Business Summary:
Anchor Bay Corporation is a privately owned oil and gas exploration and production company located in Denver, Colorado. The company operates 26 wells in Colorado and Wyoming and has various interests in approximately 100 non-operated wells located throughout the Rocky Mountain region. The company owns 100% of seventeen of our operated properties with the other ten properties having ownership of 50% or greater. Anchor Bay Corporation is also the general partner for two oil and gas partnerships, Rancho Partnership LTD and L and F Gas Company.

Production:
As of January 1, 2004, net oil production to Anchor Bay Corporation and the two partnerships averaged 120 barrels of oil per day with gas production at 820,000 cubic feet per day. The company sells its' products to major oil and gas refining companies on the spot market. Long term transportation agreements have been entered into to move our gas to market.
Opportunities:
Anchor Bay Corporation strives to increase the value of its' oil and gas assets through developmental drilling and enhanced recovery methods. In the summer of 2004, the company plans to drill an 11,000 ft. oil well in Wyoming using 3-D seismic data.

In addition, the company commenced a drilling program in Illinois the summer of 2002 utilizing seismic data. To date, the company has booked over 1 billion cubic feet of gas reserves with development to occur the summer of 2004.