Utilizing existing seismic and regional geological data, Columbia has identified a potential oil field identical to Little Cedar Creek field nearby in southern Alabama. Potential reserves could be 30,000,000 barrels of oil.
Columbia has an ongoing leasing project and has acquired 1,100 acres in the center of the prospect. The Company is in discussions with Chesapeake Energy about a possible 50-50 joint venture. Chesapeake has offered to fund 100% of the cost of a 3-D seismic evaluation to earn 50% of Columbia's leasehold acreage. A 3-D seismic evaluation of this area will cost 8-10 million dollars. Columbia is evaluating whether to enter into an agreement with Chesapeake or to drill an exploratory well itself.