Ann: Quarterly Activities Report & Appendix 5B, page-44

Lets look at the facts for 88E
1. They have significant lease positions which 'might' have commercially accessable oil
2. They have tax credits due but not 100% sure if/when to be recognised
3. They have some 3D for Yukon but no drilling plan or other related deal
4. They have 3D for western conventional - but details not shared with the market
5. They have IW2 which is shut-in (again)
6. They have an agreement in play to develop and drill 1 well
7. They have limited cash reserves at present to cover beyond current activity
8. There is not a committed and clear plan of where cash will come from

My concern is mostly with point 7 and 8 - cashflow - without secure cashflows it leaves us in a poor negotiating position on any possible farmout, as we become the desperate poor cousin in the negotiation - will lead to having to take anything which is offered.

I would really like the BoD to share more detail on the forward plan for how they are going to keep the company in a strong cashflow position beyond the next 6 months.

In tough times, cash is king.