Listened to the webcast from Approach Resources and it is highly...

Listened to the webcast from Approach Resources and it is highly encouraging to hear what they are doing.

Their average horizontal well production is 540 boe/d. Average cost is $6.5 million but they hope to get that down to $5.5 by recycling water and installing pipes to reduce trucking. On the frac side they are talking 30 boe/d per stage.

Also some of their verticals are doing extremely wells after fraccing multiple zones. F and D costs are only $10 per bbl.

The most encouraging thing from MPO's perspective is the way the new completions designs are giving them higher oil %'s and better flows. They've gone to slick water and increased the injection rates to crack more rock. Now looking at stacked horizontals into multiple pay zones from one pad. By comparison they mentioned there earliest efforts in the play only delivering 150 boe/d and now with the lessons they've learned, they are getting wells in similar locations to flow over 800 boe/d (initial production.) Some are going over 1000 boe/d.

Approach's southern areas of Pangea are discussed (closest to MPO) and they say they have had a mixed result from doing recompletions on three verticals they've drilled so far in that area. No horizontals as yet from what I gather. One re- completions was described as giving an exceptional result, the other two left them 'scratching their heads'.

Also noted there is a new land release coming up around the University area to the north of MPO's ground..end of the month. I wonder if MPO will be bidding? With out cash position I bet they do have a crack. Going to be very competitive to get some more land according to Approach. This has to be a good sign for the value of existing ground.

Anyway that is my summary. Well worth listening to the webcast and the presentation is on their website.

Buddy,

Always happy to hear your opinion. Will look into the compton exits a bit further and see what I can find as that is an interesting question. I'm hoping they left on mass because MPO represents a golden opportunity for them to turn a 170 million company with lots of cash into a multi billion dollar enterprise. We can only hope..the trading on friday was very weak I have to admit.