Ann: Operations Update, page-71

Don,

They are under pressure for every well, however, if failure presents you move to the next. Dave does not see this as failure, he runs a business and business is business, many are unsuccessful at their main aim but still continue to function.

His job to facilitate the exploration of oil, which is mainly dependant on the raising/acquisition of funds to do so. He is not reasonable for the geological or operational component, although I'm sure he has input.

It should be noted that to date, all wells have been on time, on budget and with a good record of health/safety.

It's the geological that has let them down, whether by expert opinion or the strata itself or a mix of the two. There's a story that's told, sometimes we need to look through that story and see the reality.

To best understand the pressure though, look to where the responsibility falls,

Icewine 1/2 - Paul Basinki

Winx - Otto

Charlie 1 - Premier

Whether a true reflection or not we are not party to the internal machinations of operations, so will never know the truth.

But, there is a pattern here, and should a Farm-out be secured for the next well, the Farm-out partner will bear responsibility for failure and the JV as a whole will rejoice in the case of success.

Exploration is a tough business, 88e are operating in a tough place and opportunities are limited so we must take them when on offer and look through the story.

Just my thoughts.

Cheers