agm, page-20

Buddy,

Everyone here is pretty damn frustrated with the share price. But it is not all managements fault.

The MPO story in my opinion is developing very nicely. The share price doesn't reflect that. Management have tried to sell the story. The 95c/share for 2P Oil reserves in the last announcement was a pretty clear indication that managament are trying to tell people there is a lot of value on offer.

But... management can't force the share price to move anywhere. At the end of the day, it comes down to how excited people are about the story. At the moment, I think excitement is building, people are watching and waiting, they just want a couple more boxes ticked and maybe someone else to start buying first.

On the management incentive options.... you guys are kidding yourselves on this. Don't let your emotions on the share price which management have little control over affect your judgement about how they are running the business.

Management are NOT lining their own pockets. The options aren't going to the same people over and over again. They are going to new staff to build their new rapidly expanding operations in Canada. It is not as though each board meeting Stephen Mitchell, Anthony Bishop and Ian Gorman are rubbing their hands and giving themselves more options. They are trying to grow the business and attract new talent to take MPO from being a mid-tier company into something a lot larger!!!! If that happens, we as shareholders won't give a rats about if they have incentive options or not.

The new macquarie coverage had this to say on the matter... my comments in brackets:

"ultimately the Canadian team will be responsible for MPO's near term performance. Offering of Equity (INCENTIVE OPTIONS) in the company has lured much of this ex-EOG team out of retirement (EOG is a very major player in Williston basin). This team is made of:

Monty Bowers, President and CEO, Former CEO of capitol energy resources, previous experience at Shell and Amerada Hess.

Brian Tompkins: VP Exploration: Former experience at EOG Resources and over 10 years experience in the Spearfish play.

Curtis Schoenfield, VP Engineering: Former experience at EOG Resources.

Lanny Fenwick, Non executive director: Former GM of EOG Canada for 18 years. Currently a director of Galleon."

I have already posted in the past about how insignificant the dilutionary effect of issuing incentive options are for share holders. It effectively comes at no cost to us. Sure it has the potential to make some of management a lot of money, and they will get a big pay day, but so will we when the share price goes up because of their hard work.

I will be voting yes for the incentive options, because to me it makes perfect business sense to try and attract the best people so that we have the best business possible. Pay peanuts and you will get monkeys.

Anyway, getting hitched tomorrow so won't be posting for a few weeks. Hope by the time I get back from honeymoon the share price is a lot higher for us all.

Cheers

Pukin