Corporate Background

Presco, Inc. is an independent energy company that is focused on finding and developing conventional and unconventional sources of energy in the United States. The Company is pursuing a diversified strategy of developing lower risk energy resources, including Coal Bed Methane, Fractured Shale gas, conventional natural gas, and geothermal energy, as well as exploring for oil and deep natural gas. Presco currently has oil and gas production in Colorado, Montana, and Oklahoma. It is headquartered in The Woodlands, Texas with offices and/or personnel in Traverse City, Michigan; Denver, Colorado; Parachute Colorado; Pawhuska Oklahoma; and Owensboro, Kentucky.

Presco, including its affiliated and predecessor companies, has achieved an enviable record over its 30-year history. The Company's founder has a track record of exploration and development successes from the Niagaran reefs in Michigan to giant gas-condensate fields in South Louisiana. Presco's predecessor companies have generated cumulative sales of oil and gas production and assets in excess of $950 million. These successes were the result of consistently using expert personnel, the latest in technology and interpretation, and sound business practices.

Management continues to build upon this success through Presco and its subsidiaries and affiliates. The company has assembled a group of geological, geophysical, engineering and land specialists led by a proven management team. They are actively executing a diversified portfolio of prospects and projects: exploration and development, oil and gas, shallow and deep, modest reserves/low risk, and large reserves/high risk (see the Projects link for detail). The company has invested substantially in its G & G database and lease acquisition. It has over 700 square miles of 3-D seismic, over 13,000 miles of 2-D, 3,400 square miles of gravity magnetics and 2,400 square miles of Land Sat interpretation. As a result, it has assembled nearly 200,000 leased acres in prospects in 8 basins. Presco also is constructing a 12.7 Megawatt geothermal power project in Nevada that is near completion.

Future Plans

Presco management believes that natural gas supply and demand fundamentals will put even more pressure on the E&P business to find and develop new domestic supplies. The goal of the company is to bring its portfolio of projects on production to take advantage of the increased demand. Presco seeks opportunities to partner with other companies or investors to execute on its portfolio. Current/recent partners and/or business associates include Anadarko, Bays Exploration, BP, Burlington Resources, DTE, Gastar Exploration, Kaiser Francis, Layne Christensen, Tom Brown, and Williams.