Ann: Quarterly Activities Report and Appendix 5B, page-5

All investments have their challenges however ATS seems to be in a very strong place. Mostly the issues are out of their control in the near term namely crude oil prices going forward and production flow rates from the initial wells. I would like to see the company cease issuing more shares as at near 900 million I believe this is near the optimum without impacting the company structure. I note there are quite a few unlisted options on issue as well. The anticipated strong cash flows going forward should eliminate this issue.

I have been there from the start and have a strong understanding of this group. I look forward to an exciting 12 months a head.