PRODUCING OIL AND GAS FIELDS

Luca's primary geographic area of activity, and currently the only area in which it owns and operates wells, is the Powder River Basin. The greater Powder River Basin traverses approximately 90 miles from east to west and 200 miles from north to south, encompassing portions of northeastern Wyoming and southeastern Montana. The Powder River Basin, with continuous wide-spread thick coal seams, an extensive natural gas production infrastructure, water chemistry well suited to microbial methane bioconversion, and exceptional permeability for the efficient delivery of nutrients and production of natural gas among wells, has been Luca's primary focus for the past eight years and will play a critical role in Luca's future growth. According to the US Energy Information Administration, the Powder River Basin accounts for approximately 42% of the coal production in the US and is the single largest source of coal mined in the US.

Luca currently owns and operates over 1,350 wells in the Powder River Basin of Wyoming. Luca has also performed restoration activities in several basins outside of Wyoming, including the Black Warrior Basin in Alabama, the San Juan Basin in New Mexico and the Uinta Basin in Utah, as well as other areas in Oklahoma, Kansas, and Illinois. At this time, Luca does not own wells in these areas, but has deployed its technology in wells owned by other operators interested in determining if the technology will be applicable in areas other than the Powder River Basin. Based upon preliminary results from these projects, combined with lab results from sampling activities performed in these areas, Luca believes its Restoration Process with formulations tailored for local conditions, will prove to be economic in other gas fields throughout the US and abroad.