Breitling Energy Corp fka BECC

[FM II]

Reaper, here are the economic indicators on the Parramore Lease. It has not paid out and since it is non-commercial now, it is unlikely to. The Parramore is the best lease among the CW operated wells in Sterling and Glasscock Counties. Feel free to post your own numbers and we can hash out the differences. The effective date of these indicators is 4/1/2009, the month the first well went online. This is used only for discounting, so is not particularly important in this case.

Earlier, you asked about the other factors that go into my production guess for the Hoppe. This lease and others are helpful in determining how the Hoppe will behave. This is only a small factor, initial potential test for the Hoppe was considered. Again, no uncertainty on how the Parramore wells behave and will behave, lots on the Hoppe, but less and less as time goes by.

Why are we discussing the Parramore? Primarily because you brought it up but also because it tells us we need an unprecedentedly high oil and gas price, plus performance better than almost all similar nearby wells in order for the investors in the BECC wells on the farmout to make any money. No company can predict future oil prices, but when things look bleak at historical peak prices, it is not a good sign.