vicksburg well, page-72

Neilie, thank you for your detailed and honest response. Firstly, what you choose to do is entirely your business. You've made a call on MAD based on your risk profile and tolerance, and I commend you. No criticism from me simply because it's entirely your right to do as you see fit. In relation to the reserves report, I personally believe it is now a distant secondary consideration. It will have little impact on MAD even if the number is still large. The market now wants proof the company can produce oil on a sustainable, profitable and predictable manner. It cares very little if the company's reserves are 50m barrels at 1P or 200M barrels at 1P. For the past few years both the company and analysts covering MAD are on record of saying that the reserves will be validated by production. On this basis, it is easy to understand why the market has no confidence in MAD b/c production is the missing link and a key success factor. Some perspective. When MAD started the bull run in late Jan 2012, it announced a significant reserves upgrade as well as production hitting a milestone of 1,000bopd. The problem is that 2 years down the track and a couple of significant capital raisings & 60 additional wells drilled, production has barely moved. Indeed it is trending down again. A final point. The company still rabbits on in its presentations about the price premium it receives over WTI because of the high grade of oil it produces. Yet, in the past couple of quarters, this is no longer the case as the company is receiving WTI. The 8-10% price premium is gone. Where's the explanation? It's no longer a selling point. Re continuous disclosure, this is my bread and butter. Companies only have an obligation to make disclosures if there are developments within the company that have the effect of materially impacting the bottom line and hence the share price. In other words, if there are no new developments that are considered "price sensitive" then there is no reason to put anything out to the market because there is nothing to tell. Good luck.