our current position

We seem to be all over the place at present, might be contagious from management.

Seriously I too get a little peeved with the delays and late reporting, but is it circumstances conspiring against us or management taking their eye off the ball.

IMO, probably a combination of both to some degree.

Where are we at Aug 2010

1. $7.5 mill in the bank

2. Two wells spud and paid for

3. Token oil production as compared to 12 months ago

4. Partners broke and showing strange mating habits

Where to from here

August, sees promising news from Napoleonville and now GGE in a trading halt for a few days pending some financing deal.

Now if GGE are cap raising then they must have shown something to funders that was interesting to say the least. I cant see anyone giving large funds to GGE without evidence based backing to any proposal.

Silverwood, currently at around 6500ft and drilling ahead. Its actually two thirds the way to TD and I expect it to hit TD over weekend. Now Silverwood wont be a company maker but AUJ is staking its funds on that alone. Directors of AUJ were buying options very close to expiry and I suspect they have exercised them.

Moving along to Fausse Point, well there has been carrots and more carrots thrown our way on this one. Speculation is rife on whats down there and why not test the upper zones.

More speculation has been bred by a VIL/PASS merger, which seems on the face of it to me, desperate attempt by partners to give themselves some strength or bargaining power. I suspect that no forward movement on FP is mainly due to VIL/PASS having no money. Evidence for this statement can be drawn from two factors.

1. VIL's failed attempts at a SPP

2. PASS now agreeing to merge with VIL at a somewhat lesser price or value than the GGP deal was. PASS has not attempted to swallow either GGP or VIL. Its all about PASS being swallowed.

Bowtie, another reason for delay...GGP has no control over that and will never have nor can they be blamed for any delays there. With 18% they can't generate enough sway with others who pull the levers.

Bullseye, steady but overall still declining, so a third well is to be considered there.

I will bet that SG and team are just as frustrated as some shareholders and hence a move to the Permian Basin project where they can exercise more control.

Yes the stars have to start aligning for GGP but I will bet SG is trying to make it happen. I believe Aug may be the new turning point. Lets hope our partners are actually pulling their weight and not just leaving it to GGP.