announcement coming, page-7

Here's the scenarios.

1. If we cap the blowout and use the well as a producer = No Further Costs.

2. If we can't kill the well but use the relief well as a producer = up to US$3.7M

3. If we can't kill the well and we can't relief the well with the 2nd rig = up to US$1.9M

Some of those costs will be covered with the budget, some will be covered by insurance and some may covered by a law suit against the operator. The rest will be comeing out of the company's account. The amount that comes out of the account will be reflected in the market cap (currently $20M).

But remember that our market cap has already fallen since the original news so most of the bad news has already been factored into the share price. We were trading at around 1.8cents a while back (market cap of $25M) before the news of the blowout. Given the most our company will be liable for is $4M, our current market cap should technically have factored in the worst case scenario.

A big thank-you to the board for giving shareholders some closure on this situation. It's taken a while, but now we all know where we stand. Let's hope the best scenario comes out of this and we can get back on our merry way with the drilling campaign.