Ginger Oil provides a preliminary schedule of exploratory drilling and development of production from established fields during 2010.

The objective with this plan is to increase the company's mineral assets in oil and gas reserves, and to increase the company's level of production capacity.

Exploratory Drilling Ginger Oil plans to drill 10 to 12 prospective wells in 2010. The first drilling was initiated on January 2, 2010. The drilling program reaches maximum level of activity during June-September. The company estimates that prospective drillings will result in the addition of established reserves of 4-6 million BOE, with a net of 700,000-800,000 BOE to Ginger Oil.

In Texas, the company plans exploratory drilling on Ginger Oil's latest acquisition, the NE Clemens Prospect in Jackson County. The four week drilling activity is scheduled to start during the first half of February. The prospect has an estimated potential reserve of 3 million BOE, and Ginger Oil has a net revenue share of 20%.

In Arkansas, the company plans to drill five exploratory wells in the Willisville area. Willisville is the latest addition to Ginger Oil 3-D seismic areas in Arkansas. Results from an initial exploratory well in July 2009 gave evidence for a more complex than expected geology. The company has reviewed the entire area and provided additional analysis with five newly defined prospects. The first prospect, Wedge#1, is scheduled to be drilled in May.

In the Falcon area, the company plans for two prospective wells. The first, which has been named Esters #1, has been started early January. The preliminary result is very positive. The company expects to make a public announcement revealing detail from testing within a short time.

In the Lewisville area and the Stephens area, the company plans three prospective wells. One prospective drilling in the Lewisville area is of particular interest. Through a review of available 3D seismic data, a possible reef formation has been identified. If the prospective well confirms the existence of the reef formation, it will be the first discovery of its kind in Arkansas. A reef formation may hold large quantities of oil, but Ginger Oil is cautious on probability, which has been estimated at 10%.

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