Longford Energy Inc V.LFD

Taxdemicco/Maysteeler

[good40]

Contingent resource is considered non-commercial.  Estimates are based on known accumulations
but are guessed at.  You'll see that the low estimate for contingent resource is only 1 million barrels,  while
the median estimate,  which they call the best estimate,  is 60 million barrels.

Prospective Resource is completely undiscovered so why bother even mentioning ?

There is only a 10% chance or less,  that this well leads to commercial development.  If they beat
the odds,  then the economics are not near as good as other Kurdistan plays.  This one has
a 40% working interest plus a 40% royalty.  Most others have a 10% royalty. The company agreed to an increase
from 10% to 40% in consideration for another 20% ownership.

My questiion has always been,  why increase your royalty by 400% if they could have purchased for cash ?

[Baxter4]

I have to correct the info.Contingent resource is considered non-commercial (but will be commercial when the wells and infrastructure are in place).  Estimates are based on known accumulationsbut are guessed (educated guesses at least) at.  You'll see that the low estimate for contingent resource is only 1 million barrels,  whilethe median estimate,  which they call the