Budget Period 2 of the East Binger Unit (''EBU'') DOE Project has been. Recent activities included additional data gathering and project monitoring, plus initiation of work on an SPE paper on the modeling efforts of the project. Early production performance suggests horizontal wells do not provide sufficient additional production over vertical wells to justify their incremental cost. It will take more time to evaluate the impact of the horizontal wells on sweep and ultimate recovery, but it is unlikely that an improvement in recovery will be sufficient to make the overall economic value of horizontal wells greater than the economic value of vertical wells. Monitoring of overall performance of the pilot area continues. Overall response to the various projects continues to be very favorable. Injection into the pilot area has nearly doubled, while gas production and nitrogen content of produced gas have both decreased. Nitrogen recycle within the pilot area has dropped from 60% to 20%. Efforts to further disseminate knowledge gained through this project, by means of technical paper presentations to industry groups, are underway. Project monitoring and technology transfer will be focus areas of Budget Period 3.