RESOURCES

Prospect Locator Map

Cooke No. 3 Seismic

Smack Over Contour Map Defining Estimated Reserves

Sligo Contour Map Defining Estimated Reserves

Cooke Ranch

In May 2005, Maxim signed a participation agreement with Bayshore Exploration LLC (“Bayshore”) of Katy, Texas, an arm’s-length private oil and gas company, to acquire a 6.25 percent working interest in the Cooke Ranch Deep Prospect.  Shortly after the agreement was signed, Maxim increased its working interest to 9.5 percent in the 8840 acres Cooke Ranch Prospect and the Cooke No.3 Deep well. 

In exchange for the working interest, Maxim agreed to pay Bayshore the sum of $ 1,111,500 (US), representing Maxim’s portion of the completed cost of the test well, the Cooke No. 3.  The entire Cooke No.3 completion costs were approximately  $8,000,000 (US) of which all participants shared the percentage of costs, namely; Maxim (MXM-TSXV), Devon Energy (DVN:NYSE), Paxton Energy Inc. (PXTE:OTCUS), Dynamic Resources Corp. (DYRF:CNQ) and several private oil and gas companies.

The Cooke Ranch Deep Prospect is located in La Salle County, Texas about 13 miles southeast of the town of Cotulla. The project is situated among well-established fields in this oil-rich state.  This is a very large anticline structure covering about 4,900 acres draped over a pronounced salt pillow. The seismic data used to identify the Cooke Ranch Deep Prospect is the same seismic data used to discover several oil and gas fields on the Cooke Ranch since 1982. It is good quality 2D seismic data shot by Shell Oil Company in 1982 and has been re-processed to focus on the deeper horizons.

The data shows a large structure at 20,000 feet (Smackover) and several smaller structures that identified six (6) potential pay zones to explore and test through the Deep Well Program; the Edwards Limestone (11,000 feet), Glenrose (12,000 feet), Sligo (13,500 feet), Hosston (16,500 feet), Cotton Valley (18,000 feet) and Smackover (20,000 feet).

The exploration drilling commenced in June 2005.  Originally drilling was scheduled to a total depth of 21,000 feet, but was changed to 17,500 feet after enough significant data was received identifying various formations with potential pay zones to exploit.   The operator advised the Smackover Target remains the primary objective and will be a high priority for future development.

In November 2005, after the Cooke 3 well was completed and the testing operations were performed, the well free flowed on a 14/64-inch choke: 250 MCFG (thousand cubic feet gas per day) and 180 BOE (barrels oil per day).  The gas production was tied into an existing pipeline located approximately 3000 feet from the well and the oil is being free flowed into existing tanks on site.  In late February, the operator advised Maxim that the well remains free flowing yielding Maxim monthly revenue.

Bayshore exploration advised that several step out wells would be drilled from the successful exploration well to prove up the discovery.  To date several wells have been drilled in an effort to identify the source of oil and gas discovered from Cooke No. 3.  The steps out results, Cartwright No. 1, Cooke No. 4, and Cooke No. 5 have been drilled.  The results have been less then favorable and as a result the partners approved an extensive 3-D seismic survey.  This survey was shot over the producing exploration well (Cooke No.3) and over 2,560 acres surrounding the discovery. 

Bayshore Exploration LLC completed the 3-D seismic survey and the initial results look encouraging.  The partners, along with the operator, are in discussions on how they wish to advance the Cooke project and to capitalize on the oil and gas discovery.

As of August, the Cooke No. 3 well continues to free flow and provide revenue to Maxim.  The well is currently producing 160 barrels of 47.1-degree API quality oil and 250,000 cubic feet of gas from the Escondito formation.