Fair point TShirt. Although I reckon they have derisked Paloma...

Fair point TShirt. Although I reckon they have derisked Paloma as much as they can and with this I would assume that they are comfortable where things sit for now. Any JV I would think will come down to development costs associated to the shale oil as they appear to have the conventional oil covered.

I know I have said before that basing recoverables on old historical recovery rates is not accurate given the technology available today as to thermal etc,. The contingent resource thus far from Paloma has been based on historical recovery rates of around 11% equating to 30mmbo.

Today SGY released a large increase in their Contingent Recoverable Resource supported by Sproule, Unconventional Limited (Sproule) Independent Resource Assessors. The increase was 3,000%, is a result of the Company’s efforts and commitment to current and future primary and thermal development activity in the Temblor Sandstone at the Kreyenhagen Field.

Apply the same methodology for Paloma and it is a big big number of BOE.

For me, this is pleasing as it applys current extraction methods to the calculations of recoverable resources which is more accurate that using methodology from the 60's & 70"s