Ann: SM58 G4 Initial Production Rates & SM58 G6 Status, page-14

It’s certainlyinteresting and noteworthy that you only included the F4 well at SM71 as asubpar well on your list, along with the G2, G3 and G5 wells at SM58. I wonderwhy you didn’t include the F2 and the F5 wells? These wells wouldcertainly qualify for your esteemed duds list. The F2 has only produced 114,000barrels of oil thus far and the F5 was suspended and with no production. Interesting that the F2 and the F5 werewells that Otto participated in, unlike the F4 where Byron went it alone.Like I said in my previous post, I’m not sure what your motivation or agenda isbut I’m starting to also wonder about your possibleaffiliation with a certain company which might go beyond just owningshares. Could it be that you have and interest in down ramping BYE for thepurpose of financial gain? Very suspicious indeed!

Irrespective of this, the fact that five wellswere drilled at SM71, the F1, F2, F3, F4 and F5 and only two wells, the F1 andthe F3 were successful, is a good case in point to illustrate that not all wells have to be deemed successfulto make a successful project and I don’t think that anyone can argue thesuccess of SM71. The SM58 has a long way to go with still more wells to be drilledand its success or failure is still to be determined. As an investor all I cando is back the team that has delivered in spades in the past and I rest easyknowing that everything technically possible is being done by the company inorder to maximize the chances of success. I don’t think you can ask any more than this from a small oil and gas company.