Antrim Energy Inc. ATGYF

RE: Production Fall -off-Petrolifera

[Bigbadoil]

I think alot of the issues with PDP were predictable. Alot of these wells are flowing wells are flow under their own pressure. I.e they are like "artesian flow". Flowing wells are rare but you have to wait until the pressure drops and the wells stop flowing naturally before you install pumps. You would have to "kill the well" to install the pumps which could damage the well. PDP has had problem sourcing pumping equipment and supplies so the wells have continued to decline in rate and pressure. AS the pressure declines, it gets increasingly difficult to lift the oil to surface. Any water would be drawn in because of the high initial rates. There is probably a very limited water aquifer downdip and therefore they need to sustain the reservoir with waterflood. Most companies get in a revenue driven mode and expect these rates to keep going. Supposedly these wells pay out in 15 days with the high initial rates. Long term reservoir management, to get the maximum amout of oil out takes a totally different mentality to the exploration phase. Hopefully AEN has the combined exploration/efficient reservoir management talents to exploit Medianara to its fullest. They have definitely proven they have the "Exploration" aptitude. Bigbadun'