Ann: Letter Of Intent Executed for Pathfinder Far, page-34

re: Ann: Letter Of Intent Executed for Pathfi... 'their balance sheet will show a reduction in total assets.'

Bit of a Sophie's Choice there Cmon.

Get 'free' access to 55% production upside from well No 3 (assuming the 3rd Hz identical to 1st), 55% production upside from revisited 2nd (vertical to Hz), enhance land values as a result, move to prove up reserves, leading to debt funding yada yada. Pathfinder is the cash cow and none of the value calcs amount to much if there is no production. They needed to consolidate this field pronto and that's come with a growth accelerator but a cash hand brake.

Interestingly, the quarterly still quotes $2.7 million needed to cover Niobrara and EFS but (correctly I suppose-ink not dry etc) makes no allowance for the 'free carry'. Notable is the omission of Mississippi which according to the CR was to be included in this amount. I think this adds weight to the view that they are now finally capitalising the lower risk/higher probability prospects.