Ann: Quarterly Activities and Cashflow Report , page-4

Great to see Blackjack has been fracced successfully and is up and running.

430 boep/d post-royalties for the quarter is fantastic and exceeded my expectations. AUT is only 5x that.

The cash on hand will fund us until the end of 2011, so with Marathon ramping up the drilling schedule for 2012 it's basically a given that EKA will have to cap-raise at the end of the year. Marathon's increased drilling schedule is a great thing though, most certainly worth the dilution.

I also like EKA's description of the Brioche project as well. I've had my suspicions about this land but it's encouraging to hear EKA state that their 3D seismic confirms the original indications of the acreage.

Hopefully we'll see a re-rating to 40 cents+ with good production results from Blackjack + a more stable stock market.

From the last production update:

- production commenced from Davenport 1H (2.93%) on 20 June

- production commenced from Jordan 1H (6.25%) on 25 June

-production commenced from Best Huth 1H (1.21%) on 4 July

- The fracture stimulation of Best Fenner 1H (6.25%) was completed with 17 stages. Difficulties were encountered when running the tubing and once this is resolved the well will be unloaded and EKA will provide an updated on production

- Turnbull 6 (2.13%) was successfully fracced on July 10.

- Blackjack 1H has been successfully fracced

With all these new wells coming online just after the reporting period ended, EKA's production results for the next Quarter should be very, very impressive.

The share-price was punished on a bad market day today, obviously a few nervous holders. Good market conditions should see this Quarterly report (released after market) strengthen the share price.