Ann: Colorado Operational Update, page-2

These wells are drilled tangentially into the formation and do not require hydraulic fracturing, therefore the cost to drill and complete these wells is generally less than $1 million per well.

Our current focus is on maintaining production levels whilst significantly reducing our costs to keep our cash flows strong during this down-turn in global oil prices. We have stripped out approximately $1 million of our overhead costs, including Company-wide salary reductions, and are well positioned to ride out this low oil price storm.