Potts,If you stated that I have no iota about investing based on...

Potts,

If you stated that I have no iota about investing based on my investment in NWE I would have to agree with you. Let’s look at a few facts.

1)Commercial production forecasts.

Refer to the following presentations:

• 18 Dec 2012- Slide 14
• 29 Nov 2012 AGM- Slide 9
• 14 Nov 2012 – Slide 16
• 25 Oct 2012-Slide 16

“First production target Q4 2014.”

Please excuse my ignorance but given that the company cannot provide forward plans now, how was it possible to make such bold public statements 12 months ago? Does the company have any idea what it is doing or was it making “feel-good’ statements to appease restless shareholders? Either way it is not a good look and a poor reflection on management.

2)Current flow testing program.

You (on HC) and the company gave the market the impression that the flow rate from the current flow testing would increase. Given that the average flow rate decreased by two thirds , you certainly don’t need to be a rocket scientist to see that the variation between the expectation and the actual flow rate has resulted in the share price capitulation. The big contradiction between the expectation and actual result came when NWE and AWE came out and stated that the average flow rate was at expected levels for a vertical well. If it was expected why did the company not create that expectation? What a farce. How can anyone make sense of this enormous contradiction? The share price chart did all the talking in respect of this. Please don’t make comments that the share price is not influenced by shareholder expectations that are created by the company itself, its execution of the business plan and its reporting processes.

3)Long term planning/financing/shareholder value

This company will need to access funding and from the sounds of it (I will leave this to the O&G experts to comment on as it is not my field of expertise) plenty of cash will be required. The last couple of CR’s were at $0.05 followed by the most recent $0.03 CR. The impact of the lack of market perception of increased value of NWE means that loyal long-term shareholders are being severely penalised. If your average purchase price is $0.05 and NWE comes good and moves to $0.04 cents after significant dilution of share capital, who wins? The new shareholders who have bought shares at < $0.02. There is a massive transfer of wealth from loyal long-term shareholders to opportunists who have smelt a bargain created by poor share price management (ie managing shareholder expectations by successful operations and communications).

4)The share price talks

Although small cap companies often have low trading volumes and you cannot give the share price action the same weight as for larger companies, the falling share price is a pretty good reflection about where the market rates NWE. Is it because the market does not understand NWE? Perhaps? Why does the market not understand NWE? The market perception is purely driven by what NWE achieves and how it communicates the improved value proposition.