Ann: Prospectus Closed , page-36

Hey,

Comparing HOG to SEA. Some of the reason why SEA trades at a premium to HOG is because -

- Their is little sovereign risk where their projects are situated.
- Their is a lot of excitement and investment in shale stocks of late.
- They have very big name JV partners, reducing risk and optimizing drilling times and completions of their projects.
- They have a massive amount of acres in prime shale locations
- Good production and reserves growth.

IMO they are greatly undervalued.

However HOG's first well results are exceptional and the declines are impressive. Cap raising's are inevitable when developing a project, it's just bad luck that the market is going through a correction just when HOG needs the cash, the recent SP decrease is definently not a reflection of the company, more market sentiment and decline in oil price. Recent selling has been on low volume making it meaningless, any change in market sentiment or positive company Ann should see HOG bounce.