Ann: Trading Halt, page-117

Hey bruce,

Really appreciate reading your thoughtful comments. In the main we seem to be on the same track.

What would be wrong with Otto going to Talos and asking them to buy out Otto's interest in GC 21 and if the money is sufficient then going to Macquarie and asking to repay their loan early.

- I would think Talos will offer something very low but if it is sufficient with the cashing of the oil hedges, current production, capital raising and existing cash levels to pay back Macquarie and have a little cash left over, I would be happy to take it. (I cant see why Macquarie would not jump at the opportunity to get their money back rather than have it invested in a poorly managed company at an extremely uncertain time for oil.) Better for Otto to live to fight another day, methinks.

Re your comments about cutting back SM71 oil to hedge level production.
- for the same reason (survival), I would suggest the need for cash flow is so, so great right now as long as they are producing above total variable cost of output it is a good thing as it adds to net cash flow.