more answers from the main man kenny

After last nights response to my initial questions i fired off a few more find the questions and answers below.

Cheers

Emo

Welcome to our world of determining what is “Material” “ New” and what is “New and Relevant”. We send emails to the ASX frequently asking for clarification on this very topic. Their replies normally involve the various differences and nuance language between say an exploration well vs. a development well inside a known reserve vs. a well that is producing and has been completed. This Park City field has been proven by RET and third party reservoir geologists and has also produced from RET wells. Technically we are in a producing field so required releases have much more flexibility for the definition of “material news”. Sounds like a crappy answer but that is the reality of the situation. I understand your position on the news but incomplete news is not “material” and can have an effect on both buyers and sellers.



Now let me try and be specific with your questions:

QUESTION: The plant has had a fracture and was shut for maintenance as per AKK website which has since been repaired.

ANSWER: the plant “fracture” was only the initial cause of the plant being shut down. The “material” news in that release was that it was shut down. After the initial fracture they actually had several more issues arise and all of them can be attributed to the first 6 months or so of bringing a new plant into full operation. RET asked for more time to bring the plant into full production prior to us saying that it has been “repaired”. We agreed.

QUESTION: RET are regulating all pipes and ramping up to 2mmcf per day which shows gas is being piped thus being sold.

ANSWER: You are correct with the assumption however most of the gas seems to be coming from only 8 or so of their wells. RET will produce a monthly gas sales log for every interest holder in the field and that report will include our raw mcf from the field, our actual mcf after processing and the mcf that was sold. Until we have the monthly plant log we don’t have a real income number. You could argue that selling gas is news but it is very misleading if we can’t relate that news to an ongoing expectation of revenue. Visit http://en.citizendium.org/wiki/Natural_gas_processing for a little more detail

QUESTION: And the new albany shale frac job is a new process giving different expected results than acid stimulation.

ANSWER: You are also correct here however this information has been available on the web site and mentioned in previous releases. All we are doing differently is changing the priority order of the formations to be stimulated. It was originally the Fort Payne formation then New Albany Shale. We reversed it for near term benefit but have always stated that we plan to frac it. We will go back later and do the Fort Payne.