Basic Earth Science Systems Inc. reported that it has commenced drilling its South Flat Lake Prospect in Sheridan County, Montana. The initial well, the Crown #41-31, is permitted to 10,700 feet and the Company plans to test several intervals before reaching total depth in the Red River formation. Basic Earth has a 55.33% working interest in the well and is the operator of the venture. Basic Earth is an independent oil and gas exploration and production company with primary operations in the Williston Basin, the Denver-Julesburg Basin in Colorado, southern Texas and the Gulf Coast area. Basic Earth is traded on the Over The Counter Bulletin Board under the symbol BSIC.

Basic Earth Science Systems Inc. announced earnings results for the second quarter and six months ended September 30, 2009. The company reported net income of $271,000, $0.02 per share on a diluted basis, on revenue of $2.0 million for the second quarter of fiscal 2010, compared to net income of $946 000, $0.05 per share, on revenue of $2.7 million for the same period in 2009. For the half fiscal year 2010, the company reported net income of $520,000, $0.03 per share on a diluted basis, on revenue of $3.5 million compared to net income of $2.3 million, $0.13 per share, on revenue of $6.1 million for the same period in 2009.

Basic Earth Science Systems Inc. proposed at AGM to be held on December 12, 2009, to approve certain updating amendments to, and a restatement of Certificate of Incorporation; to approve an amendment to Certificate of Incorporation to change the name of the company to 'Earthstone Energy, Inc.;' to approve amendments to Certificate of Incorporation in order to provide for the classification of the Board of Directors and permit only the Board to fill vacancies; to approve amendments to Certificate of Incorporation relating to stockholders' action by written consent and special meetings of stockholders; to approve amendments to Certificate of Incorporation increasing the stockholder vote required to amend certain provisions in the Certificate of Incorporation; and to approve amendments to Basic Earth's Certificate of Incorporation in order to effect a reverse stock split of the Company's common stock at a specific ratio to be determined by the Board in its discretion, no later than 12 months after the Annual Meeting, within a range of not less than one for four and not more than one for 12.