Ann: Investor Presentation, page-29

Hap, I think buyers are most likely existing s/h adding or re-entering after a break but I remember many months ago you put some good info on Gas which prompted some of my focus and the Port, higher gas prices, switch to lower emissions to gas etc all appear to be factors that could make Louisiana fields attractive in the future. The wells are relatively cheap and have good paybacks and very close to existing infrastructure and end use. Generally speaking the gas has given manufacturing a boost and the larger independent coy's are very active at the moment.

When we look at some of the old fields in Louisiana and through the recent successes both deeper and around old wells (Desiree is a good example) we can see a lot of oil and gas was left or not identified earlier but now with new drilling techniques, 3D Seismic and multi well pads the economics are pretty good and relatively low risk. Most look to be targeting oil but if gas stays at these prices many well plans that were mothballed could be quickly introduced. The independent coys have a mix of conventional and unconventional but imo the conventional have better returns and help finance the move into the new and more risky unconventional plays for longer term growth.

Our Abita has been disappointing but looks to be in very good ground and neighbours continue to drill and have success which makes me think the expectation is that there is something worthwhile there and the current production is just holding the lease for the future. The sub-salt deeper plays if successful would also bring interest but largely overlooked at the moment by the market but not some of the larger independent coy's who appear to be working together to develop this play. Those with positions already have been ahead of the pack and I think gge prospects are all in good ground. Of our 3 prospects I think Napville is the main game but the other two could in time prove to be equally attractive. If we have success on Louise and maybe a couple of others I would expect to see other opportunities presented but probably a bit away for now as mgt probably have their hands full.

All opinion only, back to the car now for kids taxi service and some renegade
Cheers