announcement - project update presentation, page-16

Here's a summary of my discussion with Ian

1. My first concern was around the reported flow rates for Spearfish in the presentation being the same as those reported on 21 June.

The reason is that the weather has only recently allowed them to access the wells to conduct sand clean out operations after 4-6 weeks of production. As the wells are all multi-stage frac stimulated, there is flow-back of the frac sand into
the horizontal wellbore once initial production commences. They are currently in the middle of a workover programme on the wells hence the lower flows than were achieved in June.

2. My next concern was that Bakken had not lived up to the company's expectations given that reported production of 55 bpd from 4 wells was way short of the expected 110 bpd mentioned in the original acquisition announcement in Aug 2009.

Whilst Ian agreed with that assessment he said the company is not dismayed because
- the Bakken wells are fracced at about half the spacing used in Spearfish and increasing the number of fracs should increase production
- none of the wells have yet been cleaned out as they are focusing on Spearfish
- the Bakken is at a much earlier stage of understanding from an overall industry perspective and therefore they're still at the early stages of the learning curve.

They are not concerned with the Bakken, they just need more time to 'unlock the code'. Whereas in Spearfish they have the benefit of a proven recipe for development (from others). They have not changed their expectations for Bakken but they now realise that Spearfish has the potential to offer double the recovery of the Bakken.

The other reason they're focusing on Spearfish is that they have 5 years remaining on the Bakken leases whereas Spearfish have shorter term leases that they need to address.

3. The 3rd point of discussion was their comment in the presentation that Bakken prospectivity is under review.

Having finally had roughly 6-8 weeks of mainly ( but not totally)
continuous Bakken production they are simply now in a position to start
evaluating the well results - nothing more than this.

4. The level of confidence that they will be granted permit to drill in Quebec

They remain confident that they will get the permit. The situation over the border (environmental issues, worker injuries) is not helping the cause. They understand the local community's concerns and they are addressing them by engaging them to educate them about the drilling and production processes rather than simply pushing their case. As they plan to be there a long time they was to make sure they have the local on side even if it means delaying the start of drilling.

5. I asked about the company's view is as to why the market has not re-rated MPO's value following the oil reserves announcement and what else management can do to ensure that the market can price a higher value to the company's stock.

He acknowledged that the market response was disappointing and made the comment that had a Canadian company made a similar announcement it would have gained 30-40%. That's when he mentioned the road show over the coming weeks to get the message out. He finished with the comment that the Spearfish independent certification alone exceeds the company's current market value.

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I hope this helps, I know it helped me to get a better perspective on the company's activities and to just be patient. There's no doubt in my mind that the SP deserves to be well north of where it is right now. And I believe it's a matter of time.