Ann: Monthly Operations Report , page-2

"The Company’s first extended lateral well (the Freshwater #1-11H well) achieved a maximum 24-hour
rate of 187 Boe per day during January and the well has produced more 6,400 Boe in its first 45 days
of production. The Darwin #1-31H achieved a maximum 24-hour rate of 206 Boe per day and it has
produced approximately 5,160 Boe per day in its first 30-days of production. In addition, the Freddie
#1-29H well, which commenced production in mid-January, recorded a maximum 24-hour rate of 308
Boe per day."

Hardly a confidence booster:

Freshwater - IP45=142 (24hr Max =187) [long lateral]
Darwin - IP30=172 (24hr Max =206)
Freddie - IP30=n/a (24hr Max =308)

All mediocre, with 2 being below their average. Even worse, the worst performer was the long lateral which was one of the things that was supposed to improve the economics of the company! Oh dear !!