The Three Sands Project, located in South Wayne Prospect, Oklahoma, had a total cost of 1,451,543 as of 31 March 2011, with the Company acquiring a 5.00 working interest in the McPherson1-1 well for leasehold, prospect and geophysical fees of 5,000, and dry hole costs of 32,370. The Company also agreed to participate in drilling operations to casing point in each prospect. The Bcp Interest shall be 6.00.