LOCATION - Hillwood is focused on development and producing properties in the Volga Urals Basin, one of Russia's oldest and most prolific oil and gas provinces.

RESERVES - Focusing on developing or producing fields with proved reserves of 200 MMBOEG or less.

Hillwood is currently actively acquiring development and producing opportunities in the Samara and neighboring Oblasts in Russia.  The strategy is to duplicate Hillwood’s successful experience with the Baituganskoye Field, which Hillwood successfully sold to the MOL, the Hungarian State owned oil and gas company in December 2006.

The Baituganskoye experience gives Hillwood the unique expertise to operate and successfully develop oil and gas fields in Russia.  Hillwood was one of the first U.S. companies to be involved with Russia through its subsidiary, BaiTex, a 100% foreign-owned Russian oil company that acquired 100% ownership of its production assets and associated production facilities.

BaiTex was established in April 1995 as a Russian limited liability company owned 50:50 by Hillwood, and Orenburgneft, a Russian oil company ("OBN"). The field was operated by BaiTex, which, in turn, was managed by Hillwood and its affiliates. OBN was later acquired by Tyumen Oil Co ("TNK") one of the emerging major Russian oil companies.

Beginning in the mid 90's, Hillwood, through BaiTex, commenced rejuvenation of this field discovered in 1948 utilising:

1. Horizontal drilling (including the first horizontal well in Volga Urals Basin
2. Modern reservoir management technologies
3. Optimisation of existing wells and
4. Radial drilling

Production increased 80% as a result of these efforts.