Jeppi Recompletion Updates

JEPPI PROJECT SUMMARY

Northwest Petroleum, Inc. has entered into a gas well development project with Sequoia Exploration, Inc. Northwest and Sequoia's proposal is to convert three (3) of Sequoia's oil wells: Jeppi #1, Jeppi #2 and Porter #17-24, to gas wells. These three (3) wells will be plugged back and recompleted in the Chanac “F” Sand. The project is in the Jeppi Area of the Edison Oil Field in Kern County , California .

The project consists of two parts:

Part One: Is the recompletion and flow testing of Jeppi #1, Jeppi #2 and Porter #17-24 Wells.

Part Two: Is the installation of a three (3) mile gas sales line.

Estimated initial production from the re completion is 900 MCF of natural gas per day. Estimates of potential gas reserves in the Chanac “F” Sand are approximately one BCF (Billion Cubic Feet) of natural gas, or 1,000,000 MCF (1000 Cubic Feet) of natural gas.

PRODUCTION HISTORY

Cased hole gas logs have been run on the Jeppi #1 and Jeppi #4 wells. The Jeppi #1 log identified gas in the Chanac “F” Sand at a depth of 3,910 feet to 3,920 feet. The Jeppi #4 well located in the West Edison Field has previously produced 290 MCF (1000 Cubic Feet) of natural gas per day with a 1120 psi flowing tubing pressure from the Chanac “D” Sand at a depth of 3,660 feet. This well produced over 100,000 MCF in 1964 before being shut in

13 September 2006 -   To bring you up-to-date on the Jeppi Project. We have brought a rig in and set packers above and below the Chanac ‘F' Sand to isolate it. Tubing was then screwed into the upper packer and comes up to 3,900 feet to the surface of the wellhead and Christmas tree valves. I have enclosed a picture of this for you.

Next, we will bring out a pump and pressure test the tubing, wellhead, and Christmas tree valves.

In about a month, we will rig up and perforate the Chanac ‘F' Sand. At that time, we will then flow test the Chanac ‘F' Sand for pressure and the MCF a day rate.