Ann: MR Olmos Project Drilling Phase Complete, page-11

interesting snippit from the 6 monthly, a clean out of Bonner 1H happening about now... who would have known....

Operational activities
The Company has received a total of US$786,898.17 (95.6% of possible recovery) for its insurance
claim following the Bonner 1H casing failure incident in July 2013. This is compensation for the
costs of repair and surface damages. The final instalment of the claim payment of US$102,774 was
received in April 2014. Refer to section 5 below regarding production from Bonner 1H. In an
attempt to restore the high fluid recovery rates seen earlier in the production life of the Bonner 1H,
the operator of the Bonner 1H has generated an AFE to clean out the lateral of any potential debris
and lower the jet pump. Talon has approved the AFE for its share of the cost ($20,000 net).
O’Benco has scheduled the workover to commence the week of 8 September 2014.