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Re: None

Sunday, 10/16/2011 7:56:12 AM

Sunday, October 16, 2011 7:56:12 AM

Post# of 7618
XBOR is doing another RedChip virtual conference on Thursday. The timing of this is perfect in that it would allow them to announce the following:

1) Pre-announce an estimate of 3Q production. This # is probably going to fall well short of RedChip's 3Q call for 325 boepd so why not get the # out there sooner vs. later (see last paragraph for why this is a good approach).

2) If they in fact are planning to (or have already) put up some of their properties for sale, and if they think the sale proceeds would be material (i.e. > 10% of the company's market cap), announce what properties are on the block. In effect this would serve as an advertisement. This would only be advisable if they are pretty confident that they will be able to get these sold, because if they do this and the sale doesn't go through they will look pretty stupid.

3) Revise their drilling schedule. Folks want to know whether they got all those wells spudded last month that were indicated on the most recent drilling schedule. I see that another well that XEC was drilling in the Lusk area has been taking a lot longer to drill than initially expected (see news for Fieldpoint --FPP), might this have impacted the spud date for XBOR's Lusk well with XEC? If things are getting delayed it would be better to get that news out sooner vs. later IMO (see next paragraph for why this is a good approach).

The investors in the May PP have been steadily blowing out their stock ever since it became free-trading, so this makes it even more important than usual for XBOR to manage their news flow consistent with the normal "bad news before good news" approach, in order to maximize the probabilty that these disgruntled investors are out of (or at least have reduced) their positions before the good news starts coming out. That way they will not still be around to throw cold water on the stock price rallys that would likely result when the good news starts rolling out.