Ann: Q2/Q3 Drilling and Completion Operations Update, page-20

I am of the opinion that the share price being above 20c and the cap raising at 20c was due to the market taking into account the expected value and imminent sale of the Montney holding at that time. The current SP is now solely based around current production and drilling expectations due to the apparent lack of interest in the Montney holding. Slipping in an unexpected cap raising didn't help, recent market woes and stopping the buy back without any explanation also hasn't helped.

Given the significant interest in O and G in the greater Montney area, I and many others wonder why there are no acceptable offers are coming in. I can only surmise that either: 1, management have priced it out of the market, or 2 it is really worthless.

If it is because management have priced it out of the market, then the risk is that ultimately the Montney area could be picked up as part of a takeover bid for the whole company, and at a bargain price. A buy price in the 20s would be justifiable if the average price for the previous X number of months had been around 13c. An offer at 26c whilst unpalatable to most holders would actually be 50% above market value.