Ann: Regulatory Approval to Drill Four Additional Wells, page-28

It’s interesting to say the least. I’m surprised IACX would consider taking “resources” as collateral at all. If they did I would love to know what value they placed on them. Proved up “reserves” would be a different matter. If the gas doesn’t flow then how does BNL pay the lease and what value does the resource have to back the collateral obligation? BNL is a tough one to place a value on presently due to their unorthodox approach. More a gamble at this point but the upside is pretty big if it all comes off.

the fact IACX took the lease as collateral and red rocks over the way is already producing commercially is a good omen. We just won’t know for sure till the flow and composition tests are in on our “first production” well. Even then it could be a swing and a miss but the next hole might be a goer. If that happens then we are in for a wild ride on the SP.

merry Christmas and all that crap to all!