production, page-4

Rough Calc I get D&L3 & Desiree estimate actual prodn for YTD August of 9,070 boe, add Sept at 3,480 boe gives around 12,550 for Sept Qtr.

Receipts (at $107/barrel) = $1.34m
Less: Production Costs (30%) = $0.54m

Contribution = $0.80m

Admin from June Qtrly is $90k but say $150k

Balance should be enough to cover Louise (I think is around $650k) and the production facilities at Napville & WK without touching the opening cash which could cover legal risk per announcement.

D&L looks steady but had higher gas in May & June, Desiree is down from initial flow however initially production wasn't supposed to come before facility was finished so its good to get the early cash. Production costs on Desiree may be higher with temporary facilities & may also have downtime when facilities cut in sometime in next few months?

Abita and WK to come. Not bad considering market cap now at $4.5m?

All opinion only,
Bw