County Line

Pipeline Resources has recently developed the County Line prospect which consists of The Johnson lease. Comprised of 184 acres, it is located in the southeastern Colorado County on the Wharton-Colorado County line. The lease is situated in an area of prolific Wilcox, Yegua, Frio and Miocene production. 3-D seismic evaluation was made on the lease, this data indicated there to be a good seismic "bright spot" which is often a signature of gas accumulations.

Based on the 3-D seismic evaluations, a test well, the Johnson #1, was drilled to a depth of 5000' in November 2004. The well successfully encountered the Frio formation and is currently producing at a rate of 350-400 MMCF per day. Further development of this lease will continue in the fall of 2005 to explore additional Frio "bright spot" shows.

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Pipeline Resources, Inc.
P.O. Box 1969
57 FM 3356
Van Alstyne, TX 75495
Phone: 800-523-1560

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