activity report, page-5

Lost circulation definition.

A lack of mud returning to the surface after being pumped down a well. Lost circulation occurs when the drill bit encounters natural fissures, fractures or caverns, and mud flows into the newly available space. Lost circulation may also be caused by applying more mud pressure (that is, drilling overbalanced) on the formation than it is strong enough to withstand, thereby opening up a fracture into which mud flows

This is only the first of eleven wells to guage extent of area. The ground they are drilling in would seem to be porous causing mud under pressure finding fractures in the ground. On the other side of the coin any oil found should flow freely. As the area is noted for oil I don't see a problem. They are releasing the news and someone picked up 400k at .155. I'm holding and on any pullback will buy more.