pel105, page-20

Economic Analysis

Vertical Well
•IP 200 bopd, EUR 80,000 barrels
•Well cost USD$1,700,000
•NPV USD$2,000,000

Horizontal Well
•IP 800 bopd, EUR 200,000 barrels
•Well cost USD$6,900,000
•NPV USD$5,000,000
•Based on 5,000 acres and 160 acre horizontal well spacing there is potential for 32 well locations.

This represents possible value for AKK of USD$160,000,000.

Page 18 of

http://hotcopper.com.au/announcementFiles/2011/akk/cfe231ea-b8f3-427b-986c-dc43b53bb92c-akk183469.pdf

Still a pretty handsome return for a company with a MC less than $20mil

Also worth noting were drilling close to a vertical well that IP'ed at 456 BOPD, so could get pretty busy here if we IP our first vertical well at something like that.