Ann: AKK expands asset base in Colorado with acquisition of adjac, page-9

This acquisition will not only enable Austin to accelerate the development of the field, but will save millions of dollars in scientific and operational costs. Austin is acquiring the assets on highly attractive terms. The property was acquired by Incremental in July 2012 for US$12.25m. The assets have significant unlocked value with six ready to drill infill well locations that have been defined by seismic. This well site selection process led to 22 consecutive successful wells being drilled and production reaching a high of 1400 Bopd in 2011. As well, there are an additional 380 acres that are held that can be re-leased cost effectively within the next year.