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  6. Partnership

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- [Voiceover] And I'm gonna go through this very quickly. On partnerships, it's sort of like, why have any? Basically, you end up with partnerships for two reasons, situational demands would be on competitive leasing. Our industry pro mineral owners. Other people own the acreage because they own production there, or for example, you bought a prospect from us. You make a deal in order to develop a property. I think it's more important to do partnerships, based on technological advancement reasons. If anybody's ever been involved in the Wolfberry, there was lots of issues about lower costs, lower yield operations, giving you better returns on investment or higher cost, higher yield. Also, there were a lot of issues about fewer stages or more stages, how much fluid, how much rate, how much sand. Bottom line was that there was never really any consensus, but generally, most operators stayed in the play and made the economics that satisfied them and I thought most of these things were operator culture-driven solutions. What happened over, what's going to be happening in the Horizontal Wolfcamp? Well, we're gonna have all these same issues, except more intensely. It's going to be no right answers, there are no wrong answers. We're gonna have a lot of the same tendency for no consensus. Do what's driven by your corporate culture. What I wanna emphasize is that there's a lot of very smart shale tech teams that are evolving their ideas day by day out there. A lot of different innovative answers exist, so I think that to spur technological advancement, it's the interaction between these partners that will increase our knowledge in the plays. It's sort of like, how do you do this? Well one process is data trading between different people, different partnerships, different operators in the area. But in a lot of ways, that has a lot of limitations. Trading data is kinda sterile, what you need to know is how things were done. Knowledge is created by knowing the context and parameters and sampling methods and practical experience. A lot of my points here are that knowledge is a little different from just data. What I make a big point is that if you have working interest position partners, you get the fastest increase in knowledge. The working interest partners get the data, they interact with the operator, you can propose operations, you have your own research, you leverage what you've learned with one operator to what you have with another operator. I think a lot of the big, notable, foreign joint venture partnerships are buying into this, literally with their dollars, that this is the way to get knowledge, not just data. That's kind of what our model is, is we go out here, we put a technical deal together and we seek partnerships with a variety, a large number of different operators in the play, so that we have the widest interaction of knowledge with different shale teams, different completion aspects. Our idea is simply to hold and develop these things. Once we've begun to learn in the play, we want to continue to leverage off of that. That kind of concludes my chaotic trip through huge numbers of issues,shale oil play. I'd like to really thank my partners and support staff and a lot or our working interest partners, that helped me create this presentation. I hope everyone that was listening today, has enjoyed the concepts of scale. Thank you.