Permit #91913, Neal Audis Etal #1/ Forexco Inc., Permit #91922, Miller Petroleum #1/ Forexco Inc., Permit #91940, Butler Watters Etal #6/ Forexco Inc., Permit #91970, Estel Cox Etal #1 Forexco Inc., Permit #91971, Butler Watters Etal #1/ Whitley County- Cumberland Valley Resources, LLC., Permit #91917, Tommy Gambrell #1/ Cumberland Valley Resources, LLC., Permit #91918, Tommy Gambrell #2/

The Ky/Tenn Report is published monthly and distributed at no cost to oil and gas operators in Tennessee and Southern Kentucky. It is owned and operated by W.D. Goodwin, Inc., The editor is Bill Goodwin, e-mail: tmdbill@aol.com It is the official publication of the Tennessee Oil & Gas Association, 750 Old Hickory Blvd, #170, Brentwood, TN, 37027. Phone 615.263.1291, Fax 615.263.1282. Web site: www.tennoil.com.

BRENTWOOD, TN 37027

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