>The well was spudded in May 2008 and initial test results came out today. They were absolutely terrible and the stock retreated at a fast pace and is continuing to fall.

Out of curiosity, I had a quick read through their last conference call from Aug 6th. It appears they took the slow and methodical approach to the completion.

--------------

First, keep in mind that this is our first operating well in the basin and not our tenth well or twentieth well. Being such requires that we learn as much as possible from each individual zone as we complete them. While we planned on perforating the zones and then flowing them for a specific number of days, if a particular zone performs better or worse than we initially expected, the plans and timing will change accordingly. I need to emphasize this since we need to have latitude in understanding from our shareholders in regards to timing and information acquisition and disclosure as we go into this process.

We are now at total depth and will begin perforating the lower most zones and working our way up the well bore. The perspective sands have porosity ranging from 12-17% with associated permeability ranging from 27-107 million RCs [ph]. Additionally, as stated in our press release, these zones are not in the Roslyn formation which was our primary target prior to joining. But rather in the Wenatchee formation which was our secondary target before drilling. But now based on the fact it appears to contain gas saturated sand it will be our primary target as well going forward. Each zone will be perforated followed by a short flow and pressure transient test. Stimulation will follow if required based on transient results in unstimulated flow potential. Subsequent to that will be a longer flow period and a longer transient pressure build up testing. These tests are required to determine flow capabilities which then could be used to estimate reservoir recovery potential. Each complete stage of testing will follow a similar flow and analysis procedure. Results from this effort should be available in the next few months.

------------------

A high risk business that's for sure. And very expensive if you don't get it right the first time. Toreador's well didn't work out as planned either. That's the deep HP/HT unconventional well located in Hungary, not far from the Mako Trough.

Aug 28

-- Operations continue on the Balotaszallas-E-1 ("Ba-E-1") well in the Tompa block in southern Hungary. The well continues intermittent testing to gather pertinent information on well and field productivity. Production rates have fallen short of expectations. Construction of the 20-km pipeline, which was designed to tie-in both the Tompa field and the Kiha-15 well, has been temporarily suspended while remaining permits are approved. The Company has a 25% carried interest in the Ba-E-1 well and a working interest of 100% in the Kiha-15 well.