Ann: May 2012 Corporate Presentation , page-8

whynot,

In the December quarterly BRR broadcast, when Eric was discussing how SEA had 3 prospects, at that stage the South Goltry prospect was announced, with the other 2 prospects were confidential whilst leasing was occurring. He mentioned that Alfalfa was a really good area which as such had been leased heavily by the industry, namely Sandridge and Chesapeake and Eagle Energy. He quoted "We're not going to be able to build a 10,000 or 20,000 acre position there [South Goltry], however we will still get a material prospect there."

At the time (and still to this very date), SEA have been actively trying to pick up leases in Alfalfa County, but considering how Sandridge, Chesapeake and Eagle have leased a huge amount of acres there and developed alot of very good producing wells in the area(220 Horizontal wells in Alfalfa County alone), there was really no disadvantage on a competitive level to release information that SEA was leasing there (as let's face it when Sandridge and Chesapeake are leasing and producing very well in the area, what difference does it make if the industry knows SEA is leasing there as well!).

So for that reason, it really doesn't matter to SEA if they release information from their Alfalfa County wells, because the industry knows how good the area is already! So by that logic, I don't think SEA will be delaying the release of any IP information. Further-more, Eric's statement that IP guidance should be out in 15-45 days, confirms that as well I reckon! IMO anyway!

The other 2 'less known' prospects, were chosen as SEA would be able to lease more acreage. Considering how much more attention Logan County has received since Devon and Osage released their first 2 wells, it's great that SEA were able to pick up leases before this rush.

In this month's BRR interview, whilst answering a question Eric mentioned that the acreage breakdown at the time was roughly as follows:

Alfalfa = ~3,000 acres (Sandridge, CHK and to some extent Eagle have leased this county extremely aggressively)
Logan = ~7,000-8,000 acres
South Kansas prospect = ~10,000 acres;

And that further leasing was going to be focused primarily on Alfalfa and Logan Counties whilst leases are still available in the area. I'm guessing that's mainly due to the fact that SEA are happy with their current South Kansas prospect acreage position (where it was easier to lease a larger amount of company operated drilling blocks) and due to the existence of the Woodford formation being a secondary target across both South Goltry and Mulhall prospects.

He also stated that SEA have identified another 1 or 2 areas (once again less targeted by the industry) which they anticipate being able to expand into (once the availability of logan/alfalfa leases starts drying up) and that these areas were 'as good if not better' than the current prospects.

I'm guessing that the reason as to why they haven't started leasing these other 1 or 2 prospects yet is down to the location of these being in Kansas (and hence without the Woodford as a secondary target). IMO anyway.