"2 - 5 rigs for h2 2010", page-8

The sugarloaf ami has been leased for some time.

Some leases have expired already and have been re-newed,some leases are due to expire and will not be re-newed.

These leases need to be hbp (held by production) before they expire.Hilcorp is well aware of this and will co-ordinate a programme to retain the ground.

As this area has proved to be some of the most productive in the play to date,no j/v partner would be keen on relinquishing acreage.

The kow well may have a new lateral drilled from the verticle wellbore or they may opt to drill a new well from the existing pad.

The wells are grouped into 2 groups,(existing) and (new) as far as payback to hilcorp occurs.

I am confident that there will be extra wells drilled on the sugarloaf ami during the 2nd half of 2010.

All the best.