At this stage, the main emphasis is on the Field Demonstration phase of the project. The drilling portion of the Field Demonstration has been divided into two separate phases. We are currently proceeding with the drilling and completion of the first eleven Phase I wells. Locations for the additional seven Phase III wells were chosen at a Technical Committee meeting during the first week of June. Preliminary results have been very encouraging as all the wells are producing at or above their forecasted rates. Phase I includes the drilling of four producers and one injection well (10-acre nominal spacing) in both the Section 329 study area and the Section 326/327 study area, as well as one producing well in Section 362. Phase I will be completed during the first week of July. Phase II drilling will involve the completion of the waterflood patterns to the west of the Phase I areas in Sections 329 and 327, consisting of two producers and one injection well in each area. The final Phase II well will be located near the southwest corner of Section 324, in an area of the Unit that remains relatively undrained. Producer-injection well conversions will be performed in this area, as well as other peripheral areas of the Unit to add needed water injection.