agm comments, page-46

I think the actual wording on the November 23rd announcement was

"The forward plan for this well is to install the down hole pump and prepare the well for production OPERATIONS".

I did not take it as misleading at all.

Prepare the well for production OPERATIONS are all those necessary mechanical and operational steps to bring the well toward production.

I don't think there is anything behind the doors going on with management. They just do not know at this point whether the well will be productive or not.

I am sure that management would like to see oil shows but unfortunately as of November 28th there were none.

They have a hypothesis on why they may not have seen any oil (normal pressured play overcome by the hydrostatic pressure of the NaCl) and now they are proving up the hypothesis to see if this could be the cause.

If I remember from the Nov 28th Ann, it said that a pump jack "is planned next week when tubing and a down-hole
pump will be installed."

When I read it, my interpretation is that it could be ANYTIME this week which has 5 more days.

My guess (and that is all that it is) is that the pump jack hasn't been brought in and installed yet.

Appreciated the teamwork done by several here on a time frame once the pump is operating and pumping some 500 barrels of fluid/day.

I personally think we still have a commercial well here even though my earlier estimates of IP rates were probably unreasonable for this type of play.

I figure I would rather hold my shares through the possibility of hitting 6 cents on a duster with a rise back above 15 cents as we get production from our FP wells than sell now and maybe save 25% and then miss a 40% correction if the general public is wrong concerning Defender with the negative commentary that now seems to be the norm.

Unfortunately, I am a terrible short term trader so I'll just have to hold my share long term and take a haircut for the time being:-). Good luck all.

STS