old hc back, page-20

I would agree Bystander, there is quite a lot of heat. BUT and theres always a but...

1. Beach is the operator - they get to call the shots on all operational issues.

2. Material vs price sensitive vs good to know. Shutting in a test well due to weather would be none of the above. Shutting it on and having serious problems doing so would be material to ICN but maybe not to BPT.

3. If in reopening the well they ran into problems that might be material if it prevents them from concluding flow testing which IN TURN PREVENTS A PROPER CONTINGENT RESOURCE from be assigned!! (my biggest concern)

4. If reopening the well was indeed bungled and BPT has badly slugged or worse still killed the well that does spell trouble for ICN. However if it can be recovered then this is merely a hiccup along the way.

5. Auto - we are going to disagree here as a CR would seem premature and only needed if they think their balance sheet is in trouble - if so exercise the Put option and that cures that. The forward drilling program with ICN at 35% WI and even wells costing $15M a piece they will have enough for another 3 wells. Thats 4 in total and I'm expecting a Contingent Resource over over 3Tcf by then. But I would hate to be seen as a cheerleader saying no CR and look foolish.

6. Technically has the JV been started yet? I thought that BPT and ICN were merely working interest partners with BPT as operator and JV wasn't in play until after Halifax-1 was completed in all respects. That would explain for me why BPT treats ICN with utter disregard and there is not much ICN can do about it. Once a proper JV is set up (including now CVX I would expect communications to improve). You could call the company and verify that I suspect.

7. Takeover - it wold have to be hostile would it not?? Its one thing to get the 20% - a whole other thing to get over 50% and then move to compulsory acquisition. Can't see it being easy, especially if RJ and team has support from larger shareholders who wont sell out cheaply.

8. Seems cheap to me - I did the only thing I could and bought more - but then averaging down hasn't seen to successful for me recently and I would much rather average up!

GLTA - hopefully ICN (and BPT) will be able to share more details as to what has happened.