SH Energy and Chemical, Ltd. And Source Rock Energy Of Arkansas, LLC Enter Into A Transaction To Drill The Fayetteville Shale Play In Arkansas

Dallas, TX - Prime Income Asset Management recently announced that SH Energy and Chemical, Ltd., based in Seoul, South Korea has acquired the mineral rights to 3,000 acres in Van Buren County, Arkansas from Source Rock Energy of Arkansas, LLC to begin drilling the Fayetteville Shale. The first drilling project will involve a proposed two-well simulfrac with approximately 3,000-foot laterals at an anticipated depth of 1,700 feet each. The drill pad construction is complete for the first well and a proposed start date is scheduled for on or about June 30, 2008. Drill pad construction is also currently underway for the second well. Source Rock Energy's parent company Eurenergy Resources Corporation and SH Energy and Chemical have formed SH Exploration to be the operator for the development of the 3,000 acres. SH Exploration is 51% owned by SH Energy and Chemical, Ltd. and 49% owned by Eurenergy Resources Corporation.

SOURCE: Prime Income Asset Management