Ann: Sugarloaf Production and Operations Update , page-14

re: Ann: Sugarloaf Production and Operations ... Sushi, honestly why come back if you've got nothing positive to say. Your totally negative and biased view on ADI is really not wanted. I'll back this up from your last comments.

You're saying ADI is worth 61c as in the target statement. What you fail to mention is that in the target statement it also says that this is a "CURRENT" fair market value based on the wells flowing. So this value does not include Rancho results, and now we know Kowalik#2 also. The target statement also pointed out that new results would lead to an upgrade (if positive) in reserve estimates and therefore an uprgade in fair value. On this forum it has been said that after the farm out well results were in (again if positive) we would see a reserve upgrade. A reserve upgrade would also lead to an inreased fair market value.

Target statement also said that there was no forward driling program, we now have an outlined drilling program. Although we don't know the numbers of wells that will be drilled in the AMI in the second half of 2010, we do know that there will be more wells drilled, fracced and flowing to sales producing income for ADI. Now we know there is going to be more wells by years end, reserve estimates and the overall play can continually be upgraded (or downgraded) with new reults, again adding to the fair market value.