Ann: Drilling Delivers Significant Oil and Gas Re, page-5

re: Ann: Drilling Delivers Significant Oil an... The announcement states that the upgrade comes from a review of its acreage in Oklahoma and Kansas, but since all the recent drilling work from which the upgrade must be based, the additional reserves would be linked purely to the ML assets I would think.

The upgrade is very positive - I would think a doubling of 1P and 2P reserves would make anyone happy. One comment, the NPV10 value quoted is not NPV profit, its NPV revenue, just be careful to distinguish. I personally dont like companies quoting the NPV this way - NPV profit I think is the much more appropriate figure to use. Having said that, knowing what the NPV per well is based on individual well economics, which the company has provided information on, its not too difficult to work it out.

Cheers, Sharks.