Bayport International Holdings Inc. (BAYP)

[stervc]

Lochan, let me try...

I’m doing well and I hope the same for you too.

Please, keep in mind that anything I attempt to explain is not from a legitimate oil and gas guy. That I am not, but I have been able to learn enough to maybe be a little helpful here and there over the years. From the little that I understand from my experiences over the years, this is a very powerful PR, but yet subliminal in nature. I do see more of this PR to be brought out in pieces to show the magnitude of this deal and the magnitude of what Bayport owns through Rio Riata.

The role of CTL Oil and Gas Corp as the operator for the Peck A and Peck B leases will be to extract the oil and gas out from the ground. When a company doesn’t own the proper equipment to pull the oil and gas out of the ground, then they must contract for services through the form of an agreement with an operator. CTL as the operator will get a percentage of what will be pulled out of the ground as the operator from how I understand it. The agreement is between CTL (the operator) and Rio Riata (the leasehold owner).

Also, to with understanding, I am sure that CTL is not the only legit operator for the area. The Permian Basin is very very huge and there is no way one operator can do all the work that is required. However, it is good to know that CTL is a very positive and reputable operator that Rio has on board that is a Texas Railroad Commission operator who has been approved to operate crude oil and natural gas wells in Texas.

Also, yes, I think all three wells will be worked this year and will generate large amounts of oil and gas which will equate to revenues for the company. I do think such will happen this year. Actually, I am expecting and hoping to see this happen in less than two months. However, this is if there are no complications that none of us will have any way of knowing from behind their scenes.

I do believe that there will be some sort of an agreement or Joint venture with OXY. I’m not sure how it will be termed, but I do believe that it will be something where both parties will greatly benefit. Keep in mind, OXY had proven reserves of 1.2 billion barrels of oil equivalent (BOE) at the end of 2010. That amount has grown to date from reading through their filings. OXY has spent $507 million in capital to develop Permian Basin oil and gas properties in 2010. OXY had plans to spend $854 million in 2011:
http://permianoilandgas.typepad.com/permian-oil-and-gas/2011/07/occidental-petroleum-permian-basin-oil-and-gas-summary.html

My point in reflecting this info is to show that the location of what Bayport/EXTO owns (and even more that will be owned) is something that should not be ignored. I am confident that they will be having more negotiations with more than OXY. This area is rich in oil and gas and many would like to have a piece of this pie. I think people will see that investors are in good hands with what the company is trying to achieve.

v/r
Sterling