Basic Earth Science Systems, Inc. (Basic) is an independent oil and gas exploration company. The Company is engaged in the exploration, acquisition, development, operation, production and sale of crude oil and natural gas. The activities of the Company are focused in the North Dakota and Montana portions of the Williston basin, the Denver-Julesburg basin of Colorado, the southern portions of Texas, and along the on-shore portions of the Gulf Coast. At March 31, 2009, the estimated proved developed and undeveloped oil and gas reserves in barrels of oil equivalent (BOE) were 794,000. At March 31, 2009, the Company owned a working interest in 94 producing oil wells and 36 producing gas wells. Basic operate 54 of these wells in five states: North Dakota, Montana, Colorado, Texas and Wyoming. The Company is engaged only in the upstream segment of the oil and gas industry, which includes exploration, production, operations and development.