Ann: Letter to Shareholders , page-5

The only reason they are expecting positive cash flows from these operations is because they are going to suspend further drilling.

The caveat on the 3000 bopd wrt ALRO doesn't make me too optimistic they"ll meet their timing, nor does it seem to me that they are more than gambling that they can get the targeted new production from the volcanics currently being drilled.

I am betting that they will miss the target, but all is not lost, unless someone is being very dishonest it does sound like the sandstone will deliver - whether a little late or not - which would be a major relief.

Bottom line: Best read the letter carefully yourselves, remembering to read between the lines. Don't rely on my or anyone else's slant on things.

EL