Ann: Quarterly Report June 2014, page-5

Not a bad quarterly, good to see the details from all wells at last. Only really disturbing thing I see is that the effect of the water injection seems to have been quite limited.
"After initial encouraging results where the water injection process arrested the previous natural field decline and improved production results, recent improvements have been minimal."
With all the new production coming on line it is going to be difficult to monitor this, I think this quarterly is the first time it has been released to us?

Production profit before tax $5.4M on 20% is nice to see but I think I would have prefered to see $10.8M on 40%. Losing $20M per year if production is maintained, is only 18 months to get to the sale price although we get some additional commission on that. A pre tax profit of nearly $20M in an oil producer would not let us dawdle with a $80M market cap and dividends would be assured. Now if we don't get a result from Phoenix to spend that cash on then it will really bite, and we are still non profit making for the foreseeable future.