Ann: December 2014 Quarterly Report, page-4

Please let us know if you get a reply.

Does acquisition go under exploration and evaluation or production? May have partly been for (570k)

• The Company entered into an agreement to acquire 3.99% WI in Desiree and 15.3%WI in Dugas & Leblanc #3. This acquisition increases the Company’s interest in Desiree to 39.6% and D&L (#3) to 56.8%.

Or

Over the last six months the Company has been working on a number of projects at the Napoleonville dome. One of the projects has progressed and will be presented at NAPE this February as a farm out opportunity. Whilst the project continues to be commercially sensitive it does present a significant opportunity to the Company and has the potential for upto 1.4 tcf of gas. Whilst the depressed oil price may present obstacles in farming out the project as this project is primarily gas driven and the US gas price has remained relatively stable the Company is anticipating significant interest in the project.
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Still good to see 2 million in the bank, 8 mill in revenue coming in, and debt free. This thing was undervalued at $100 per barrel. At $45 per barrel it still seems pretty undervalued with a 4 million MC.

Will be interested to see some further details on point 2 which they have pegged for February. If all the exploration and evaluation has been used for this, they have already invested 1.5 mill.

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