Providing Contract Land Drilling Services

Through our wholly-owned subsidiary Forster Drilling, Inc., we provide contract drilling services to oil, gas and CO2 producers. Our services include drilling rigs, drilling crews, and ancillary equipment used in the operation of these rigs. The Company's fleet currently consists of four land drilling rigs that are field ready; (1) A National 55, designated as Forster Rig 12, is a "new build" built in our rig manufacturing facility in Odessa, Texas, using components reconditioned to "like new" condition. Completed and deployed in February 2008, the rig is currently working in New Mexico under a multi-well daywork contract expected to keep Rig 12 employed for the next two years; (2) a National 50, designated as Forster Rig 15, is a "new build" built in our rig manufacturing facility in Odessa, Texas, using components remanufactured to "like new" condition. Completed and deployed in September 2006 for Chesapeake Energy, the rig is currently in our rig manufacturing facility for its yearly major maintenance before redeployment in West Texas pursuant to a multi-year contract in April 2008; (3) a Ingersol Rand T-4, designated as Forster Rig 41, refurbished in the first quarter of 2007 and deployed pursuant to a multi-well contract. Rig 41 completed the multi-well contract in November 2007 and was then redeployed to West Texas in December 2007 under a multi-well contract. Rig 41 is currently in our Odessa yard; (4) a Gardner-Denver 3000, designated as Forster Rig 42, was refurbished in 2007 and deployed in December, 2007, in New Mexico and Arizona where it is currently working pursuant to a multi-well contract.

The Company currently has two rigs in its Odessa, Texas rig manufacturing facility undergoing "buildout"; a National 55, designated as Forster Rig 14, scheduled for completion and deployment pursuant to an anticipated term daywork contract in second quarter, 2008, and a National 50, designated as Forster Rig 17, scheduled for completion and deployment pursuant to an anticipated daywork contract in the third quarter, 2008, funding permitting.

In addition to the four field ready rigs, and two "new builds" under construction Forster own a National T-32 rig, complete except for drill string and refurbishment, and five additional drawworks that are intended for use in the manufacture of five additional rotary land drilling rigs; a National 50A, a National 50, a National 55, a National 100, and a National 110UE. As each rig is built from new and used components reconditioned to "like new" condition and made field ready. Each rig will be deployed pursuant to a term or multi-well daywork contract in one of the following areas: the Barnett Shale Trend of North Texas, the Permian Basin of Eastern New Mexico and West Texas, or the Cotton Valley/Travis Peak Trend of East Texas.

Forster is in discussions with qualified operators to provide up to three land rotary rigs; two 1,000hp and one 1,500hp pursuant to term daywork contracts. The Company is currently in discussions to acquire two field ready rigs; a National 55, rated at 1,000hp and 13,000 feet and a National 80B rated at 1,500hp and 16,000 feet.

Forster's policy is the standardization of its fleet as to make but not model. The Company plans to sell its Ingersol-Rand T-4, Forster Rig 41 and it's Continental EMSCO A-550 drawworks.

Building New Rotary Drilling Rigs and Refurbishing Rigs to "Like New Condition"

The Company's wholly-owned subsidiary Forster Tool and Supply, Inc. builds state-of-the-art drilling rigs by manufacturing rig components and assembling them together with OEM new and rebuilt components into 7,000' to 17,000' depth-capability drilling rigs. The Company owns a purpose-built rig manufacturing facility located at 280 South Industrial, Odessa, Texas. The facility consists of five fenced acres, two 15,000sq.ft. "rig hangers," each with twin overhead electric cranes for heavy equipment mobilization and assembly, a stand alone engine shop, machine shop, sandblasting and painting booth and associated offices.

A typical rotary drilling rig consists of four components: (1) Drawworks/ Rotary Table with twin 500 hp diesel engine power-pack with rig controls and instrumentation, (2) Mast and Sub: a 131' mast and 16' sub-structure, two 250kw electric generators with lights, (3) Mud System-metal mud tanks, shale shakers, desanders, two triplex 1,000hp mud pumps and a rotating head blowout preventer, (4) Drill String-12,500' 4 ½" hole Grade 'E' 16.60lb drill pipe and 24 6" OD drill collars. The Company can currently rebuild a mechanical rotary drilling rig capable of drilling 10,000' to 12,500' in 45 days.

In addition to having the in-house capability to rebuild drilling rigs and used major rig components to "like new condition," we also possess the ability to build new rigs and to build new major rig components. As rigs and used major rig components become harder to source and more expensive the Company will change its focus to manufacturing original equipment.

Exploration, development, production, and sale of oil and natural gas

The Company will take a minority participation in some of our customers' prospects as a "time proven" method of building assets and income not dependent on our service contracts.