For additional information regarding the Series B Preferred Stock and the 2002 Financing, including the 2002 Securities Purchase Agreement, the Statement of Resolution, the 2002 Shareholders Agreement, the 2002 Warrants, the 2002 Warrant Agreement, the 2002 Registration Rights Agreement and the 2002 Compliance Sideletter, see the Company's Current Report on Form 8-K dated February 20, 2002, which is incorporated herein by reference. The rights of the holders of Common Stock may be deemed to be limited by the securities issued and agreements entered into in connection with the 2002 Financing.

     The approximately $5,800,000 net proceeds of this financing are expected to be used primarily to fund the Company's ongoing exploration and development program.

ITEM 6. SELECTED FINANCIAL DATA

     The financial information of the Company set forth below for each of the five years ended December 31, 2001, has been derived from the audited combined financial statements of the Company. The following table also sets forth certain pro forma income taxes, net income and net income per share information. The information should be read in conjunction with "Management's Discussion and Analysis of Financial Condition and Results of Operations" and the audited financial statements of the Company and the related notes thereto included elsewhere herein.