Guys,

I am sorry if my post came across as negative, I was merely trying to analyze the report. The fact that management have limited the EIA to 44,000 speaks volumes to me but perhaps I am wrong. I concede that there may be more scope for further developments on the various sites but today that is an unknown and has not been identified. No doubt management will do the necessary extra drilling to determine the future potential. Let’s face it the plans today are for 44,000 going forward for the next X (who knows) years and this is no small number. This is what we should be basing our figures on and I for one would be happy to see it materialize and make me rich. The extra 30,000 that Dick mentions would also be very nice and of course anything else will be a bonus.

The question about the individual PODS for me is answered by the slide which shows clearly the expansion area encompassing all PODS except POD6. Perhaps 2C can enlighten us about the methods for this plan and how they will employ satellite gathering stations into the two production areas. I would be interested to know if the production facilities can be upgraded online by Hot Tie In. Maybe one of the other companies up there have already employed this technique.

Just one point for Esch, sorry but the 44,000 will not be from 2012 much as I would like it to be. They first have to get ALGAR built and ramp up to 20,000. The 2012 is the starting date they hope to kick off phase 1which is the expansion of existing facilities and new well pads followed by the drilling of the new wells. As I said in my earlier post they have not indicated a timeline for this. One other point, they did mention that the price for the Phase 1 of the expansion will be half a billion. That is a cheap price for more than doubling the production comparing it to the capital costs for POD1 and ALGAR and looks like a great strategy. Just hope they can get the cash. It’s early days yet and I am sure management will fill in all the blanks for us soon.

Cheers

Den