Ann: Q&A Dempsey and Sacramento Basin, page-2

"to put this in context, so far we have successfully flowed clean dry gas from the only two high‐pressure intervals tested and these straddle only 700 feet (around 15%) of over 4000 feet of interest in the well below the field producing levels."

"In our view the potential of the lower zones was too great to walk away from."

"The permeable zones may be connected to thicker zones away from the well bore."

"We are doing this work expecting to see very significant improvement in flow. Otherwise, why would we bother?"

"In my view, Dempsey is already a very significant natural gas discovery."

"There already is and will be increased competition for other prospective areas in the Basin and consequently we must, in the interests of investing shareholders, protect some of the detail that does not have direct monetary impact on shareholders, but which provides us with competitive advantage."

"We already have a significant natural gas resource at Dempsey in the lower interval of interest;"

"The testing of Dempsey has only just begun and my views of its potential are perhaps changed in technical detail, but not diminished otherwise."

"we are actively working to have Dempsey 1‐15 well in production selling natural gas in the next couple of weeks adding to our existing revenue base."

"We continue to run a dual strategy of developing our larger targets and building steady gas supply from the field production levels using our existing 27 well bores and associated equipment and pipeline conections."

(Bolding and underlining is mine)