I will share with you the reply from Chris I received today after expressing a few concerns and asking questions about the production delay, latest financials and Q3 expectations ... you can call or send emails if you have any questions:

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"... although we reflected a net loss of $1,004,827, it is very important for you to understand that the net loss number encompasses our NON CASH items (stock based compensation and Depletion which total $3,014,411). The non-cash items have nothing to do with our actual operations or spending, so we are doing very well."

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"I appreciate your concern with respect to our production update. We are fortunate to be partnered with a very reputable Company that operates our property very diligently and carefully. They are aware of our intention to release a production update in the very near future but they also want to be able to give us an accurate production number. As soon as we have that number we will release it. Trust me when I tell you that we are not playing any sort of games with respect to our numbers. The cold weather did set us back on announcing, but we will have a “Stable” production number for the market in the coming weeks. Please keep in mind we are only 2 months into 2012 and are on track for our guidance to exit 2012 at 1200 boe/d.

The shooting of the 3D seismic should be complete next week and then the processing of the seismic will begin. Processing should take about 60 days. There is a lot of data. This is a tremendous program and will provide “Huge” upside for the Company. The program will provide several drilling targets for the Company, which will increase our already large inventory of drill prospects which is a big part of our exit strategy as far as becoming a target for a take-over.

You are reading our financial statements incorrectly. The 9 months ending we reflect (0.02) per share loss, not (
.04). That was just for the 3 months. As I mentioned in my previous email to you, the loss is a direct reflection on THE NON-CASH ITEMS. When you remove the non-cash items we have a eps of
.05. The non-cash items are reflective of stock based compensation (a one-time charge for stock options granted that is required to be expensed) and depletion. Depletion is also to be expensed and is a function of our high production rate. We had a tremendous 6 months of operations!

I expect Q3 to be profitable.

I hope I addressed your concerns."