ef looking good, page-21

Why get into another highly sought after and prospective acrage? Diversifaction in JV talks to thwart T/O attempts, entry and exposure into the zone at a fraction of the price
to leverage further WI% and acreage in the EF. SG would be in discussions with many over there who 'have their finger on the pulse'. Look what happened when we went to acquire more PB acreage- it was so popular we couldnt afford anymore, so our attention changed to a new area that has\d similar potential. Our entry was for pocket change imho...

From AZZ Quarterly:
"In closing, I’d like to point out a recent acquisition to show the type of shareholder value we are creating through the deployment of capital in our 2012 drilling and
completion program. Breitburn Energy Partners (NASDAQ:BBEP) recently announced it had closed on 4,600 acres producing 2,100 BOEPD with proven reserves of 9.5MMBOE for $220MM USD. The property was located adjacent to our Southern Star project area with one lease being common to Southern Star and the announced transaction."

This equates to $47,826.08 per EF acre.

In comparison, our WI% in EFS cost substantially less than this. Good move SG and 'striking while the iron's hot' is spot-on. GO GGP!