Ann: Icewine 2 - Drilling Remains on Schedule, page-45

It's a good point Starting and a reflection of the BoD and PB's psychy in maximising quality of contractors from the industry as well as the LTO knowledge in order to minimise the risks associated with developing a geologically new type play.

PB knows the geology at Icewine is unique relative to any other LTO play, but that it does come well and truly up to spec as regards completion/reservoir potential.

And on that note, I hark back yet again to the company statements that the HRZ has the potential to flow like a CONVENTIONAL well.

Quite a few of those parameters match up with conventional well parameters.

I also wonder why these guys would chase this play if it wasn't going to come up to spec for a major to take out. This was the primary mission statement of management after all.

So are they promising what they can't give ?

We have those other plays to the north east coming up with potential billions yet the industry is saying they would be hard to make work because of their isolation and they would need billions spent on pipe/processing infrastructure.

Well, if we can flow like a conventional, and consequently have longer lateral wells with minimal step out infrastructure (or at least the future operator), Icewine has the pipe and road infrastructure, so there are minimal logistics costs there.

Many of the operators on The Slope frack their wells anyway so we know the proppant logistics must be available.

One begins to wonder if this has been the model that PB has worked with all along, that is, a conventional like flowing strata.

I find it difficult to believe PB would have spent so long at this without taking into account the ability of the US light tight industry to produce the volumes of oil at the price they now can without at least Icewine having the high potential to compete with the lower 48 at this price point. And don't forget we have high API stuff which will have a premium paid again on top.

The project will look after itself if the scale of resource they are talking about is there.

So the question remains does Icewine have conventional flow potential ?

That's what we're about to find out.

I guess I continue to justify my investment here with the heavy circumstantial positives surrounding it. And then there's the amazing level of investor interest via those placements, and in my book this is heavily intimating this money believes there's a high chance that 88E/Bex can make this work.

But as with Icewine 1 we need to prove firstly the ability for the HRZ to flow with its new geology, and secondly, to get it to flow well enuf so that at a minimum we are able to attract enuf cash to drill some horizontals and maybe even develop a pilot production project.

d.