Ann: Operational Update, page-30

My personal view is we have identified some structure in the 2D that continues off the acreage and along trend of the main formation and sweetspot, and that we would be strategically bidding with a price that we would be hopeful of being successful with.

If we can grab some extra conventional prospectivity based on the data and analysis already done, it will add to appeal for a major to farm in on the Conventional and add to our already massive unconventional play.

So it might go like this:

- Commit to spending $5-$10 mil now on more prospective land, doesn't have to be fully paid for til mid 2017, just a deposit for now. Find out on the 15 Dec if we are successful or not.
- Then, before end of year or Jan sometime, come out with the full seismic results with all the leads and volumetrics showing how they could possibly continue off our current acreage and into newly acquired acreage.
- Look to Farm Out a % of the conventionals to pay for the land, plus extra money in the bank for drilling say another 2 horizontal wells in the HRZ.
- Farm In partner does 3D on the best conventional leads ion 2017 and commits to 1 or 2 drills in 2018.

Or it might not.

All IMO