freefall, page-9

If you know about Ukraine and followed HOG from the beginning, you will understand what sets HOG apart from other Ukraine operators. That is they claim to have better well design and completion techniques to achieve superior performance. Ukraine needs American style O&G drilling techniques to unlock the true value of their hydrocarbons.

The value driver for HOG has, is and always will be its ability to achieve superior performance from these tight reservoirs in Ukraine. If there is gas in the B-24/25 and HOG is able to achieve sustained flow rates above the break-even level, HOG will receive a rerating.

The B-24/25 is what determines whether or not HOG becomes a billion dollar company like JkX and the former Regal Petroleum. There's substantial risk involved and your faith is in management. The question is do they really have these superior techniques to make the B-24/25 flow at stable commercial rates for sustained periods of time? Time will tell.

2012 is the year of management proving their credibility.
2013 will be the year of the HOG (should all go well in 2012).