Enerlabs Inc (ENLB)

Enerlabs Inc was incorporated under the laws of British Columbia, Canada, on November 2, 1989, and on August 20, 2001 the Company became domesticated and incorporated in Delaware. The Company through its subsidiary, A.T. Gas Gathering Systems, Inc. is engaged in the operation, development, production, exploration and acquisition of petroleum and natural gas properties in the United States. The Company evaluates undeveloped oil and gas prospects and participates in drilling activities on those prospects which in the opinion of management are favorable for the production of oil or gas. In addition, the Company owns and operates natural gas gathering systems located in Oklahoma, which serve wells operated by the Company for delivery to a mainline transmission system. In January 2009 the Company acquired Energas Pipeline Company and Energas Corporation from George Shaw, the Company's President. Energas Pipeline Company operates the natural gas gathering system which is connected to the Company's three wells in Atoka County, Oklahoma. Energas Corp. operates all of the Company's wells and holds the bonds required by state oil and gas regulatory authorities. In March 2009 the Company acquired a 14 mile natural gas gathering system. The gathering system, located in Callahan County, Texas is used to transport any gas, produced from wells which might be drilled on the Company's leases in Texas, to the Enbridge Gas Company pipeline. In November 2008 the Company entered into an agreement with Excalibur, Inc., an unrelated third party, for the exploration and development of oil and gas leases covering 1,560 acres in Callahan County, Texas. The Agreement provides that the Company pays the costs to drill and complete five wells on the leased acreage. If any of the five wells are completed as a producing well, Excalibur is to receive a 12.5% working interest in the well. When the Company has received net proceeds from the sale of production from a completed well equal to the cost of drilling, completing, equipping, testing and operating the well, in addition to leasehold costs of approximately $39,000, Excalibur is to receive an additional 12.5% working interest in the well. The Company faces competition from many other companies and individuals engaged in the oil and gas business. The Company's performance is subject to the rules and regulations formulated and enacted by the different state and federal agencies that regulate the production and sale of oil and natural gas.