Progress on the East Binger Unit (EBU) project has slowed as difficulties have been encountered with obtaining satisfactory production from well EBU 37G-3H, the new horizontal well. Remedial operations have been conducted and stimulation operations were about to get under way at the end of the reporting period. International Reservoir Technologies, Inc. has made additional progress on the pilot area simulation model, reaching a point with the history match that we are awaiting more definitive production data from the horizontal well. Planning future development of the EBU hinges on evaluating the results of well EBU 37G-3H. Performance of this well must be understood in order to evaluate development scenarios involving horizontal wells and compare them with development scenarios involving vertical wells.