Ann: Eagle Ford Update, page-5

Ok - lets put some sensible conversation around this. 

First - is this a price sensitive announcement? Its not even about GGE - its about a neighbour having some success which is good, but doesnt indicate ANY progress by GGE since their last update. This sort of news is welcome, however could surely be communicated on the company website instead of a price sensitive announcement.

Ok, on to the announcement itself. I like the fact that there are good flows and volumes so close. It de-risks our drills enormously. I feel its a good bet we'll get some hits on these wells. Great.

However, in reply to your messages above. Each well costs $4.5 million. We have $1.9 million in the bank. We are already a 50/50 partner so each well costs us $2.25 million. We cant even afford to drill one well. We will need to farm in with a partner and dilute our ownership significantly just to get a start on this. 

Not all negative, and we have to start somewhere but its a long road ahead. Talk of MC in the 10's of millions is very pre-mature. We dont even have a partner yet to share the cost, drilling is a long way off.

Finally, interesting that Freeman decided to remind us that they havent raised money in 8 years. They might need to in order to progress these wells. Problem is who in their right mind would put more money in this company? I certainly wont be giving them another cent.