PROS:

1. Funds raised

2. New partners participating

3. targeting specific geologic formations chosen after review of available data by what is now about half a dozen very experienced team members (in-house, Pennine staff and consultants)

4. "Cost effective rig" indicates the chosen formations are shallow and don't require a big triple like the Nabors rig used to drill #2

5. " first of upto 3 potential wells to be drilled on contiguous lands held..."

CONS:

1. NR fails to assure whether the "cost effective rig" has adequate blow-out prevention capability and drilling crew with relevant experience.

2. While it may be "cost effective" to get a package deal/ bulk price for logging multiple wells, could further information from logging #2 optimize the drilling of #3 in terms of precise anticipated depth and pressure of formations that will be penetrated ?