Signature Exploration and Production Corp. issued an update yesterday on its 25% working interest in 10 of the set wells in the “Illinois Reef Project”. This project consists of wells located in Fayette and Macon counties in Illinois. The update states that the operator anticipates to be drilling in the third quarter of 2010.

Steven Weldon, Chairman and CEO of Signature Exploration and Production Corporation was quoted as saying ,”We are pleased to report our operator is moving forward with the leasing process to secure our entry into a well-known petroleum prospect in the Illinois Basin.”

The wells in the area are typically oil-bearing at the average depth of only 2,296 feet. There are 30 oil wells which have produced 3,834,025 barrels of oil. Mr. Weldon makes note that at today’s oil prices of $70 per barrel, this would have a value of $268 million. Because of the cost-effective drilling to lower depths and favorable leasing rates, Signature is looking forward to a profitable drill.

Seismic shots will be taken on the leased properties to confirm substrate structures of the earth and drilling will follow. Target depths will be between 2,000 and 4,000 feet. According to a 2007 U.S. Geological Survey assessment of the Illinois Basin, the estimated quantities (mean) of undiscovered, technically recoverable oil and gas resources are as follows: 214 million barrels of oil; 4.65 trillion cubic feet of natural gas, and 24 million barrels of natural gas liquids. This assessment included areas in the States of Illinois, Indiana, Kentucky, Missouri, Ohio, and Tennessee.

SXLP closed today up 2.60% at .79 on 30,900 in volume. SXLP has a very small share structure of only 6.52 million shares outstanding and 5.97 million shares in the float.