Ann: Nicolay No.1 Well Spudded , page-33

Bhutos

Yes, I said I would chose to be freecarry couple maonths ago, but I vae changed my mind I am in all the way as I stated later on. NSe is different than other stocks IMO.

I am now keeping NSE more than 1 year (13 months). I think I will hold it for another 8-10 months. I am expecting it to be over $2 during this time. We can see it at $2 if we hit a conventional reservoir in Nicolay-1 location soon.

I don't think NSE will go any lower than 50c anymore. The trick is here;

- NSE management is very good.

- NSE will grow even better than Buru. NSE is creating new projects all the time.

- NSE has $70m cash ($40m cash + $30m Buru shares). This is big money. It can create another 2 big project. They also have the Merlinleigh and Laurel projects. It looks like they will not spend any money for Merlinleigh after the farm in. Therefore they will be keeping $70 in cash. I think they will buy another project next year. That means even the Goldwyer project has become a duster they will still have more than two projects and stock price will not go lower than 50c.

- The farmin agreement for Merlinleigh will be announced in next 5 months and drilling will be started in Q1-2013. The anns. of farm in agreement will give another boost to NSE's sp.

- I am not interested in short term trades.

Good luck.