Ann: Nandino Prospective Resources Certified, page-23

Congratulations to those that purchased at 2.2. Take the gift because this seems to be a pattern with SGC (i.e. well planned announcements). For example, last year when they announced the NDO purchase from Bangchak their SP zoomed to near 6 cents (with Brent around 80). Now it has moved to 3 (albeit with Brent nearly 120 today...funny that).

Since 2006, there has been at least 5 (could be 6) independent audits on Cadlao reserves (done by I think 3 different companies, RISC being one of them). However, nothing got done. For the simple reason that the Operator(s) could not get the funding to drill the damn thing!

And this is what is missing with this announcement: how are they going to pay for the wells in Cadlao and Nandino? Also missing: has NDO increased its share of Cadlao from its original sub-10% stake? Have the Filipino partners agreed to farm down for a free carry? What is happening with the POD that was supposed to have been submitted to the DOE by now? Without a POD they cannot drill? Without an ECC they cannot drill? If as they claim they will drill by June then should they not have these things ANNOUNCED as well? This announcement to me feels like a diversion from the truth on the ground. I suspect the following: no deal yet with the Filipinos, no POD submitted, no approvals from DENR and PCSD, and more importantly, no funding to drill the wells. If they are to do an EWT before June, they should be spudding by April.

This is definitely a cute announcement to spoof the SP up. It is a tactic used over and over again and using RISC is the fastest way to get it done. Perhaps it would look better if they used Gaffney Klein.