Project characteristics that would be attractive to Stonegate are the following:

• Normally pressured oil and gas reservoirs in and around producing fields
• Partially depleted reservoirs
• Thin oil columns in water drive reservoirs or with large gas caps
• Fractured reservoirs developed primarily with vertical wells
• Low pressured gas reservoirs near abandonment
• Thick, low permeability reservoirs
• Areas with stacked pays
• Sufficient acreage to allow drilling of multiple wells

Stonegate will avoid high pressure, high temperature and sour production reservoirs.  Rank exploration is not a preferred strategy, but may be considered as part of a larger transaction.