e-mail
Subject: e-mail
From: Barrett Brown <barriticus@gmail.com>
Date: 5/14/09, 10:51
To: Robert Brown <rbrownbarachel@hotmail.com>

Dennis-


Just wanted to give you a heads up on several items that were brought to my attention after our conference call.


  1. Kim – Denver is going to be e-mailing you an update as to Kim's performance. The letter should be self-explanatory and detailed, but bottom line is that Denver wants to let Kim go. Critical lease not recorded, attitude. I explained to Denver your desire to transition her into another job somewhere else or to pay her a severance package, so he is aware that you don't want to kick her out into the street without a paycheck.

  2. Mike – Still a considerable apprehension with regards to Mike's employment at S.K. & Co. Have assured Denver and Kensey that he is there to assist them and that he won't be interfering with their independent activities in petroleum and geology. Their feelings were that we had enough people that didn't know what they were doing in the oil and gas business (Kim, Jim, etc.), and that if we're spending money on additional personnel, they should have an experienced oil and gas background. I presented Mike as a person who would interface with you and our European lenders, mentioned his resume, etc., but no matter what light I present him in, there's still some apprehension there. Denver's comment was that Kensey was more than capable of running the day to day operations. I think they'll get along fine once he gets there, but Mike will have to be very careful not to step on their toes.

  3. Monday or Tuesday, Denver should have maps updated to the point where he can make final decisions as to additional leases needed and/or acreage currently leased dropped and any budget revisions done.

  4. Last options on seismic permits should be signed by the end of the week, allowing the seismic shoot to start next week.

  5. If the seismic shoots proceed next week as planned, we should have data in final form within 30 days and confirmed yegua drilling locations (drilling of one or more yeguas can start immediately thereafter). Robert believes he can have an AFE completed by the end of this week and still thinks a yegua well can be drilled and completed, including location cost, at around $400,000.

  6. Denver met with Robert and I privately to discuss two projects that have come to him that he wants to pursue. He will e-mail you and I a proposal on both. He wants to be careful what he puts in writing so not to leave a paper trail that could compromise his recent deposition with Baker & Hughes (old bankruptcy). Denver has been asked by two independent groups to help them with his geological expertise. He believes that there is upfront cash to be made as well as a carried interest. With Robert and Kinsey's experience and background, he believes he could convince the group to let S.K. & Co. be the operator, minimal time and money (probably less than $50,000) required on our part required to start drilling. He would want to split with us the upfront cash and carried interest on the project. Again, there'll be a detailed proposal submitted to us; you can call me tomorrow to discuss further.


Hope your and Mike's meeting went well today; give me a call at your convenience in the morning.