positive news, page-22

LB,

Conv Notes is $0.5M (when binding docs executed) of the initial $0.6M later this month.

That was to clarify another poster's "Great, more convertible notes". It is NOT $7.5M worth of C-Notes.

The Reserves report covers about 2,300 acres. We currently have I believe 640 acres HBP (4 wells x 160 acres). To get further acres (safeguarding reserves) will need CDP - cheapest way to do that would be verticals until some breakthrough on development Capex occurs.

The implication in the annc is the drip feed is enough to continue the CDP for the acreage where the Reserves have been given - so NOT the main prize of Wolfcamp HZ over 6,500 acres.

It is equity funding - call it similiar in concept to GEM proposal with what info has been determined - differing in amount but also more importantly in how the drawdown is down is accomplished.

SP unlikely to do a whole lot based on this funding (nor would it have done with GEM either IMO) - the prie is the HZ Wolfcamp development - which needs a lot of capital - hence the (same) stated financiers and farm-ins (dejavue?).

Poor use of English in my initial post.


Yes NB, but not as the C-Notes that have been issued in the past. The drawdown is by the company and converted then. We are of course still to see the terms of that.