email from md

As a holder, I was disappointed with today's ann while at the same time I still hold hope for other projects. With some puzzle in mind in regards to the company's strategy to tackle this challenge, I took the liberty and rang the company number, it didn't get through, so I sent an email to the company.

A response came back within 2 hours, it's directly from our MD Stephen,
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'Thanks for your email and your confidence that we will continue to make progress. I apologise you couldn’t reach us by phone but we had a power outage and were without both phone and email.

On a positive front all our plans for Canada are on track and the Alberta farmout/disposal process with Macquarie is well advanced though I would expect it will require at least another month before we will have information we can share with the market. Likewise our BC activities are progressing well. in fact this morning we met with the team (via video conference) and have set the work programme for the remainder of the year- all aimed at increasing oil production.

Warro has clearly not done what we hoped. We are disappointed but not dismayed. We have penetrated some good quality gas sands but clearly the last frac approach did not yield the results we wanted. The JV has resolved to understand what has happened and why so that we can build the business case for further drilling. We will be turning to US based experts who will have seen this before to seek their guidance. Whatever the result of Warro-4 we would not have been back drilling til mid next year in any case (no rigs) so we have ample time to work through the issues and decide what is best to do next.

I hope this helps and thank you for your support.


stephen
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Obviously the management is well aware of the situation and have plan in place to tackle this challenge while at the same time they ARE working hard and working well behind the scene on other projects with positive prospects.

This email provided me positive assurance that the company has wise and better focus on projects that could bring good value to shareholders in longer term and they do have plans to get through difficult situation, and more importantly the company is in good hands.

Good luck to all holders.