Energy Finders Inc. and Mega-West Energy, Inc. have entered into a joint venture to develop a heavy oil project in south-west Texas. The Project is identified as the Trinity Sands Project and is located west of San Antonio, Texas. Energy Finders has entered a joint venture with Mega West Energy, Inc. to develop the Trinity Sands heavy-oil project west of San Antonio, Texas. Energy Finders will retain a 23.33% working interest in the project after development. The Project area presently comprises 34,000 acres, more or less. Energy Finders, Inc. and its joint venture partner are acquiring additional lease blocks for the Project on an ongoing basis..

Extensive analysis of the Project Area indicates a possible large deposit of heavy oil at a depth of 1,000 to 1,200 feet in the Trinity Sands.

GEOLOGY

The present project area covers about 34,000 acres, more or less. The project area is situated upon the Edwards Plateau with elevations of 2,300 feet above sea level. This is a sparsely populated area of Southwest Texas, where ranching, hunting and gas production are the principal activities. Typically, a ranch owner will have thousands of acres in his spread.

The Trinity Oil Sands occur at a depth of approximately 1,000 feet, and can have a total thickness of more than 70 feet with 65% oil saturation, 30% porosity and thousands of millidarcies of permeability as indicated by previous core results. The Trinity Sands in the Prospect Area are more favorable for production by thermal Steam production than comparable projects in California where thousands of barrels of oil are produced by thermal steam recovery.