operations and market update., page-17

I guess I am a little more concerned than most here and possibly without cause.

My concern is that both Mountain Energy and Halliburton know what our 3-D looks like and BOTH "have indicated that they are unlikely to participate for various strategic reasons, rather than on any technical basis".

I agree that I like 100% much more than 37% if it is commercial but we have a very respectable private company that knows that area like the back of their hand and a worldwide powerhouse like HAL that have said no thanks up to this point.

I would love to know the "strategic" reasons.

I'm holding long and strong but I would be lying if I took this as an overall positive announcement.

My only conclusion is that Terry thinks that the Permian and Pennsylvanian sections are profitable and HAL and ME think this is a waste of their capital. Terry seems to have been right so far on his calls on land value. This is truly where I am holding due to trust in management. If the Niobrara is what all partners think it is and P&P sections are what only Terry thinks they are then who knows how high we go.

I'll be sitting nervously in the mean time.