response from head office, page-23

Hazio,

I have to agree with you on the fact that no injunction is held over our wells and indeed would have to be reported to SHERS.

The company has been forthright in updated ann to SHERs and have not lacked the commitment to inform us. There is only so much we can be told because of legalities and to some conspiracy reigns.

As researchers we have pieced together the issues and discussed at length the pro and cons of this litigation.

As far as I am concerned I am happy with the companies performance and need to let them do their job in the best manner of achieving the best outcome for the wells.

From what my thoughts are is there is a lot of juggling going on with these wells. To me they know the capabilities of flows and in interest of best technology practices are being adopted.

If we go back to SRH #6 our 1st well is an indication of what we have. A monster flowrate of 379 bopd, 3 times the PB average well. Then SRH # 8 is reported as being the equal if not better than #6.

These wells are monster producers and seems to boot very high gas flowrates too which is compounding oil flowrates.
We thought initially all fraccing was done on the initial stimulation of these wells but low and behold only 1 interval was fracced for the time being.

New pump units, hooked up for gas, all set to go, but again they revisited them and fracced the remaining intervals.

Here we go again more frac fluid cleanup which is going to take time and I dare to say after they are done we will see some very good flowrates.

I think if they were normal PB wells they wouldnt perservired as much as they have done now. We would be in production otherwise.

Something has been seen and the company is chasing what seems to be an awefull lot of trouble to get. If we had beneficial flowrates woulnt a JV partner be more interested in what we have rather than not have in the stable.????