Ann: Transforming New Standard Energy , page-136

Stockdon,

I don't know whether anyone is suggesting it "worthless" but maybe it is worth less than what this deal presents it as and what NSE proposes to pay for it.

As a shareholder I would not be too excited about entering the EFS in Atascosa county. It simply is not prime EFS.

The real (and missing) important information is what is the EUR for those already drilled wells - such as Peeler ranch wells - and what is the IRR and what is the basis of the calculation. The PVA slide I referenced has it for a much more productive location.

The concern is being locked into a CDP of 1 well every 6 months in Peeler Ranch lease at say Capex of $7M. What is the well payback period for the Capex. What if prices "soften", meaning cash flow decreases but debt service costs remain the same.

This is a critical consideration and NSE mgmt just haven't provided the real meat to chew on. Not all change is always for the best.