Calima Drilling Progress Updates, page-61

Thanks for the quick upload here bjoerner. Obviously that was filmed after market close in Australia Friday, plenty of new detail there especially around the core analysis being received and confirming saguaro analogue. Glenn definitely looked pleased and confident in that video. We should get an announcement before market Monday.

Flow testing over the next 4-6 weeks he sees as the catalyst for the re rate. The positives keep building, but near term it's really up to RBS Morgans , how much stock has RBS staff and Management got to sell at 5.0/5.3 cents (their breakeven range after fees and free stock) , bigger picture this doesn't matter, but it does push the re rate down the road. We need that 100 million share trading day ($5 mill dollars, is not that much ). All will be forgiven RBS if you have a buyer lined up to take your stock once the drilling confirms we are more than just moose pasture, would love to see some large crossings.

The focus is on doing a deal well before we head too much further down the development track. Management view is that over any time period longer than say a year the macro is very good. Majors will be looking for acerage to add to their land banks to ensure supply to feed the infrastructure that is coming. ie: land prices for tested acerage should be little changed by the current travails of the Canadian O&G patch . fwiw, I know some of the large shareholders on the register , family office type money managers, and they couldn't be happier with the way things are going. Have no intention of selling until Stein does his transaction.