Tandem provides Hurricane Rita update
  by: OilOnline
  Thursday, September 29, 2005

Tandem Energy Holdings Inc. announced that two fields located in southeast Texas were shut-in ahead of Hurricane Rita last week. The Tomball field, the Company's single most productive field located 20 miles northwest of Houston, suffered no damage and was returned to full production on Sunday, September 25, 2005. The Batson field, located 25 miles northwest of Beaumont, Texas, reported heavy damage to power lines and roads and remains shut-in. The Company produces approximately 55 net barrels of oil per day from this lease. An assessment is being made to determine the extent of the damage, and at this time, the Company is not sure when power and accessibility will be restored.

On another note, Tandem is drilling its third well on the Ira Unit in Scurry County, Texas. The first well, the Ira (1700' Zone) Unit No. 5954 is producing approximately 30 gross, 21 net barrels of oil per day. This well was drilled and completed for a net cost of approximately $120,000, utilizing the Company's rig No. 11. The second well, the Ira (1700' Zone) Unit No. 6719, has been logged, and completion operations are underway. The Company's plans are to drill a well every 8-10 days for the remainder of 2005, subject to product prices, service availability, and cash flow.