Ann: Sugarloaf Production and Operations Update , page-20

re: Ann: Sugarloaf Production and Operations ... Hey Kak,

I can understand yours and other investors frustrations and as you know I have been in this share for a bit longer than originally planned.

I have a different opinion in that I am very happy with the amount of data coming through from Hilcorp to the JVP. I was worried to start with but seriously if you look at the announcements over the last month or so we are being told everything that is happening operationally at regular intervals.

I actually thought yesterdays announcement was brilliant, Weston and Kennedy are flowing at great rates over the 60 day period, we havent seen any updates like that from the likes of AZZ.

The issue with the JVP not promoting themselves is probably something you need to take up with them. I am confident this share, AUT and EKA will be due a re-rating soon. They will be working on reserve updates and that will be when the market will sit up and take notice.

To many old stale bulls like us that need to get out and let new investors in ;-) Seriously though, Hilcorp are smashing it in terms of drilling, Rancho Grande in around 19 days...wow.

We are about to see 3 wells fracs in the next month and a half and I expect IPs to be provided but we are also getting 30 and 60 day production updates.

The forward plan is still up in the air in terms of Hilcorps field development, but they will have to drill a certain amount of wells to ensure the leases are maintained. The way they are going I would be surprised not to see more wells on the AIM acreage in the not to distant future.

Waiting patiently for the reserves announcement and the flow from these 5000 ft horizontal wells. For me there is minimal risk, it is just a matter of waiting a little longer. The JVPs will be on the radar soon the way I see it.

Hope you can hang in there as I reckon the re-rating is not far off.