Ann: Updated Proved Reserves , page-20

Delilah......"what about the elephants in the room"....


Think about this. Imagine you can turn back the clock and walk into Terry's office 2 years ago. The $74 million is in the bank and you ask TB what's his plan. He say's, "well, we can to to Zavanna and try to get them to crank up the programme in North Stockyard but their not really interested. We are not the operator so unless we cut some sought of deal ( which we have now done )there isn't a lot of scope for growth there.

OR we can initiate a programme to determine the viability or otherwise of our Niobrara acreage. We will need to drill 2 wells, 1 into the Niobrara shale and 1 into the Permian. If these 2 wells prove to be commercial, it will change the company forever. There is a downside, the Geology of the area from an engineering point of view is still an unknown but we have 3D and were pretty excited about what the possibilities are. Cheseapeake must be confident too, because they paid us a motza for the land."

Transfer this line of thinking to the potential in the Roosevelt Project and I think you would agree that at the time Terry had a compelling case. We know what happened next but I along with most others thought TB was doing the right thing. We can still get a good outcome from Defender, Federal Bluff may produce the goods if what we learned from SOA is any help and Roosevelt is being sold so I guess that equates to a FAIL.

Oil and Gas is tuff. Investment decisions from small investors like us have to be made carefully. And Management have to be accountable when they make mistakes, stuff ups and misjudgements. The Journey continues.


Cheers OMR