Background: Klingler Automatic Industries, Inc. is an Illinois corporation established in 1994. We specialize in the exploration, development, production and storage of oil and natural gas.

Our current production and storage facilities are located in southeastern Michigan, where we have established a field operations office in Marine City. We are currently involved in several exploration projects through out the state of Michigan and Illinois.

Beginnings: In June 1994, Klingler Automatic purchased full ownership and became owner/operator of the Cottrellville 23 semi-depleted dry gas reef and one A1 producing oil well.

Wildcat Discovery: After running parallel 2D seismic over a 300-acre parcel, an anomaly was found that "had to be drilled."

After staking a drilling location in December 1997, Klingler Automatic drilled a successful wildcat discovery, (Klingler #3) in February 1998. Completion confirmed the rank wildcat was a dry gas full crest Niagaran gas well, only 1 of 2 discovered in Michigan in 1998. By November 1998, we were producing 2,000 mcf/day of pipeline quality gas.

Further Exploration: 2D and 3D seismic lines were used in 1999 to continue to search for undiscovered reefs and further enhance the definition of the two existing full pinnacle Niagaran structures. Mega-Bin 3D was run over 3 square miles (approx 1,800 Acres) and 15 miles of 2D used to target areas of interest.

Growing Production: During the year 2000, Klingler Automatic acquired two additional producing full pinnacle Niagaran reefs. This timely acquisition was made just in time to see MichCon city gate pricing hit $10.00/mcf. Infrastructure was built to efficiently produce oil and natural gas from all four reefs and their A1 Wells. Gas that had been vented previously was now all sent to Klingler Automatics central processing facility be stripped of heavy hydrocarbons and sold as pipeline grade. This was the first time in 14 years the Gas had not been wasted to the atmosphere.

Current Projects: Energy independence is on everyone's mind and to this end all Klingler Automatic's Niagaran wells are currently operating to produce the much needed oil and natural gas to run the United States. Furthermore, a strategic infrastructure of 15 BCF of natural gas storage in the Niagaran depleted reefs is currently being developed. This storage development will help ensure the continuing uninterrupted supply of natural gas to all end users.

Summary: Through our continued partnership with Michigan's oil and gas industry experts and the experience of our employees, we have the ability to "make things happen" in an expedient and professional manner.

 

Klingler Automatic produces oil and natural gas from prehistoric Niagaran coral reefs formed during the Silurian Period. 420 million years ago these reefs were physically located 10 degrees south of the equator. Tectonic plates over time have moved the reefs 52 degrees North to St. Clair County, Michigan. These Pinnacle Niagaran Reefs lie 2,000 ft. below the surface and are expected to provide 15 BCF of natural gas storage. The surrounding A1 Anhydrite cap rock creates an impermeable seal, preventing loss of these natural resources.