Executive Summary

William H. Foster, Jr. ("Bill"), formed Foster Oil & Gas in 1962, with offices in Shreveport, Louisiana, and Fort Worth, Texas. During the 1960s, many prospects were initiated and successfully developed in the Wilcox Trend of eastern Louisiana and north-central Texas. Most notable was the discovery of the Foster (Marble Falls) Field in 1975. This discovery resulted in the drilling and completion of more than 90 oil and gas wells.

Foster became interested in the development of coal-bed methane gas from coal seams in the Cherokee Basin in southeastern Kansas. Foster moved to the region in 1993 and since that time Foster Oil & Gas has been involved with the development of more than 120 coalbed methane gas wells, including drilling, completions, re-completions, pipelining, metering and operation of the wells and related gathering systems.

Also during this time, Foster became interested in re-activating old shallow oil wells, mostly drilled in the oil boom of the early 1980's, but not producing since then because of lower oil prices. Many of these wells were acquired and put back into production since today's high oil prices make them economically attractive. There is the added dimension of water flooding some of these oil-producing leases that enhances the profitability of these projects even more. These projects are ongoing.

Foster Oil & Gas Independence, Kansas