% chance of being commercial, page-12

A doubling of the SP should 77H prove commercial is not a great leap for the imagination. Our MC @20c
is close to 120m now, based on "expectation" of a good result. If the result is confirmed as good then this
would be my prediction ;

{24 hour flow rates}

1. 4mmscfd and 250 bopd 35-40c

2. 5mmscfd and 300 bopd 45-50c

3. 6MMscfgd and 350 bopd 55c-65c

Declines observed over the next 30 and 60 day intervals will have an effect on the longer term
SP. If declines are less than say 30% then based on EPS in the Longer Term, the SP could be
multiples of the above. I would say about $1.50+ based on 2 or 3 above. This assumes 2 years
down the track if we had say 10-15 wells producing at these rates.


4 follow up wells planned I think, with the rig parked up on site. It ain't left, which is a good sign.
Lead times for materials and fracc equipment etc but should be able to get the 2nd well done in
3 months or so which would provide further catalysts to the SP via increased reserves if they
were also proved commercial.

Lot of Ifs and Buts at this stage but that's my punt on the outcome.

GLTAH