Since the Company's inception, Howard Energy has sought to establish its reserve base through exploration, acquisition, and technical enhancement of known reserves. Howard Energy has also established subsidiaries to further its investments in the energy sector.

Howard Energy uses the most up-to-date geophysical technology available. Howard Energy's geophysical experience includes incorporating gravity, magnetics, and seismic data to produce a comprehensive geophysical interpretation with the primary focus on seismic data. Howard Energy processes all of its proprietary seismic data internally, and Howard Energy scientists have written proprietary software to help solve statics in difficult data areas.

Howard Energy has geophysical experience in many provinces including areas of overthrust and high dips to areas with low relief structures and large statics problems.

Howard Energy's operations department is highly skilled in the drilling, completing, and equipping of oil and gas wells. Howard Energy has drilled wells in a variety of locales in the United States and has successfully handled a wide spectrum of drilling problems, including lost circulation, shale sloughing, H2S overpressured zones (in excess of 1 psi/ft), highly deviated beds, closed mud systems, massive salts, and horizontal drilling. Successful completions have been performed in carbonate and clastic reservoirs with a variety of problems including low permeiability, skin damage, deep damage, paraffin, and mechanical problems. Howard Energy's staff is familiar with producing problems in both hot and cold climates, and has developed procedures to maximize production time in problem areas.

Howard Energy has actively explored in the Michigan Basin for over twenty years. Howard Energy's exploration efforts have been directed at two plays: the Niagaran Reefs (Silurian) and the Prairie du Chien Sandstone (Ordovician). The Niagaran play is a band of carbonate pinnacle reefs, which circumscribe the Michigan Basin. These Niagaran reefs have produced over 3.0 tcf and 500 mmbo. The Prairie du Chien formation ranges in depth from 7,000 to 12,000 feet and produces both oil and gas from traps in structural closures formed over basement highs.

Howard Energy's expertise in the Prairie du Chien formation attracted Elf Aquitaine Petroleum to enter into a $100 million joint venture in 1988 to explore and develop selected Prairie du Chien prospects generated by Howard Energy.

In 1988, Howard Energy initiated plans to expand its exploration activities into southern onshore basins of the continental United States. Beginning with the acquisition of over 100,000 miles of seismic data, the Company's technical staff processed and analyzed selected data to identify large deep gas structures. Howard Energy's first southern exploratory drilling operations began in 1989 in the Ouachita Overthrust of the Arkoma Basin.

As part of its Ouachita Overthrust drilling program, Howard Energy entered into an Exploration and Lease Development Agreement with Mobil Oil Corporation covering sixty-eight sections in the Arkoma Basin in Latimer County and Leflore County, Oklahoma. The wells targeted the Spiro and Arbuckle formations with Howard Energy acting as operator for the joint venture. Howard Energy successfully drilled eleven wells, two of which were in excess of 21,000 feet as part of this joint venture.

Howard Energy continues to participate in the Arkoma Basin with numerous operators.

Howard Energy's exploration and development activities in Michigan are focused on both shallow and deep oil and gas prospects in 2004, including the Clinton, Niagaran and Prairie du Chien formations. In addition, the Austin Chalk in Texas has been an exploration horizon since 1999. In 2003 Howard Energy got its feet wet in the Gulf of Mexico where it has already established substantial production and is continuing to look at additional opportunities.

125 Park Street, Suite 250
Traverse City, Michigan 49684

Voice - 231-995-7850
Fax - 231-941-0338

125 Park Street, | Suite 250 | Traverse City, Michigan 49684 | 231.995.7850
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