Ann: Agreement with Castlelake, LP, page-16

The reason you will get nothing is because you have been diluted to virtually nothing in the last 6 months the company handed out the following plus some. Essentially reducing existing shareholder equity to maybe 20% of total shares and options. Not only that but the options they gave out the KM had tiny exercise price of 0.003 whilst holders are 5 times that at 0.015, JC and others got given options with NO exercise price (free shares). The effect is to further reduce shareholder value even more.

My back of the envelope calcs look like old shareholders may own about 5-10% of the equity. The paper value of oil and gas properties is 180 with a total equity of 130 mill. Even if they manage to sell at paper price the financiers, employees etc will take 120 Mill and you guys will be left with the scraps.

(in millions)
KM 440 options 75 shares
NIck 135 options
NSL 50 options
jc and co 270 shares 125 options NO EXERCISE PRICE
convertible notes 225 shares 100 options
employees 100 options
JC and co 60 options 1.5 c
140 options to existing holders at 1.5 cents