paloma update, page-16

As I understand it, the company has a number of matters to address with regards to testing zones and current existing production. I have gone back over the company announcements and tried to provide a bit of a timeline. Everyone should re-read the announcement of 21 June 2012 to appreciated the scale of the Paloma lease.

For example, just at Paloma Deep 1, the Lower Stevens 'B' covers 730 acres of the 2,847 gross acre lease holding. The Lower Antelope Shale extends across the whole of the 2,847 acres. Neon has an 85% interest in the western part of the Paloma lease. Jed Clampett be damned I say.

The immediate matters for which news is expected include:-

1. Paloma Deep production testing results (resource upgrade) (PD 1, 2, &3)

2. NSA production constraint improvements; and

3. Paris Valley well permit status


2013 progresssion to include:-

1. Full Vietnam 3D seisimic survey data volumes ready (early 2013)

2. Glau Lease and Pancho Rico 2D seismic survey acquisition (early 2013)and then drilling.

3. Lower Stevens/Fruitvale conventional production (March quarter)

4. Jack up rig and floater rig contracts for Block 105 and Block 120 respectively to be executed and subsequent drilling

5. 500km2 3D sesimic survey in Indonesia (mid year)

All in all the next 6 months appear very exciting for the company. I have earlier written about the fact the company has almost a road map to the sites of where the good stuff is. This is less trial and error and more just following the signs laid out! I trust that imminent news is very positive. If the news is good, it will enable the company to break free from being a wannabe producer, the end game of which is almost unfathomable. If the earth is near bone dry I will cry mmboe!!!

GLTA