one spindle top and i am out of here, page-2

I emailed Andrew Crawford yesterday regarding the production and JV and received a very quick response this morning. You can probably work out my questions as you read his responses.

1 – As detailed in the September 2012 quarterly report, Maverick is undertaking a project to recomplete 30% to 50% of its wells which were offline during the September 2012 quarter. The impact of this program should be seen in production in the first quarter of 2013. Maverick’s internal workover rigs which are used in the process of recompleting these wells cost us around $1,000 a day to run. As such, a workover which takes 10 days incurs around $10,000 of workover rig cost, plus the cost of any third party services used (such as perforating costs where we move to a new zone in a well). Potential production rates from this workover program will vary from well to well, however a number of them will be targeting flow rates consistent with those of a newly drilled well as they are recompletions in new zones.

2 – The quarterly report for September 2012 details the Directors’ opinions on some of the drivers of the deceasing production. The principal driver detailed was the focus on the Het Limestone formations in Nash and Boling Domes.

3 and 4 – In relation to the JV, the Company will provide a detailed update in the quarterly report. I can confirm that a portion of funding has been received and wells have been drilled under the program (including some pre 31 December 2012).