Ann: Proactive Investors Series Presentation, page-5

Sorry about the delayed post.

Just a few quick titbits gleaned from a chat with Brad post luncheon

In regards to the Madden field, looks like ELK got a bargain!

1) ELK were highest bidder from 4 others

2) Post purchase guys from the operator gave the ELK team a presentation during which they expressed surprise at the winning bid of $20 million, they expected at least double.

3)At the presentation ELK were given a gas production profile projection to 2065.... it looks like ELK bought twice as much gas as they thought they had as compared to their due diligence on the Freeport information.

4) the Lost Cabin Gas plant is insured for $625 million. The plant is in very good shape.

5) gas price received is at a discount to Henry Hub, at current prices it is about 22 cents under HH. The discount decreases with an increase in HH.

6) There are no plans for expenditure on new wells into the Maddison formation at this stage.... if there is a significant increase in the gas price then that may change. Keeping in mind the wells need to go to 24000+ feet and can cost $50+ million ( can produce 50mmcfgpd+ )

Cheers

Dan