Emerald Bay Energy Inc. report that pumping operations commenced on the Floyd 1 and Floyd 2 wells at the Company's F. Poentiz lease near LaVernia, Texas. The wells were fracture stimulated on December 28th and 29th, and the pump jacks were installed earlier this week. The Floyd wells are completed in the Navarro formation at approximately 1000' deep, and the lease has an additional 14-18 drilling locations for future development. Floyd 1 and Floyd 2 are the first two wells drilled in partnership with HugoCellR Ltd., whereby HugoCellR pays 100% of the costs to drill the wells to earn a 75% interest. As the operating partner, Emerald Bay earns a 25% interest in the wells at no cost to the Company. Partnerships like the HugoCellR Ltd. partnership represent a unique opportunity to grow at no risk or cost to the Company.