Southwestern Water announces acreage update and preliminary water analysis for Colorado project

May 22, 2002
Southwestern Water Exploration Co. announces that it has now achieved water quality analysis for more than 30,000 acres leased in its Northern Colorado project.


LAS VEGAS, Nev., May 22, 2002 -- Southwestern Water Exploration Co. announces that it has now achieved water quality analysis for more than 30,000 acres leased in its Northern Colorado project.

This represents the ongoing 2002 land leasing acquisition program. The increased leasehold position significantly adds to the available acre-feet of water for sale. The land acquisition program will continue throughout the summer months.

Water analysis from the new aquifer found in the Rehoboth #1 exploratory discovery indicates that all primary Environmental Protection Agency (EPA) drinking water standards have been met.

Two independent laboratories have conducted these preliminary water analyses using EPA guidelines. The specific water analyses will be included in the final engineering reports to be completed by Knight Piesold and Layne Geoscience.

Core analysis to determine the specific yield of the aquifer is still ongoing and should be available in the upcoming 3 weeks with final engineering reports on the project to be completed in 4-6 weeks.

Southwestern Water's prospect is located in Colorado. Colorado regulation stipulates that the total acre-footage that can be sold is based on the specific yield of the aquifer. Based on the increased leasehold the Company estimates that reserves exceed 100,000 acre-feet for sale.

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