private offering of senior notes (aut), page-6

lucky

Many people probably hold both and I don't think that AUT absorbing EKA would be a good deal for either sets of shareholders.

MRO is getting quite busy and that pilot drilling plan (partly on Sugarloaf) to test closer spacing might also test vertical stacking of laterals - it has been suggested that 2 might be drilled into the shale - and then there is the Austin Chalk above as well - our Weston well has been producing since early 2010. The AUT brokers say Kennedy also - but it was never quite clear whether that well was in the chalk or the shale.

AUT bought WI from TCEI last time around. TCEI had interests in Live Oak in partnership with CoP and it is possible that it (TCEI) might want to sell more of its land to fund its Live Oak obligations. But there are other companies, TXN is one example, that appear to want to sell EFS land that they have gone some way to proving up. There's no reason to put EKA at top of the list of potential targets.

Watch for results from GeoResources, who will be fraccing 4 wells in Fayette about now using a new design. They drilled the EKA Blackjack Springs well and the initial results were disappointing. With luck, we may have to take a different (and more positive) view of the value of EKA's Pan de Azucar interest. Lots due to happen this year.