In 1998 Eratz established oil and gas reserves and discovered new fields with industry drilling ventures methods. Our Ventures began in South Texas in Frio County with 6,800' depth wells in the Austin Chald formation resulting into a profitable success for the company as well as the investors. The activity in the region in 1988 was highly invoked with horizontal drilling resulting in our selling out the leases and equipment to Edco Oil & Gas and making the investors a 2 to 1 profit in 8 months.

Then we moved to Southeastern New Mexico in Lea County. Eratz attempted to drill one well to the depth of 15,000' into the Wolfcamp formation resulting into a dry hole. Reserves were not economical to complete. Eratz then decided to move onto North Texas in the following counties: Wichita County, Archer County, Throckmorton County, Haskell County, Foard County, Norhwestern Louisiana, East Texas County, and Kay County, Oklahoma. In the first years of the 1990's in Wichita and Archer Counties, we drilled 23 shallow wells and one 4,000' depth welland the results were 5 dry holes out of 23 shallow wells. In 1994, Eratz sold its 18 shallow well properties to associated operators in the region. In 1993, Eratz was associated in 5 wildcat 5,100' depth well in Throckmorton County which resulted in one dry hole. We then drilled one wildcat well in Haskell County which turned oput dry. In 1994, Eratz has an interest in a new discover wildcat well in Foard County at the depth of 5,100'. Eratz has associated interest in 3 new fields in Texas and holds over 3,000 acres of lease mineralsof interest in the North Texas region. Since late 1993, Eratz has several associated interests in Norhtwestern Louisiana and East Texas in natural gas fiels. Currently to date, we hold interest in 18 shallow gas wells in this region and hold over 1,000 acres of lease minerals of interest in Kay County, Oklahoma. As of early 1995, Eratz has explored in Palo Pinto County, Texas and has been very successful in producing from the multi-target zone in the region. Eratz has aassociated interest in 12 new fields and has plans to develop and generate more reserves for the Company and expand to other regions in the southwest Palo Pinto County, Texas. See our Prorated oil and gas schedule.

In 1996, Eratz established Ruthson Energy Inc. Its purpose is to disburse revenue and to operate our properties. Our estimated reserves as of late 1997 is 50 billion cubic feet.