Pelle Karlsson and EvelynT. Karlsson - Page 17

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                  Gruy analyzed empirical data available for the Burnt Hollow                         
            area as of 1979 and established that the lighter oils in the                              
            Burnt Hollow reservoir had been flushed out by underground water                          
            over the course of geologic time.  His analysis included plotting                         
            the porosity and oil saturation of a sample core from the                                 
            Exeter-Hudson Mahoney No. 1 well located near Cromwell's acreage.                         
            His analysis of that sample revealed that the high porosity rock                          
            had little remaining saturation of oil and that higher                                    
            saturations of oil were present only in poorer quality rock.                              
            Thus, in any fluid injection project on such property, the fluid                          
            would migrate to the better quality rock, bypassing the area of                           
            higher tar saturation.                                                                    
                  Gruy's analysis is consistent with other wells drilled in                           
            the vicinity of the Cromwell acreage, including the so-called Sun                         
            State No. 2 (Sun) well from which flowed water, not oil.  In the                          
            case of the Sun well, even steam heating of the reservoir yielded                         
            only minute quantities of oil, confirming Gruy's conclusion that                          
            these reservoirs were not amenable to steam injection recovery.                           
                  Petitioners' expert, Bursell, did not make any reserve                              
            analysis or predictions specific to Cromwell's properties.  His                           
            reservoir analysis was limited solely to a review of the Sun                              
            pilot well and the Exeter-Hudson Mahoney core hole.  Bursell                              
            evidently did not review the additional core data discussed in                            
            Gruy's report.  In analyzing the Exeter-Hudson Mahoney core,                              





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