<table><tr><th>From:</th><th>Zorro Ranch</th></tr><tr><td>Sent:</td><td>Tuesday, August 21, 2012 9:33 PM</td></tr><tr><td>To:</td><td>J Epstein</td></tr><tr><td>Cc:</td><td>Zorro Office; Rich Kahn; Darren lndyke</td></tr><tr><td>Subject:</td><td>Drillers</td></tr></table>

Drillers have just report that they are losing circulation at approx the sam= rate well b did Kings have report clouding of there wells to the south This is good news Will continue drilling to 800 feet and develop well

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