Ann: Independent Reserves & Resources Report values Colorado Oil, page-12

This material increase in the Net Present Value of the Pathfinder project is due to the successful execution of a number of key value-adding initiatives by AKK:
1. Acquiring Incremental Oil and Gas (Florence) LLC, including production of approximately 55 BOPD
2. Renegotiating its oil haulage contract with Suncor Refinery from $11.50/barrel to $5.50/barrel
3. Operating the Pathfinder project internally to significantly reduce operating costs of the field. The Company is headquartered in Florence, and Austin’s small team are “hands on” and manage all operations internally. This avoids the high cost of external contractors. The Company’s current and prior field operating costs were thoroughly assessed by Gustavson Associates.