Kase stresses government didn't allow oil to be sold (which really doesn't answer the question). After government audit was completed, all 1MM barrels were sold.

ERN then had the "mechanical" problem(s).

Well Fargo suggests ERN's pr people do better job. (Laffy)

Steve Green Ordinance Capital.

What's the cost to produce the oil including storage?

Kase says break even is $35, and as production is increased it will fall. He drops #9, so this is the first new well. Cost will be reduced to $29-$30.

Reach agreement with operator of FBSO. Major operating expenditure (fixed). This will result in cost of production being lower than what "I've" (Kase) mentioned.

Does $29-$30 include cost of paying interest?

Kase: "That is correct"

That's the all in cost?

Kase: "That is correct"

What percentage of your costs are fixed?

Kase: 70-80%

Miocene - High level of confidence. Why? Prospect G especially.

Worked by various 3rd parties, all with high confidence. In an environment that other large producers are present and producing. Technical work. PLan to engage in a contract to drill 2nd half of 2016.

Frank Zins for Seeful

Shut down 7 & 8. What date?

Kase - September. And that is when ERN noticed an issue with Oyo 8. Cut down production due to permit issue, and then shut down Oyo 8.

Late September tried to open up 8, and couldn't open it.

What are you currently producing today?

2000 from Oyo 7.

Combination of 7 & 8 was producing 13K, and present production of 7 is reduced due to depletion?

Kase - Several factors. "conditions issue" and can't produce enough gas to inject back in well to bring up more oil. When Oyo 8 is brought back up, there will be enough gas to increase production.

Production will be brought up to 9000.

Pushed further on 14K to 9K.

Kase - 14K was oil equivalents. 9 is oil. Kase says, "more or less" Oil equivalents would be 11K.

Pushed further - Is that 11K net?

Net is about 88% of gross.

Asks about 9 and Miocene. Same rig?

9 will be tied in to same reservoir. It will come in about about 6-7K oil, don't know about equivalent. Most likely 9 is the first new well.

Current level of storage

150K

He reinforces the bad communications.

Mark Highman Sigaro Capital Advisors.

Plan to drill 9 and G?

Drilling of G is about 25 (or 45, I couldn't hear) days. Kase previously mention they have moving pieces, but want to time this so 9 is drilled, tied in and producing with no down time, and G is immediately started after that. They will delay, if necessary, to optimize this schedule.

50 days for drill and complete of 9. Production for 9 would come in early 2017.

Liquidity?

Oyo 8 back online. Financing and capital. Continued support from two large shareholders, so they believe no issues raising necessary capital.

Form - Loans from Allied?

Various options.

Gambia with capital constraints makes wildcat impossible?

Committed by end of 2018. Gambia extended. Kase goes back and talks about potential partners for Gambia, becuase of successes announced in Sennagal (sic), which are extremely close to ERN's fields.

Peter Cardello First Standard Financial - My one problem is management's poor job in communicating with market. Low trading volume, high spread. No interest. 4-5 months with no updates. Has harmed company.

Kase - We're not going to have releases every 6 weeks like in the past. We're cutting costs. We'll do better. We will announce news that is worthy.