Ann: BUR Activities Report May 24 2013 , page-7

Hi all,

The way I see it the water has always been an investor mirage (excuse the pun).

All they see is the water issue and not the inherent value of the Hientshel field. Located on the Wilcox trend, a known prolific gas producer, BUR has a large acreage position, proven reserves, 3D seismic covering most of the acreage and an experienced US partner.

Every well drilled on the H field has been a commercial success ( no Plug and abandons ) even thou all have produced water.

Now with gas prices rising and a steady production profile the first horizontal well is starting to produce 200K per month to BUR. The fall of the AUS dollar should also improve BURs income.

Yet we still see SH dumping shares it would seem due to the presence of water and the timeframe to solve the problem even thou there producing good income.

The 1cent SP equates to 4.2mil market cap,minus cash 2.45mil giving an E/V of 1.75 mil. Don't think there would be another producer with this cash flow at these prices ?

The management continually promote the idea of a larger partner but are yet to secure one. I wonder at this SP someone doesn't buy us out rather than partner with us.

I probably have to many BUR shares but at these prices I will continue to buy as something's got happen here.

Maybe I have it wrong ?


Wassa.