Admiral Bay's corporate objective is to become a mid-tier gas producer by:

• Acquiring properties in the early stages of development for coalbed methane and conventional oil and gas located next to strong gas markets, and by;
• Focusing on the development of coalbed methane and shallow conventional oil and gas plays.

Projects
	CHEROKEE BASIN, KANSAS, UNITED STATES Admiral Bay is developing 5 gas projects in the Cherokee Basin. The Shiloh, Devon, Mound Valley, Swordfish and Santa Rita Projects are located in the south eastern portion of Kansas. Admiral Bay has amassed over 150,000 acres within the project areas, and is continuing to increase its land positions on the projects.
	APPALACHIAN BASIN, PENNSYLVANIA, UNITED STATES The Revloc Project is a coalbed methane project that is located on the northeastern flank of the Appalachian Basin in Cambria County, Pennsylvania. An initial five well test program is anticipated to begin the end of 2006/early 2007.