ann out, page-11

My view is that management are just limited their risk on Backreef. They have 100% ownership of the area so GRK are taking on some of the risk prior to production testing. I think the sell down is occuring because some investors see this as a sign of weakness by management and they may believe they aren't as confident in the area. I would rather see this than future dilution in another raising. Nothing wrong with it.

The other thing investors probably didn't like is that GRK is another Junior. I never really thought they would farm the Backreef area out to a Major. Thats for the Derby block. The potential in Backreef is very good for smaller companies..but doesnt have "large enough" potential for what the bigger boys are after. They want multi TCF gas resources and the Derby block is the key to provide this.