Advanced Lighting Solutions - Commercial Property

May lease, is in one of the best known areas for the Natural Gas and Oil drilling activity which uses a large amount of water for the fracture treatments. Some of the area disposal wells have been purchased by a large operator that is no longer taking on other drillers fluids. This is creating a lucrative opportunity for independent Water Disposal Projects. The May, Lena well has been in operation and has taken upwards of 8000BOW on a single day without any rise in pressure. By completing the work to put the May/Wolf well into service, it would be very reasonable to expect to take on over 15,000BOW/D without any pressure rises. With this capacity, it would be reasonable to expect to acquire a 10,000BOW/D “Take-or-Pay” contract signed with a large driller with a lot of activity in the area. Additionally, the May, Evelyn well is a small producing oil well giving additional cash flow with the skim oil.

The assets include but not limited to:

1. 64.7 Acre Facility
2. 2 Permitted Water Disposal Wells
3. 1 Producible Oil well (also convertible to a disposal well)
4. All surface equipment, trucks, tank batteries and pump jacks.
5. Engineering report or production reports.
6. AFE on putting 2nd water disposal well online is $250,000.00.

Market:

As noted above, several Water Disposal Wells have been purchased by a large operator and have stopped taking on other drillers fluids. Exxon/XTO, Stallion and Texas Energy are active in this area.

Competition:

The competition is getting fewer with the acquisitions in the area.

Timing:

Rig activity in the State of Texas has been on an incline in recent months. Adding to that the fracture treatments for the wells in the area produce a large amount of fluids needing a location to be injected into is on the increase.

P18 From March 2010

P18 From April 2010