Ann: Operations Update, page-81

Given my research on these shales Db I'd b very surprised if there wasn't a decent degree of complex fracturing. If one adds that to the success of volume of proppant then it's really 2+2 isn't it ?

However one still has to b careful of other shale variables such as the flaking and migrating particles that could affect the flow performance.

I have to admit I have come full circle in a way prompted by Laz's reality check and I am now content to wait on those flow results.

These r the ultimate attainable parameters with this well and will give a clear indication of the potential financials/margins of the project from a straight extrapolation of this particular sweet spot location (if this will indeed b considered a sweetspot) based primarily on the lateral upscale model/s in conjunction with rig type and well location/spacings.

This will also b the ultimate test of just how juicy our target is to any suitor/s as the HRZ is without doubt the premier asset as long as these numbers come up to snuff.

WE can b as positive as we like but with the number of shares on issue it won't b until the buyers overwhelm the sellers that we see it move again imho and that may not b until ANY doubt or risk is removed no matter how positive we think the current play development is or circumstantially implies.

We r now at a market cap of 300M and r rapidly attaining a higher asx position if we hold or better this and the strength of the accumulation is nothing but impressive.

I am a great believer in the stratified nature of the market particularly when one gets funds involved and if smaller money believes that bigger money likes what's coming u will get the subsequent sp performance of accumulation preparing for the bigger money to start the rerate.

But that bigger money will not move in until a substantial chunk of risk is removed and imho we r probably just weeks away from that happening.

d.