On March 14, 2010, the Company purchased a 5.00 working interest in 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 total cost of the Three Sands Project as of 31 December 2011 was 1,451,543.