making sense and dollars !!!, page-13

You're an interesting fella Mr Deeds. You got our attention alright. Hope you don't get this excited during an operation!

RBG: Rather than just "saying" you don't believe my figures for first year, it would be much more useful to show me how you get yours based on the info we have.

Remember the gross well revenue would pay for itself in around 14 months, but I have worked out our NET revenue...and that would make it around 2 years for our payback. This does not include production facilities now being set up.

Based on production on 330 days, H2 would need to produce at an average 180boepd over the following year. That would be a good result. Around $5.4m gross revenue @ $90bbl.

Key here is we have 85% of costs, and 65% of revenue.

I stick to $3.1m, but range could be around $3- $3.5m to us...and we have to truck this oil out.

If Pathfinder surprises to the upside, then great but I prefer to be more realisitic as most production surprises to the downside.

Oilers by nature have to be an optimistic bunch, like us too I guess.