drilling report, page-10

Best way to make money is to fix the pipline issues, open the choke and let the gas out ASAP. Gas sales price is fixed bi-monthly on the first of the month. Gas prices will likely drop coming into the US summer which means less $$ if the gas is sold during the summer. Currently selling gas from the champions wells areound $9US if the henry hub price drops $2 thats over 20% less income for a given volume of gas. I say get it out now and capatilise on the high winter price. Becides, money in the bank is better than gas in the ground (gas doesn't earn interest) if the well pays for itself in 2 months that looks better than 6 to potential investors. 4 free carried wells is better than 4 yet to return investment.

As for the continued program, I notice AKG were granted a re-entry permit for a Burelson lease "Miss Ellie" but cannot find any data on recent production, suggesting this re-entry has not yet been carried out. Could be the first on the list.

Champions drilling will resume in 6 months or so to co-incide with the next winter gas price cycle. Still see this as a long-term buy so not too worried about the SP now they are pulling in the $$. Only concern is the increased dilution from note conversion at these horribly low prices.

Disc: picked up a few more earlier this week @.11 - get them cheap while you can.