Sure Scoob,Paterson Research Note Report dated May 11, 2012. PP...

Sure Scoob,

Paterson Research Note Report dated May 11, 2012. PP 4, Sub heading: California, first line

I must admit I was surprised to find this as well, given I had never seen any NPR for California before. Paterson go on to define Paloma at 143.8 mmboe. I do note that I made reference to Paloma on the 244mmboe and looking at the report it does say California, rather than Paloma, this was an oversight on my part. However I do not think this distracts from the independent estimate by Paterson of the Paloma estimate of 143.8mmboe which was the point in question.

When you look at the spread of the shale across the acerage and the contingent resouce that extends between PD1 & PD2, Lower Stevens and Upper Antelope Sands coupled with the historical recovery from shale, I believe forms a solid basis for a significant resource upgrade.